To: MAYOR AND CITY COUNCIL
From: ANDREW WINJE, PUBLIC WORKS DIRECTOR
TITLE
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DISCUSSION AND POSSIBLE DIRECTION ON THE PROPOSED SECOND AMENDMENT TO THE CITY'S SOLID WASTE HANDLING SERVICES AGREEMENT WITH ATHENS SERVICES TO MODIFY RATE STRUCTURES, CERTAIN SOLID WASTE PROGRAMS, AND OTHER TERMS OF THE AGREEMENT
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EXECUTIVE SUMMARY
Athens Services has been the exclusive franchise hauler for solid waste handling services in the City of Redondo Beach since 2011. The first amendment to the agreement (Agreement) was approved on July 1, 2019. The City is currently in year six of a nine-year term with Athens Services, and will have the option to extend the term on a monthly basis for up to 24 months when the nine-year term comes to an end.
Athens Services approached the City with a request to consider a second amendment to the Agreement as a result of significant and ongoing changes in the solid waste industry that have occurred since the first amendment was executed in 2019. This report provides a summary of the industry and regulatory factors impacting Athens Services and their proposed changes to the terms of the Agreement.
This item provides City Council with the opportunity to review these factors, ask questions of staff and Athens Services, make any requests for additional research or data gathering, and provide direction to staff on the desired next steps for the development of amendment terms and conditions.
Staff does not anticipate that a second amendment will be negotiated and in place prior to the statutory deadline to establish rates for FY 2025-26. As such staff scheduled the annual public hearing to set rates for the next fiscal year on June 3, 2025 based on the terms of the existing Agreement. If a second amendment is approved by the City, a Proposition 218 process would be initiated for affected rate payers prior to any new rates being imposed.
BACKGROUND
Athens Services is the exclusive franchise hauler for solid waste hand...
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