To: MAYOR AND CITY COUNCIL
From: ANDREW WINJE, PUBLIC WORKS DIRECTOR
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DISCUSSION AND POSSIBLE ACTION ON THE PROPOSED SECOND AMENDMENT TO THE CITY'S SOLID WASTE HANDLING SERVICES AGREEMENT WITH ARAKELIAN ENTERPRISES, INC., DBA ATHENS SERVICES, TO EXTEND THE TERM AND TO MODIFY RATE STRUCTURES, CERTAIN SOLID WASTE PROGRAMS, AND OTHER TERMS OF THE AGREEMENT
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EXECUTIVE SUMMARY
Arakelian Enterprises, Inc., DBA Athens Services (Athens) 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 was approved on July 1, 2019. The City is currently in the seventh year of a nine-year term with Athens.
Athens 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. An initial overview of the proposed amendments to the Agreement were presented to the City Council on May 20, 2025.
The City Council requested staff conduct a review and analysis of the revised second amendment proposal by Athens to include the engagement of a consultant to provide an analysis of proposed rates and to conduct a comparative survey of solid waste rates and services in neighboring cities. The subsequent report and survey findings show that, if the proposed rate restructuring is approved by the City Council, the refuse rates for Redondo Beach multifamily residence and commercial customers would increase but would remain very competitive with neighboring cities.
Staff has concluded that it is in the best interest of the City and the community to accept the Athens' proposal to extend the term of the Agreement, maintaining a strong partnership and robust palette of solid waste services in the City. Staff further believes that streamlining the pricing structure by moving multifamily developments into the commerc...
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