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CC - CONSENT ITEM: Approval of (1) an Agreement with Arakelian Enterprises, Inc., Doing Business as Athens Services, to Allow the Delivery of Municipal Waste to the Culver City Transfer Station; and (2) Authorization to the City Manager to Approve Similar Disposal Agreements.
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Meeting Date: December 9, 2024
Contact Person/Dept.: Sean Singletary/Public Works Environmental Programs & Operations Division
Phone Number: (310) 253-6421
Fiscal Impact: Yes [X] No [ ] General Fund: Yes [ ] No [X]
Attachments: Yes [ ] No [X]
Public Notification: E-Mail: Meetings and Agendas - City Council (12/04/2024)
Department Approval: Yanni Demitri, Public Works Director / City Engineer (11/18/2024)
RECOMMENDATION
Staff recommends the City Council (1) approve an agreement with Arakelian Enterprises, Inc., doing business as Athens Services, to allow the delivery of Municipal Waste to the Culver City Transfer Station; and (2) authorize the City Manager to approve similar disposal agreements.
BACKGROUND/DISCUSSION
The Department of Public Works Environmental Programs & Operations Division (EPO) oversees Transfer Station operations for refuse, recycling, and organics collection services for all residential and commercial customers in Culver City. EPO recovers its operational costs through refuse rate charges to customers, with revenues supporting collection, disposal, recycling programs, and public outreach. These operations are fully funded by enterprise fund revenues, with no reliance on general funds or tax contributions.
The City’s Transfer Station is permitted by the County of Los Angeles Department of Public Health to accept 500 tons of waste daily, and currently only receives about half of that total, allowing for excess capacity to be accepted by outside haulers without impacting its primary operations. The City has entered into license agreements with the Cities of Santa Monica and Los Angeles on a temporary basis in the past to utilize this excess capacity.
Athens Services, a private hauler providing waste services to the City of Los Angeles, has requested approval to deliver up to 125 tons of municipal solid waste (MSW) per day to the Culver City Transfer Station. These materials would be transloaded at the station and transported to the Simi Valley Landfill, alongside the City of Culver City's MSW.
Staff has developed a pricing structure of $90 per ton that ensures competitive rates for Athens Services while securing a new revenue stream for the City. The additional revenue will contribute to meeting the Division's reserve targets while lowering future rate increases for Culver City residents and businesses.
In addition, staff recommends that the City Manager be granted the authority to approve similar agreements with other haulers, to streamline the process of leveraging the Transfer Station’s capacity and to be able to quickly act on short term or time sensitive disposals from outside haulers. Other haulers collecting waste in the area include Waste Management, Republic Services, City of Los Angeles, and City of Beverly Hills.
By approving this agreement and granting the City Manager flexibility to negotiate similar arrangements, the City can secure operational stability while generating fiscal benefits.
FISCAL ANALYSIS
Revenue generated by the agreement will be contingent upon the amount of waste actually transferred and the frequency of delivery, and will contribute directly to the Environmental Programs and Operations Division's enterprise fund, ensuring continued financial health. At $90 per ton, this agreement could generate over $1 million for the remainder of the current fiscal year that would offset expenses. Future agreements will have similar variable revenue generation based on the amount of waste delivered to the Transfer Station.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Approve an agreement with Arakelian Enterprises, Inc. doing business as Athens Services to allow delivery of municipal waste to the Culver City Transfer Station;
2. Authorize the City Attorney to review/prepare the necessary documents for this agreement and future agreements with other haulers; and
3. Authorize the City Manager to execute such documents on behalf of the City.