HomeMy WebLinkAbout01d. Minutes - 03-29-22 - Special Meeting
City Council Minutes
Special Meeting – March 29, 2022 1
MINUTES OF THE
CITY COUNCIL OF THE CITY OF DOWNEY
SPECIAL MEETING
MARCH 29, 2022
The City Council of the City of Downey held a Special City Council Meeting on March 29, 2022,
at 4:02 p.m., in the Council Chamber of the Downey City Hall, 11111 Brookshire Avenue, Downey,
California, with Mayor Pacheco presiding.
PRESENT: Council Members:
Blanca Pacheco Mayor
Catherine Alvarez Mayor Pro Tem
Claudia M. Frometa Council Member
Mario Trujillo Council Member (excused)
ALSO PRESENT: Gilbert Livas, City Manager
John Oskoui, Assistant City Manager
Yvette M. Abich Garcia, City Attorney
Alicia Duarte, CMC, City Clerk
1. ASSIGNMENT OF CALMET SERVICES, INC’S INTEGRATED WASTE MANAGEMENT SERVICES
FRANCHISE AGREEMENT TO ATHENS SERVICES: Public Works.
1) ADOPTED RESOLUTION NO. 22-8062, A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF DOWNEY CONSENTING TO THE ASSIGNMENT OF INTEGRATED
WASTE MANAGEMENT SERVICES FRANCHISE AGREEMENT BETWEEN THE CITY
OF DOWNEY AND CALMET SERVICES, INC. TO ATHENS SERVICES; AND,
2) AUTHORIZED THE MAYOR TO EXECUTE ASSIGNMENT AND ASSUMPTION
AGREEMENT FOR INTERGRATED WASTE MANAGEMENT SERVICES AMONG
CALMET SERVICES, INC. AND ARAKELIAN ENTERPRISES, INC. DBA ATHENS
SERVICES.
Mayor Pacheco asked City Clerk Duarte if there was any written correspondence received
regarding Item No. 1. Mayor Pacheco asked if there was anyone present who would like to comment
regarding Item No. 1.
BC, resident, commented regarding his hope that the City will work with a company that
understands the importance of the environment and the environmental challenges faced. He
commented in support of fossil fuels.
RECESS/RECONVENE
Mayor Pacheco recessed the City Council meeting at 4:06 p.m. Mayor Pacheco reconvened the
City Council meeting at 4:07 p.m. with Council Member Trujillo excused.
City Manager Livas provided an overview of the item. Carol Rowland presented the staff report.
Ms. Rowland stated that the City entered into an agreement with CalMet Services, Inc. for
exclusive residential and commercial solid waste collection and recycling service on April 1, 2016 and
that the contract is set to expire on March 31, 2026. She noted that Arakelian Enterprise, Inc., doing
business as Athens Services, acquired CalMet Services, Inc. in November 2021 and, in December 2021,
submitted a letter requesting the City's consent to the assignment of CalMet's franchise agreement to
City Council Minutes
Special Meeting – March 29, 2022 2
Athens. She stated that the City engaged R3 Consulting Group to conduct a comprehensive operations
and financial analysis of Athens, which they evaluated based on its liquidity, solvency profitability, and
operating efficiency. She presented the findings, which found Athens's liquid and solvency metrics
comparable to those of three of the largest solid waste management companies in the country. She
provided the figures for Athens's operations, which includes more than 400 collection, hauling and
container vehicles; service to 28 municipalities in the Los Angeles area; six operation service facilities;
two materials recovery facilities with a new facility coming; and one composting facility. She also noted
that Athens has a demonstrated familiarity with Senate Bill 1383 (SB 1383) regulations and the solid
waste, recycling, and organics industry which will assist the City in its compliance with SB 1383
requirements.
Council Member Frometa thanked Ms. Rowland for her report. She questioned the timeframe in
which R3 Consulting Group conducted the analysis and what additional findings might have been
determined with more time to review. City Manager Livas responded that Athens is a large company with
the wherewithal to engage in the contract. He also noted a deadline that staff needed to meet. Consultant
William Schoen from R3 Consulting Group responded that the analysis was conducted in less than a
week. He noted that a more detailed and thorough review could have been conducted with more time but
he did not believe this would change the overall findings. He stated his firm's familiarity with the work of
Athens and that it is a well-respected company. He confirmed that Athens has the financial strength and
operational experience to comply with the agreement. City Manager Livas clarified that the transfer of the
contract does not change the terms of the agreement and there would be remedies should the
performance not be up to par.
Council Member Frometa commented regarding the importance of compliance with SB 1383
requirements.
Mayor Pacheco asked to confirm that CalMet also serviced other neighboring cities, which have
also entered into an assignment agreement with Athens. Ms. Rowland confirmed there were other cities
serviced by CalMet.
It was moved by Council Member Frometa, seconded by Mayor Pro Tem Alvarez, and carried 3-
0 with Council Member Trujillo absent, to adopt Resolution No. 22-8062, a Resolution of the City Council
of the City of Downey consenting to the Assignment of Integrated Waste Management Services
Franchise Agreement between the City of Downey and CalMet Services, Inc. to Athens Services.
It was moved by Council Member Frometa, seconded by Mayor Pro Tem Alvarez, and carried 3-
0 with Council Member Trujillo absent, to authorize the Mayor to execute the Assignment and Assumption
Agreement for Integrated Waste Management Services among CalMet Services, Inc. and Arakelian
Enterprises, Inc. dba Athens Services.
ADJOURNMENT
Mayor Pacheco adjourned the Special City Council meeting at 4:19 p.m.
MARIA ALICIA DUARTE, CMC BLANCA PACHECO
City Clerk Mayor