HomeMy WebLinkAboutMinutes 03-29-22 Special MeetingMINUTES OF
COUNCILCITY OF DOWNEY
MARCH 29, SPECIAL MEETING
The City Council • of • - `• a Special• • on March 29, 2022i
at 4:02 p.m., in the Council•- of Downey City Hall, 11111 BrookshireDa
California, with Mayor Pacheco presiding.
1:J:7*.'� QkF
r M, I I 1 rz •,
• : � is '.
• f `
Gilbert Livas, City Manager
John Oskoui, Assistant City Manager
Yvette M. Abich Garcia, City Attorney
Alicia Duarte,
AUTHORIZED • TO EXECUTE ASSIGNMENT AND ASSUMPTION
AGREEMENT • ' INTERGRATED WASTE MANAGEMENT SERVICES AMONG
SERVICES,CALMET ■ ARAKELIAN ENTERPRISES, INC. ■ , ATHENS
Ifiayor Pacheco asked City Clerk Duarte if there was any written correspondence receivnA
regarding Item No. 1. Mayor Pacheco asked if there was anyone present who would like to comme
regarding Item No. 1. 1
BC, resident, commented regarding his hope that the City will work with a company th
understands the importance of the environment and the environmental challenges faced.
commented in support of fossil fuels. I
[;TU=K�'1z 1i:TX4ZOE 1 =I
Mayor- • r • the City Councilmeeting at 4:06 p.m. MayorPacheco reconvened
CouncilCity -- • at 4:07 p.m. with CouncilMember i excused.
ManagerCity provided overview of - item. CarolRowland presented the stait report.
Ms. Rowland stated that the City entered into an agreement with CalMet Services, Inc. for
exclusive residential . • commercial solid waste collection and recycling service on • 1 • and
that the contract is set to expire on March 31, 2026. She noted that Arakelian Enterprise, Inc., doing
business as Athens -s, acquired CalMet• rer 2021 and, in December
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
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. Cit Maria er L' nded that Ath I
242 N 1 qr� I I a Lei V-X$r4t.1 RIA44PIKI I
W, I 1wo ARMA I is
lt.jAteluatr . I U
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 Tern 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 Tern Alvarez, and carried 3-
0 with Council Member Tru'illo absent to authorize the Ma�Aor to execute the Assi�s nmA
Agreement for Integrated Waste Management Services among CalMet Services, Inc. and Arakelian
Enterprises, Inc. dba Athens Services.
F-11
0.�
City Council Minutes
Special Meeting — March 29, 2022 2