City reviews proposed amendment with Athens Services to meet new state recycling rules

Redondo Beach City Council members heard an introductory presentation and discussion on a proposed second amendment to the city's solid waste handling services agreement with Athens Services, the city's long-time hauler, and asked staff to return with additional data and analysis before making a decision.

The amendment would respond to state mandates including SB 1383 by moving more properties to a three-stream collection model (trash, recycling, organics), reclassifying multifamily buildings of five units or more onto a commercial rate schedule, and extending the contract term to amortize capital investments needed for new vehicles, carts and bins. Public Works Director Andy Wingief told the council "this is the city's biggest vendor contract" and that changes in the recycling market and the recent closure of the Southeast Area Resource Recovery Facility (SURF) have reduced options for mixed-waste processing.

Why this matters: State rules and market shifts have reduced the viability of mixed-waste sorting and pushed jurisdictions toward source-separated (three-stream) collection. The proposed changes would shift costs and service models for some multifamily and commercial customers and require a Proposition 218 noticing process for affected ratepayers.

Athens Services representatives described the operational and market drivers behind the amendment. Sharon Shapiro Fox, vice president of government affairs at Athens, summarized industry pressures and the company's local operations, saying the firm is "local, accessible, and I would hope... that you would all agree that we provide great service." Athens said it expects to add vehicles and containers and to seek longer contract terms (a seven-year extension from the current expiration plus optional five-year periods) to spread those capital costs over time.

Staff and consultant presentations emphasized three core impacts: (1) compliance with SB 1383 requires better-quality recyclables and organics streams, (2) the SURF facility closure forces more material to the landfill unless collection changes are made, and (3) amortizing new equipment is easier with a longer term. HF&H consultants (solid-waste advisors) said they can provide benchmarking, rate-impact analyses and contract redlines if the council directs staff to proceed. HF&H noted the magnitude of the work will determine the consultant budget and timing.

Council members pressed Athens and staff for clearer estimates of how rates would change for multifamily residents and commercial accounts. Athens repeatedly declined to give a single percentage increase citywide, saying impacts vary customer to customer, but Athens executives estimated multifamily unit costs could rise by roughly $35 per unit in some scenarios when bin service replaces cart service. Athens also described a "rightsizing" program to adjust container sizes and bundle services to offset some cost shifts for commercial customers.

Staff described the required Proposition 218 process for changes in rate methodology affecting those accounts. That process includes mailed ballots to affected accounts and a majority-protest hearing overseen by council. Staff estimated the administrative cost of the Prop 218 mail ballot process at roughly $20,000 (Athens offered to cover that cost), with the overall calendar likely to require council action and public notice before fall to try to implement changes for the 2025 program year.

Public comment included one speaker who supported maintaining Athens under the proposed amendment and urged the council to avoid sudden market volatility. Several council members and staff asked HF&H to prepare a written analysis that (a) compares amortizing costs under the current contract term vs. the proposed extension, (b) models distribution of costs if amortized across all households vs. limited to affected accounts, and (c) benchmarks proposed terms and liquidated-damage language against peer cities. Council direction: staff should obtain the Athens-proposed rate model and return with HF&H analysis and alternatives, and Athens should provide the customer-level data needed for that analysis. No formal change to the contract was approved at the meeting.

Next steps: Staff and Athens will coordinate to provide a rate structure proposal and HF&H will prepare comparative analyses. If the council approves a rate-method change, staff would initiate the Prop 218 mail-ballot process and return to council with the required public hearing and final ordinance or resolution.