SR 03-08-2022 3C
City Council
Report
City Council Meeting: March 8, 2022
Agenda Item: 3.C
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Resource Recovery &
Recycling
Subject: Award RFP #297 to Arakelian Enterprises, Inc., dba Athens Services, for
Organics Processing and Recycling Services
Recommended Action
Staff recommends that the City Council:
1. Award RFP# 297 to Arakelian Enterprises, Inc. dba Athens Services for organics
processing and recycling services for the Public Works Department; and
2. Authorize the City Manager to negotiate and execute an agreement with
Arakelian Enterprises, Inc., dba Athens Services, in an amount not to exceed
$4,280,000 (including a 10% contingency) for two years, with three additional
one-year renewal options in the amount of $9,920,000 on the same terms and
conditions for a total amount not to exceed $14,200,000 over a five-year period,
with future year funding contingent on Council budget approval.
Summary
Senate Bill 1383 (SB 1383) requires statewide mandatory organics recycling of all
California residents and businesses beginning January 1, 2022. The law triggers a
tremendous market demand for local jurisdictions to secure services from organics
processing facilities that have the capacity to accept, process, and recycle curbside
organics to meet SB 1383’s regulatory compliance requirement. Following a competitive
Request for Proposals (RFP) process, staff recommends Arakelian Enterprises, Inc.,
dba Athens Services, as the best contractor to provide organics processing and
recycling services for the City. Staff recommends Council authorize a contract in an
amount not to exceed $4,280,000 (including a 10% contingency) for two years, with
three additional one-year renewal options in the amount of $9,920,000 over the three
years, for a total amount not to exceed $14,200,000 over a five-year period.
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Discussion
Organics
Organic materials, or organics, are previously living organisms. Organics encompass all
food materials and green materials, including food scraps and leftovers such as fruits,
vegetables, meats, dairy, and bones; food-soiled paper products such as oil-stained
paper bags, used paper napkins, and greasy pizza boxes; and landscape materials
such as plants, grass clippings, and yard trimmings.
Organics Recycling in Santa Monica
Santa Monica began offering organics collection services in 1998. Drivers from the
Resource Recovery and Recycling (RRR) Division collect organics in the green
containers, after which the materials are transported by our contracted hauler to an
organics processing facility and recycled into reusable products such as compost,
mulch, and renewable energy. In 2012, the City expanded its curbside organics
collection program by being one of the first cities in the State to accept commingled
green waste and food waste. Since then, customers living in single-family residences
have been able to place items such as yard trimmings and food scraps in the same
green container for organics recycling. Property owners of multi-family and commercial
buildings could also voluntarily request green containers and receive the same organics
collection service at no additional cost.
The City diverts approximately 16% of its total solid waste generation per year from the
landfills through its curbside organics collection program. In the last three years alone,
Santa Monicans recycled a total of 45,762 tons or 91.5 million pounds of organics by
placing their food scraps and plant materials in the City’s green containers.
Senate Bill 1383 (SB 1383)
SB 1383 mandates statewide organics recycling of all California residents and
businesses as well as surplus food recovery from the largest food producers such as
supermarkets, hotels, and large restaurants beginning January 1, 2022. Every year,
Californians discard more than six million tons of food waste as landfill trash.
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Meanwhile, landfills are responsible for over 20% of California’s total emissions of
methane gas. When organics decompose in landfills, they emit methane, a climate
super pollutant far more potent than carbon dioxide and is a major contributor to
greenhouse gas emissions, global warming, and climate change. SB 1383 targets
organics to combat climate change because organics is the largest stream (67%) of
discarded materials that end up in landfills.
Although many in the City have utilized organics collection services for years, SB 1383
requires all jurisdictions in California – including Santa Monica – to provide organics
collection services to all residents and businesses starting in 2022. The City Council
acted swiftly by adopting Ordinance 2685 on November 9, 2021, adding Section 5.46 to
the Santa Monica Municipal Code (SMMC) to mirror SB 1383’s organics recycling
mandate (Attachments A and B) and requiring all residents and businesses to begin
separating their organics from their landfill trash.
Since the ordinance was adopted, the City has deployed a broad-scale organics
recycling marketing and outreach campaign, including activities such as: neighborhood
group meetings; Chamber of Commerce meetings; business improvement district
meetings; one-on-one site visits with residents, businesses, and property managers;
press releases; blog posts; SaMo News blasts; dedicated section on the City website
with frequently asked questions (santamonica.gov; keyword “organics”); weekly social
media posts; flyers; direct mailers; utility bill inserts; Seascape articles; park banners;
newspaper ads; digital ads; radio ads; social media ads; a podcast on Santa Monica
Daily Press; a radio interview on KCRW; and an interview with the RAND Corporation.
Outreach activities will continue throughout 2022, including an education booth at the
Black History Greens Festival held at the Virginia Avenue Park on February 22, 2022,
and a two-day compost and kitchen food scrap pail giveaway event (free to all Santa
Monica residents) that will be held at the City Yards on March 12-13, 2022.
Compliance with SB 1383 means increased expenditures for the City to recycle
organics instead of landfilling the material as trash, to purchase organics containers for
residents and businesses that don’t have one, and to dedicate more staffing and
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resources on education and outreach as required. Staff is applying for $123,000 in grant
funds from the SB 1383 Local Assistance Grant Program to cover the cost of outreach
supplies and support community education.
Although there is a cost to recycle organics, the environmental and climate cost of
inaction far outweighs the financial investment. Solid waste rates have not increased
during the COVID-19 pandemic. It is anticipated that rate adjustments would be
required upon the completion of a comprehensive rate study analysis. RRR staff is
working with a solid waste consulting firm to examine the full financial effects of SB
1383 and is expecting to return to Council later this year to discuss rate changes.
Contractor Selection
Contractor Recommendation
Best Qualified
Contractor
Arakelian Enterprises, Inc., dba Athens Services
Evaluation Criteria
Price; the ability, capacity, and skill of the bidder to perform or provide the
services; the character, integrity, reputation, judgment, training,
experience, and efficiency of the bidder. The City shall have absolute
discretion in determining the applicability and weight of the criteria listed
above. The City is not required to select the bid with the lowest price.
Municipal Code SMMC 2.24.190
RFP Data
Date Posted Posted On
Advertise In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
11/17/2021 City's Online
Bidding Site
Santa Monica Daily Press 28 1/6/2022
Justification to Award
Staff recommends Arakelian Enterprises, Inc., dba Athens Services, based on the company’s
experience with organics processing, its price, and its ability to offer access to two different Material
Recovery Facilities (MRFs) within a reasonable distance from Santa Monica.
Founded in 1957, Athens is a family-owned local company that has been serving communities in the
greater Los Angeles area for 65 years. Athens is the largest solid waste hauler in Los Angeles County
in terms of tonnage from all three streams (landfill trash, recyclables, and organics), and it has vast
RFPs Received
Agromin Athens Dyrt LA County Sanitation
Recology RWP Landscape Specialized Reuse Waste Management
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experience processing materials from cities including Beverly Hills, Culver City, Glendale, Hermosa
Beach, Long Beach, Los Angeles, Pasadena, Redondo Beach, Thousand Oaks, Torrance, and West
Hollywood.
Athens’ proposal was not the lowest cost, but it offers one of the shortest distances from Santa Monica
to either of its MRFs in Sun Valley (27 miles) or City of Industry (31 miles), reducing the City’s transfer
hauling cost and thereby overall cost passed on to ratepayers. Additionally, having the option to
transfer materials to two different facilities provides operational flexibility and real-time transportation
logistical advantages.
After Santa Monica’s organics are delivered to either MRF, contaminants are sorted out while the
cleaner materials are transported to composting facilities in Lamont (near Bakersfield) or Victorville.
The materials are further processed at the composting facilities, and the final product is Organic
Materials Review Institute (OMRI) certified, organic, natural, nutrient-rich premium grade compost used
by agricultural customers in Central California, sold to consumers in retail hardware stores like Home
Depot and Lowe’s, and returned to our community in a closed loop through the City’s quarterly free
compost giveaway events open to all Santa Monica residents.
Below is a list of materials that should be placed in the green organics container and items that will be
sorted out as residual contamination and sent to the landfill:
Material Type Yes No Examples
All food materials X Fruits, vegetables, dairy, eggshells, meat, bones, food scraps,
leftovers
All green materials X Leaves, grass, flowers, plants, twigs, branches (no woody
palm fronds)
Food-soiled papers X Greasy paper napkins, paper towels, pizza boxes, paper bags,
uncoated paper takeout containers (no wax or plastic coating)
Natural fiber utensils
and serveware
X Paper straws, wood beverage stirrers, paper plates, paper
bowls, bamboo cutleries
Plastic or
Biodegradable plastics
X Any kind of plastic wraps, films, bags, cutleries, or containers,
including takeout containers that claim to be made of
biodegradable or compostable plastic (PLA)
Plastic bags or liners X Plastic or recycled plastic trash bags; plastic or recycled plastic
kitchen pail liners
Compostable bags or
liners
X All bags placed in the green container -- except paper bags
(i.e. food-soiled paper) -- will be sorted out as residual
contamination and sent to landfill
Past Council Actions
Meeting Description
10/26/2021 Introduce the First Reading of an Ordinance to Comply with
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(Attachment A) SB 1383’s Mandatory Organics Recycling Requirements
11/9/2021
(Attachment B)
Adopt Ordinance 2685 to Add SMMC 5.46 Pertaining to
Mandatory Organics Recycling
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Resource Recovery and Recycling
Fund to award a contractual services agreement with Arakelian Enterprises, Inc., dba
Athens Services, for organics processing and recycling services.
The actual cost of this contract is dependent upon both the amount of organics
residents and businesses place in their green containers and the level of residual
contamination in our materials. The contract budget is estimated based on an analysis
of the City’s historical tonnage data plus the anticipated increase in organics tonnage
pursuant to the implementation of SB 1383 and the City’s mandatory organics recycling
ordinance strategies. Future year funding is contingent on Council budget approval.
Contract Request
FY 2021-22
Budget Request
Amount
Department Account # Total Contract
Amount
$452,000 54500002.523010 $14,200,000
Prepared By: Yvonne Yeung, Resource Recovery and Recycling Administrator
Approved
Forwarded to Council
Attachments:
A. October 26, 2021 Staff Report – Introduction of Mandatory Organics Recycling
Ordinance (Web Link)
B. November 9, 2021 Staff Report – Adoption of Mandatory Organics Recycling
Ordinance (Web Link)
C. Athens Services Oaks Form
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20
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles
and maintains certain information. That information includes the name of any person or
persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather
than an individual person, the information includes the name of every person who is: (a)
trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the
entity.
Public benefits include:
1.Personal services contracts in excess of $25,000 over any 12-month period;
2.Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-month
period;
3.Purchase, sale or lease of real property to or from the City in excess of $25,000 over a
12- month period;
4.Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-
month period;
5. Land use variance, special use permit, or other exception to an established land use plan,
where the decision has a value in excess of $25,000;
6.Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-month
period; or
7.Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-month
period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
Arakelian Enterprises, Inc. dba Athens Services
Ron J. Arakelian, Jr. - President & CEO
Michael R. Arakelian - Secretary
Ron J. Arakelian, III - Executive OfficerAdam Arakelian - Executive Officer
Greg Loughnane - Executive Director
Cord Laule - Chief Financial OfficerGary Clifford - Executive Vice President
Ron Arakelian, Jr., Owner/OfficerMichael Arakelian, Owner/Officer
Ron Arakelian III, Owner/Officer
Greg Loughnane Executive Director
gloughnane@athensservices.com (626) 336-3636
Jan. 6, 2022
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Packet Pg. 320 Attachment: Athens Services Oaks Form (4927 : Organics Processing and Recycling Services)