Greg Good Presentation4644 Lucas Ave. Suite 202
Laane >> Las Angeles, CA 9W17 GY @y Good, ESa.
Director of Waste & Recycling ProjeLt
A NEW ECONOMY FOR ALL
E ggood @laane.org
'I" 213.977.9400 ext. 102
N1 310.418.1751 -
F 213.977.9666
I
WWN/.hane.01'9 _ _
ATHENS SERVICES: LAWSUITS, ILLEGAL ACTIVITIES & VIOLATIONS
Partial List as of July 21, 2011
Lawsuits & Illegal Activities
July 8, 2010 Clean Street hie. files lawsuit against Arakelian Enterprises for allegedly charging
artificially low prices and bundling street sweeping with trash hauling in an
anticompetitive manner. Case dismissed by plaintiff on June 3, 2011.
May 25, 2007 The California Department of Toxic Substance Control (DTSC) and Athens Disposal
Company, Inc. enter into a Consent Order to settle alleged violations. The DTSC
alleged that Athens violated the California Code of Regulations when they
transported hazardous waste without a valid registration issued by the Department,
stored it in excess of the time allowed by the Department, failed to acknowledge the
acceptance of waste in the manifests and failed to deliver the waste to the designated
facility listed on the manifest. Athens agreed to pay $10,000 to settle the allegations
without admitting guilt 2
April 9, 2007 Class action lawsuit filed against Athens Disposal Company, Inc., d/b /a Athens
Services alleging failure to pay overtime compensation, failure to provide rest
periods or meal periods, illegal deductions from employee paychecks and failure to
maintain adequate records. The court has granted class certification. Case was still
active as of February 4, 2012.
February 13, 2007 Motor Vehicle and Wrongful Death suit filed by widow of Athens employee
claiming improper servicing, maintenance and repair of Athens hauling truck that the
employee was driving at the time of his death. Case dismissed by plaintiff .
May 24, 2005 Class action lawsuit filed against Arakelian Enterprises, Inc., d/b /a Athens Services
alleging failure to pay straight time wages, failure to pay overtime wages, failure to
provide rest periods or meal periods and failure to furnish accurate itemized wage
statements. Case settled on July 26, 2010 for an undisclosed amount and the
defendant was ordered to pay attorney's fees and plaintiff's costs.
Oct. 8, 2002 — July 21, 2011 A total of twelve Wrongful Termination or Employment Complaint lawsuits filed in
Los Angeles Superior Court against Athens Services and related companies including
the two class action lawsuits listed above. Most of these actions were filed within the
last five years. These cases include three that allege unsafe working conditions one
involving an allegedly retaliatory firing for complaining about unsafe conditions;
another involving firing after disability allegedly incurred due to faulty truck
maintenance; and a third involving firing after complaint about alleged unsafe trucks
due to bald tires and faulty brakes. Other causes of action included sexual
harassment, race discrimination, age discrimination and termination as retaliation for
Clean Street v Arakelian Enterprises, Los Angeles Superior Court Case No. BC441335.
z State of California Environmental Protection Agency, Department of Toxic Substance Control, Docket HWCA 2007 1351,
effective date May 25, 2007. In the Matter of: Athens Disposal Company, Inc. 15045 E. Salt Lake Ave. City of Industry, CA
91746 CAD 982034688.
a Edixon Franco on behalf of all other similarly situated v. Athens Disposal Company, Inc., Los Angeles Superior Court Case
No. BC369201. Last viewed on February 4, 2012.
"Natalie Hyndman v. Athens Disposal Co., Los Angeles Superior Court Case No. BC366236.
s John L. Flores, on behalf of others similarly situated v. Arakelian Enterprises, Ina, dba Athens Services, Los Angeles
Superior Court Case No. BC333940.
complaining about discriminatory practices. Most of these cases were assigned to
arbitration by the judge and subsequently dismissed by plaintiffs 6
Oct. 2000 - July 21, 2011 Fifty one civil lawsuits filed in Los Angeles Superior Court against Athens Services
and its affiliates in relation to motor vehicle incidents. This number includes at least
one wrongful death case involving an employee, listed separately above 7
September 30, 1994 The National Labor Relations Board issued a decision in which it concluded that
Athens (Arakelian Enterprises, Inc. d /b /a West Covina Disposal) had violated federal
labor law by engaging in surveillance of its employees' union activities, threatening
to fire or lay off employees because they engaged in union activities, threatening to
withhold benefits from employees because they engaged in protected concerted
activities, and interrogating employees regarding their union activities and
sympathies!
November 13, 1989 Athens Disposal and its principals pled no contest to one count of conspiracy in an
antitrust case as reported by the Los Angeles Times. According to the article, they
were charged with plotting to control prices, eliminate competition and rig bids to
their own benefit, and the plea bargain included large fines for the defendants. 9
California Regulatory Agencies Inspections Violations and Fines
November 3, 2010 As of this date, Athens Services and affiliated companies have 61 active workers
compensation cases listed in Cal/OSHA's database. The database was subsequently
taken offline so no update to this number is possible. 10
Feb. 27, `09 - July 22, '10 California Highway Patrol inspected five different facilities under Athens' control
and found 49 violations and placed six vehicles out of service for safety problems.
Violations include problems with brakes, steering and suspension, lamps and signals
and tires and wheels."
2004-2010 In these years, several complaints were filed with the Division of Labor Standards
Enforcement against Arakelian Enterprises or Athens Disposal Company. In three
cases involving unpaid wages and benefits, Athens or Arakelian was ordered to pay a
total of more than $29,000 in unpaid compensation and penalties. Athens or
Arakelian also settled two cases involving unpaid compensation for a total of more
than $7,000.
6 Los Angeles Superior Court Case Nos.: BC282933, BC289162, BC333940, BC345534, BC345535, BC351734, BC364475,
BC369201, BC418721, BC418721, BC436786, BC450724, and BC450724. BC369201 is pending. Last viewed on July 21,
2011.
Los Angeles Superior Court Electronic Case Index, last viewed on July 21, 2011.
s Arakelian Enterprises, Inc. d/b /a West Covina Disposal and City Refuse Service and Package and General Utility Drivers,
Local 396, International Brotherhood of Teamsters, AFL -CIO. NLRB Cases 21 -CA -28835 and 21 -CA- 29068. September 30,
1994, Decision and Order.
9 Los Angeles Times, November 16, 1989, Haulers Plead No Contest, (no author cited).
10 CALOSHA website, htWs:/ /eams dwc ca goy /public /GeneratPublic Last viewed November 15, 2010.
11 Routine inspections conducted by the California Highway Patrol under the BIT inspection program of addresses in
chronological order: 14048 E. Valley Blvd., 900 S. Maple Ave, 127 Van Norman Rd., 11266 Peoria St. and 15045 Salt Lake
Ave. File Code Numbers in chronological order: #237647, #2422603, #242190, #240538, #240125.
? CALOSHA website, https / /eams dwc ca yoy /public /GeneratPublic Last viewed November 15, 2010.
2
September 21, 2009 Arakelian Enterprises /Athens Disposal Company fined $270,000 by the California
Air Resources Board for diesel emissions violations. An investigation showed that
Athens failed to properly inspect their diesel vehicles during 2005 and 2006 and
failed to install legally required emission- reduction devices from 2004 - 2008.
May 17, 2007 Cal /OSHA inspection at Athens Services facility located at 11121 Pendleton St., Sun
Valley, CA 91352. Five serious violations and three general violations were
discovered with an initial penalty in the amount of $11,450. Serious violations
included non - operational or broken safety guards on machinery. t4
February 1, 2007 Cal /OSHA inspection at Athens Services facility located at 13440 Victory Blvd Van
Nuys, CA 91401. Inspection was initiated by an accident at the facility. Four general
violations found with an initial penalty in the amount of $1,685.
December 13, 2005 Arakelian Enterprises/ Athens Services fined $5,000 by the California Integrated
Waste Management Board for hauling waste tires without a valid permit and
registration. 16
Nuisance Facility in City of Industry
A facility at 14048 Valley Blvd. in the City of Industry, owned by Arakelian Enterprises, Inc, doing business as
Athens Services ( "Athens "), has been a source of controversy for over a decade now. According to news reports,
when Athens applied in 2003 for a permit to increase capacity from 1,920 to 8,500 tons /day, residents protested. 17
It was also reported that, between July and November 2003 alone, the South Coast Air Quality Management
District ( "SCAQMD ") had received 44 odor complaints from nearby residents. 18
Athens received a permit in 2005 from the County Department of Regional Planning 19 and one from the Local
Enforcement Agency to increase their capacity based on the installation of emission and odor - control systems2
The SCAQMD and Athens also entered into a settlement agreement in 2005 to resolve enforcement issues. This
agreement required the facility to be enclosed and for air filtration systems to be installed prior to an increase in
capacity .21
According to the Settlement Agreement, Athens Services failed to properly install or follow the conditions, was
aware of the problems, but increased their capacity nonetheless, 22 leading to an eventual civil suit filed in 2008 by
the SCAQMD 2 The lawsuit was eventually settled in 2009 with a civil penalty in the amount of $1,300,000 2 4 A
timeline of the issues associated with this facility follows:
13 News release from California Environmental Protection Agency, "Southern California waste hauler Arakelian Enterprises
fined $270,000 for emissions violations," Sept. 21, 2009, available at http: / /www.arb.ca.gov /newsrel /2009 /nrO92109.htm
14 Cal/OSHA Inspection No: 309149268, record available on Cal /OSHA website.
httu: / /www.osha.gov /pls /imis /establishment.htmi last visited on November 15, 2010; telephone conversation with Helen
Samaniego, CAL /OSHA staff at Santa Ana office on November 6, 2010.
'S Cal /OSHA Inspection No. 310196019, record available on Cal/OSHA website
http: / /www.osha.gov /Dls /imis /establishment.html last visited on November 15, 2010.
6 California Integrated Waste Management Board, Stipulation for Issuance of Administrative Decision, No. AC -2005- 00001.
n San Gabriel Valley Tribune, November 28, 2003, Waste Firm's Expansion Challenged, Rodney Tanaka.
e Ibid.
19 Conditional Use Permit Case No. 97- 060 -(1).
2° Referenced in the Settlement agreement between SCAQMD and Arakelian Enterprises /Athens Services signed on January
27, 2009, civil case No. KC53685.
21 Ibid.
22 Ibid.
21 Case number KC53685 filed in Los Angeles Superior Court, Pomona South Courthouse East District, . August 21, 2008,
People of the State of CA vs Athens Disposal.
August 21, 2008 SCAQMD files Complaint for Civil Penalties and Preliminary and Permanent
Injunction against Athens in Los Angeles County Superior court. 25 Settlement
reached on January 27, 2009 that requires Athens to pay a civil penalty in the amount
of $1,300,000 and to make $750,000 worth of capital improvements to control odor
and emissions. 6
July 24, 2008 The SCAQMD Hearing Board issued findings in a petition for an abatement order in
which it concluded that, "the facility has been the source of air contaminants — and
specifically odors — that have caused and continue to cause detriment, nuisance, or
annoyance to a considerable number of persons ". 27
May 30, 2007 CAL /OSHA inspection of the facility resulted in two general citations and two
serious citations and resulting in an initial penalty of $7,365. Violations included
unmarked breakers impeding emergency equipment shut down. 28
December 20, 2004 The San Gabriel Valley Tribune reported that one hundred residents living near the
facility filed civil suit in Los Angeles Superior Court claiming the facility is a source
of odor, air pollution and vermin. The article noted that they also sought to block the
proposed facility expansion with the lawsuit 29
May 9, `03 — Oct. 16, '08 During these three and a half years of operation, according to the Settlement
Agreement, SCAQMD issued 37 separate Notices of Violation to Athens Services
related to the facility at 14048 Valley Boulevard, City of Industry, CA 91716 30
1999 — Nov. 28, 2003 According to a Cal/OSHA spokesman, as reported in the San Gabriel Valley Tribune,
the California Occupational Safety and Health Administration ( "CAL /OSHA ")
inspected the facility seven times, twice initiated by complaints and three times
following accidents. The Tribune further reported that a September 13, 2002 accident
involved the death of an employee and resulted in five citations and fines totaling
almost $29,000.
21 Settlement agreement between SCAQMD and Arakelian Enterprises /Athens Services signed on January 27, 2009, civil
case No. KC53685.
25 Case number KC53685 filed in Los Angeles Superior Court, Pomona South Courthouse East District, August 21, 2008,
People of the State of CA vs Athens Disposal.
26 Settlement agreement between SCAQMD and Arakelian Enterprises /Athens Services, signed on January 27, 2009, civil
case No. KC53685.
27 Hearing Board of the SCAQMD, Findings and Decision for Petition for an Order for Abatement, Case No. 5655 -2,
SCAQMD vs Arakelian Enterprises dba Athens Services, Facility ID #54159.
" Cal /OSHA Inspection No. 125918953, available on CALOSHA website http: / /www.osha. >ov /pls /imis /establishment.htmi
last visited on November 15, 2010 and conversation with Helen Samaniego, CAL /OSHA staff at Santa Ana office on
November 6, 2010.
29 San Gabriel Valley Tribune, December 29, 2004, Whittier, CA- Area Residents Sue Waste Firm, Calling Site a Dirty
Shame, by Debbie Pfeiffer Trunnell.
30 Settlement agreement between SCAQMD and Arakelian Enterprises /Athens Services, attachment A, signed on January 27,
2009, civil case No. KC53685.
31 San Gabriel Valley Tribune, November 28, 2003, Waste Firm's Expansion Challenged, by Rodney Tanaka.