REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
February 25, 2025
FROM
NOEL CASTILLO, Director, Department of Public Works - Solid Waste Management
SUBJECT
Title
Amendment to Extend Contract with Robertson’s Ready Mix Ltd./RRM Properties, Ltd. for Sand and Gravel Excavation
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 8 to Contract No. 02-1246 with Robertson’s Ready Mix Ltd./RRM Properties, Ltd., to exercise the last of two five-year options to extend the contract for sand and gravel excavation at the Mid-Valley Sanitary Landfill, for the new total term of April 20, 1999 through May 18, 2030, with no change to the royalty rate or annual adjustment schedule.
(Presenter: Noel Castillo, Director, 387-7906)
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COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Improve County Government Operations.
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost) as the Department of Public Works (Department) - Solid Waste Management Division (SWMD) is funded by fee revenue. SWMD establishes fees that are charged to the public and other agencies for utilization of the County’s Waste Disposal System. Approval of this item will retain the current royalty rate of $0.4503 per ton payment from Robertson’s Ready Mix, Ltd./RRM Properties, Ltd. (Robertson’s) to SWMD with annual adjustments per Contract No. 02-1246 (Contract). Sufficient appropriation and revenue are included in SWMD’s 2024-25 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
The Contract allows each party the option to extend the term, with the same terms and conditions, for two five-year periods following the expiration of the initial term of 20-years, with an expiration date of May 18, 2020, by providing written notice to the other party six months prior to the expiration of the preceding term.
On October 22, 2019 (Item No. 25), the Board approved the first five-year extension of the Contract, for the total term of April 20, 1999, through May 18, 2025.
On September 24, 2024, SWMD notified Robertson’s in writing of the County’s intent to seek Board authorization for the remaining five-year option to extend the Contract to May 18, 2030, meeting the six-month notice requirement.
Amendment No. 8 to the Contract will authorize the Department to exercise the last of two five-year options to extend the term of the Contract with Robertson’s to continue the excavation and processing of aggregate material at the Mid-Valley Sanitary Landfill (MVSL).
On September 12, 1995, Norcal/San Bernardino, Inc. (Norcal), acting as the County’s landfill operator, and Robertson’s entered into Contract No. 95-834 for sand and gravel excavation at the MVSL to assist with landfill operations. On October 24, 1995 (Item No. 27), the Board approved Amendment No. 1 to Contract 95-834 to provide for the lease of office space and equipment. On November 26, 1996 (Item No. 46), the Board approved Amendment No. 2 to Contract 95-834 in which Norcal waived its right to reimbursement of approximately $1.25 million in additional costs incurred in the prior management and administration of the operations at the Heaps Peak Transfer Station and the Big Bear Landfill. It also provided compensation, estimated at $170,000 annually, for the haul of aggregates as part of the Heaps Peak Transfer Station operations, which would be fully funded by revenues realized from the Robertson’s lease.
On April 20, 1999 (Item No. 46), the Board of Supervisors (Board) approved Amendment No. 3 to Contract No. 95-834 for the County to assume the rights and obligations of Norcal in the event Norcal ceased acting as the County’s landfill operator.
On December 3, 2002 (Item No. 26), the Board reassigned the number for Contract No. 95-834 with Robertson’s for sand and gravel excavation services to the Contract, approved Amendment No. 1 to the Contract, and recognized that as of July 1, 2001, the County assumed the rights and obligations of Norcal in Contract No. 95-834.
On August 5, 2003 (Item No. 16), the Board approved Amendment No. 2 to the Contract in which Robertson’s agreed to pay one half of the estimated $135,000 cost incurred by the County related to the drying of the clay delivered by Robertson’s to the MVSL for the Unit 3, Phase 2 Liner Project.
On October 21, 2003 (Item No. 20), the Board approved Amendment No. 3 to the Contract for the purchase of an additional 350,000 tons of clay lining material at $4.50 per ton, for the amount of $1,575,000 to be used in construction of the remaining phases of the Unit 3 Liner Project at MVSL.
On October 31, 2006 (Item No.28), the Board approved Amendment No. 4 to the Contract providing for the relocation and stockpiling of up to 250,000 tons of final closure material to be used for the Unit 1 Phase 1 Partial Final Closure Construction project at MVSL at $1.00 per ton and a fixed payment of $70,731.77, for a total maximum compensation to Robertson’s in the amount of $320,731.77.
On June 7, 2011 (Item No. 52), the Board approved Amendment No. 5 to the Contract for an adjustment to the mining schedule and for a temporary suspension of a portion of the royalty payment.
On December 16, 2014 (Item No. 52), the Board approved Amendment No. 6 to the Contract to complete the excavation of the Unit 4 expansion area at MVSL by June 30, 2016, with no change to the Contract amount.
On March 10, 2020 (Item No. 45), the Board approved Amendment No. 7 to the Contract to allow Robertson’s to provide unprocessed soil material at no cost to the County and use of their leased space to allow the County to process the soil material on-site at MVSL.
This action supports the County and the Chief Executive Officer’s goals and objectives of improving government operations and operating in a fiscally-responsible and business-like manner. Allowing Robertson’s to continue the excavation and processing of aggregate material at MVSL assists SWMD in providing landfill capacity needs for residents of the County.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Maria Insixiengmay, Deputy County Counsel, 387-5455) on January 10, 2025; Finance (Kathleen Gonzalez, Administrative Analyst, 387-5412) on February 7, 2025; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on February 7, 2025.