REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
June 22, 2021
FROM
BRENDON BIGGS, Director, Department of Public Works - Solid Waste Management
SUBJECT
Title
Amendments to Revenue Generating Waste Disposal Agreements
End
RECOMMENDATION(S)
Recommendation
Approve amendments to the revenue generating Waste Disposal Agreements for 15 cities and towns listed below to extend the end date of the Agreements five years to June 30, 2026 and to reset the Contract Rate to $38.00 per ton, effective July 1, 2021, adjusted annually according to the agreements:
1. City of Adelanto, Amendment No. 4 to Waste Disposal Agreement No. 04-321
2. Town of Apple Valley, Amendment No. 7 to Waste Disposal Agreement No. 98-48
3. City of Barstow, Amendment No. 7 to Waste Disposal Agreement No. 98-590
4. City of Big Bear Lake, Amendment No. 7 to Waste Disposal Agreement No. 98-744
5. City of Colton, Amendment No. 7 to Waste Disposal Agreement No. 98-302
6. City of Fontana, Amendment No. 7 to Waste Disposal Agreement No. 98-105
7. City of Grand Terrace, Amendment No. 8 to Waste Disposal Agreement No. 98-107
8. City of Hesperia, Amendment No. 7 to Waste Disposal Agreement No. 98-959
9. City of Highland, Amendment No. 7 to Waste Disposal Agreement No. 01-735
10. City of Loma Linda, Amendment No. 7 to Waste Disposal Agreement No. 98-745
11. City of Rialto, Amendment No. 7 to Waste Disposal Agreement No. 97-1043
12. City of Twentynine Palms, Amendment No. 7 to Waste Disposal Agreement No. 98-642
13. City of Victorville, Amendment No. 6 to Waste Disposal Agreement No. 97-1052
14. City of Yucaipa, Amendment No. 7 to Waste Disposal Agreement No. 98-679
15. Town of Yucca Valley, Amendment No. 7 to Waste Disposal Agreement No. 98-288
(Presenter: Brendon Biggs, Director, 387-7906)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Pursue County Goals and Objectives by Working with Other Agencies.
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 - Solid Waste Management Division (SWMD) is financed by fee revenue. SWMD establishes fees that are charged to the public and other agencies for utilization of the County’s Waste Disposal System.
The current Waste Disposal Agreements (WDAs) Contract Rate is $39.12 per ton. The proposed amendments will reset the Contract Rate to $38.00 per ton. Annual Cost of Living Adjustments (COLA) are applied to the WDA Contract Rates throughout the term of the WDAs. While the Contract Rate is less than the full cost recovery rate, the agreements ensure a continued funding stream to cover the fixed and variable costs associated with these WDAs, as well as a portion of the capital expenditure costs of maintaining the County’s Waste Disposal System. The revenue the County receives from imported tonnage from the County’s Waste Disposal System Operations contractor helps offset the loss of revenue associated with the lower WDA Contract rate while ensuring the WDA Cities/Towns’ waste remains in the Disposal System and will not be exported outside of the County. The anticipated reduction in revenue has been included in SWMD’s 2021-22 budget and estimated future revenue will be reflected in future recommended budgets.
BACKGROUND INFORMATION
The proposed amendments to the WDAs (Amendments) will extend the end date of the WDAs for 15 cities and towns to June 30, 2026, requiring the cities and towns to deliver all of their controllable waste to the County’s Disposal System, while also resetting the WDA Contract Rate to $38.00 per ton, effective July 1, 2021, and adjusted annually according to the agreements.
The WDAs were originally 15-year agreements with 16 cities and towns within the County of San Bernardino that obligated the cities and towns to deliver their controllable waste to the County’s Disposal System in exchange for a reduced contract rate for disposal at a designated disposal facility for each city and town. In 1997, the Board of Supervisors (Board) approved the first WDAs with the Cities of Rialto, San Bernardino, and Victorville. Over the following years, a total of 16 cities and towns entered into WDAs, with Adelanto being the last city to sign in 2004. In December 2012, the City of San Bernardino’s WDA expired and their City Council took action to not extend its WDA. On December 18, 2012 (Item No. 62), the Board approved extending the end date of 14 WDAs to June 30, 2016, under the same terms and conditions. The City of Adelanto’s WDA did not expire until April 26, 2019. On June 14, 2016 (Item No. 93), the Board approved extending the WDAs for all of the WDA cities and towns to June 30, 2021. Upon approval of these Amendments, the expiration date of the WDAs will be June 30, 2026.
In anticipation of the upcoming expiration of the WDAs, SWMD began working with the WDA city and town managers to negotiate an acceptable extension to ensure the continued waste stream from the WDA cities and towns to the County’s Waste Disposal System. The result of the process is the proposed extension to June 30, 2026 that is being presented for the Board’s consideration. All of the cities, except Rialto, have approved the WDA agreement. The WDA agreement is scheduled to be considered by the City of Rialto at its City Council meeting scheduled for June 22, 2021 at 6:30 p.m.
This recommended action supports the goals and objectives of the County and Chief Executive Officer by operating in a fiscally-responsible and business-like manner and working with other agencies by ensuring the continued waste stream from the WDA cities to the County’s waste disposal system through June 30, 2026.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Jolena Grider, Deputy County Counsel, 387-5455) on May 18, 2021; Finance (Jessica Trillo, Administrative Analyst, 387-4222) on June 2, 2021; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on June 6, 2021.