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
Amendment to Revenue Agreement with Burrtec Waste Industries, Inc. for the Sale of Landfill Airspace
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 2 to Revenue Agreement No. 16-521 with Burrtec Waste Industries, Inc. to extend the term of the agreement one year from July 1, 2021 to June 30, 2022, in the amount of $11,535,920, increasing the total revenue contract amount from $18,165,308 to $29,701,228, for the sale of landfill airspace for the disposal of Qualifying Solid Waste into the Mid-Valley Sanitary Landfill.
(Presenter: Brendon Biggs, Director, 387-7906)
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COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
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 - 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. Burrtec Waste Industries, Inc. (Burrtec) is currently authorized to dispose up-to 370,000 tons of in-County solid waste annually, delivered in transfer trailers at the Mid-Valley Sanitary Landfill (MVSL). Amendment No. 2 includes disposal fees, with a Cost of Living Adjustment (COLA) from the current year, of $30.72 per ton of in-County solid waste and $33.86 per ton of out-of-County solid waste delivered to the disposal system for 2021-22, and a disposal fee of $2.00 above the current Waste Disposal Agreement (WDA) rate that the County has with various WDA cities for each ton of in-County solid waste direct hauled to MVSL in waste collection vehicles. The sale of landfill airspace can generate revenue up-to $11,535,920 for the extended one-year term; however, based on historical data, it is anticipated SWMD will receive approximately 172,562 tons of waste, generating revenue of $5,413,477.
BACKGROUND INFORMATION
On June 28, 2016 (Item No. 51), the Board of Supervisors (Board) approved Agreement No. 16-521 with Burrtec for the sale of landfill airspace (i.e., volume of space at a landfill which is permitted for the disposal of municipal solid waste) for the disposal of Qualifying Solid Waste into the MVSL for the period of July 1, 2016 to June 30, 2021.
On December 19, 2017 (Item No. 36), the Board approved Amendment No. 1 to the Agreement to allow Burrtec to direct haul a portion of the City of San Bernardino’s solid waste to the MVSL in waste collection vehicles at a disposal rate equal to $2.00 above the current WDA rate that the County has with various WDA cities, as well as including an additional processing facility for the City of San Bernardino’s waste.
This amendment will approve a one-year extension to Burrtec’s Agreement from July 1, 2021 to June 30, 2022, to allow SWMD to meet and negotiate with Burrtec on the disposal rates with the intent to potentially provide a longer-term agreement with Burrtec at the end of the extension period.
The recommended action supports the goal and objective of operating in a fiscally-responsible and business-like manner by allowing Burrtec to continue to dispose waste at the MVSL under the same terms and conditions, thereby increasing revenue for SWMD.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Jolena Grider, Deputy County Counsel, 387-5455) on May 26, 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.