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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: January 17, 2024
To: Honorable Mayor and City Council Members
From: Charles A. Montoya, City Manager;
Lynn Merrill, Interim Director of Public Works
Department: Public Works
Subject: Cancellation of January 17, 2024, Public Hearing Regarding Solid Waste Rate Increases and Resolution
Adopting Rates for Solid Waste Services, Approving
Third Amendment to the City’s Exclusive Franchise
Agreement for Integrated Solid Waste Collection,
Processing and Disposal Services with Burrtec Waste
Industries, Inc., and Finding the Action Exempt from
the California Environmental Quality Act
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California,
1. Cancel the Proposition 218 Public Hearing to receive comments on the proposed rate increases and Third Amendment to the City’s Exclusive Franchise Agreement for Integrated Solid Waste collection, processing and disposal Services with Burrtec Waste Industries, Inc. (“Burrtec”) on the January 17, 2024, Mayor and City Council Meeting; and
2. Instruct staff to establish a new timeline for implementation of proposed rates (to include public hearings), SB 1383 adoption, and potential amendments to the City’s agreement with Burrtec Waste Industries, Inc. before July 30th, 2024.
Executive Summary
The City of San Bernardino (“City”) has an exclusive franchise agreement with Burrtec Waste Industries, Inc. (“Burrtec”) to provide solid waste collection, processing, and disposal services within the City. City staff is in the process of working with an expert rate consultant and Burrtec to negotiate the rate increase options for the consideration of the Mayor and City Council. As a result of changes to the scope of the original public hearings, and other state-mandated requirements, 1 8
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staff is requesting a cancellation of the January 17, 2024, Public Hearing and is developing a new timeline for Council consideration.
Background
On June 21, 2023, the City Council continued the Proposition 218 Hearing to January 17, 2024. The basis of the continuation was to direct staff to work with Burrtec to explore an additional option to provide a lower cost to the residential rates and to conduct a third-party rate analysis of rates.
Discussion
City staff has retained an expert rate consultant and is currently negotiating with Burrtec to attempt to deliver an additional rate option for the consideration of the Mayor and the City Council. This process now requires additional reviews, the establishment of working meetings to discuss rate analysis results, and implementation of new state program requirements.
At this time, staff is requesting a cancelation of the January 17, 2024, Public Hearing until such time a thorough analysis is complete and viable recommendations can be presented. This process now requires a reassessment and new methodology for achieving the goals of potentially providing lower costs for residential rates and complying with state regulations. Additional time to finalize the proposed options and to prepare for a thorough follow-up presentation on rates for the City Council is also required.
As part of this effort, staff also intends to provide the City Council with a specific timeline for implementation of new rates resulting from SB1383 (organic waste collection services), along with any potential amendments to the current franchise agreement. In short, this process has evolved to include other important requirements that have changed the scope of the original Public Hearings. 2021-2025 Strategic Targets and Goals
A Public Hearing to consider adjusting the Maximum Permitted Services Rates, as well as the amendment of the Franchise agreement between the City and Burrtec, meets Key Target No. 3c: Improved Quality of Life by evaluating and enhancing the quality of public safety services and Key Target No. 3d: To improve the City’s appearance, cleanliness, and attractiveness.
Fiscal Impact
There will be no costs incurred to the General Fund with this action.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California,
1. Cancel the Proposition 218 Public Hearing to receive comments on the proposed rate increases and Third Amendment to the City’s Exclusive Franchise 1 8
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Agreement for Integrated Solid Waste collection, processing and disposal Services with Burrtec Waste Industries, Inc. (“Burrtec”) on the January 17, 2024, Mayor and City Council Meeting; and
2. Instruct staff to establish a new timeline for implementation of proposed rates (to include public hearings), SB 1383 adoption, and potential amendments to the City’s agreement with Burrtec Waste Industries, Inc. before July 30th, 2024.
Attachments
N/A
Ward:
All Wards
Synopsis of Previous Council Actions:
January 25, 2016,Resolution of the Mayor and City Council of City of San Bernardino approving a ten-year Exclusive Franchise
Agreement for Integrated Solid Waste Collection, Professing, and Disposal Services with Burrtec Waste Industries, Inc.
December 7, 2022,Notice of Intent to Conduct a Public Hearing on February 15, 2023, to Consider Adjusting the Maximum Permitted Service Rates for Integrated Solid Waste Collection, Processing and Disposal Services.
May 17, 2023, Public Hearing Regarding Solid Waste Rate Increases and Resolution Adopting Rates for Solid Waste Services,
Approving Third Amendment to the City’s Exclusive
Franchise Agreement for Integrated Solid Waste Collection, Processing and Disposal Services with Burrtec Waste
Industries, Inc., and Finding the Action Exempt from the California Environmental Quality Act (All Wards).
June 21, 2023, Continuation, to July 19, 2023, of Public Hearing Regarding Solid Waste Rate Increases and Resolution Adopting Rates for Solid Waste Services, Approving Third Amendment to the City’s Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing and Disposal Services with Burrtec Waste Industries, Inc., and Finding the Action
Exempt from the California Environmental Quality Act.
July 19, 2023, Continuation to September 6, 2023, of a Public Hearing Regarding Solid Waste Rate Increases and Resolution
Adopting Rates for Solid Waste Services, Approving Third Amendment to the City’s Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing and Disposal 1 8
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Services with Burrtec Waste Industries, Inc., and Finding the Action Exempt from the California Environmental Quality Act.
September 6, 2023, Continuation to January 17, 2024, of a Public Hearing Regarding Solid Waste Rate Increases and Resolution
Adopting Rates for Solid Waste Services, Approving Third Amendment to the City’s Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing and Disposal Services with Burrtec Waste Industries, Inc., and Finding the Action Exempt from the California Environmental Quality Act.