Agenda Item: 8
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: November 12, 2024
SUBJECT: FIRST AMENDMENT TO THE AGREEMENT FOR THE PROVISION
OF GARBAGE, RECYCLABLE MATERIALS, AND ORGANIC
WASTE COLLECTION SERVICES AND ANNUAL RATE
ADJUSTMENT
DEPARTMENT: Neighborhood Services
PRESENTER: Darin Seegmiller
RECOMMENDED ACTION
City Council adopt a resolution approving the Amended and Restated Agreement between the City of Santa Clarita and Burrtec Waste Industries, Inc., for the provision of garbage, recyclable materials, organic waste collection, and the annual rate adjustment.
BACKGROUND
Burrtec Waste Industries, Inc. (Burrtec), provides solid waste management services to the City of Santa Clarita (City) in accordance with the Agreement for Provision of Garbage, Recyclable Materials, and Organic Waste Collection Services (Agreement) dated July 1, 2023. Per the Agreement, Burrtec retains the exclusive right to provide all solid waste handling services in the City including commercial, single-family, and multi-family properties. The term of the current agreement is ten years, with an expiration date of June 30, 2033.
Annual Rate Adjustment
Per section 6.0 of the Agreement, Burrtec is entitled to an annual rate adjustment, effective January 1, 2025. The rate adjustment is calculated using the percentage change between the 12- month average of the Consumer Price Index for All Urban Consumers (CPI-U) from August 1, 2022, through July 31, 2023, and the 12-month average of the CPI-U from August 1, 2023, through July 31, 2024, not to exceed 4 percent. The requested 2025 annual rate adjustment is
3.28 percent, which is consistent with the rate adjustment formula in the agreement.
For a standard 3-cart bundle, the increase equals $0.95 per month for single-family home waste collection services. The current monthly rate is $28.92, and the new rate, if approved by the City
Council, would be $29.87, effective January 1, 2025. For commercial and multi-family properties with a standard 3-yard bin bundle serviced once per week, the increase equals $5.87 per month, adjusting the current rate of $179.07 to a new rate of $184.94 per month. All other residential and commercial rates will also be adjusted by 3.28 percent, effective January 1, 2025.
Amendments for Clarification
Since the inception of the Agreement, City staff and Burrtec have identified a need for minor amendments that will more effectively convey the Agreement’s intent. Some of the minor amendments being proposed include the following:
• In the current Agreement residential rate sheet, additional recycling and organics carts were listed with corresponding charges, which are described as no additional charge in the body of the Agreement. The rate sheet has been modified to show no charge for additional recycling and organic carts to be consistent with the language of the rest of the agreement.
• A 32-gallon trash cart service is mentioned in the Agreement; however, it was absent from the rate sheet, and no rate was assigned. The 32-gallon cart is now listed on the rate sheets, and the cost is based on the type of disposal commodity. • While an organics contamination fee is listed for all three rate sheets, there was no fee for recycling contamination for single-family service rates. A fee for recycling contamination equal to the organics contamination fee, at $66.24 per occurrence, is being added.
However, Burrtec and the City will continue to use education as a priority, with enforcement and the charge of a contamination fee only as a last resort. • References to the bundled aspect of the commercial and multi-family waste rates were inconsistent in a note section on the top of the rate sheets for both multi-family and commercial services. To correct this, a new note will clarify that customers will receive recycling capacity equivalent to the garbage service selected, plus one 32-gallon organics cart per 2 cubic yards of garbage.
• Burrtec had indicated that several standard services would be provided that are typical of the industry, however they were not listed in the Agreement and had no corresponding rate attached. These services include, the senior discount, residential pull-out service, extra trash pick-ups, and additional cart cleanings. The rate sheet has been modified to include these services.
• There is a need to provide flexibility for using different disposal or recycling facilities to prevent service disruption due to waiting times, capacity limitations, and tipping fee increases. Language was added to allow hauler flexibility that requires notification to the City.
• There are typographical errors and misspelled words in need of correction. The appropriate corrections have been made.
Staff recommends adopting the resolution to amend and restate the Agreement and approve the
annual rate adjustment. This proposed amendment will clarify the bundled rates on the rate sheets and make them consistent with the language in the document, provide a recycling contamination fee for single-family services, add 32-gallon cart trash rates for those multi-family or commercial entities that require it, correct misspellings, provide flexibility with facilities used, and add standard service fees not already included on the current approved rate sheet. The proposed amendments do not impact Burrtec's previously approved rates or standard services.
A redlined version of the Agreement with all the proposed amendments is available in the City Clerk's Reading File.
ALTERNATIVE ACTION
Other action as determined by the Council.
FISCAL IMPACT
There is no fiscal impact.
ATTACHMENTS
Resolution - First Amendment
Burrtec Request
Amended & Restated Solid Waste Franchise Agreement (available in the City Clerk's Reading File)
Franchise Agreement - Redline (available in the City Clerk's Reading File)