Santa Clarita City Council
May 27, 2025

26000 Springbrook Avenue, Unit 101, Saugus CA 91350
January 15, 2025 Darin Seegmiller City of Santa Clarita 23920 Valencia Blvd. Santa Clarita, CA 91355 RE: Request for Extraordinary Adjustment Mr. Seegmiller, In accordance with the Restated and Amended Agreement dated November 12, 2024, and pursuant to Article 6, Section 6.07 – Extraordinary Adjustments, which states: "An extraordinary adjustment in rates will be deemed justified if it is necessary for the Contractor to make a substantial change in its operations, or substantial capital expenditure or investment in order to perform its obligations under this Agreement due to the occurrence of an event or circumstance which is beyond the reasonable control of Contractor." Burrtec Waste Industries hereby formally submits a request for relief under the referenced clause. This request is necessitated by the unforeseen and untimely January 1, 2025, closure of the Chiquita Canyon Landfill. As specified in Exhibit 9 of the Agreement – City-Approved Processing and Disposal Facilities – this landfill was the exclusive City-approved facility for garbage disposal. Prior to this event, Burrtec had faced significant operational challenges. Beginning in mid-to-late 2024, in anticipation of the potential closure, we extensively explored alternative disposal solutions. This included trial use of alternative facilities during periodic operational disruptions at Chiquita Canyon, which allowed us to assess routing logistics, traffic, and facility wait times. However, this effort not only caused considerable strain on operational resources but also, to incur gate-rate tipping fees, which are significantly higher than our current tipping fees at Chiquita Canyon Landfill. Following this exploration, Burrtec identified Waste Management’s Sun Valley Recycle Park Transfer Station (SVRP) as the most viable long-term option. The SVRP is one of the few fully permitted facilities geographically assessable by our route trucks. However, with the closure of Chiquita imminent, it created a volatile competitive environment. To secure future long-term disposal capacity for the refuse generated in the City of Santa Clarita, Burrtec was forced to commit specific daily tonnage allocations to this facility, also at significantly higher gate-rate tipping fees. The transition to SVRP was approved by the City Council on January 14, 2025. Burrtec is now positioned to secure a three-year contractual agreement with the SVRP. Accordingly, this Extraordinary Adjustment Request seeks to: 1. Recover unforeseen expenses incurred prior to the closure of Chiquita Canyon Landfill. 2. Adjust the contract’s approved maximum rates to reflect the new operational and disposal realities. 3. Charge SFDs for additional recycling and organics carts We respectfully request the City to proceed with reviewing and approving this extraordinary adjustment request. Burrtec stands ready to provide any additional information or clarification necessary to facilitate your review process. Thank you for your attention to this matter. Sincerely, Dennis Verner Municipal Manager