HomeMy WebLinkAbout2019-12-10 - RESOLUTIONS - APPROVING THE EIGHTH AMENDMENT OF THE AMENDED AND (2)RESOLUTION 19-58
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
CLARITA, CALIFORNIA, APPROVING THE EIGHTH AMENDMENT OF
THE AMENDED AND RESTATED AGREEMENT BETWEEN THE CITY OF
SANTA CLARITA AND BURRTEC WASTE INDUSTRIES, INC.,
FOR COMMERCIAL SOLID WASTE MANAGEMENT SERVICES
WHEREAS, the City of Santa Clarita (City) is empowered under Section 7 of Article 11
of the California Constitution to make and enforce, within its limits, all police and sanitary
ordinances and regulations not in conflict with general laws; and
WHEREAS, in partial implementation of Section 7 of Article 11 of the California
Constitution, California Public Resources Code Section 40059 authorizes the City to determine
all aspects of handling of solid waste that are of local concern, including the frequency of
collection, means of collection and transportation, level of services and nature, location, and
extent of waste handling services; and
WHEREAS, on November 20, 2003, the City and Burrtec Waste Industries; Inc.
(Burrtec), entered into that certain "Agreement Between the City of Santa Clarita and Burrtec
Waste Industries, Inc., for Commercial Solid Waste Management Servic-s;" and
WHEREAS, on May 24, 2011, the City Council directed staff to execute are Amended
and Restated Agreement with Burrtec; and
WHEREAS, pursuant to Section 6.6 of the Amended and Restated Agreement, Burrtec is
entitled to pursue extraordinary adjustment requests in the event of extraordinary changes in the
cost of providing service under this agreement; and
WHEREAS, recyclable material markets have changed from providing net revenues to
offset program costs and rates to a net expense for cost recovery due to processing costs
exceeding the value of materials sold; and
WHEREAS, recyclable material markets have changed from providing revenue to offset
program costs to a model of cost recovery for processing the materials prior to sale; and
WHEREAS, the City and Burrtec desire to amend the Amended and Restated Agreement
by increasing the maximum rates as outlined in Sections 6.6 of the Agreement Between the City
of Santa Clarita and Burrtec Waste Industries, Inc., for Commercial Solid Waste Management
Services.
NOW, THEREFORE, the City Council of the City of Santa Clarita, California, does
hereby resolve as follows:
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SECTION 1. The "Eighth Amendment of the Amended and Restated Agreement
Between the City of Santa Clarita and Burrtec Waste Industries, Inc., for Commercial Solid
Waste Management Services" (Eighth Amendment), a copy of which is attached hereto is hereby
approved. The City Manager is authorized to execute the Eighth Amendment on behalf of the
City.
SECTION 2. The City Clerk shall certify to the adoption of this resolution.
PASSED, APPROVED, AND ADOPTED this loth day of December 2019.
MAYOR
ATTEST:
CITY CLERK
DATE:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the
foregoing Resolution No.19-58 was duly adopted by the City Council of the City of Santa Clarita
at a regular meeting thereof, held on the I O'h day of December 2019, by the following vote:
AYES: COUNCILMEMBERS: McLean, Miranda, Kellar, Weste, Smyth
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
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CITY CLERK
EIGHTH AMENDMENT OF THE AMENDED AND
RESTATED AGREEMENT BETWEEN THE CITY OF
SANTA CLARITA AND BURRTEC WASTE INDUSTRIES, INC.,
FOR COMMERCIAL SOLID WASTE MANAGEMENT SERVICES
This EIGHTH AMENDMENT OF THE AMENDED AND RESTATED
AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND BURRTEC WASTE
INDUSTRIES, INC., FOR COMMERCIAL SOLID WASTE MANAGEMENT
SERVICES, (Eighth Amendment) is entered into this 10`h day of December 2019, between
the City of Santa Clarita (City), California, a California municipal corporation and Burrtec
Waste Industries Inc. (Burrtec), a California corporation, to amend that certain "Amended
and Restated Agreement Between the City of Santa Clarita and Burrtec Waste Industries,
Inc., for Commercial Solid Waste Management Services."
WHEREAS, the City is empowered under Section 7 of Article 11 of the California
Constitution to make and enforce, within its limits, all police and sanitary ordinances and
regulations not in conflict with general laws; and
WHEREAS, in partial implementation of Section 7 of Article 11 of the California
Constitution, California Public Resources Code Section 40059 authorizes the City to determine
all aspects of handling of solid waste that are of local concern, including the frequency of
collection, means of collection and transportation, level of services and nature, location, and
extent of waste handling services; and
WHEREAS, on November 20, 2003, the City and Burrtec Waste Industries, Inc.
entered into that certain "Agreement Between the City of Santa Clarita and Burrtec Waste
Industries, Inc., for Commercial Solid Waste Management Services" (Agreement); and
WHEREAS, on May 24, 2011, the City Council directed staff to execute an Amended
and Restated Agreement with Burrtec; and
WHEREAS, pursuant to Section 6.6 of the Amended and Restated Agreement, Burrtec is
entitled to pursue extraordinary adjustment requests in the event of extraordinary changes in the
cost of providing service under this agreement; and
WHEREAS, recyclable material markets have changed from providing net revenues to
offset program costs and rates to a net expense for cost recovery due to processing costs
exceeding the value of materials sold; and
WHEREAS, recyclable material markets have changed from providing revenue to offset
program costs to a model of cost recovery for processing the materials prior to sale; and
WHEREAS, the City and Burrtec desire to amend the Amended and Restated Agreement
by increasing the maximum rates as outlined in Sections 6.6 of the Agreement Between the City
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of Santa Clarita and Burrtec Waste Industries, Inc., for Commercial Solid Waste Management
Services.
NOW, THEREFORE, the City and Burrtec in consideration of their mutual promises,
amend the Amended and Restated Agreement as follows:
SECTION 1. Amend Section 4.1.4 to read as follows.
4.1.4 School Districts
This section is removed.
SECTION 2. Amend Section 4.2.1 to read as follows.
4.2.1 Recycling Collection Service
As set forth in the California State Assembly Bill 341, the company will
provide all required businesses with recycling collection services and
agrees to provide Recycling Collection service to all Refuse Bin service
and Commercial Can Customers requesting it from the Company.
Company may purchase Recyclable Materials from its Customers as well.
The Company agrees to provide Recycling Bins, Recycling Cans and 90-
gallon Recycling Carts to Refuse Customers in sufficient quantities to
meet the Recycling needs of each Customer.
The Company agrees to make programs available for all Recyclable
Materials for which it has established markets. The Company shall notify
all Customers via a mailed flyer each year of the availability of Recycling
Collection programs.
SECTION 3. Amend Section 6.5.1 to read as follows.
6.5.1 Annual Rate Cap
If the adjustment to the maximum rate as determined by the application
of the formula set forth in Section 6.4 combined with any Council
approved Extraordinary Rate Adjustments exceeds 5% for any Rate Year
the adjustment for said Rate Year shall nevertheless be limited to 5%
except during the 2019/2020 Rate Year. Any increase calculated pursuant
to section 6.4 which exceeds the Annual Rate Cap for such year shall be
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carried forward and added to future approved rate increases, providing
the total increase for any future Rate Year is no more than the Annual
Rate Cap for such Rate Year. Any unused increase may be carried
forward until fully applied, except that any unused increases remaining
at the end of the Term hereof will expire unused.
SECTION 4. Amend Section 6.2 to read as follows.
6.2 Maximum Rates
The rates Company bills to customers shall not exceed the Maximum Rates set forth
in Exhibit 2.
Maximum Rates shall be retitled as "Maximum Rates" and shall be amended to contain
the following maximum rates commencing January 11, 2020:
Container
Number of W ekly Pickups
Size
1
2
3
4
5
6
$52.82
$95.48
$158.53
$211.36
$264.23
$317.08
32- al Cart
$62.10
$112.76
$186.27
$248.38
$310.49
$372.59
90- al Cart
$96.43
$188.86
$281.29
$372.91
$464.51
$556.17
1.5 yd3
$105.18
$206.17
$307.19
$407.42
$507.56
$607.76
2 yd3
$123.98
$243.39
$362.83
$481.39
$599.88
$718.44
3 yd3
$158.31
$310.96
$463.56
$615.02
$766.50
$917.96
4 yd3
$212.24
$417.14
$622.09
$825.52
$19028.98
$15232.46
6 yd3
Container
Number of Weekly Green Waste Pickups
Size
1
2
1 3
1 4
1 5
6
3 yd3
$92.99
$182.54
1 $272.12
1 $361.04
1 $449.91
$538.83
SECTION 2. Except as expressly modified in this Eighth Amendment, all other
provisions of the Agreement shall remain in effect.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.
CITY OF SANTA CLARITA
A California Municipal Corporation
Kenneth W. Striplin
City Manager
ATTEST:
Mary Cusick
City Clerk
APPROVED AS TO FORM:
Joseph Montes
City Attorney
BURRTEC WASTE INDUSTRIES, INC.
By:
(CEO; President, Chairman of the Board or any Vice
President)
And By:
(The Secretary, any assistant secretary, CFO
or any assistant treasurer)
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State of California
County of
XMI
Date
Place Notary Seal Above
before me,
Here Insert Name and Title of the Officer
Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be
the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies),
and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of
the State of California that the foregoing paragraph is true
and correct.
WITNESS my hand and official seal
Signature
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Signature of Notary Public