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Home My WebLink About2025-01-14 - AGENDA REPORTS - BURRTEC ALTERNATIVE DISPOSAL FACILITYO Agenda Item: 2 CITY OF SANTA CLARITA AGENDA REPORT NEW BUSINESS CITY MANAGER APPROVAL: Lj ` DATE: January 14, 2025 SUBJECT: BURRTEC WASTE INDUSTRIES, INC. REQUEST TO USE AN ALTERNATIVE DISPOSAL FACILITY DEPARTMENT: Neighborhood Services PRESENTER: Darin Seegmiller RECOMMENDED ACTION City Council, in accordance with the Solid Waste Franchise Agreement with Burrtec Waste Industries dated November 12, 2024, authorize the City Manager to execute such documents that may be required to confirm the City's consent for Burrtec to utilize landfills other than the Chiquita Canyon Landfill for solid waste disposal. BACKGROUND Burrtec Waste Industries, Inc. (Burrtec), provides solid waste management services to the City of Santa Clarita (City) in accordance with the Amended and Restated Agreement for Provision of Garbage, Recyclable Materials, and Organic Waste Collection Services (Agreement), effective November 12, 2024. Per the Agreement, Burrtec designated Chiquita Canyon Landfill (Chiquita) as the disposal facility for solid waste. However, Chiquita has been significantly constrained by the actions of various regulatory agencies to address a chemical reaction related to smoldering waste in a long -dormant portion of the landfill. These actions, along with Conditional Use Permit requirements issued by Los Angeles County, have impacted Chiquita's ability to accept waste. The regulatory actions include: • South Coast Air Quality Management District (SCAQMD) issued an order of abatement, requiring Chiquita to take additional measures to mitigate odors emanating from an underground reaction that has affected the surrounding community. • Violations have been issued by the California Environmental Protection Agency, the Page 1 Packet Pg. 17 O Department of Toxic Substance Control, the Los Angeles Regional Water Quality Control Board, and the SCAQMD. • The Los Angeles Water Quality Control Board denied Chiquita's request to place waste in a new cell, raising concerns about long-term viability. • The County of Los Angeles Department of Public Works issued a Conditional Use Permit, capping the landfill's annual intake of tonnage, which causes capacity difficulties for Burrtec. • Los Angeles County filed a lawsuit on December 16, 2024, addressing environmental and public health hazards. As a result of these constraints, Chiquita informed Los Angeles County in a letter dated December 31, 2024, that they were closing active waste disposal operations effective January 1, 2025. In the letter, Chiquita states that this decision is the result of the current regulatory environment causing ongoing operations to no longer be economically viable. Although Chiquita intends to continue working to "maintain compliance with its permits, governing orders, and agreements," there is no indication if or when they will resume waste disposal operations. Leading up to the closure, Burrtec requested assurances from Chiquita that tonnage would be accepted beyond January 2025, but none were provided. Due to Burrtec's inability to obtain a long-term commitment from Chiquita, Burrtec submitted a request to the City, which, if approved, would allow Burrtec to enter into an agreement to dispose of waste at the Sun Valley Recycle Park Transfer Station (Sun Valley WM). This facility, owned by Waste Management (WM), will allow Burrtec to provide uninterrupted solid waste disposal services for the City. Over the last several months, Burrtec conducted an extensive analysis of potential waste facilities based on capacity, cost, distance, and the potential for service disruption in the case that Chiquita ceased operations. As part of the analysis, four facilities were evaluated, including Sun Valley WM, Antelope Valley Recycling & Disposal Facility, Sun Valley Paper Stock, and Sunshine Canyon Landfill. Below are the findings of the analysis: • Sun Valley WM: The only facility capable of accommodating the City's solid waste tonnage with a sustainable, long-term solution. • Antelope Valley Recycling and Disposal Facility: Inaccessible for direct -haul for Burrtec collection trucks due to excessive distance. • Sun Valley Paper Stock: Higher tipping fees and capacity limits posed significant challenges. • Sunshine Canyon Landfill: Offered lower rates, but limited to a six-month tonnage commitment, unsuitable for long-term needs. According to Burrtec's research and analysis, they are indicating Sun Valley WM facility as the best solution. To secure capacity for the City's tonnage and a stable rate, WM is requiring Page 2 Packet Pg. 18 O Burrtec to enter a three-year agreement. If, Chiquita is able to resolve its issues and is able to accept waste from the City, Burrtec may resume taking waste to Chiquita after having notified the City. Approval of the recommended action will not have an immediate impact on customer rates. However, if approved, Burrtec will likely request an Extraordinary Rate Adjustment as described in Section 6.07 in the Agreement. This section outlines the process for the hauler to request a rate increase as a result of extraordinary events that cause an increase in the cost of providing service. Per the agreement, the City retains the right to review Burrtec's request and, at its sole and reasonable discretion, determine whether an adjustment to the Maximum Service Rates is warranted and, if so, the appropriate adjustment amount. To support this process, Burrtec will fund a third -party consultant to assess the necessity and scope of any rate adjustment. Any proposed rate changes will be presented to the City Council for consideration at a later date. ALTERNATIVE ACTION Other action as determined by the Council. FISCAL IMPACT There is no fiscal impact. ATTACHMENTS Burrtec Landfill Request Page 3 Packet Pg. 19 2.a URRTEC "We'll Take Care Qf It" December 20, 2024 Darin Seegmiller City of Santa Clarita 23920 Valencia Blvd. Santa Clarita, CA 91355 RE: Alternative Disposal Site Approval Request Mr. Seegmiller, In accordance with the Restated and Amended Agreement dated November 12, 2024, and under Exhibit 9, City -Approved Processing and Disposal Facilities, Burrtec Waste Industries, the Contractor, is currently utilizing Chiquita Canyon Landfill as the exclusive City -approved facility for garbage disposal. However, due to ongoing challenges at Chiquita Canyon Landfill, including, but not limited to, underground leachate reactions, capacity permitting issues, and either a permanent or temporary site closure risk, extensive exploration of alternative disposal options has been conducted to secure long-term tonnage capacity and stability to future rates. The optimal solution would be to transition to Waste Management's Sun Valley Recycle Park Transfer Station (SVRP), a fully permitted facility. During this period of volatility, to ensure the City of Santa Clarita's long-term disposal capacity, we request the City's approval to enter into a three-year agreement with Waste Management, which will include a one-time significant increase to our current disposal tipping fee. A long-term tonnage commitment from Chiquita Canyon Landfill and other facilities could not be secured. A commitment to Waste Management must be finalized by January 15, 2024, to enable operations to commence on January 31, 2025. We look forward to the City's approval of this proposal. Please do not hesitate to reach out with any questions or if further clarification is needed. Sincerely, Dennis Verner Municipal Manager 26000 Springbrook Avenue, Unit 101, Saugus CA 91350 Packet Pg. 20