HomeMy WebLinkAbout2006-04-25 - AGENDA REPORTS - BURRTEC WASTE FRANCHISE AGMT (2)Agenda Item: _ W,
CITY OF SANTA CLARITA
AGENDA REPORT
NEW BUSINESS City Manager Approval:
Item to be presented by:
DATE: April 25, 2006
SUBJECT: SECOND AMENDMENT TO COMMERCIAL FRANCHISE
AGREEMENT WITH BURRTEC WASTE INDUSTRIES TO
EXECUTE NEW IMPLEMENTATION DEADLINES
DEPARTMENT: City Manager's Office
RECOMMENDED ACTION
City Council approve resolution for the Second Amendment to the Agreement Between City of
Santa Clarita and Burrtec Waste Industries, Inc. for Commercial Solid Waste Management
Services (Franchise Agreement). This resolution requires Burrtec to begin construction no later
than January 11, 2007 (six months from July 11, 2006) and to have the MRF constructed and
operational no later than November 11, 2007 (ten months from the start of construction).
In November 2003, Council approved a Commercial Franchise Agreement with Burrtec Waste
Industries. It outlines several requirements, one of which, is the construction of a Materials
Recovery Facility (MRF).
Siting and Construction of a MRF. Pursuant to Section 4.2.7 of the Franchise Agreement,
"Construction of the MRF shall begin no later than April 15, 2005, and the MRF shall be
constructed and operational by February 15, 2006. If Company (Burrtec) fails to meet either of
the preceding milestones, City may, at its option, either continue the milestone date(s) or
immediately terminate this Agreement, and/or take another action that it deems appropriate at its
sole and absolute discretion." Shortly after being awarded the Commercial Franchise, Burrtec
approached City staff to discuss potential locations for a MRF. After reviewing the options
available and receiving feedback from City staff, Burrtec decided to pursue a site previously
utilized by Keysor-Century on Springbrook Road, off Drayton Street, for the MRF.
Adopted: RES % &- 3 9
In January 2004 Burrtec began working with the City to construct the MRF at the Springbrook
location but numerous issues arose. The biggest setback came when the Public Utilities
Commission (PUC) would not support Burrtec's request for a railroad crossing required to access
the site. The City's Engineering Division also had the following concerns with the proposed site:
• The grading needed for the site required the removal of four oak trees, two of which were
heritage oaks;
• Ingress and egress to the site through Springbrook and Drayton;
• Impact on traffic in the area;
• Utilities needed for the MRF and obtaining the sewer connection; and
• The view of the MRF from San Fernando Road.
By March 2005, Burrtec proposed an alternative site for the facility at the Gates King
development in Newhall. Burrtec identified many advantages to siting the MRF at Gates King
rather than the Springbrook location. Gates King has more acreage available (17 acres as
opposed to 15.4 acres) and a layout that is more acceptable for a MRF at a size appropriate for
the City. Since the MRF would potentially be the first site developed at Gates King, it would set
a high standard for future businesses that are looking to be sited in the area. Additionally,
because the City has the option to purchase the MRF at the end of Burrtec's franchise term, the
City can ensure that the site will comply with the Newhall Specific Plan and will be designed in
an aesthetically pleasing manner.
The City amended the Commercial Franchise Agreement to extend Burrtec's time to construct
the MRF due to the setback created by the first proposed site and because the Gates King site was
in litigation. Rather than breaking ground on April 15, 2005 as originally stated in the
agreement, Council amended the agreement on June 10, 2005, so Burrtec had until "six months
following the date of the hearing set by the Court of Appeal in Santa Clarita Oak Conservancy, et
al. v City of Santa Clarita. Burrtec also agreed to complete the MRF ten months following the
start of construction. The original plans from the Springbrook location were adapted and used
for the new location. The plans were later approved by the Planning Commission on October 18,
2005 but were suspended following the court's decision on November 2, 2005 to decertify the
Environmental Impact Report (EIR) for the Gates King project, which was also adopted by the
Planning Commission for the MRF. Since the Court's decision was made on November 2, 2005,
the new deadline for breaking ground is May 2, 2006. Currently the schedule calls for the
recirculated EIR to come before the Council on July 11, 2007 for possible recertification.
Burrtec and staff believe the Gates King development project is the most appropriate site for
siting and constructing a MRF within the short amount of time desired by the City. Although
Burrtec is concentrating its efforts on this site, Burrtec has, and continues to identify other
alternative sites in the event the Courts don't approve the revised EIR for Gates King.
Staff recommends that Council approve a second time extension, The extension would require
Burrtec to begin construction no later than January 11, 2007 (six months from July 11, 2006) and
to have the MRF constructed and operational no later than November 11, 2007 (ten months from
start of construction).
ALTERNATIVE ACTIONS
Other action as determined by Council.
FISCAL IMPACT
None by this action.
ATTACHMENTS
Resolution
Amendment
ATTACHMENTS
Amendment Resolution
Second Amendment