FROM:
Development Services
SUBJECT:
Title
Adopt Resolution 2024-007 of the City Council of the City of Fontana approving the Second Amendment to the Integrated Waste Agreement with Burrtec Waste Industries, Inc. and Finding the Action Exempt from the California Environmental Quality Act
End
RECOMMENDATION:
Recommendation
Adopt Resolution No. 2024-007, approving the Second Amendment to the Integrated Waste Agreement with Burrtec Waste Industries, Inc. and Finding the Action Exempt from the California Environmental Quality Act.
End
COUNCIL GOALS:
• Provide street sweeping services.
• Ensure the City’s Household Hazardous Waste facility is appropriately staffed.
DISCUSSION:
The City of Fontana (“City”) has an exclusive franchise agreement with Burrtec Waste Industries, Inc. (“Burrtec”) to provide municipal solid waste collection services within the City. The current Integrated Solid Waste Agreement (“Agreement”) between the City of Fontana and Burrtec Waste Industries, Inc. was entered into on January 1, 1997, and amended on December 28, 2022, to include new organic waste collection services required by state law.
The City and Burrtec have negotiated street sweeping services to be provided by Burrtec at select locations throughout the City.
The proposed Second Amendment would update the Agreement to:
• Require Burrtec to provide routine street sweeping services at specified streets/surfaces, designated curbed arterial (major/minor), collector, commercial, residential, industrial, parking lots, and sidewalks and in accordance with the Second Amendment and newly added Exhibits B-D.
• Require Burrtec to staff qualified personnel to operate and maintain the City’s Household Hazardous Waste (HHW) facility located at 16454 Orange Way in accordance with the newly added Exhibit E.
• Provide additional payment to Burrtec in exchange for the additional services.
• Allow the City to place residential solid waste service charges on the property tax roll; Burrtec will deduct the cost savings it realizes from switching from direct billing of residential customers to placement of the charges on the tax roll, from the monthly street sweeping service charges City pays to Burrtec.
• Revises the cap for annual inflationary adjustments from 4% to 6%, based on the annual percentage change in the published Consumer Price Index (CPI), All Urban Consumers for the Riverside- San Bernardino-Ontario, CA Metropolitan Area.
• Makes other technical, clarifying, and conforming changes to the franchise agreement.
Exempt from CEQA
This action is not subject to the requirements of the California Environmental Quality Act (“CEQA”). The approval of the Second Amendment it is not a “project” within the meaning of 14 CCR Section 15378 (“State CEQA Guidelines”) because it has no potential for resulting in direct or indirect physical change in the environment. The approval of the amendment to the franchise agreement is exempt from CEQA review because it will not have a significant effect on the environment under Section 15061(b)(3) of the State CEQA Guidelines.
FISCAL IMPACT:
Adopting the attached Second Amendment will update the Agreement to allow Burrtec to provide street sweeping services within the City and to staff the City’s HHW facility for weekend special events. The monthly cost of street sweeping services will increase from $68,801.66 to $71,202.21 per month from March until June 30, 2024, after which the rate increase of $28.65 per curb-mile and CPI increase will increase the monthly cost to approximately $90,000. The City will also pay monthly service compensation for Burrtec’s staffing and operating the HHW facility for approximately 44 special events with an estimated annual cost of $3,400 for the remainder of 2023-2024 and $7,700 for 2024-2025. All amounts are subject to a 10% added administrative services charge. Funds are currently available in the 2023-2024 budget for the current year increases. Additional funds needed for the 2024-2025 increased monthly charges and additional staffing obligation with be requested with the 2024-2025 Supplemental Update.
MOTION:
Approve staff recommendation.
ATTACHMENTS:
Attachment No. 1 - Resolution No. 2024-007 Approving Second Amendment
Attachment No. 2 - Second Amendment to Integrated Waste Agreement