2024-2037 Burrtec Waste & Recycling Amended & Restated No. 2 - Amendment 2MEMORANDUM
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DATE: July 1, 2023
TO: Jon McMillen, City Manager
FROM: Monika Radeva, City Clerk
RE: Burrtec Waste & Recycling Services - Amendment 2 to Amended and Restated
Agreement to Amend Section 8.18 related to Recovered Organic Waste Product
Please list the Contracting Party / Vendor Name, type of agreement to be executed, including any change orders or
amendments, and the type of services to be provided. Make sure to list any related Project No. and Project Name.
Authority to execute this agreement is based upon:
Approved by City Council on June 4, 2024 - Business 2
City Manager's signing authority provided under the City's Purchasing Policy
[Resolution No. 2023-008] for budget expenditures of $50,000 or less.
Department Director's or Manager's signing authority provided under the City's
Purchasing Policy [Resolution No. 2023-008] for budget expenditures of $15,000 and
$5,000, respectively, or less.
Procurement Method (one must aDD/v):
Bid n RFP Ti RFQ n 3 written informal bids
Sole Source
X
Select Source Cooperative Procurement
Requesting department shall check and attach the items below as appropriate:
Agreement payment will be charged to Account No.: 221-0000-60127
Agreement term:
Start Date July 1, 2024 End Date June 30, 2037
Amount of Agreement, Amendment, Change Order, etc.: $ 200,000
REMINDER: Signing authorities listed above are applicable on the aggregate Agreement amount,
not individual Amendments or Change Orders!
nInsurance certificates as required by the Agreement for Risk Manager approval
Approved by: myCOI Compliant Date: 6/4/2024
Bonds (originals) as required by the Agreement (Performance, Payment, etc.)
Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s)
NOTE: Review the "Form 700 Disclosure for Consultants" guidance to determine if a Form 700 is
required pursuant FPPC regulation 18701(2)
Business License No.
Expires:
Requisition for a Purchase Order has been prepared (Agreements over $5,000)
AMENDMENT NO. 2 TO AMENDED AND RESTATED AGREEMENT BETWEEN
CITY OF LA QUINTA AND BURRTEC WASTE & RECYCLING SERVICES LLC
FOR SOLID WASTE HANDLING SERVICES
This is Amendment No. 2 ("Amendment No. 2") to that certain Amended and Restated
Agreement between City of La Quinta and Burrtec Waste & Recycling Services, LLC for Solid
Waste Handling Services ("Agreement") entered into on July 1, 2022 by and between the CITY OF
LA QUINTA ("City") and BURRTEC WASTE & RECYCLING SERVICES, LLC (the
"Contractor"), as amended by that certain Amendment to the Agreement entered into on July 1,
2023 ("Amendment No. 1.") This Amendment No. 2 is entered into this 1St day of July , 2024 to
amend Section 8.18 of the Agreement.
NOW THEREFORE, for good and valuable consideration, City and Contractor agree as follows:
1. Amendment to Section 8.18. Section 8.18 of the Agreement is hereby amended to read in its
entirety as follows:
"8.18 Provision for Recovered Organic Waste Product
For so long as it is required by SB 1383, Contractor agrees to coordinate and cooperate with
the City to meet its Organic Waste produce procurement target pursuant to the SB 1383
Regulations. At the City's direction, Contractor shall procure recovered organic waste
products (Compost, Mulch, Electricity from Biomass and/or Renewable Natural Gas)
meeting the requirements of 14 CCR Section 18993.1. The cost of such procurement
("Procurement Costs") shall be integrated into the maximum rates as set forth in Exhibit A,
with the initial rates set to accommodate up to 3,300 tons annually of compost. Any
additional costs adhered such as supplementary products, labor, equipment, and necessary
items will be paid by the City to Contractor. The parties shall negotiate in good faith to
determine the appropriate prorated change to the maximum rates charged above the 3,300
tons, to each Customer, taking into account all relevant financial data and the maximum
rates set forth on Exhibit A will thereafter be adjusted accordingly at the next Adjustment
Date. The City Manager may approve changes in the Procurement Costs associated with any
of the maximum rates set forth on Exhibit A, or, in his discretion, may, refer such approval
to the City Council. Contractor shall maintain written records regarding procurement and
shall submit those records to the City consistent with the recordkeeping requirements in 14
CCR Sections 18993.2, 18993.4, and 18994.2(j)."
2. No Other Changes. Except as specifically provided herein, all terms and conditions of the
Agreement shall remain in full force and effect, without waiver or modification. All terms defined
in the Agreement shall have the same meaning when used in this Amendment No. 2. In the event of
any conflict between the terms of this Amendment No. 2 and the Agreement, the terms of this
Amendment No. 2 shall prevail. This Amendment No. 2 may be executed in multiple counterparts,
each of which shall be an original and all of which together shall constitute one agreement.
AMENDMENT NO. 2 TO AMENDED AND RESTATED AGREEMENT BETWEEN
CITY OF LA QUINTA AND BURRTEC WASTE & RECYCLING SERVICES LLC
FOR SOLID WASTE HANDLING SERVICES
ATTEST:
Monika Radeva,
r
Jon Me ►4 ' , City Manager
RESOLUTION NO. 2024 — 021
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA, CALIFORNIA, APPROVING AMENDMENT
NO. 2 TO THE AMENDED AND RESTATED AGREEMENT
WITH BURRTEC WASTE AND RECYCLING SERVICES,
LLC FOR SOLID WASTE HANDLING SERVICES
WHEREAS, the California Integrated Waste Management Act of 1989 ("AB 939")
(California Public Resources Code Section 40000 et seq.) has declared that it is in the
public interest to authorize and require local agencies to make adequate provisions for
Solid Waste handling within their jurisdictions to meet the goals and requirements of AB
939; and
WHEREAS, on May 17, 2022, the City Council adopted Resolution No. 2022-013
approving that certain Amended and Restated Agreement between City of La Quinta and
Burrtec Waste and Recycling Services, LLC ("Burrtec") for Solid Waste Handling
Services, effective July 1, 2022 (the "Agreement"), the Term of the Agreement will expire
on June 30, 2037; and
WHEREAS, the Agreement is the currently operative exclusive franchise
agreement for the City's waste hauling and recycling services, entered into pursuant to
AB 939 and Public Resources Code Sections 49300 and 49500 thereunder, and the
applicable provisions of the La Quinta City Charter and Municipal Code, under which the
City determined that the public health, safety, and well-being required the Agreement to
be awarded to a qualified company for the collection, transportation, recycling,
processing, and disposal of solid waste and other services to meet the goals and
requirements of AB 939; and
WHEREAS, on June 6, 2023, the City Council adopted Resolution No. 2023-014
approving Amendment No. 1 to the Agreement, effective July 1, 2023, and amending
"Section 8.6.8 Acceptance of Recyclable Materials and Household Hazardous Waste" for
specified additional services relating to the acceptance of recyclable materials and HHW;
and
WHEREAS, on September 19, 2016, the Governor of California approved Senate
Bill 1383 [Stats. 2016, Ch. 395, SB 1383 Lara] (SB 1383) related to "Short -live climate
pollutants: methane emissions: dairy and livestock: organic waste: landfills," which went
into effect January 2022 requiring cities to provide organics recycling services to all
residents and businesses; and
WHEREAS, the City wishes to enter into Amendment No. 2 to the Agreement,
subject to the terms and conditions set forth in this Resolution and the Agreement, to
amend "Section 8.18 Provision for Recovered Organic Waste Product" and implement
the procurement of a certain amount of qualifying compost and mulch as required by SB
1383, to assist the City with ensuring compliance with the State mandate; and
Resolution No. 2024 — 021
Amendment No. 2 to the Amended and Restated Agreement with Burrtec — SB 1383 Organics Compliance
Adopted: June 4, 2024
Page 2 of 3
WHEREAS, California Public Resources Code Section 49300 requires the City to
approve the terms of the proposed Amendment No. 2 pursuant to a City Council
Resolution.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
La Quinta, California, as follows:
SECTION 1. The City of La Quinta hereby approves this Amendment No. 2 to the
Amended and Restated Agreement between City of La Quinta and Burrtec Waste and
Recycling Services, LLC for Solid Waste Handling Services, in the form attached to the
Staff Report accompanying this Resolution (the "Amendment No. 2").
SECTION 2.
Agreement.
The term of Amendment No. 2 shall be for the same Term as the
SECTION 3. The City Manager, with concurrence of the City Attorney, may make
non -substantive edits to this Amendment No. 2 as required, and the City Manager shall
have the authority to execute Amendment No. 2 on behalf of the City.
PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City
Council held on this 4th day of June 2024, by the following vote:
AYES: Councilmembers Fitzpatrick, McGarrey, Pena, Sanchez, and Mayor
Evans
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
MONIKA RAD VA, ity Clerk
City of La Quinta, California
LINDA EVANS, Mayor
City of La Quinta, California
APPROVED AS TO FORM:
BUSINESS SESSION ITEM NO. 1
CONSIDERED AS BUSINESS SESSION ITEM NO. 2
City of La Quinta
CITY COUNCIL MEETING: June 4, 2024
STAFF REPORT
AGENDA TITLE: ADOPT RESOLUTIONS TO: 1) APPROVE AMENDMENT NO. 2 TO
THE AMENDED AND RESTATED AGREEMENT WITH BURRTEC WASTE AND
RECYCLING SERVICES, LLC FOR SOLID WASTE HANDLING SERVICES TO AMEND
SECTION 8.18 RELATED TO ORGANIC WASTE PRODUCT TO COMPLY WITH SB
1383; AND 2) REQUEST COUNTY OF RIVERSIDE PLACE COLLECTION COSTS FOR
SOLID WASTE HANDLING SERVICES AT SINGLE FAMILY DWELLINGS ON TAX
ROLLS FOR FISCAL YEAR 2024/25; AND APPROVE GENERAL FUND BUDGET
APPROPRIATION FOR FISCAL YEAR 2023/24
RECOMMENDATION
A. Adopt a Resolution to approve Amendment No. 2 to the Amended and Restated
Agreement with Burrtec Waste and Recycling Services, LLC for solid waste
handling services to amend Section 8.18 related to organic waste product to
comply with SB 1383; and authorize the City Manager to execute the amendment.
B. Adopt a Resolution to request the County of Riverside place collection costs for
solid waste handling services for single-family dwellings on the tax rolls for fiscal
year 2024/25.
C. Approve General Fund budget appropriation for fiscal year 2023/24.
EXECUTIVE SUMMARY
• In 2016, the Governor of California approved Senate Bill 1383 [Stats. 2016, Ch.
395, SB 1383 Lara] (SB 1383) related to short -live climate pollutants, such as black
carbon, fluorinated gases, and methane, which included target goals for the
reduction in the level of statewide disposal of organic waste in order to reduce
methane emissions, which went into effect January 2022 requiring cities to provide
organics recycling services to all residents and businesses.
• In 2022 and 2023, Council approved the Amended and Restated Agreement
(Agreement) and subsequent Amendment No. 1 with Burrtec Waste and Recycling
Services, LLC (Burrtec) for waste handling, recycling, organics, and household
hazardous waste services in the City, which included property tax roll billing for
residential customers.
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• The proposed Amendment No. 2 to the Agreement will implement the procurement
of a certain amount of qualifying compost and mulch as required by SB 1383.
• The County Tax Assessor requires Council to annually adopt a resolution
requesting that the cost of solid waste collection services be placed on the
residential tax rolls.
FISCAL IMPACT
Costs related to the procurement of the mandated annual amount of mulch, as outlined
in Amendment No. 2, will be billed to residents and businesses. Effective fiscal year (FY)
2024/25, the City will budget up to $200,000 per FY, from AB 939 (account 221-0000-
60127), to cover any additional costs for services and products that may arise from
complying with SB 1383. A one-time cost of $106,598.11 for the procurement of orchard
mulch compost will be paid out from account 221-0000-60127 from FY 2023/24
(Attachment 3), a budget appropriation from the General Fund of $125,000 is requested
to cover the additional expenses in Fund 221.
JACKGROUND/A NALYS IS
On May 17, 2022, Council adopted Resolution No. 2022-013, approving the current
operative exclusive franchise Agreement with Burrtec for solid waste handling, recycling,
organics, and household hazardous waste services, which includes property tax roll billing
for residential customers. On June 6, 2023, Council adopted Resolution No. 2023-014,
approving Amendment No. 1 to the Agreement and amending "Section 8.6.8 Acceptance
of Recyclable Materials and Household Hazardous Waste," which added collection of
household hazardous waste.
In 2016, the Governor of California approved SB 1383 related to "Short -live climate
pollutants: methane emissions: dairy and livestock: organic waste: landfills, which went
into effect January 2022, and required cities to provide organics recycling services to all
residents and businesses, and included target goals for the reduction in the level of
statewide disposal or organic waste in order to reduce methane emissions.
If approved, the proposed Amendment No. 2 (Attachment 1) to the Agreement will amend
"Section 8.18 Provision for Recovered Organic Waste Product" and implement the
procurement of a certain amount of qualifying compost and mulch (Attachment 3) as
required by SB 1383, assisting the City with ensuring compliance with this State mandate.
Burrtec is able to maintain lower rates during the Agreement term and reduce the impact
of added costs from the mandatory implementation of SB 1383.
The City's Agreement with Burrtec stipulates that solid waste collection, handling, and
street sweeping serves costs for single-family dwelling will be collected through the tax
rolls. Section 24 of the Agreement specifies that Burrtec can adjust the rates per the
Consumer Price Index annually and pass along any increases from the Transfer Station.
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The table below details the rates for FY 2024/25 (Attachment 2). These service costs are
not subject to Proposition 218 (which provides that all taxes and most charges are subject
to voter approval) because the rates are reasonably related to the cost of services
provided.
Single -Family Dwelling
2023/24 Rate
(existing)
2024/25 Rate
(proposed)
Service Component
$16.29/month
$18.42/month
Disposal Component
$6.86/month
$7.36/month
AB 939 Fee
$0.10/month
$0.10/month
Total Rate
$23.25/month
$279.00/year
$25.88/month
$310.56/year
Additional Residential Services
2023/24 Rate
(existing)
2024/25 Rate
(proposed)
Additional Refuse Cart
$8.79/month
$105.48/year
$9.16/month
$109.92/year
Backyard Service for 3 containers
$15.64/month
$187.68/year
$16.31/month
$195.72/year
Backyard Service additional container
$3.09/month
$37.08/year
$3.22/month
$38.64/year
PGA 2nd Pick-up Day
$15.73/month
$188.76/year
$16.74/month
$200.64/year
Surcharge for Homeowners Association
desiring Monday service
10% of Service
Component
10% of Service
Component
ALTERNATIVES
Staff does not recommend an alternative.
Prepared by:
Approved by:
Gil Villalpando, Director of Business Unit and Housing Development
Jon McMillen, City Manager
Attachments: 1. Amendment No. 2 to the Amended and Restated Agreement with Burrtec
2. Waste Handling Service Rates — effective July 1, 2024
3. Burrtec Invoice for Orchard Mulch Compost, dated November 21, 2023
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