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HomeMy WebLinkAbout22-Public Services c c c CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Ken Fischer, Director Subject: Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the issuance of a purchase order in the amount of $104,179.00 to Burrtec Waste Industries, Inc. for commingled recyclable processing services for the months of April, May, June and July of 2006. Dept: Public Services Date: December 6, 2007 Meeting Date: December 17, 2007 Synopsis of Previous Council Action: Resolution No. 2001-34 - Mayor and Common Council of the City of San Bernardino authorized the execution of an agreement with Burrtec Waste Industries, Inc., for the provision of commingled recyclables processing. Recommended Motion: Adopt Resolution Contact person: Ken Fischer, Director Supporting data attached: Staff Report, Resolution, Attachment "A" Phone: Ward: 5140 All / FUNDING REQUIREMENTS: Amount: $104,179.00 FY 07-08 Account Number 527-412- 5179 Source: Finance: Council Notes: Agenda Item No. d;- 1~l1ltrl c c c CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report Subject: A Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the issuance of a purchase order in the amount of $104,179.00 to Burrtec Waste Industries, Inc. for commingled recyclable processing services for the months of April, May, June and July of 2006. Background: On February 8, 20Q1 the City of San Bernardino entered into an Agreement with Burrtec Waste Industries, Inc. for the provision of commingled recyclable processing. The term was for two (2) years, with three (3) one-year extensions at the City's option for a maximum of five (5) years. The Agreement expired on February 7, 2006. The City was awaiting new bids and continued to use Burrtec Waste industries until July 2006. On March 6, 2006, Burrtec Industries, Inc., notified the City of San Bernardino that for the interim period, effective April 1 , 2006, they were going to change the expired pricing structure (See Attachment "An). Under this agreement, they were paying us each month for our material. Once the contract expired, they no longer had to guarantee a 75% recycling rate and instead, notified us that they would process the material based on actual recycling content, which was about 50%. This change caused their payments to turn into billings as the cost to process 50% trash exceeded the value of the recyclables. We did not realize what our actual waste content was nor did we receive any billings from Burrtec for the months of April or May until the middle of June. As soon as we received the billing we moved to send our material to another provider until we could complete the RFP process for a new contract. It took about three weeks to change to a new provider, which is why we had a June bill and a partial bill for July. Staff questioned the change in recycling content and requested information on the content to clarify the charges from Burrtec. Since Burrtec never gave the City of San Bernardino an explanation, the issue was overlooked and payments were never made. Staff recently reviewed the invoices in question and recommends payment. Financial Impact: Public Services did not budget for this in the FY 07-08 budget since the issue was overlooked. However, funds are available in the IWM Division FY 07-08 budget, Account No. 527-412-5179 (DumplWaste Fees) in the amount of $104,179.00. Recommendation: Adopt Resolution ; , c 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 c c RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE ISSUANCE OF A PURCHASE ORDER IN THE AMOUNT OF $104,179.00 TO BURRTEC WASTE INDUSTRIES, INC. FOR COMMINGLED RECYCLABLE PROCESSING SERVICES FOR THE MONTHS OF APRIL, MAY, JUNE AND JULY OF 2006. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: WHEREAS, the City entered into an Agreement with Burrtec Waste Industries, Inc., dated February 8, 2001, which required the City to utilize Burrtec Waste Industries, Inc., for the provision of commingled recyclable processing; and WHEREAS, the amount of $104,179.00 is required to pay for the invoices that are due to Burrtec Waste Industries, Inc. SECTION 1. Pursuant to the above determinations, the Finance Director or hislher designee is hereby authorized to issue a Purchase Order in the amount of $104,179.00. SECTION 2. The Purchase order shall reference this Resolution No. 2007 and shall read, "Burrtec Waste Industries, Inc. for commingled recyclable processing services for the months of April, May, June and July of 2006." SECTION 3. The authorization to execute the above referenced Purchase Order is rescinded if it is not issued within sixty (60) days of the passage of this resolution. III III III 11/ l::l-/~-O\J roo. J:;(, , . ~ C I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE ISSUANCE OF A PURCHASE ORDER IN THE 2 AMOUNT OF $104,179.00 TO BURRTEC WASTE INDUSTRIES, INC. FOR COMMINGLED 3 RECYCLABLE PROCESSING SERVICES FOR THE MONTHS OF APRIL, MAY, JUNE AND JULY OF 2006. 4 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the 6 Mayor and Common Council of the City of San Bernardino at a 7 meeting thereof, held on the 8 following vote, to wit: day of , 2007, by the C 9 10 COUNCIL MEMBERS: II ESTRADA 12 BAXTER 13 BRINKER 14 DERRY IS KELLEY 16 JOHNSON 17 MC CAMMACK 18 19 20 AYES NAYS ABSTAIN ABSENT Rachel G. Clark, City Clerk 21 The foregoing resolution is hereby approved this .2007. day of 22 23 24 C :: :~~ 27 James F. Penman, City Attorney Patrick J. Morris, Mayor City of San Bernardino 28 , . -" ~BURRTEC W..'STE JNDU$"rRJES, me. "H'e'll Telke C(lre OJ It" March 6, 2006 Mr. Ken Fischer Director of Public Works City of San Bemardino 300 North "D" St San Bemardino, CA 92418 Re: Recyclables Processing Dear Ken: ATTACHMENT "A" The Agreement !:latween the City of San Bemardino and Bumec Waste Industries, Ine. for processing the City's recyclables expired on February 7, 2006. The City is currently reviewing proposals as part of an RFP process, which began last year. Burrtec looks forward to completion of this process. and hopefully award of a new contract to process the City's recyclables. In the interim, effective April 1 , 2006, Bumac will convert the expired pricing structure to our existing structure as follows: . Residential Comminaled Recvdables . Processing Cost . . Recyctables Rebate . Resi<:lue Disposal c Commercial Recvdina . ProC!lSsing Cost . . Recyclables Rebate . Residue Disposal $0 per ton scrap @ 20%, CRV @ 32% $44.61 per ton $35 per ton scrap@50%,CRV@81% $44.61 per ton j' All loads delivered to Jack's yard in San Bemardino will be charged an. $11/ton transfer fee. There will. be no transfer fee for loads delivered direclly to the RobertA Nelson MRF. If you,have any questions, please do not hesitate to contact us. Sincerely, pi /tJ~ Richard D. Crockett II C General Manager 9890 Cherry Ave-nus . Fontana, California 92335 . 909-429-4200 . FAX 909"429-4290