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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;-
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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
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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
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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 $104,179.00 TO BURRTEC WASTE INDUSTRIES, INC. FOR COMMINGLED
3 RECYCLABLE PROCESSING SERVICES FOR THE MONTHS OF APRIL, MAY, JUNE
AND JULY OF 2006.
4
5
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
6 Mayor and Common Council of the City of San Bernardino at a
7 meeting thereof, held on the
8 following vote, to wit:
day of
, 2007, by the
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10 COUNCIL MEMBERS:
II ESTRADA
12 BAXTER
13 BRINKER
14 DERRY
IS KELLEY
16 JOHNSON
17 MC CAMMACK
18
19
20
AYES
NAYS
ABSTAIN ABSENT
Rachel G. Clark, City Clerk
21
The foregoing resolution is hereby approved this
.2007.
day of
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James F. Penman, City Attorney
Patrick J. Morris, Mayor
City of San Bernardino
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~BURRTEC
W..'STE JNDU$"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
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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