Extension Amendment for Burrtec Contract - 2025 Update
This memorandum discusses the consideration to adopt Amendment No. 3 to the Burrtec contract, addressing the extension of the agreement, inclusion of new services, and the background leading to this decision, aiming to mitigate risks associated with the outdated contract. The amendment, supported by the Solid Waste Committee, is set for presentation at a special board meeting in June 2025.
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Presentation Transcript
Director Memorandum 2025-60 Consideration to Adopt Amendment No. 3 to the Burrtec Contract June 26, 2025 1
Background January 2008 Burrtec Solid Waste Agreement ( Agreement ) (Attachment 1) May 2024 Amendments 1 and 2 Amendment 1 Adjusted CPI measurement to annual average Cleaned up outdated language Adjusted billing fee to $4,500 with annual CPI adjustments Amendment 2 Necessitated by SB 1383 Note: City of Jurupa Valley ( City ) Exclusive agreement with Burrtec (July 2012)(Exp. June 2035) Provided to other City residents 2
Background Agreement Expired December 31, 2022 But Wind-down language rolling 4-year term TABLE 5 Written Notice Provided Between: January 1 - December 31, 2018 January 1 - December 31, 2019 January 1 - December 31, 2020 January 1 - December 31, 2021 January 1 - December 31, 2022 January 1 - December 31, 2023 January 1 - December 31, 2024 January 1 - December 31, 2025 Contract Expiration Date December 31, 2022 December 31, 2023 December 31, 2024 December 31, 2025 December 31, 2026 December 31, 2027 December 31, 2028 December 31, 2029 Requires a formal written-notice of non-renewal (this was never submitted) 3
Background Why extension? Outdated (17-year-old) agreement provides risks such as: Misunderstandings Disputes Legal exposure Evolving industry standards (regulatory, market, technological) changes have outpaced the current contract The Agreement predates the incorporation of Jurupa Valley where each jurisdiction has separate services 4
Background May 19, 2025 Solid Waste Committee (Murphy and Skerbelis): Reviewed and supported the draft language of Amendment No. 3 (Attachment 2) Recommended it be presented to the full Board for consideration at the June 26, 2025, Special Board Meeting 5
Amendment No. 3 Section 1.0 Term of Agreement Extended to December 31, 2035 Extended annually for 1-year (after 2035) with a 7-year wind-down clause Section 2.10 Free Service to the District Expanded bulky-item pickup program Battery recycling drop off (AA, AAA, etc.) at District office (new) Barrel roll out service (for disabled or physically challenged SFR accounts with no other abled body person available) Holiday tree recycling Up to 5 roll-off containers or front-end loaders 2x per year for community cleanup efforts (new) Additional green waste (that is tied and bundled not to exceed 4 feet in length and 18 inches in diameter Residential used oil collection (up to 2 gallons per visit, 4x per year) (new) 6
Amendment No. 3 Section 2.18 Street Sweeping 2x per month at no cost on all public streets with curb and gutter Removes Jurupa Valley s involvement Staff working to replace existing signage Unit price $65 MAP(Attachment 3) 7
Amendment No. 3 Section 3.2 Change in the Cost of Doing Business CPI (service cost) capped at 4.0% annually 90-gallon residential rate must not exceed Jurupa Valley by more than 2.0% For example: $38.92 x 2.0% = $0.78 9
Other Considerations Amendment No. 3 supported by: Solid Waste Committee Staff Burrtec representatives From a customer standpoint: Provides additional services, most of which are free (used battery, oil, street sweeping) Provides long-term rate stability Agreement Overview Summary on website for customer clarity (Attachment 4) Reviewed by General Counsel 10
Recommendation Sign and execute Amendment No. 3 to the Contract Services Agreement for Refuse Collection, Disposal, and Recycling Services in the Rubidoux Community Services District with Burrtec Waste Industries, Inc. 11
Questions Rubidoux Community Services District Office: 951.684.7580 www.rcsd.org 12 12
