By Liset Marquez, Inland Valley Daily Bulletin
Posted: 05/30/14, 9:43 PM PDT |
UPLAND >> The City Council has given the green light to a $60 million contract extension with Burrtec for solid waste collection.
Upland is in its last five years of a long-term contract with the Fontana-based company and is extending it to 12 years.
The vote was 3-1 with Councilman Glenn Bozar opposing. Councilman Brendan Brandt recused himself from the vote Tuesday night, citing conflict of interest.
The approved contract has been modified from one previously denied by city leaders amid concerns of the length of the agreement.
“The difference between that and the 15-year contract was the economic benefits the city would receive would only happen for the five years guaranteed,” City Manager Stephen Dunn said. “Once the City Council chooses to initiate the wind down period for Burrtec, then the economic benefit would cease and the city would then have to be responsible for picking up the street sweeping costs as well as we would have to fund programs for household hazardous waste.”
Staff proposed six months ago extending that to a 15-year contract that automatically renewed every year. In exchange for that, the city would receive $600,000 in annual economic benefits for the duration of the contract. Of the $600,000, $250,000 would be a direct savings to the General Fund since the city would no longer need to tap into its coffers to pay for street sweeping. The cost would be picked up by Burrtec, Dunn said.
In addition, Burrtec will pay $200,000 for alley repair, which has been subsidized out of the General Fund the past few years. Burrtec would also allocate $150,000 to programs such as household hazardous waste, Dunn said.
Negotiating the contract came about when city officials contacted Burrtec to compile data for a rate analysis. The solid waste collector offered the city a package that was economically beneficial in exchange for a longer contract, Dunn said.
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