Burbank officials have set a self-imposed Nov. 15 deadline to hammer out a deal with a new operator for the city’s recycling center — even if the prospective newcomer was selected by the current contractor who is accused of making almost $33 million in fraudulent claims.
City officials cut ties with Burbank Recycling Inc. in March after the state alleged the firm submitted millions in fraudulent recycling claims. Under the terms of its contract with the city, Burbank Recycling is permitted to choose its successor. If the city agrees, it gets $150,000 to cover the expenses of transferring the operation, Public Works Director Bonnie Teaford said.
In this case, both parties agreed on the chosen successor, Burrtec Waste Industries Inc., a Fontana-based recycling operator that has a clean record and is financially sound, according to Burbank officials.
Burbank Recycling Inc. has been operating the center until a replacement is found.