REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 1 to the Agreement with Revel Environmental Manufacturing, Inc. for Maintenance Services of Full Trash Capture Devices
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
Promote Sustainability and Environmental Protection
BACKGROUND
On October 27, 2020, the City Council approved an agreement with Revel Environmental Manufacturing, Inc. (REM) for the maintenance of Full Trash Capture (FTC) devices from REM’s Triton product line. Under this agreement, REM provides cleaning, repair, maintenance reporting, and as-needed replacement services for the City’s FTC devices (Attachment 1). The agreement is currently set to expire on June 30, 2025.
FTC devices are required by the Regional Water Quality Control Board under the Municipal Regional Stormwater National Pollutant Discharge Elimination System Permit (MRP). These devices have a 5-millimeter mesh screen to trap particles, such as cans, plastics, paper, cigarette butts, and other debris, preventing them from entering the stormwater system and eventually reaching creeks, rivers, and the San Francisco Bay. To comply with the permit, each device must be serviced at least twice a year. If a device is found to be more than 50 percent full, additional cleaning is required.
DISCUSSION
REM has developed customized vacuum trucks equipped with specialized equipment specifically designed for the maintenance of its Triton FTC devices. In addition, REM warranties the repair, refurbishment, and/or replacement of devices damaged due to normal wear and tear, at no cost to the City, provided the FTC devices are maintained by REM.
REM is the sole authorized provider of maintenance services for its Triton FTC devices and does not have any authorized third-party service providers. Based on this, the Purchasing Division Manager determined, pursuant to City Code Section 2.105.160(b)(2), that this purchase is exempt from competitive procurement requirements because the services are required to ensure the operation and function of existing equipment currently in use by the City.
The proposed amendment would extend the term of the agreement for an additional five years, through June 30, 2030, and increase the maximum compensation by $1,105,267, from $596,068 to $1,701,335. The increase in compensation, which accounts for economic price adjustment as discussed below, is primarily due to the higher number of FTC devices now in service. When the agreement was originally executed in 2020, the City maintained approximately 575 FTC devices. That number has since increased to approximately 1,439 FTC devices.
Under the agreement, the City pays a fixed rate per device. REM currently charges $71.28 per device, which is a reasonable price considering the only other proposal received for the RFP conducted in 2020 charged $76 per device cleaning for the first year, which was 5 percent higher than REM’s current price in FY 2024/25. Even with this proposed increase, REM is still very competitive in pricing based on the previous procurement process. Staff recommends extending the term of the current agreement with REM for an additional five years through June 30, 2030 for on-going maintenance and repair services of the City’s FTC devices.
ENVIRONMENTAL REVIEW
The action being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301 “Existing Facilities,” as the activity consists of the repair, maintenance or minor alteration of existing facilities involving no or negligible expansion of the use beyond that presently existing.
FISCAL IMPACT
REM is proposing a 2.5 percent increase to its price per device cleaning, bringing it to $73.06 in FY 2025/26, with a 2.5 percent increase each year thereafter for a total of five years. The amount to be spent in FY 2025/26, which covers two cleanings per device, will be $210,267, subject to budget appropriations. The total contract value over the five-year term is projected to be $1,105,267. The FY 2025/26 and FY 2026/27 Proposed Operating Budget includes sufficient funding in the General Fund for this agreement. Funding in future years will be factored into the annual budgets.
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Determine that the proposed actions are exempt from CEQA pursuant to Section 15301 (Existing Facilities) of Title 14 of California Code of Regulations;
2. Authorize the City Manager or designee to execute Amendment No. 1 to the agreement with Revel Environmental Manufacturing, Inc. (Agreement) for the maintenance, data collection, reporting, and repair of Full Trash Capture devices to extend the term through June 30, 2030, and increase the maximum compensation by $1,105,267 for a revised not-to-exceed maximum compensation amount of $1,701,335, subject to the appropriation of funds and review and approval by the City Attorney; and
3. Authorize the City Manager to take any actions as necessary to implement and administer the Agreement and to negotiate and execute future amendments to (a) add or delete services within their scope of services, (b) adjust future rates based on market conditions, and (c) make de minimis changes, subject to budget appropriations and review and approval as to form by the City Attorney.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. RTC 20-891 and Agreement with Revel Environmental Manufacturing, Inc.
2. Draft Amendment No. 1 to Agreement with Revel Environmental Manufacturing, Inc.