REPORT TO COUNCIL
SUBJECT
Title
Action on an Agreement for Services with Advanced Chemical Transport, Inc. to Provide Hazardous Waste Management Services for Silicon Valley Power
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara’s Electric Department, Silicon Valley Power (SVP), requires a licensed provider of hazardous waste management service for waste generated from its operations. Hazardous waste generally consists of materials containing or contaminated with waste oil, polychlorinated biphenyl wastes, lubricants, solvents, paints, asbestos, and lead. It is also found in e-waste, batteries, non-empty aerosol cans, and fluorescent lamps.
The service provider will be responsible for handling, transporting, and disposing of hazardous waste, performing remedial work and cleanup, and assisting staff to maintain compliance with applicable federal and state laws and regulations, including, but not limited to, Division 4.5 (Environmental Health Standards for the Management of Hazardous Waste) of Title 22 of the California Code of Regulations.
The term of the agreement with the current provider, Advanced Chemical Transport, Inc., will end on June 30, 2023.
DISCUSSION
Pursuant to City Code Section 2.105.140(c), a formal Request for Proposals (RFP) was conducted, with the award recommendation based on “best value”. The RFP was published using the City’s e-procurement system seeking proposals from qualified firms to provide hazardous waste management services. Proposals were received from the following three firms:
• Advanced Chemical Transport, Inc.
• Clean Harbors Environmental Services
• NRC Environmental Services Inc.
The proposals were independently evaluated by a three-member evaluation team against the criteria and weights set forth in the RFP. The factors considered in the evaluation were firm experience, technical capability, safety, and cost. The evaluation team recommends awarding the agreement to Advanced Chemical Transport, Inc. (ACT) as the best value proposal. ACT demonstrated extensive experience providing hazardous waste management services.
The maximum compensation in the proposed agreement with ACT for the initial five-year term is $2,500,000. Rates, including disposal, transportation, and cleanup fees, are established in the agreement, and will remain fixed for two years. After the initial two years, Contractor may request rate adjustments no more than once per calendar year. The City will only pay for actual services rendered.
Staff recommends that City Council authorize the City Manager to execute the attached agreement with ACT.
Due to the rapidly changing electric utility marketplace and the necessity to promptly comply with changes in law, there might arise a need for additional services. In addition, SVP has a significant capital program including upgrading existing facilities that may result in higher demand for hazardous waste disposal services than forecasted. Authorizing additional funds at the time of this action will enable SVP to quickly respond to additional requirements for hazardous waste disposal services. Therefore, staff recommends that the City Council authorize the City Manager to execute amendments to, among other things, add services and increase the maximum compensation by $1,500,000 up to a total maximum compensation of $4,000,000.
ENVIRONMENTAL REVIEW
Staff recommends that the City Council determine that the actions being considered are exempt from the California Environmental Quality Act (“CEQA”) pursuant section 15330 of Title 14 of the California Code of Regulations as the services involve minor hazardous waste cleanup, removal, and transportation.
FISCAL IMPACT
For Fiscal Year 2023/24 sufficient funding is included in the recommended operating budget for SVP in the Electric Utility Operating Fund in the Compliance Division or in separate accounts based on the asset requiring disposal of waste (such as power plant or substation) or in the Electric Utility Capital Fund based for each project requiring disposal of hazardous waste.
Funding for future years will be included in the proposed budgets for the corresponding years.
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 <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
1. Determine that the proposed actions are categorically exempt from CEQA pursuant to Section 15330 of Title 14 of the California Code of Regulations;
2. Authorize the City Manager to execute an Agreement for Services with Advanced Chemical Transport, Inc. (Agreement) for an initial five-year term starting on or around July 1, 2023 and ending on or around June 30, 2028, with a maximum compensation not to exceed $2,500,000, subject to the appropriation of funds; and
3. Authorize the City Manager to take any actions as necessary to implement and administer the Agreement and to negotiate and execute amendments to the Agreement to (a) add or delete services consistent with the Agreement’s scope of services; (b) adjust future rates in accordance with the Agreement; (c) extend the term of the Agreement one additional year through June 30, 2029; and (d) increase the maximum compensation by $1,500,000 for a revised maximum compensation of up to $4,000,000 for the six-year term, subject to the appropriation of funds.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jōvan D. Grogan, City Manager
ATTACHMENTS
1. Proposed Agreement for Services with Advanced Chemical Transport, Inc.