REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 4 to the Silicon Valley Power Agreement with Advanced Chemical Transport, Inc. to Increase the Maximum Compensation by $340,000 for a Revised Maximum Compensation Amount of $2,140,000 to Cover Outstanding Invoices to be Funded by the Electric Utility Operating Budget - Compliance
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
On January 23, 2018, the City Council authorized an agreement with Advanced Chemical Transport (ACT) for hazardous waste management services (2018 Agreement) for a maximum compensation amount not-to-exceed $330,000. ACT performs a variety of services associated with hazardous waste management, including testing, disposal, remedial and clean-up work, management of required documentation, creation of emergency plans, and emergency response. The Agreement was the result of a competitive RFP process conducted in 2018.
On June 23, 2020, City Council authorized the City Manager to execute Amendment No. 1 to the Agreement, extending the term for two additional years ending on December 31, 2022, and increasing the maximum compensation to $1,100,000. June 23, 2020, the City Council authorized Amendment No. 2 to the Agreement, increasing the maximum compensation to $1,400,000 for the period ending December 31, 2022. On December 6, 2022, the City Council also authorized Amendment No. 3 to the Agreement, increasing the maximum compensation to $1,800,000 and extending the term to June 30, 2023.
DISCUSSION
There are outstanding invoices that require payment for services performed under the 2018 Agreement. Due to a change in pricing resulting from changes to prevailing wages and unanticipated services related to emergency response (approximately $130,000 or 40% of the increase during this period), there is insufficient funding included in Amendment No. 3 to complete the work authorized through the end of the contract term. There were delays in making payments while awaiting certified payroll submittals from ACT and, as a result, staff underestimated the total funds needed to complete the services. As of August 1, 2023, there were known invoices of approximately $332,151. Staff proposes authorizing the City Manager to execute Amendment No. 4 to increase the maximum compensation by $340,000 (from $1,800,000 to $2,140,000) to pay all the invoices associated with the contract through June 30, 2023. The additional funds of $7,849 are recommended to ensure that there are enough funds for any invoices that may have been missed for services authorized and completed before June 30, 2023. Amendment 4 also amends the termination date to September 30, 2023, to facilitate the payment of the outstanding invoices. Only services authorized and completed before June 30, 2023, will be paid under this proposed authorization.
Beginning on July 1, 2023, services were authorized under a new Agreement with ACT approved by the City Council on June 6, 2023. This agreement is effective for services beginning July 1, 2023, and is for a five-year term with a maximum compensation of $2,500,000.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15378(b)(5) of Title 14 of the California Code of Regulations in that it is an administrative activity that will not result in direct or indirect physical changes in the environment.
FISCAL IMPACT
There are unpaid invoices for work authorized through June 30, 2023, requiring payment. An additional $340,000 is needed to settle all the invoices associated with the contract. Funds for these services are budgeted in the Electric Utility Operating Budget in the Compliance Division or in the asset or capital project for which services are needed. Payment for services authorized by June 30, 2023, will be recorded in FY 2022/23.
COORDINATION
This report has been coordinated with the Finance Department and 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>, or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to execute Amendment No. 4 to the Agreement for Services with Advanced Chemical Transport, Inc., increasing the maximum compensation by $340,000 for a new maximum compensation of $2,140,000; and
2. Authorize the City Manager to make minor changes to the proposed Amendment No. 4, subject to the review and approval as to form by the City Attorney.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jōvan D. Grogan, City Manager
ATTACHMENTS
1. Original Agreement for Services with Advanced Chemical Transport, Inc.
2. Amendment No. 1 with Advanced Chemical Transport, Inc.
3. Amendment No. 2 with Advanced Chemical Transport, Inc.
4. Amendment No. 3 with Advanced Chemical Transport, Inc.
5. Proposed Amendment No. 4 with Advanced Chemical Transport, Inc.