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...
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