ADMINISTRATIVE REPORT
MEETING DATE: February 12, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: January 31, 2025
SUBJECT: Amendment No. 5 to Agreement No. 2020-059 with K & I Services, Inc. (increase compensation $180,000; revised not to exceed $1,036,000) to continue the supply of wood chip hauling and other material.
RECOMMENDATION:
Staff recommend approval of the amendment.
BACKGROUND:
On April 8, 2020, the City Council approved the annual contract for the supply of wood chip hauling and other material with K & I Services, Inc, in the amount of $100,0000; renewable annually thereafter for four consecutive one-year periods.
The Solid Waste Division utilizes trucking contractors to transport processed wood chips and other materials from the Mt. Vernon Green Waste Facility to the Bena Landfill, as well as to move materials within the Mt.
Vernon Green Waste Facility. This arrangement results in cost savings by reducing fuel consumption, saving time, and minimizing wear and tear on City equipment. Since 2022, the Solid Waste Division has been operating the Materials Recovery Facility (MRF), where sorting line operations have been optimized for greater efficiency in processing recovered materials. During this sorting process, residual materials are collected and sorted. The Solid Waste staff then uses the trucking contractors to transport these residual materials from the MRF to the Bena Landfill, further contributing to savings in fuel, time, and equipment maintenance.
Per the terms of the contract, four amendments inc reasing the contract and/or extending the contract have been approved as follows:
Amendment 1 approved March 17,2021; increase $100,000 and extended term one year to April 7, 2022
Amendment 2 approved March 16, 2022; increase $250,000 and extended term on e year to April 7, 2023.
Amendment 3 approved March 22, 2023; extended term only to April 7, 2024. Amendment 4 approved March 27, 2024; increase $406,000 and extended term one year to April 7, 2024.
Currently, there is $2 ,000 remaining on the contract. If approved, Amendment No. 5 will increase compensation by $180,000 for a revised not to exceed amount of $1,036,000 to allow the continuance of wood chip hauling and other material to the final term date of April 7, 2025.
FISCAL IMPACT:
Funds are budgeted in the Refuse Enterprise Fund for this contract , therefore no impact to the City General Fund.
COUNCIL GOAL:
Innovative and Efficient City Government
ATTACHMENTS:
Signed Amendment