City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01138 6/18/2024 Consent Item 5.
Supplemental Agreement No. 5 for Appliance Disposal and Processing File ID: 2024-01138
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to:
1) execute Supplemental Agreement No. 5 to City Agreement No. PRC000557 with Simply Appliances, Inc. dba Eco Appliance for appliance disposal and processing, in an amount not-to- exceed $62,000, for a revised not-to-exceed amount of $682,000; and 2) extend the agreement to September 30, 2024.
Contact: Ruben Avila, Administrative Analyst, (916) 808-4939, [email protected]; Adam Roitman, Program Specialist, (916) 808-3508, [email protected]; John Febbo, General Manager, (916) 808-4949, [email protected]; Department of Public Works Presenter: None.
Attachments:
1-Description/Analysis
2-Supplemental Agreement
Description/Analysis
Issue Detail: The Department of Public Works, Recycling and Solid Waste Division (RSW) collects appliances through the City of Sacramento’s (City) appliance and e-waste pickup and illegal dumping programs. RSW needed to obtain a new vendor for appliance disposal and processing and posted two bid events (B19155731007 and EV00000012) in June 2019. No responses were received from the two bid events. RSW staff solicited three quotes from appliance processing vendors and entered into an agreement with Simply Appliances, Inc. dba Eco Appliance (Eco Appliance) because they were the lowest-priced responsive option. On October 12, 2019, RSW executed Agreement No.
PRC000557 with Eco Appliance to provide appliance processing and disposal services.
On July 1, 2020, Supplemental Agreement No. 1 was executed to increase the agreement by $240,000 for a not-to-exceed amount of $320,000 and extended the agreement through June 30, 2023. Eco Appliance has sufficiently demonstrated they have capacity to handle the City’s demand of appliances and e-waste.
File ID: 2024-01138 6/18/2024 Consent Item 5.
On May 6, 2021, Supplemental Agreement No. 2 was executed and the contract was assigned from Mozingo Ventures LLC. dba Eco Appliance to Simply Appliances, Inc. dba Eco Appliance.
On July 19, 2022, Supplemental Agreement No. 3 was executed to increase the agreement by $300,000 for a not-to-exceed amount of $620,000 and extended the agreement through June 30, 2024.
On October 1, 2022, Supplemental Agreement No. 4 was executed to revise the scope of services to include processing of commercial appliances that were collected and revise the freight pickup charge due to volatile fuel pricing.
Staff is requesting approval of Supplemental Agreement No. 5 to extend the contract through September 30, 2024, and to increase the not-to-exceed amount by $62,000 for a new not-to-exceed amount of $682,000. Sacramento City Code section 3.56.290 requires City Council approval of the supplemental agreement. Once the City Council approves a contract supplemental that increases the contract amount to $250,000 or more, the city manager has authority to issue supplemental agreements provided the sum of all supplemental agreements does not exceed $25,000.
Policy Considerations: Pursuant to Sacramento City Code section 3.56.290(A)(1)(c), any supplemental agreement for non-professional services that is more than $25,000 requires City Council approval.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): This report concerns administrative activities and government fiscal activities that do not constitute a “project” and is not subject to the provisions of CEQA (CEQA Guideline Sections 15060(c)(3), 15378(b)(2), and 15378(b)(4)).
Sustainability: Proper disposal of e-waste and appliances keeps hazardous materials from contaminating the environment.
Commission/Committee Action: None.
Rationale for Recommendation: Supplemental Agreement No. 5 to City Agreement No.
PRC000557 is necessary to continue the proper disposing of appliances collected through the City’s appliance and e-waste collection program and illegally dumped appliances throughout the City.
Financial Considerations: Supplemental Agreement No. 5 to City Agreement No. PRC000557 will
File ID: 2024-01138 6/18/2024 Consent Item 5.
increase the not-to-exceed amount by $62,000, for a revised total of $682,000. Sufficient funding exists in the Department of Public Works, Recycling and Solid Waste Division’s Fiscal Year (FY) 2024/25 Operating Budget (Solid Waste Fund, Fund 6007) for services through September 30, 2024.
Local Business Enterprise (LBE): Eco Appliance is not an LBE. The minimum LBE participation requirement is waived as the City has suspended competitive bidding and utilized an alternate procurement method to select a vendor.
1 CONTRACT #: PRC000557_5CONTRACT EFFECTIVE DATE: October 1, 2019CONTRACT NAME: Appliance Disposal and ProcessingCONTRACT PROJECT #: N/ADEPARTMENT: Public WorksDIVISION: Recycling and Solid Waste-The City of Sacramento ("City") and Simply Appliances, Inc. dba EcoAppliance("Contractor"), as parties to that certain Contract awarded for the above Event and designated as City Contract Number PRC000557, including any prior Contract Amendments modifying the Contract (the Contract and Contract Amendments are hereafter collectively referred to as the "Contract"), hereby amend and modify the Contract as follows:1 SCOPEThe Services specified in the Scope of Services Exhibit of the Contract are amended and the Contractor shall provide the Services as set forth in Attachment 4 to Payment Exhibit, attached and incorporated herein.2 TIME OF PERFORMANCE - EXTENSIONThe Time of Performance as described in the Contract shall be provided during the period beginning on October 1, 2019, and ending on June 30, 2024, or when the maximum not-to-exceed amount is expended. The term of the Contract is extended for three months from July 1, 2024, through and including September 30, 2024, to provide additional time for completion of the Contract.3 CONTRACT AMOUNTIn consideration of the Contract Amendment(s) described above, the maximum not-to-exceed amount that is specified in the Contract is INCREASED by $62,000 and the Contract's maximum not-to-exceed amount is amended as follows:The original Contract sum was: $80,000.00The net change by previous Contract Amendment was: $540,000.00The Contract sum prior to this Contract Amendment was: $620,000.00The Contract sum will be INCREASED by this Contract Amendment: $62,000.00The new Contract sum including all Contract Amendments: $682,000.00 2 4 FULL COMPENSATIONContractor agrees that the amount of increase or decrease in the not-to-exceed amount specified in section, above, shall constitute full compensation for the additional and/or revised Services specified in section, above, and shall fully compensate Contractor for any and all direct and indirect costs that may be incurred by Contractor in connection with such additional and/or revised Services, including costs associated with any changes and/or delays in work schedules or in the performance of other Services or work by Contractor.5 AUTHORIZED SIGNATUREContractor warrants and represents that the person or persons executing this amendment on behalf of Contractor has or have been duly authorized by the Contractor to sign this amendment and bind Contractor to the terms hereof.6 FULL FORCE AND EFFECTExcept as specifically revised herein, all terms and conditions of the Contract shall remain in full force and effect, and Contractor shall perform all of the services, duties, obligations, and conditions required under the Contract, as supplemented and modified by this amendment to the original agreement.