FROM: James D. Herberg, General Manager
Originator: Celia Chandler, Director of Human Resources
SUBJECT:
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APPROVE A CONTINGENCY INCREASE TO EXISTING SERVICE CONTRACT FOR HAZARDOUS WASTE DISPOSAL SERVICES
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GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION: Recommend to the Board of Directors to:
Approve a contingency increase of $35,000 (in addition to the original contingency of $19,200 for a total contingency of $54,200, in addition to the original contract amount of $192,000) to the Service Contract with Clean Harbors Environmental Services, Inc., Specification No. S-2017-841, for hazardous waste services, for the remainder of the contract term ending June 30, 2020.
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BACKGROUND
The Orange County Sanitation District (Sanitation District) utilizes Clean Harbors Environmental Services, Inc. (CHES), a third-party California registered, EPA permitted, hazardous waste disposal service provider, to perform routine collection, manifesting, off-site transportation, inspection, recordkeeping, hazardous waste disposal, and emergency spill response for the two treatment plant facilities. Services are provided weekly, with manifesting, transportation, and disposal services provided quarterly in accordance with regulatory requirements.
The Hazardous Waste Disposal Services contract with CHES was approved by the Board in 2017 for a one-year performance period, with up to four (4) one-year renewals. There are two (2) remaining one-year renewal options available.
Staff requests approval of contingency to the service contract with CHES ending June 30, 2020, as described herein, to ensure continued compliance with hazardous waste disposal requirements.
RELEVANT STANDARDS
• CA Government Code: Title 22, Division 4.5 Environmental Health Standards for Management of Hazardous Waste
• Protect Orange County Sanitation District assets
• Commitment to safety & reducing risk in all operations
PROBLEM
The current contract term with CHES has a period of performance of July 1, 2019 through June 30, 2020. The annual amount allocated to the Hazardous Waste Disposal Services is $192,000, which was budgeted based upon historical cost information. Unforeseen disposal costs, primarily due to emergency spill response activities in Operations and Maintenance, has exhausted the annual approved amount. The budgeted amount, previously approved by the Board, is not sufficient to cover anticipated services through June 30, 2020.
PROPOSED SOLUTION
Approve a contingency increase of $35,000 (in addition to the original contingency of $19,200) for a total contingency of $54,200, in addition to the contract amount of $192,000, to cover the cost of services through June 30, 2020.
TIMING CONCERNS
Approval of the contingency increase is necessary to meet compliance requirements related to hazardous waste disposal.
RAMIFICATIONS OF NOT TAKING ACTION
Without approval of the contingency increase for additional funds, the Sanitation District will not be able to properly manage generated hazardous waste resulting in fines, violations, and potential releases to the environment.
PRIOR COMMITTEE/BOARD ACTIONS
August 2017 - Approved a service contract with Clean Harbors Environmental Services, Inc., Specification No. S-2017-841, for the period of September 1, 2017 through June 30, 2018, for a total annual amount not to exceed $192,000, with up to four (4) one-year renewal options; and an annual contingency of $19,200.
ADDITIONAL INFORMATION
The Sanitation District is required to properly dispose of all hazardous waste generated. The primary service CHES provides is the transportation, treatment, and either recycling or disposal of hazardous waste generated by the Sanitation District, in addition to the following services:
• hazardous waste profiling - sampling a waste and conducting lab analysis to determine how the waste is supposed to be disposed of properly
• lab packs - sampling and properly packing small quantities of chemicals to ensure they are disposed of properly
• spill cleanup - providing the trained personnel, material, and equipment to clean up spills caused by Sanitation District activities that are beyond the capabilities of Sanitation District staff to handle
• hazardous waste storage yard inspections - examining all the different storage areas at Plant Nos. 1 and 2 to ensure compliance with regulations
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted. (Line item: Section 6, Page 20). Project contingency funds will be used for this request.
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Date of Approval |
Contract Amount |
Contingency |
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08/23/2017 05/27/2020 |
$192,000 |
$19,200 $35,000 |
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ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package:
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