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AMENDMENT NO. TWO TO CONTRACT K-1617-45: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND STERICYCLE ENVIRONMENTAL SOLUTIONS, INC., D/B/A CHEMICAL RECLAMATION SERVICES, L.L.C., INCREASING THE CONTRACT BY AN AMOUNT NOT-TO-EXCEED $102,000 FOR A REVISED CONTRACT AMOUNT OF $203,731.68 TO PAY COSTS FOR THE HOUSEHOLD HAZARDOUS WASTE EVENT HELD AT LLOYD NOBLE CENTER ON NOVEMBER 18, 2017.
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BACKGROUND: The City Council appropriated $106,000 in the fiscal year ended June 30, 2018 (FYE 2018) budget to provide the residents of Norman an environmentally sound method for disposal of household-generated hazardous waste (HHW). Request for Proposal (RFP) 1415-24 was mailed to seven (7) firms on July 29, 2014. Three (3) firms submitted technical cost proposals on August 8, 2014. The review committee, consisting of three staff members, evaluated the firms based on their technically most-qualified proposal. On September 9, 2014 the Norman Utilities Authority (NUA) executed Contract K-1415-24 with PSC Environmental Services, doing business as Stericycle Environmental Solutions. Two collection events were successfully completed on November 1, 2014 and on September 12, 2015. All of this waste was safely removed and provided the residents of Norman an environmentally sound method for disposal of household-generated hazardous waste. Upon successful completion of these events, the language of RFP-1415-24 allowed the NUA to consider the selected contractor for an additional two-year option, if both parties were agreeable. Staff found the services of Stericycle to be worthy of continued use based on the past performance of the contractor. Contract K-1617-45 was executed on September 13, 2016 anticipating two collection events during the term of the contract. The first event was successfully held November 5, 2016. The number of households participating was above average; however the amount of waste per household also increased. Contract K-1617-45 was amended on July 27, 2017, to cover the additional costs of the 2016 event from an initial encumbrance of $78,000 to $101,731.68. The contact amount needs to be increased again in anticipation of the scheduled collection event for the fall of 2017. Stericycle submitted a new cost proposal to include minimum container charge which is standard in the industry. Minimum costs per container allow them to keep overall costs low so they can avoid losing money based on that container. If minimum costs had been applied to last year’s invoice the total increase would amount to an additional $469.
DISCUSSION: Estimated costs for these events are based on the unit price of the specific items anticipated to be collected. Approximately 1,600 households participated in the 2016 event conducted November 5, 2016. Stericycle’s invoice for the 2016 event totaled $101,731.68. $86,000 had been budgeted for the 2016 event. Amendment No. One increased the contract from $86,000 to $101,731.68. Amendment No. Two amends the contract by $102,000 to cover the cost of the fall event to be held on November 18, 2017, for a maximum contact amount of $203,731.68. In addition to the contract with Stericycle, funds will be encumbered for miscellaneous costs such as site rental, public notice, event signage, and drinks, lunch and tee shirts for an estimated 90-100 volunteers. The FYE 18 budget appropriated funds for the event in the Water Reclamation (Wastewater) Fund, Other Business Services account (032-5542-432.41-99).
RECOMMENDATION: Staff recommends the NUA approve Amendment No. Two to Contract K-1617-45 to provide an additional $102,000 to the Contractor to cover costs for the fall collection event, for a maximum amount of $203,731.68, with PSC Environmental Services, LLC (dba Stericycle Environmental Solutions) and the NUA Chairman be authorized to sign Performance Bond B-1718-36 in the amount of $102,000 upon approval of the NUA General Counsel (City Attorney).