Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  24-000544

 

MEETING DATE:

07/23/24

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

All Districts

SUBMITTING Agency/Department:

OC Waste & Recycling   (Approved)

Department contact person(s):

Tom Koutroulis (714)834-4112 

 

 

Julian Sabri (714)834-7080

 

 

Subject:  Amend Contract for Heavy Equipment Maintenance and Repair Services

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

          Concur

Approved Agreement to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: Yes

Current Year Cost:   $6,000,000

Annual Cost: FY 2025-26 $10,445,000

 

 

 

    Staffing Impact:

No

# of Positions:            

Sole Source:   N/A

    Current Fiscal Year Revenue: N/A

   Funding Source:     Fund 299: 100%

County Audit in last 3 years: No

   Levine Act Review Completed: Yes

 

    Prior Board Action:         11/2/2021 #20

 

RECOMMENDED ACTION(S):

 

 

1.

Authorize the County Procurement Officer or Deputized designee to execute Amendment Seven to the contract with Quinn Company for heavy equipment maintenance and repair services, to increase contract funds in the amount of $4,450,000, effective upon Board of Supervisors’ approval and execution of all necessary signatures, and to renew the contract for one year, effective December 1, 2024 through November 30, 2025, in an amount not to exceed $12,000,000, for a cumulative contract total of $44,650,000.

 

2.

Authorize the County Procurement Officer or Deputized designee to make ministerial or non-material changes to the contract.

 

 

 

 

SUMMARY:

 

Approval of Amendment Seven to contract with Quinn Company will allow for continuous services for heavy equipment maintenance and repair services will support continued landfill operations and compliance with state and federal regulations.

 

 

 

BACKGROUND INFORMATION:

 

OC Waste & Recycling (OCWR) is responsible for managing the County's solid waste disposal system that is currently comprised of three active regional landfill operations, 20 closed solid waste disposal sites and four household hazardous waste collection centers. 

 

OCWR owns and operates a substantial fleet of heavy equipment necessary to operate the County’s active landfills and to maintain closed disposal sites. The heavy equipment fleet is used in daily operations for solid waste disposal, organics and resource recovery and maintenance of landfill cover in compliance with federal and state regulatory requirements. 

 

On July 30, 2021, OCWR issued a Request for Proposal (RFP) for heavy equipment maintenance and repair services. The RFP was advertised on the County’s online bidding system (Periscope) and one proposal was received. A five-member evaluation panel with subject matter expertise reviewed and rated the proposal using written and oral criteria set forth in the RFP.  The evaluation panel recommended to award the contract to Quinn Company and the Board of Supervisors (Board) approved the contract on November 2, 2021, for a three-year term with the option to renew for an additional two-year term in the amount not to exceed $28.2 million.

 

Over the course of the last three years, Amendments One through Six have been issued to amend the daily rates per regional landfills and to reflect new maintenance cost in adding new and removing surplus equipment to the list.   Keeping the list current ensures that the appropriate equipment is covered under the contract and properly maintained and repaired when necessary. There were no changes to the contract monetary limit in these amendments.

 

In response to California State Legislation Senate Bill (SB) 1383, OCWR has expanded its business model from being an agency primarily focused on waste disposal management in County landfills, to commanding a broader focus on resource recovery, including increased metal and mattress recycling, expansion of Greenery facilities operation, and organics diversion programs.  These initiatives, which are intended to preserve invaluable landfill airspace while aiming at greenhouse gas emission reduction through organics diversion programs, have result in an increase in overall fleet size, heavy equipment utilization and maintenance costs in conjunction with the increased pricing of Caterpillar parts over the past three years. 

 

OCWR is requesting the Board approval for Amendment Seven to the contract with Quinn Company for heavy equipment maintenance and repair services, to increase contract in the amount of $4,450,000, effective upon Board of Supervisors approval and execution of all necessary signatures, and to renew the contract for one year, effective December 1, 2024, through November 30, 2025, in an amount not to exceed $12,000,000 annually, for a cumulative Contract total of $44,650,000.

 

Given the economic uncertainty and unstable market pricing of Caterpillar parts, OCWR has explored various options to maximize operation efficiency and to control the overall maintenance cost as the fleet goes through its transformation in support of SB 1383 requirements and expansion of other resource recovery initiatives.  The existing contract’s daily rate structure is highly susceptible to labor cost increases as the fleet grow larger.  Therefore, OCWR is seeking for only one year contract renewal with the intention to initiate a new contract solicitation in early 2025, which will include the new daily rate structure based on fleet size, the new scope of work will focus on the required maintenance staff and service levels where labor cost is more predictable.

 

The Orange County Preference Policy is not applicable to this contract amendment.

 

The contractor's performance has been confirmed as at least satisfactory. OCWR verified there are no concerns that must be addressed with respect to the contractor's ownership/name, litigation status, or conflicts with County interests.

 

Compliance with CEQA: This action was previously determined to be not a project within the meaning of CEQA Guidelines Section 15378 on November 2, 2021, when it was originally approved by the Board, and is therefore not subject to CEQA, since it does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. The approval of this agenda item does not commit the County to a definite course of action in regard to a project since the action authorized herein is only for the approval of an amendment to an existing contract for additional funding for heavy equipment maintenance and repair services that will not result in any impacts to the environment. This proposed activity is therefore not subject to CEQA. Any future action connected to this approval that constitutes a project will be reviewed for compliance with CEQA.

 

 

 

FINANCIAL IMPACT:

 

Appropriations for this contract are included in FY 2024-25 Budget for OC Waste & Recycling Enterprise, Fund 299, and will be included in the budgeting process for future year.

 

The Contract includes a provision stating the Contract is subject to, and contingent upon, applicable budgetary appropriations being approved by the Board for each fiscal year during the term of this Contract. If such appropriations are not approved, this Contract may be immediately terminated without penalty to the County.

 

 

STAFFING IMPACT:

 

N/A

 

ATTACHMENT(S):

 

Attachment A – Redline-MA-299-22010403-Quinn Company for Heavy Equipment Maintenance Repair Services
Attachment B – MA-299-22010403-Quinn Company- Amendment Seven
Attachment C – Contract Summary Form