DATE: July 18, 2023
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: First Amendment to Agreement No.19-249 with Quinn Company to perform maintenance and repairs on landfill equipment at American Avenue Disposal Site (AADS)
RECOMMENDED ACTION(S):
TITLE
Approve and authorize Chairman to execute a retroactive First Amendment to Agreement with Quinn Company for landfill equipment maintenance and repair services, effective July 1, 2022, with no change to the term of July 1, 2019 through June 30, 2024 and increasing the maximum by $1,000,000 to a total of $6,000,000.
REPORT
Approval of the recommended action will increase the maximum of the agreement with Quinn Company (Quinn) to perform maintenance and repairs on landfill equipment at American Avenue Disposal Site (AADS) for the last two years of the agreement. This item is countywide.
ALTERNATIVE ACTION(S):
There are no viable alternative actions, the landfill equipment requiring maintenance and repair service are necessary for the continuation of operation of at AADS.
RETROACTIVE AGREEMENT:
The recommended amendment is retroactive to July 1, 2022 to allow an increase to the annual contract maximum to the last two years of the contract due to increase in maintenance and repair cost and unexpected high number of costly repairs. Expenditures for FY 2022-23 have been exceeded by $79,909.31, and there are two pending invoices of $27,357.06 and $198,977.03 totaling $226,334.09 that will be paid upon approval of the recommended action.
FISCAL IMPACT:
There is no Net County Cost associated with the recommended action. The maximum compensation for FY 2022-23 will increase by $500,000 and FY 2023-24 will increase by $500,000, increasing the total for the contract term to $6,000,000. Sufficient appropriations and estimated revenues are included in the FY 2022-23 adopted budget and will be included in the FY 2023-24 recommended budget. All repairs and work-related expenditures will continue to be funded by the AADS Enterprise Fund Org 9026.
DISCUSSION:
AADS owns and operates 14 Cat® heavy equipment that are instrumental to the operations of the landfill. The landfill equipment requires ongoing maintenance throughout the life of the equipment, required maintenance during the warranty period and unanticipated repairs that become more frequent as the equipment ages. Quinn is the only authorized service provider of Cat® equipment in the County.
During FY 2022-23, AADS experienced an unusually high amount of costly, unanticipated repairs that has exceeded the agreement’s $1,000,000 annual limit.
On June 4, 2019, the County entered into Agreement No. 19-249 with Quinn Company Inc. to provide specialized services for landfill equipment maintenance and repair services. The current agreement is for a term of three years beginning on July 1, 2019, for a maximum of $1,000,000 per year, with the option to renew for up to two additional one-year periods for a maximum of $1,000,000 per year. Approval of the First Amendment will increase the fourth and fifth year maximum by $500,000 from $1,000,000 to $1,500,000. The amendment will increase the term maximum to $6,000,000.
REFERENCE MATERIAL:
BAI #4, June 4, 2019
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - First Amendment to Agreement No. 19-249
CAO ANALYST:
Salvador Espino