DATE: May 7, 2019
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: Budget Resolution and Amendment to Agreement with Quinn Company
RECOMMENDED ACTION(S):
TITLE
1. Adopt Budget Resolution increasing FY 2018-19 appropriations for American Avenue Disposal Site Org 9026 in the amount of $400,000 using American Avenue Disposal Site Enterprise Fund 0700 General Reserves (4/5 vote).
2. Approve and authorize the Chairman to execute Amendment II to Agreement No. 14-323 with Quinn Company for unanticipated repairs on landfill equipment at American Avenue Disposal Site, effective upon execution with no change in term to June 30, 2019 and increasing maximum by $400,000 to a total of $4,450,000.
REPORT
Approval of the first recommended action will increase appropriations to pay for unanticipated repairs on landfill equipment at American Avenue Disposal Site (AADS). Approval of the second recommended action will increase the maximum of the agreement with Quinn Company (Quinn) to perform maintenance and repairs for the remaining few months of the agreement. This item is countywide.
ALTERNATIVE ACTION(S):
There are no viable alternative actions, the landfill equipment requiring maintenance and repairs are necessary for the continued operation of AADS.
FISCAL IMPACT:
There is no Net County Cost associated with the recommended action. The maximum compensation for FY 2018-19 will increase by $400,000, increasing the total for the term to $4,450,000. The appropriations increase to pay for the unanticipated repairs on landfill equipment will be funded with AADS Enterprise Fund 0700 general reserves.
DISCUSSION:
AADS owns and operates 15 Caterpillar® (Cat®) heavy equipment vehicles along with the proprietary Cat® global positioning system and other miscellaneous Cat® equipment. During FY 2018-19, AADS has experienced an unusually high amount of costly, unanticipated repairs that will exceed the service agreement’s $750,000 annual limit. Details of the unanticipated repairs are included as Exhibit A. Quinn is the only authorized service provider of Cat® equipment in the County.
On June 17, 2014, the Board approved Agreement No. 14-323 with Quinn to provide specialized services to maintain and repair the equipment at AADS. The agreement had an annual maximum compensation of $750,000 per year; term maximum of $3,750,000.
On April 26, 2016, the Board approved Amendment I to Agreement No. 14-323 increasing the annual maximum for the second year by $300,000 from $750,000 to $1,050,000 due to an unexpectedly high number of costly repairs. The amendment increased the term maximum to $4,050,000.
AADS has again experienced a high number of costly repairs during the final year of the agreement. Approval of the Second Amendment will increase this final year’s maximum by $400,000 from $750,000 to $1,150,000. The amendment will increase the term maximum to $4,450,000. Staff is currently working on a new agreement to replace the current agreement upon its expiration.
REFERENCE MATERIAL:
BAI #45, April 26, 2016
BAI #35, June 17, 2014
ATTACHMENTS INCLUDED AND/OR ON FILE:
Attachment A
On file with Clerk -Resolution (Org 9026)
On file with Clerk - Amendment II to Agreement No. 14-323 with Quinn Company
CAO ANALYST:
Sonia M. De La Rosa