Title
Procurement and Contracts, a division of the Chief Administrative Office, recommending the Board take the following actions pertaining to Agreement for Services 8540, a Countywide contract with Stericycle, Inc. for bio-hazardous medical and pharmaceutical waste collection and disposal services:
1) Make findings in accordance with El Dorado County Ordinance Code, Chapter 3.13.030 (B) that the provision of bio-hazardous medical and pharmaceutical waste collection and disposal services are in the public's best interest and that there are specialty skills, qualifications, and equipment not expressly identified in County classifications involved in the performance of the work;
2) Approve and authorize the Purchasing Agent to sign Agreement for Services 8540 with Stericycle, Inc. for an amount not to exceed $50,000, and a retroactive term from September 1, 2023 through August 31, 2026, pending approval by County Counsel and Risk Management; and
3) Authorize the Purchasing Agent to execute amendments to Agreement 8540 that do not extend the term or compensation amount above the Purchasing Agent authority, contingent on approval by County Counsel and Risk Management.
FUNDING: Various.
Body
DISCUSSION / BACKGROUND
Procurement and Contracts monitors, maintains, and assigns one of its analysts to serve as contract administrator for a countywide agreement for the provision of bio-hazardous medical and pharmaceutical waste collection and disposal. Stericycle, Inc. has provided these services since 2007. The previous agreement #4979 expired on August 31, 2023. Prior to the expiration date of the previous agreement, Procurement and Contracts discussed options for processing a renewal of the agreement for a new term to begin on September 1, 2023. After review of the agreement, it was understood that the Health and Human Services Agency (HHSA) and Sheriff’s Office were the primary users of the services. In addition, each department used different services specific to their department. A decision was made not to renew the countywide agreement, but to reach out to both HHSA and the Sheriff's Office so that they could each establish their own agreements with Stericycle, Inc. However, communication of this approach failed to reach the appropriate contacts with each department and new contracts were not put in place prior to the expiration of the existing agreement. The agreement expired on August 31, 2023. The vendor continued to perform these services without a contract and outstanding invoices remain unpaid. The Procurement Policy requires written contracts for hazardous waste disposal regardless of the dollar amount spent on these services. In addition to the delay caused by the miscommunication regarding which department was responsible for renewing the agreement, there were significant negotiations with the vendor related to requested changes by the vendor to the new contract. Procurement and Contracts has noted twenty-five different conversations over the past nine months with the vendor trying to reach a resolution on the contract language.
The Procurement and Contracts Division is recommending the Board authorize the Purchasing Agent to sign Agreement 8540 with a retroactive start date of September 1, 2023 to allow for the payment of invoices and ensure continuity of these services throughout the term of the new Agreement.
As of October 29, 2024, the department is still trying to finalize some minor changes with the vendor. The department is calling the vendor daily trying to get a final approved version of the draft contract. Once received, the contract will need final approval by County Counsel and Risk Management.
ALTERNATIVES
Should the Board decline to approve this recommendation, the County would not have an agreement in place for these services. HHSA and the Sheriff's Office would need to independently seek other alternatives for these services.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
Human Resources
Risk Management
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
Funding is included in the Fiscal Year 2024-25 budget and will be included in future fiscal years.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Michele Weimer, Procurement and Contracts Manager/Purchasing Agent
Laura Schwartz, Assistant Chief Administrative Officer