REPORT TO COUNCIL
SUBJECT
Title
Amend an Existing Services Agreement With SCS Field Services, Inc. for Landfill Services (F26-546)
Report
REPORT IN BRIEF
Approval is requested to amend the existing service agreement with SCS Field Services, Inc. for landfill services by extending the term for two (2) years and increasing the compensation amount by $125,000. Approval is also requested to authorize the City Manager to increase the not-to-exceed amount and extend the contract for two (2) additional two-year periods, subject to budget availability.
EXISTING POLICY
Pursuant to Section 2.08.040(d) of the Sunnyvale Municipal Code (SMC), Council approval is required for the procurement of goods and/or services greater than $250,000 in any one transaction.
This action supports the Council Strategic Priority of Modern Infrastructure in committing to maintain, repair, and invest in the physical systems that underpin core municipal services.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
The Sunnyvale Landfill, located behind the north curb of Caribbean Drive, is a closed, 100-acre facility managed by the Environmental Services Department under post-closure regulatory requirements. State and Federal regulations require the City to continuously collect and destroy landfill gas produced by the decomposition of garbage buried in the landfill. The Gas Collection and Control System (GCCS), installed in 1987 to comply with Bay Area Air Quality Management District requirements, includes gas extraction wells, horizontal collection trenches, condensate sumps, above- and below-grade pipes and connections, and an enclosed flare system.
The landfill gas collected by the GCCS, which contains approximately 40% methane, is delivered via pipeline to the Water Pollution Control Plant, where it is blended with utility natural gas and methane generated by the sewage treatment digesters and used as fuel for generators that produce electricity to power the plant. The landfill gas flare serves as a backup system, activated only when the Water Pollution Control Plant’s power generation facility is offline for maintenance. Although the landfill has been closed since 1993, its biological processes continue to generate significant quantities of landfill gas, and the GCCS remains an active and critical environmental control system.
Over the decades since its installation, the GCCS infrastructure has required periodic repairs, replacements, and specialized maintenance to sustain operational integrity and regulatory compliance. Past actions have included the replacement of condensate trap pumps and vaults in 2018, the re-drilling of landfill gas wells to restore extraction capacity, and ongoing flare and blower maintenance and replacement projects. These activities underscore the specialized and technical nature of the services required to maintain the GCCS.
To ensure the continued accuracy and operational integrity of the GCCS, on August 22, 2024, the City entered into an agreement with SCS Field Services, Inc. to provide specialized repair and maintenance services for the landfill systems. The initial agreement was procured through a competitive Request for Qualifications process (RFQL F24-127), consistent with Chapter 2.08 of the Sunnyvale Municipal Code, which requires that contracts for this type of service be awarded pursuant to an RFQL best-value process. The initial term of the agreement runs through August 2026 and includes an option for the City to extend the term with three (3) two-year optional extensions.
To maintain uninterrupted service with the current vendor and avoid a lapse in specialized GCCS maintenance coverage, staff recommends exercising the first two-year option to extend the contract term through August 2028. The proposed amendment would also increase the not-to-exceed amount by $125,000, from the current $200,000 to a new not-to-exceed amount of $325,000, to fund anticipated repair, maintenance, monitoring, and emergency response services during the extension.
FISCAL IMPACT
There is sufficient budget appropriated and available for landfill repair and maintenance services in Fund 6101- Solid Waste Management Fund under Program 14400 - Solid Waste Management.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Approve the First Amendment to the agreement with SCS Field Services, Inc. in substantially the same form as Attachment 1 to the report to extend the term of the agreement through August 22, 2028, and increase the contract amount by $125,000 for a new not-to-exceed total of $325,000;
- Authorize the City Manager to execute the amendment when all necessary conditions have been met;
- Authorize the City Manager to execute amendments to extend the term for the remaining two (2) optional two-year extension periods and
- Authorize the City Manager to increase compensation during the authorized extension periods subject to budget availability, need, and negotiated pricing.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
_X_ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Matthew Paulin, Director of Finance
Reviewed by: Mansour Nasser, Interim Director of Environmental Services
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Draft First Amendment to Services Agreement