Report Prepared by: Dan McComb, Public Works Manager - Refuse
Title
SUBJECT: Approval of Second Amendment to Container Purchase Agreement to Reflect the Name Change of Schaefer International, Inc., to Schaefer Plastics International, LLC, and Exercising the First Option to Renew Through September 20, 2026
REPORT IN BRIEF
Considers approving a second amendment to the Agreement for residential waste container purchases to reflect the name change of Schaefer International, Inc., to Schaefer Plastics International, LLC and exercising the first option to renew the agreement through September 20, 2026.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Second Amendment to Container Purchase Agreement with Schaefer Plastics International, LLC, and,
B. Authorizing the City Manager or designee to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items; or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Section 200 et seq. of the Merced City Charter.
Services with an estimated value greater than $38,000.00 are made by written contract in accordance with Merced Municipal Code, Title 3 - Revenue and Finance, Chapter 3.04.
CITY COUNCIL PRIORITIES
As provided for in the FY 2024/2025 adopted budget and FY 2025/2026 proposed budget.
DISCUSSION
On September 21, 2020, City Council approved a 5-year agreement with Schaefer Systems International, Inc. (Schaefer), for the purchase of residential refuse containers and parts, utilizing competitive bid pricing through the National Joint Powers Association (NJPA), also known as Sourcewell, contract #041217.
On September 7, 2021, City Council approved a First Amendment with Schaefer to update the agreement to reference the Houston-Galveston Area Cooperative Purchasing Program (HGACBuy) contract #RC01-21 as Schaefer’s agreement with Sourcewell had expired. Similar to Sourcewell, HGACBuy offers purchase programs to government entities nationwide; in the past, the City has purchased a variety of equipment not provided by local vendors through the HGACBuy government procurement program with great success.
The HGACBuy contract stipulates a not to exceed unit price for containers and parts. Schaefer offers the gray/blue (65-gallon) container at a not to exceed unit cost of $52.25 and the green (95-gallon) container at a not to exceed unit cost of $55.28, plus taxes and shipping costs.
The approved contract terms include a not to exceed amount equal to the amount specified in the annual Solid Waste Budget. To date, a total of $623,170.93 in residential containers have been purchased through the original contract. The proposed Fiscal Year 2025/2026 budget includes $178,190 in residential container purchases for the anticipated purchase of 250 gray, 250 blue, and 300 green replacement residential containers as well as the purchase of an additional 700 each gray, blue, and green for new homes.
The current contract is set to expire on September 20, 2025, and includes the option to extend for up to two (2) additional one (1) year terms. Subsequent to the initial contract award, Schaefer has updated their entity name and has requested this to be reflected in the contract extension. The City Attorney’s Office has drafted the amendment (attachment 1) and staff is requesting Council authorize amending the agreement with Schaefer to continue purchasing budgeted replacement and new service containers.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed; funding is available within the FY 25/26 proposed budget in the Refuse Enterprise Fund 6002 ($65,910) and Refuse Capital Fund 6009 ($112,280). Future year funding will be included in the budget process.
ATTACHMENTS
1. Second Amendment
2. First Amendment
3. Original Contract