Title
[Contract Supplement] Approval of Supplemental Contract for Hazardous Waste Management Services
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FileID
File ID: 2026-01465
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or designee to execute a Supplemental Contract with NRC Environmental Services Inc., increasing the not-to-exceed (NTE) amount by $500,000 for additional Hazardous Waste Management Services.
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Contact
Contact: Sharneel Kumar, Environmental Health & Safety Manager, (916) 808-5872, sckumar@cityofsacramento.org, Department of Human Resources
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Supplemental Contract - NRC Environmental Services Inc.
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Description/Analysis
IssueDetail
Issue Detail: On June 27, 2023, the City approved Contract PRC002427 with NRC Environmental Services Inc. to perform essential hazardous waste removal services, including pick up and disposal of abandoned waste on City streets. It is essential that hazardous materials management services are available to City departments to ensure that an appropriate and immediate response can be provided for incidents requiring environmental remediation and proper disposal. The Contractor provides emergency response services and regular collections of hazardous waste from City facilities to maintain compliance with storage requirements and time allowances.
The contract was originally approved with a NTE amount of $750,000 and is utilized by departments across the City. As of July 6, 2026, a total of $639,410 has been spent on services, leaving a remaining balance of $110,589. Over $120,000 is requested by departments each year.
The contract is set to expire July 11, 2028. Based on the requested services, and additional two years remaining on the contract, the City will exceed the current NTE of $750,000. To address this, an increase of $500,000 is proposed, which will extend the total NTE amount to $1,250,000. This adjustment is expected to cover services through the end of the contract term and takes the additional NTE beyond the 10% threshold permitted without Council approval.
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PolicyConsiderations
Policy Considerations: Pursuant to section 3.56.290 of the City Code supplemental contracts of at least $250,000, but less than $1,000,000 that exceed 10% of the original contract price must be approved by Council.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA): This report contains administrative activities that will not have a significant effect on the environment and that do not constitute a “project” as defined by the California Environmental Quality Act (CEQA) Guidelines Sections 15061(b)(3) and 15378(b)(2).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: Hazardous waste removal services are critical for protecting public health and safety, maintaining uninterrupted City operations, and ensuring compliance with applicable environmental regulations. The City's hazardous waste management activities are governed by the California Health and Safety Code, Chapter 6.5 (Hazardous Waste Control Law), Title 22 of the California Code of Regulations, the federal Resource Conservation and Recovery Act (RCRA), and the U.S. Department of Transportation Hazardous Materials Regulations (49 CFR Parts 171-180), which establish requirements for the proper handling, packaging, labeling, manifesting, transportation, and disposal of hazardous waste. The Contractor provides emergency response services and schedules hazardous waste collection that enable City departments to meet these regulatory obligations and respond promptly to hazardous materials incidents.
Under the DOT 49 CFR Regulation, the City does not have staff who are legally authorized or equipped to transport large quantities of hazardous waste to permitted disposal facilities. The Contractor is responsible for consolidating hazardous waste into Department of Transportation compliant containers, properly labeling and marking the containers, and preparing the required Uniform Hazardous Waste Manifest to ensure compliance with state and federal transportation and disposal regulations. Additionally, City vehicles are not registered, permitted, or equipped to transport significant quantities of hazardous waste over public roadways to approved treatment, storage, and disposal facilities.
With two years remaining on the contract and current spending trends indicating the existing not-to-exceed amount will be exceeded, the proposed adjustment ensures uninterrupted hazardous waste management services, continued compliance with applicable environmental and transportation regulations, and avoid service disruptions that could expose the City to operational, environmental, public safety, and regulatory risks.
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FinancialConsiderations
Financial Considerations: The estimated total not-to-exceed amount for the entire contract, including all supplemental contracts, of $1,250,000 will be funded from the Human Resources Department, Environmental Health & Safety - Other Professional Services (433061-08000-6502-08001321). Funding was previously authorized by Council for this purpose.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): LBE Preference was included in the sourcing event.
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