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BACKGROUND On June 19, 2018, City Council approved the Standard Services Agreement (Agreement) with PSC, after a formal bidding process, to provide for the proper management of hazardous materials stored at the Operations Service Center, which includes the timely and lawful disposal of accumulated hazardous waste at least once every six months. In addition, the Agreement includes services to respond to emergency and non-emergency situations requiring cleanup of major spills of hazardous materials on city streets or waterways, including closure and cleanup of homeless encampments effecting waterways. PSC holds and maintains the required permits, licenses, and professional credentials to perform these services. DISCUSSION PSC provides the following activities: • Waste sampling, characterization, profiling, packaging, transport, and disposal • Semi-annual collection of routinely generated hazardous waste • Facility/equipment cleaning and decontamination • Non-emergency projects such as closure, decontamination, and disposal of waste from homeless encampments • Emergency response that requires rapid mobilization of equipment within two hours of notification. This work requires specialized credentials, permits and licenses not held by City staff. PSC provides infrequent, but essential, services necessary for staff to operate safely and in compliance with hazardous materials disposal regulations. The originally approved Agreement is a three-year term with a not-to-exceed amount of $200,000 and allowed two additional one-year terms of an annual not-to-exceed amount of $70,000. Under a First Amendment in March 2021, the original three-year term contact amount was increased to $235,000. In addition, during the first one-year term extensions, the not-to-exceed amount was increased to $80,000, and the term expires on June 30, 2022. The second one-year term extension not-to-exceed of $70,000 per the original contract, is not expected to cover the anticipated expenditures over the upcoming fiscal year. PSC has successfully provided the above listed services thus far, fulfilling the City's EPA required routine semi-annual hazardous waste disposal as well as other non-routine hazardous material cleanups from Operations Services Department activities and waterway related homeless encampment cleanups. The general nature of these unplanned, non-routine events requires an estimated contingency to ensure budget remains to address unplanned, potential emergency situations. The originally approved Agreement specified an option to extend the contract for two additional one-year terms with a not-to-exceed annual maximum of$70,000. This request is the second of the two additional one-year terms. The proposed request to increase the budget over this final one-year term extension to $95,000 provides an added buffer for anticipated expenditures from unplanned situations beyond what is routinely necessary under our EPA required semi-annual hazardous material disposal. Page 2 of 3