REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
April 29, 2025
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Appropriation Adjustments to Master Service Agreements with Stericycle, Inc. for Provision of Waste Disposal Services
End
RECOMMENDATION(S)
Recommendation
Approve an increase in funding allocation to the following Master Service Agreements with Stericycle, Inc. in the aggregate amount of $400,000, for the provisions of waste disposal services, increasing the total contract amount from a not-to-exceed aggregate amount of $2,500,000 to a not-to-exceed aggregate amount of $2,900,000, with no change to the contract term of June 8, 2021 through June 7, 2026:
1. Agreement No. 21-412 relating to pharmaceutical waste disposal
2. Agreement No. 21-413 relating to regulated waste disposal
3. Agreement No. 21-414 relating to hazardous waste disposal
(Presenter: Andrew Goldfrach, ARMC Chief Executive Officer, 580-6150)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The aggregate cost of $2,900,000 is funded by State Medi-Cal, Federal Medicare, private insurances, and other departmental revenue. Funding sources may change in the future pending any legislative activity related to the repeal and/or replacement of the Affordable Care Act. Adequate appropriation and revenue have been included in the Arrowhead Regional Medical Center (ARMC) 2024-25 budget and will be included in the 2025-26 recommended budget.
BACKGROUND INFORMATION
The increase in funding allocation will provide ARMC the ability to continue to utilize Stericycle, Inc. (Stericycle) to dispose of regulated medical, pharmaceutical, and hazardous waste in a safe and efficient manner. As a Level I Trauma Center, there has been an increase in waste disposal services at ARMC which requires the addition of funding to pay for the services.
Regulated medical waste disposal is the removal of waste that may be contaminated by blood, body fluids, or other infectious materials. Pharmaceutical waste disposal entails the disposal of controlled substances in containers that are pre-loaded with deactivating agent deterrents, which permanently alter the substance’s chemical condition rendering the substance unavailable and unusable; including pills, patches, tablets and IV solutions. The deactivating agent also works as a precautionary measure deterring the improbable occurrence of something attempting to ingest the liquid. Hazardous waste disposal services, provided by Stericycle, will ensure that waste that is ignitable, reactive corrosive, and toxic will be safely collected and removed.
On June 8, 2021 (Item No. 15), as the result of a competitive procurement, the Board of Supervisors (Board) approved Master Service Agreements No’s. 21-412, 21-413, and 21-414 for pharmaceutical waste disposal, regulated waste disposal, and hazardous waste disposal, respectively, with Stericycle in a total aggregate amount not to exceed $2,500,000, for the contract period June 8, 2021 through June 7, 2026. However, the agreement terms did not include a dollar limit on the services; instead, the agreements listed the costs based on units. The aggregate not-to-exceed amount of $2,500,000 was an internal County limit specified on the item and coversheet. As such, this item is now being presented to the Board to authorize an increase in the funding allocation to Agreement No’s. 21-415, 21-413, and 21-414 to enable ARMC to properly and safely dispose of hospital and clinic waste in accordance with all applicable laws.
ARMC recommends approval of the increases in funding allocation as it will enable the hospital to provide for the safety, health and social services needs of County residents.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Charles Phan, Supervising Deputy County Counsel, 387-5455) on March 24, 2025; Purchasing (Veronica Pedace, Buyer III, 387-2464) on March 25, 2025; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on April 4, 2025; Finance (Jenny Yang, Administrative Analyst, 387-4884) on April 9, 2025; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on April 14, 2025.