Title
Approval of Services Agreement No. AGR 24-28 with Waste Management of New Mexico for Solid Waste Disposal Services in an Amount Not to Exceed $5,737,277.47 Plus Applicable Gross Receipts Tax Over a Seven Year Period
Recommended Motion
I move that Council approve Services Agreement No. AGR 24-28 with Waste Management of New Mexico for Solid Waste Disposal Services in an Amount Not to Exceed $5,737,277.47 Plus Applicable Gross Receipts Tax Over a Seven Year Period.
Manager's Recommendation
The County Manager recommends that Council approve recommends that Council approve the motion as presented.
Body
On February 15, 2024, the County advertised a formal competitive solicitation for Solid Waste and Recycling Hauling and Disposal Services through Request for Proposals No. 24-48. No responses were received for hauling services and one (1) response was received for disposal services. The evaluation committee recommends award to the response provided by Waste Management of New Mexico for Solid Waste Disposal Services. Given that no responses were received for hauling services, a separate RFP was issued with proposals due late July.
The current agreement for disposal services expires December 31, 2024. Therefore, the effective date of this new agreement is January 1, 2025 and continues for a seven-year period through December 31, 2032.
The County reserves the right to select one of two options for disposal services as offered by the Contractor and the County shall provide confirmation of the selected option in writing at least thirty (30) days prior to the effective date of the agreement. The two options include waste disposal at the Valencia Regional Landfill in Los Lunas, New Mexico for the full seven years while the second option proposes disposal at the Rio Rancho Landfill for the first three years and disposal at Valencia Regional for the remaining four years. The Rio Rancho Landfill permit expires September 23, 2028 and is expected to be closed for future waste disposal as a result.
The County will assess the costs associated with the two options upon award of the hauling services contract to determine which option provides the best value for the County given the differences in haul distances to each landfill since the Rio Rancho Landfill is 86 miles one way from Los Alamos, while the Valencia Regional Landfill in Los Lunas is 118 miles one way.
It is the County’s priority to divert material from the waste stream by recycling, reuse and composting. Contractor’s landfill has the capacity to receive 2,500 tons per day and shall accept the delivered waste.
Alternatives
A new contract for disposal of solid waste is necessary for continued service. Council could request contract changes but will delay contract execution.
Fiscal and Staff Impact/Planned Item
Exhibit A of the contract provides the cost rate schedule for the seven-year term of the contract. In years 2 thru 7, the CPI for use in calculation of the annual increase or decrease shall be the US Bureau of Labor Statistics Consumer Price Index for All Urban Consumers: Water and Sewer and Trash Collection Services in U.S. City Average, Unadjusted Percentage Change (not seasonally adjusted). The CPI Calculation shall be submitted by the Contractor to the County prior to November 30, each contract year. The calculation shall be made as of the proceeding twelve-month period ending October 31 for each year of the term in which a calculated CPI is required.
Disposal costs for the first year will be absorbed by the rate increases that began July 1, 2024. Budget impacts due to costs and any associated future rate increases will be evaluated annually. As costs rise for refuse disposal, the county will continue efforts to encourage recycling and other programs to divert waste from landfills.
Attachments
A - AGR 24-48 Waste Management of New Mexico - Disposal