Title
Discussion and Possible Action on Services Agreement No. AGR 25-06 with MCT Waste, LLC in the Amount of $10,997,221.65 plus Applicable Gross Receipts Tax for Solid Waste & Recycling Transportation Services
Recommended Motion
I move that Council approve Services Agreement No. AGR 25-06 with MCT Waste, LLC in the Amount of $10,997,221.65 plus applicable Gross Receipts Tax for Solid Waste & Recycling Transportation Services.
County Manager’s Recommendation
The County Manager recommends that Council approve the motion as presented.
Body
On March 28, 2024, the County advertised a formal competitive solicitation for Hauling Services for Solid Waste & Recycling through Request for Proposals No. 25-06. One (1) response was received on July 20, 2024, and the evaluation committee recommends award to MCT Waste, LLC.
The services provided under this contract include the equipment and labor to transport/haul/truck solid waste and recyclable materials including tires and brush/compost material from the Los Alamos County Eco Station to facilities designated in the contract based on material type, Monday through Saturday. MCT Waste, LLC will provide the County seven trucks with 53-foot, 120 cubic yard leak proof transfer trailers with a tarping system to haul waste and recyclable materials to landfill or recycle center locations as applicable. The Contractor shall also provide a terminal tractor or yard truck for moving transfer trailers at the Eco Station. The yard truck shall remain at the Eco Station to facilitate efficient loading of transfer trailers which helps maintain service to customers.
Currently, the County transports waste materials to the Rio Rancho Landfill operated by Waste Management. However, the Rio Rancho Landfill permit expires September 23, 2028 and is expected to be closed for future waste disposal as a result. Therefore, waste will be disposed of at the Valencia Regional Landfill located in Los Lunas, New Mexico, which is the closest available location with an increased round trip haul distance of 80 additional miles.
The County generates approximately 17,000 tons of solid waste and recycles 1,900 tons material on an annual average. The County continues to encourage and prioritize diverting materials from the waste stream through recycling, reuse, and composting. The County is continuing to work on a food composting program while also working with regional partners to find alternative and more environmentally sustainable solutions for waste management.
Upon Council approval, the term of the Agreement shall commence on January 1, 2025 and continue for a seven-year term through December 31, 2031 unless sooner terminated.
Alternatives
Council could choose to not approve the agreement or postpone approval. However, this would adversely affect waste collection operations.
Fiscal and Staff Impact/Planned Item
Exhibit A of the contract provides the cost rate schedule for the seven-year term of the contract. The cost for services are paid per round-trip to the designated facility as shown in the table. In years 2 thru 7, the Consumer Price Index (CPI) is utilized to adjust the rate for inflation.
The contract amount of $10,997,221.65 reflects a projection over the seven-year term of the contract and considers increased costs due to increased haul distances and travel time to transport material to the Valencia County Landfill as compared to the Rio Rancho Landfill in addition to CIP adjustments required for inflation.
Current financial forecasts do not project rate structure adjustments in the near term. However, budget impacts due to costs and any associated future rate increases will be evaluated annually.
Attachments
A - AGR25-06 MCT Waste, LLC - Hauling Services