Title
Approval of Amendment No. 3 under Services Agreement No. AGR 18-10b with Waste Management of New Mexico, Inc., to Increase the Compensation Amount by $450,000.00 for a Total Not-to-Exceed Compensation Amount of $3,278,832.05 Plus Applicable Gross Receipts Tax for Solid Waste Disposal Services
Recommended Motion
I move that Council approve Amendment No. 3 under Services Agreement No. AGR 18-10b with Waste Management of New Mexico, Inc., to Increase the Compensation Amount by $450,000.00 for Total Not-to-Exceed Compensation Amount of $3,278,832.05 Plus Applicable Gross Receipts Tax for Solid Waste Disposal Services.
Manager's Recommendation
The County Manager recommends that Council approve the motion as presented.
Body
On November 28, 2017, Council awarded a General Services Agreement AGR 18-10b with Waste Management of New Mexico, Inc. for Solid Waste Disposal Services in the amount of $2,828,832.05 plus applicable gross receipts tax.
As provided for in the Agreement the cost per ton rate may change annually and shall be adjusted in an amount equal to the annual rate of inflation for the preceding twelve-month period as determined by the Consumer Price Index (“CPI”) rate change. The original Not-to-Exceed Amount of the Agreement was based on an estimated 2.5% annual increase, and actual increases have averaged 3.48% due to higher-than-expected inflation. Additionally, per ton disposal rates have increased a total of 18.70% since January 1, 2018, and are expected to increase an additional 5.2% within the next year. Lastly, the number of tons of waste disposed has increased 8.5% over the last six (6) years.
Neither Party could have anticipated the full extent of inflationary increases determined by the CPI, nor anticipated the full extent of County’s utilization of services, which is variable and dependent upon the number of tons of waste disposed. Providing consistent collection services for solid waste is necessary to maintain the health and safety of our citizens and environment. The Environmental Services Division accepts solid waste seven days week and is consolidated at the Eco Station. This agreement is vital to proper solid waste management in order to dispose of waste at the landfill managed by the Contractor.
This is the last year and final year of the agreement and staff is currently preparing a new solicitation to continue this service.
Alternatives
Council could choose to not approve the amended agreement and re-advertise for these services. However, this will cause a disruption for solid waste disposal operations.
Fiscal and Staff Impact/Planned Item
Disposal services for refuse is a recurring budgetary expense that is accounted for in each budget year, this will not cause any further budgetary impacts.
Attachments
A - AGR18-10b-A3 Waste Management of New Mexico, Inc.
B - AGR18-10b-A2 Waste Management of New Mexico, Inc.
C - AGR18-10b-A1 Waste Management of New Mexico, Inc.
D - AGR18-10b- Waste Management of New Mexico, Inc.