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Home My WebLink About06.b.01.a CA Wastewater Residuals Disposal Contract - 11th Renewal EXECUTIVE SUMMARY AGENDA ITEM: Proposed Approval of Contract Renewal for the Wastewater Residual Disposal Contract ITB# 12/13-Al Date: November 16, 2023 BACKGROUND: The Wastewater Residual Disposal Agreement with Residual Management Services, LLC (RMS) contract is scheduled to expire on December 31, 2023. However, the terms of this contract allow for the renewal of an additional one (1) year term, contingent upon mutual agreement of both parties. Staff engaged RMS which is interested in renewing the contract with a requested rate increase of 3.7% of the current pricing effective January 1, 2024. The new price for liquid sludge will be$0.132 per gallon and$69.67 per cubic yard for cake sludge to the landfill.Per the Contract, if both parties agree to renew the agreement, CCUA may consider a price increase in either of the renewal years based on verifiable changes in the marketplace. Staff compared the rates and have determined the rates to be consistent with the September 2023 U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index. ITB# 12/13-Al Wastewater Residuals Disposal Services 2013 2019 2020 2022 2023 2024 Sludge Hauling Per Cubic Yard $53.00 $58.15 $59.15 $62.38 $67.18 $69.67 Sludge Hauling Per Gallon $0.10 $0.11 $0.11 $0.12 $0.127 $0.132 BUDGET IMPACT: The budget impact will increase by $2,954.66, based on the amount used in the past fiscal year. RECOMMENDATION: Staff respectfully requests the Board of Supervisors approval of the contract renewal for the Wastewater Residuals Disposal, ITB #12/13-Al to be extended for an additional one-year term with rate increase. ATTACHMENTS: RMS Rate Increase Request Eleventh Renewal //AW(Author) //AW, DR,LB (Reviewer) //DM(Final) co(./. Clay County Utility Authority VT Working together to 3176 Old Jennings Road protect public health, Middleburg,FL 32068-3907 conserve our natural • Telephone(904)272-5999 resources,and create ��"it)/• �� www.Cla tiG long-term value for A UT VO www.clayutility.org g our ratepayers. October 17,2023 Steve Hacht, Manager/CEO Residual Management Services,LLC 6990 US Highway 27 P.O. Box 390 Branford, FL 32008 Re: Renewal of Wastewater Residual Disposal Contract No. 12/13-Al for Sludge Hauling Services Dear Mr. Hacht: The above referenced contract is scheduled to expire on December 31,2023. However, the terms of this contract allow for the renewal of an additional year,contingent upon the mutual agreement of both parties. The new contract period will continue from January 1,2024.If you wish to continue the contract under the current terms,please sign, date,and return this letter to us by November 3,2023, and we will consider this confirmation of acceptance of the current terms as stated above. We appreciate your operation and look forward to continuing doing business with you in the coming year. Sincerely, CLAY COUNTY UTILITY AUTHORITY ACCEPTANCE: CS NO OTHER Residual Management Services, LLC. Angelia Angelia Wilson NAME:Steve Hac t Procurement Manager Manager / CEO TITLE: /acw 10/25/2023 DATE: cc: Jeremy D. Johnston Darryl Muse RMS Residual Management Services, LLC P.O. Box 390 • Branford, FL 32008 • (800) 653-0386 10/25/23 Angelia Wilson, Procurement Manager Clay County Utility Authority 3176 Old Jennings Road Middleburg, FL 32068 REF: Cost of Living Request for Contract No. 12/13-A1 Dear Ms.Wilson, Residual Management Services, LLC would like to request an annual price adjustment for the upcoming contract renewal of 3.7%of the current pricing effective January 1, 2024. The new price for liquid sludge would be$0.132 per gallon and $69.67 per cubic yard for cake sludge to the landfill. The adjustment is based on the U.S. Department of Labor, Bureau of Labor Statistics,all items index, CPI September 2023. Thank you for this consideration. RMS, LLC looks forward to continuing to serve the Clay County Utility Authority. Sincerely, Steve Hacht, Manager/CEO RMS, LLC NEWS RELEASE 1 opt°0 BUREAU OF LABOR STATISTICS U.S. DEPAR TMENT OF L A B O R . OILK i . „,ES Ov Transmission of material in this release is embargoed until USDL-23-2185 8:30 a.m. (ET) Thursday, October 12, 2023 Technical information: (202) 691-7000 • cpi_info@bls.gov • www.bls.gov/cpi Media contact: (202) 691-5902 • PressOffice@bls.gov CONSUMER PRICE INDEX- SEPTEMBER 2023 The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4 percent in September on a seasonally adjusted basis, after increasing 0.6 percent in August, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.7 percent before seasonal adjustment. The index for shelter was the largest contributor to the monthly all items increase, accounting for over half of the increase. An increase in the gasoline index was also a major contributor to the all items monthly rise. While the major energy component indexes were mixed in September, the energy index rose 1.5 percent over the month. The food index increased 0.2 percent in September, as it did in the previous two months. The index for food at home increased 0.1 percent over the month while the index for food away from home rose 0.4 percent. The index for all items less food and energy rose 0.3 percent in September, the same increase as in August. Indexes which increased in September include rent, owners' equivalent rent, lodging away from home, motor vehicle insurance,recreation, personal care, and new vehicles. The indexes for used cars and trucks and for apparel were among those that decreased over the month. The all items index increased 3.7 percent for the 12 months ending September, the same increase as the 12 months ending in August. The all items less food and energy index rose 4.1 percent over the last 12 months. The energy index decreased 0.5 percent for the 12 months ending September, and the food index increased 3.7 percent over the last year. Chart 1.One-month percent change in CPI for All Urban Consumers(CPI-U),seasonally adjusted,Sep.2022-Sep.2023 Percent change 0.6 0.6 0.5 0.5 0.5 0.4 0.4 0.4 0.4 0.4 0.3 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.0 Sep.'22 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep.'23 ELEVENTH RENEWAL OF THE CONTRACT BETWEEN CLAY COUNTY UTILITY AUTHORITY AND RESIDUAL MANAGEMENT SERVICES,LLC. THIS ELEVENTH RENEWAL to the WASTEWATER RESIDUALS DISPOSAL ITB 2012/2013-Al CONTRACT, is made and entered into this day of , 2023, by and between the CLAY COUNTY UTILITY AUTHORITY (the "Authority" or the "CCUA"), an independent special district and political subdivision of the State of Florida,existing and created under Chapter 94-491,Laws of Florida, Special Acts on 1994,whose primary business address is 3176 Old Jennings Road, Middleburg, Florida 32068, and RESIDUAL MANAGEMENT SERVICES, LLC. (the "Contractor"), a Florida Company whose primary business address is 6990 US Highway 27, P.O. Box 390, Branford, Florida 32008. The Authority and the Contractor may hereinafter be referred to individually as a "Party" or collectively as the "Parties." WITNESSETH WHEREAS, the Authority and RESIDUAL MANAGEMENT SERVICES, LLC. entered into that certain WASTEWATER RESIDUALS DISPOSAL ITB 2012/2013-Al CONTRACT as of January 1, 2013 (the "Original Agreement"); WHEREAS,the Authority and the Contractor desire to extend the Original Agreement by entering into this Eleventh Renewal as set forth herein; NOW,THEREFORE, for good and valuable consideration,the receipt and sufficiency of which is hereby acknowledged, the Parties do hereby agree as follows: 1. DESCRIPTION OF CHANGES a. Residual Management Services, LLC. will continue to perform all its duties, responsibilities, and obligations under the Original Agreement. b. CCUA hereby consents to continuing the Original Agreement with Residual Management Services, LLC. c. The term of the Original Agreement shall be extended to December 31, 2024. Both parties hereby acknowledge that this Agreement may be annually renewed upon mutual agreement of both Parties.Further,this Agreement is cancelable by either the Authority or the Contractor upon submittal of sixty (60) days' notice of such intent to cancel. d. The rates in the Original Agreement are hereby amended as detailed in the Exhibit'A'. Pricing will be effective on January 1, 2024. Page 1 of 4 2. MISCELLANEOUS a. This Eleventh Renewal and all Ancillary Documents may be executed by providing an electronic signature under the terms of the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. §§ 7001 et. seq., and Chapter 668, Florida Statutes and delivered by email or other electronic delivery method which will have the same force and effect as a written signature. b. This Eleventh Renewal, when executed by the Parties, shall be effective as of the date stated above. This Eleventh Renewal fully and completely expresses the agreement of the Parties with respect to the matters contained herein and shall not be modified or further amended except by written agreement executed by each of the Parties hereto. The Consultant understands and agrees that no representations of any kind whatsoever have been made to it other than as appear in this Eleventh Renewal, that it has not relied on any such representations, and that no claim that it has so relied on may be made at any time and for any purpose. c. This Eleventh Renewal may be executed in any number of counterparts, each of which shall be deemed original; however, all of which when taken together shall constitute one and the same instrument. d. Except as amended and/or modified by this Eleventh Renewal, the Original Agreement is hereby ratified and confirmed and all other terms of the Original Agreement remain in full force and effect, unaltered, and unchanged by this First Renewal. Whether or not specifically amended by this Eleventh Renewal, all of the terms and provisions of the Original Agreement are hereby amended to the extent necessary to give effect to the purpose and intent of this Eleventh Renewal. (Signature Page Follows) Page 2 of 4 IN WITNESS WHEREOF,the Parties have executed this Eleventh Renewal,effective as of the date indicated above. RESIDUAL AGEMENT SERVICES,LLC.: By: Printed Name: Steve Hacht Title: Manager/CEO CLAY COUNTY UTILITY AUTHORITY: By: Printed Name: Jeremy D. Johnston,PE, MBA Title: Executive Director ATTEST: By: Printed Name: Angelia Wilson Title: Procurement Manager Execute in Triplicate Distribution(electronic): 1. Residual Management Services LLC. 2. CCUA Procurement Department 3. CCUA Project Manager—User Department Page 3 of 4 EXHIBIT A—REVISED PRICING ITB# 12/13-Al Sludge Hauling Services _ Description Unit Type Pricing RMS, LLC _ Liquid Sludge Per Gallon $0.132 RMS, LLC ( Cake Sludge Per Cubic Yard $69.67 Page 4 of 4