HomeMy WebLinkAbout06.b.01.d CA ITB 12-13-A1 Wastewater Residuals Disposal Contract 12th Renewal Final EXECUTIVE SUMMARY
AGENDA ITEM:
Proposed Approval of the Wastewater Residual Disposal Contract Renewal
ITB# 12/13-Al
Date: November 5, 2024
BACKGROUND:
The Wastewater Residual Disposal Agreement with Residual Management Services, LLC (RMS)
contract is scheduled to expire on December 31, 2024. 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 2.4% of the current pricing effective January 1, 2025. The new price for liquid sludge
will be$0.135 per gallon and$71.34 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 and determined the
rates to be consistent with the September 2024 U.S. Department of Labor, Bureau of Labor
Statistics, Consumer Price Index (CPI).
ITB# 12/13-Al Wastewater Residuals Disposal
Services 2019 2020 2022 2023 2024 2025
Sludge Hauling Per Cubic Yard $58.15 $59.15 $62.38 $67.18 $69.67 $71.34
Sludge Hauling Per Gallon $0.11 $0.11 $0.12 $0.127 $0.132 $0.135
BUDGET IMPACT:
Staff budgeted an annual amount of$80,000 for these services.
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(1)year term
with rate increase.
ATTACHMENTS:
RMS Rate Increase Request
Signed Renewal Acceptance Letter
//DP(Author)
//AW, DR,LB,AE(Reviewer)
//DM(Final)
RMS
Residual Management Services, LLC
P.O. Box 390 • Branford, FL 32008 • (800) 653-0386
10/28/24
Darrin Parker, Contract& Procurement Specialist
Clay County Utility Authority
3176 Old Jennings Road
Middleburg, FL 32068
REF: Cost of Living Request for Contract No. 12/13-A1
Dear Mr. Parker,
Residual Management Services, LLC would like to request an annual price adjustment for the
upcoming contract renewal of 2.4%of the current pricing effective January 1, 2025. The new price for
liquid sludge would be$0.135 per gallon and $71.34 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 2024.
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 , op.?
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BUREAU OF LABOR STATISTICS
U. S. DEPARTMENT OF LABOR `��
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Transmission of material in this release is embargoed until USDL-24-2101
8:30 a.m. (ET)Thursday, October 10,2024
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 2024
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent on a seasonally
adjusted basis, the same increase as in August and July, the U.S. Bureau of Labor Statistics reported
today. Over the last 12 months, the all items index increased 2.4 percent before seasonal adjustment.
The index for shelter rose 0.2 percent in September, and the index for food increased 0.4 percent.
Together,these two indexes contributed over 75 percent of the monthly all items increase. The food at
home index increased 0.4 percent in September and the food away from home index rose 0.3 percent
over the month. The energy index fell 1.9 percent over the month, after declining 0.8 percent the
preceding month.
The index for all items less food and energy rose 0.3 percent in September, as it did the preceding
month. Indexes which increased in September include shelter, motor vehicle insurance, medical care,
apparel, and airline fares. The indexes for recreation and communication were among those that
decreased over the month.
The all items index rose 2.4 percent for the 12 months ending September, the smallest 12-month
increase since February 2021. The all items less food and energy index rose 3.3 percent over the last 12
months. The energy index decreased 6.8 percent for the 12 months ending September. The food index
increased 2.3 percent over the last year.
Chart 1.One-month percent change in CPI for All Urban Consumers(CPI-U),seasonally adjusted,Sep.2023-Sep.2024
Percent change
0.4 0.4 0.4
0.4
0.3 I I 0.3
0.3
0.2 0.2 I 0.2 0.2 0.2
0.2
0.1
0.1
I II I II
0.0 ■ 0.0
-0.1 ■
-0.1
Sep'23 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep'24
`�.� cov�cClay County Utility Authority Working together to
3176 Old Jennings Road protect public health,
Middleburg,FL 32068-3907 conserve our natural
Telephone(904)272-5999 rresources,and create
���/TyAU1Hp`4. www.clayutility.org long-long-term value for
our ratepayers.
October 24, 2024
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-A1 for Sludge Hauling Services
Dear Mr. Hacht:
The above referenced contract is scheduled to expire on December 31, 2024. 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 1,2025—December 31,2025.If you wish to continue
the contract under the current terms,please sign,date,and return this letter to us by November 5,2024,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: OM NO OTHER
Residual Management Services, LLC.
ParrL ' G. Pa-rk,e r
Darrin G. Parker NAM
Contract& Procurement Steve Hacht
TITLE:
/dgp MGR/CEO
DATE: 10/28/2024
cc: Jeremy D. Johnston
Darryl Muse