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HomeMy WebLinkAbout06.b.01.f CA ITB 12-13-A1 WW Residuals Disposal Contract 13th Renewal EXECUTIVE SUMMARY AGENDA ITEM: Proposed Approval of the Wastewater Residual Disposal Contract Renewal with Residual Management Services,LLC (RMS) ITB#2012/2013-Al Date: December 11,2025 BACKGROUND: The Wastewater Residual Disposal Agreement with RMS contract is scheduled to expire on December 31, 2025. However, the terms of this contract allow for the renewal of an additional one (1) year term, contingent upon mutual agreement of both parties. CCUA has opted to extend the contract for a period of six(6)months while the services are re-solicited. Staff engaged RMS, which is interested in extending the contract with a requested rate increase to the current pricing effective January 1, 2026, through June 30, 2026. The proposed pricing includes a rate of $0.139 per gallon for liquid sludge and$101.25 per cubic yard for cake sludge disposed at 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 that the proposed rates align with the September 2025 U.S.Department of Labor,Bureau of Labor Statistics, Consumer Price Index(CPI). ITB# 12/13-Al Wastewater Residuals Disposal Services 2020 2022 2023 2024 2025 2026 Sludge Hauling Per Gallon $0.11 $0.12 $0.127 $0.132 $0.135 $0.139 Sludge Hauling Per Cubic Yard $59.15 $62.38 $67.18 $69.67 $71.34 $101.25 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 extension for the Wastewater Residuals Disposal Contract with Residual Management Services, LLC, ITB #12/13-Al, to be extended for an additional six(6)month term with rate increase. ATTACHMENTS: Signed Renewal Acceptance Letter RMS Rate Increase Request //DP(Author) //AW, DR,AE(Reviewer) //DM(Final) ��,�( CO(/,V�` Clay County Utility Authority Working together to 3176 Old Jennings Road protect public health, Middleburg,FL 32068-3907 conserve our natural G� �a Telephone(904)272-5999 resources,and create �'/jkA�No'' www.clayutility.org long-term rrate Iu for paY December 10,2025 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, 2025. 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 1,2026—June 30,2026. If you wish to continue the contract under the current terms,please sign,date,and return this letter to us at your earliest convenience,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: 431, NO OTHER Residual Management Services, LLC. Dunn:* 9. Pc nkat Darrin G.Parker NAME: Steve Hacht Contract&Procurement MGR/CEO TITLE: /dgp 12/10/2025 DATE: cc: Jeremy D. Johnston Darrell Damrow RMS Residual Management Services, LLC P.O. Box 390 • Branford, FL 32008 • (800) 653-0386 12/8/2025 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 liquid sludge of 3.0%of the current pricing for the contract renewal.The new price for liquid sludge will be $0.139 per gallon effective January 1, 2026.The adjustment is based on the U.S. Department of Labor, Bureau of Labor Statistics, all items index, CPI September 2025. Over the last several years, there has been a drastic rise in landfill tipping fees. After reviewing the contract for cake sludge, RMS will need to raise the price to$101.25 per ton. Please feel free to reach out to me if there are any questions concerning the new landfill pricing. 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 ,00,NT `Fz14 BUREAU OF LABOR STATISTICS Joe U. S. DEPARTMENT OF LABOR V.0}= BSr es Transmission of material in this release is embargoed until USDL-25-1502 8:30 a.m. (ET)Friday, October 24,2025 Contact information: (202) 691-5902 • PressOffice@bls.gov CONSUMER PRICE INDEX - SEPTEMBER 2025 The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent on a seasonally adjusted basis in September, after rising 0.4 percent in August, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months,the all items index increased 3.0 percent before seasonal adjustment.Note that September CPI data collection was completed before the lapse in appropriations. The index for gasoline rose 4.1 percent in September and was the largest factor in the all items monthly increase, as the index for energy rose 1.5 percent over the month. The food index increased 0.2 percent over the month as the food at home index rose 0.3 percent and the food away from home index increased 0.1 percent. The index for all items less food and energy rose 0.2 percent in September, after rising 0.3 percent in each of the 2 preceding months. Indexes that increased over the month include shelter, airline fares, recreation, household furnishings and operations, and apparel. The indexes for motor vehicle insurance, used cars and trucks, and communication were among the few major indexes that decreased in September. The all items index rose 3.0 percent for the 12 months ending September, after rising 2.9 percent over the 12 months ending August. The all items less food and energy index also rose 3.0 percent over the last 12 months. The energy index increased 2.8 percent for the 12 months ending September. The food index increased 3.1 percent over the last year. Chart 1.One-month percent change in CPI for All Urban Consumers(CPI-U),seasonally adjusted,Sep.2024-Sep.2025 Percent change 0.5 0.5 0.4 I 0.4 0.4 0.3 I 0.3 I 0.3 0.3 0.2 0.2 I 0.2 0.2 I 0.2 0.2 111 III 0.1 II 0.0 ■ -0.1 • Sep.'24 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep'25