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AGENDA ITEM REVIEW FORM |
6.B.
Regular City Council Meeting
- Meeting Date:
- 10/09/2024
- Department Head:
- Eulogio Vera
- Submitted By:
- Manuel Hernandez, Assistant Director of Public Works, Public Works Department
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding the City of San Luis piggybacking on the City of Yuma's contract with Republic Services for solid waste disposal services. (Manuel Hernandez, Assistant Director of Public Works)
SUMMARY:
In June 2024, the City of San Luis received a rate adjustment from South Yuma County Landfill, our current disposal site. The cost increased from $32.25 to $39.00 per ton, leading to an un-budgeted annual increase of approximately $85,500.00. During the July 24, 2024, Council Meeting, Public Works informed the Mayor and Council of the rate adjustment and that we would be exploring alternative options with local vendors.
Public Works has since met with Republic Services of Yuma, which is under a 10-year contract with the City of Yuma, expiring on October 30, 2030. The contract has an option for two additional five-year extensions. Their current rate is $30.60 per ton, with a 3% annual increase. From August 5th to August 9th, Public Works conducted a week-long pilot, transporting all residential solid waste to the Republic Services transfer station at 3040 S Avenue 3 ½ E in Yuma to assess the feasibility of switching providers.
Based on our evaluation, Public Works is seeking Mayor and Council approval to piggyback on the City of Yuma’s contract with Republic Services, making them the primary waste disposal provider, with South Yuma County Landfill serving as a secondary option. This switch could result in savings of up to $80,000.00 annually and will help the division stay closer to its operational budget.
This request complies with the San Luis City Code Purchasing Section, 3.05.090, Cooperative Purchasing. The City of Yuma went out to bid on the contract. The City may make purchases or award contracts for services without a formal bidding process whenever other governmental units have done so for the same items or service if, in the opinion of the purchasing agent, a separate bidding process is not likely to result in a lower price for such items or services.
Public Works has since met with Republic Services of Yuma, which is under a 10-year contract with the City of Yuma, expiring on October 30, 2030. The contract has an option for two additional five-year extensions. Their current rate is $30.60 per ton, with a 3% annual increase. From August 5th to August 9th, Public Works conducted a week-long pilot, transporting all residential solid waste to the Republic Services transfer station at 3040 S Avenue 3 ½ E in Yuma to assess the feasibility of switching providers.
Based on our evaluation, Public Works is seeking Mayor and Council approval to piggyback on the City of Yuma’s contract with Republic Services, making them the primary waste disposal provider, with South Yuma County Landfill serving as a secondary option. This switch could result in savings of up to $80,000.00 annually and will help the division stay closer to its operational budget.
This request complies with the San Luis City Code Purchasing Section, 3.05.090, Cooperative Purchasing. The City of Yuma went out to bid on the contract. The City may make purchases or award contracts for services without a formal bidding process whenever other governmental units have done so for the same items or service if, in the opinion of the purchasing agent, a separate bidding process is not likely to result in a lower price for such items or services.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE AND ACCEPT THE PURCHASE OF SOLID WASTE DISPOSAL SERVICES WITH REPUBLIC SERVICES, AS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- Approximately $303,750.00 pending for the remainder of FY25
- BUDGETED AMOUNT:
- $440,000.00
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Landfill Fees/320-321-80030 $320,800.00
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
FY24, $405,000 spent
Based on last years expense we spent approximately $33,750 per month
There will be approximately eight month remaining in FY25, 9 x $33,750 = $303,750.
Based on last years expense we spent approximately $33,750 per month
There will be approximately eight month remaining in FY25, 9 x $33,750 = $303,750.
Attachments
- Solid Waste Service Comparison Evaluation 090324
- UYghurs written certificate
- COY Republic Services Waste Disposal Signed Contract-10_23_20
- South Yuma County Landfill 2024 Fees
