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Contract - Transportation and Disposal of Municipal Solid Waste
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INFORMATION CONTACT:
Caleb Sinclair, Solid Waste, Director, 704-283-3576
ACTION REQUESTED:
Authorize the County Manager to 1) negotiate and execute an agreement substantially consistent with this agenda item, 2) exercise any renewal or extension term options set forth in the Agreement, and 3) terminate the Agreement if deemed in the best interest of the County, each in the County Manager's discretion.
PRIOR BOARD ACTIONS:
None.
BACKGROUND:
The Procurement Department partnered with Solid Waste to issue a Request for Proposal RFP 2024-028 Municipal Solid Waste Transportation and Disposal Service. On December 15th, 2023, three proposals were received and reviewed by an evaluation team in accordance with applicable evaluation criteria for this project. As a result, the team requests approval to enter into a contract with the top scoring/ranked preferred offeror, Chambers Development of North Carolina, Inc. (Waste Connections, Anson County Landfill), to provide transportation and disposal of municipal solid waste services, beginning on July 1, 2024. This contract has an initial term of five years with one five-year renewal option at the sole discretion of the County and is subject to annual budget appropriation.
FINANCIAL IMPACT:
The financial impact of this contract is based on tons of municipal solid waste received at the Union County Solid Waste facility annually. The cost of this service is $ 34.49/per ton and considers an annual increase based on the CPI. Current annual tonnage projections are 160,000 tons, resulting in a first-year cost of $5,518,400. Utilizing an estimated increase of nine percent in the CPI Rate and a two percent increase in annual tonnage, costs will increase to an estimated cost of $8,431,791 in year five and to $14,323,634 in year ten.
The anticipated year-one cost for this service is $5,518,400. Since this contract contains a five-year initial term with one five-year renewal option, a total of $93,082,432 is estimated to be spent. Expenditures under this contract are subject to annual BOCC budget appropriation.