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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: January 21, 2010 <br />Action Agenda <br />Item No. 4-~ <br />SUBJECT: Agreement Renewal -Removal of Scrap Tires <br />DEPARTMENT: AMPS/Solid Waste PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Pam Jones, AMPS Director, 245-2652 <br />Renewal Agreement Gayle Wilson, Solid Waste Director, <br />968-2885 <br />PURPOSE: To approve an agreement renewal with Central Carolina Holdings, LLC of <br />Cameron, North Carolina for the removal of scrap tires. <br />BACKGROUND: In 2001, Orange County entered into an agreement with Central Carolina <br />Holdings, LLC of Cameron, North Carolina for the removal of scrap tires from the central <br />collection point at the landfill. In September 2004, the State Treasurer's office and staff at the <br />Local Government Commission assisted Central Carolina Holdings in obtaining long term debt <br />financing. As part of the negotiations of the deal, the Treasurer's office recommended that <br />Central Carolina Holdings offer North Carolina counties afive-year extension of existing <br />contracts, with no escalators. Upon approval of the Orange County Board of Commissioners, a <br />five-year agreement extension with Central Carolina Holdings, LLC was executed at the present <br />rate of $80.86 per ton -and remained in effect from March 1, 2005 through February 28, 2010, <br />with no escalators. This proposed agreement is a renewal from March 1, 2010 until February <br />28, 2015 with no price increase from the previous agreement. <br />The agreement states that to the extent possible a minimum of 40% of Orange County's tires <br />be recycled in some manner. Current recycling practices consist of using shredded tires in <br />leachate bed construction where allowed, crumb rubber, and as a boiler fuel at permitted power <br />plants. <br />FINANCIAL IMPACT: North Carolinians pay a 1 % tax on tire purchases to fund the basic <br />county costs of scrap tire disposal. These funds are distributed to the counties quarterly on a <br />per capita basis. Additionally, grants may be approved if the money a county receives does not <br />pay its basic expenses. In Fiscal Year 2008-2009, Orange County received $134,157 through <br />this program. At the current rate of $80.86 per ton with an estimated 1,500 tons of scrap tires <br />per year, the County's cost for this contract would be approximately $121,290. Staff expects <br />