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t <br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: September 9, 2004 <br />Action Agenda y <br />Item No. ~~- <br />SUBJECT• Contract Renewal -Removal of Scrap Tires <br />DEPARTMENT: Purchasing/Solid Waste PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />Contract <br />INFORMATION CONTACT: <br />Pam Jones, 245-2652 <br />Gavle Wilson, 968-2885 <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 336-227-2031 <br />PURPOSE: To approve a contract renewal with Central Carolina Holdings, LLC of Cameron, <br />North Carolina for the removal of scrap tires. <br />BACKGROUND: On March 1St, 2001, Orange County entered into an agreement with Central <br />Carolina Holdings, LLC of Cameron, North Carolina for the removal of scrap tires. This <br />contract, which has historically included a 3% escalation clause., would have expired in <br />February 2007. <br />However, the State Treasurer's office and staff at the Local Government Commission recently <br />assisted Central Carolina Holdings in obtaining long term debt financing. As part of the <br />negotiations of the deal, the Treasurer's office strongly recommended that Central Carolina <br />Holdings offer North Carolina counties afive-year extension of existing contracts, with no <br />escalators. Upon approval of the Orange County Board of Commissioners, afive-year contract <br />extension with Central Carolina Holdings, LLC would be executed at the present rate of $80.86 <br />per ton and would remain in effect from March 1, 2005 through February 28, 2010, with no <br />escalators. <br />The contract states that to the extent possible a minimum of 40% of Orange County's tires be <br />recycled in some manner. Current recycling practices consist of using shredded tires in <br />leachate bed construction where allowed, and as a boiler fuel at permitted power 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 the county receives does <br />not pay their basic expenses. In fiscal year 2003-2004 Orange County received $112,719.99 <br />through this program. At the current rate of $80.86 per ton with an estimated 1,050 tons of <br />scrap tires per year, the County's cost for this contract would be approximately $84,903. Staff <br />