Agenda - 02-17-2015 - 6b - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 17, 2015 Action Agenda Item No. 6 -b SUBJECT: Contract Renewal — Removal of Scrap Tires 1 DEPARTMENT: Finance /Solid Waste PUBLIC HEARING: (Y /N) No ATTACHMENT(S): Original Contract Contract Renewal Amendment INFORMATION CONTACT: Gayle Wilson, 919 - 968 -2885 Paul Laughton, 919 - 245 -2152 PURPOSE: To approve a contract renewal with Central Carolina Holdings, LLC of Cameron, North Carolina for the removal of scrap tires. BACKGROUND: On August 24, 2004, Orange County entered into an agreement with Central Carolina Holdings, LLC of Cameron, North Carolina for the removal of scrap tires. This contract was amended on March 1, 2005 and March 1, 2010 and included an option to extend until February 28, 2017 if all parties are in agreement. The contract states that a minimum of 40% of Orange County's tires will be recycled. Current recycling practices consist of using shredded tires in leachate bed construction where allowed, crumb rubber production, and as a boiler fuel at permitted power plants. Currently all standard car and pickup tires are recycled. To County staff's knowledge, Central Carolina Holdings, LLC does not pay all of the employees associated with service to Orange County Solid Waste a living wage of $12.76 /hour. FINANCIAL IMPACT: North Carolinians pay a 2% tax on tire purchases for normal car and pickup vehicles to fund the basic County costs of scrap tire disposal. These funds are distributed to the counties quarterly on a per capita basis. Additionally, grants may be approved if the money the County receives does not pay for basic expenses. In fiscal year 2013 -2014 Orange County received $161,731 through this program. At the current rate of $80.86 per ton with a revised estimate of 1,100 tons of scrap tires for current year, the County's disposal cost for this contract would be approximately $88,946. While Staff cannot say with certainty, it is expected that State distributions will continue to fund the cost of this contract. One hundred twenty seven thousand dollars is allocated in the Solid Waste Management Department's FY 2014 -15 operating budget. RECOMMENDATION(S): The Manager recommends that the Board authorize the extension of the agreement and authorize the Chair to sign the agreement on behalf of the Board.