Orange County NC Website
Browse       Search
<br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br /> <br />ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: June 18, 2019 <br /> Action Agenda <br /> Item No. 8-p <br /> <br />SUBJECT: Approval of Contract with Sonoco Recycling, LLC for Recycling Processing <br /> <br />DEPARTMENT: Solid Waste Management <br /> <br /> <br />ATTACHMENT(S): <br />Draft Contract <br /> <br />INFORMATION CONTACT: <br />Robert Williams, 919-918-4904 <br /> <br /> <br />PURPOSE: To approve and authorize the County Manager to sign a two year contract with Sonoco <br />Recycling, LLC, for the Processing, Marketing and Sale of Recyclable Material. <br /> <br />BACKGROUND: Traditionally, Orange County has had recycling processed by a recycling <br />processor at fluctuating rates for both the processing cost and the resulting commodity value. In <br />addition, the commodity value was determined by the composition of material delivered by all <br />entities to the processors’ facilities. With the recent change in recycling markets, the cost has <br />escalated and the offsetting value of the commodities has declined. Seeking to stabilize costs, <br />Orange County issued a Request for Proposals on March 6, 2019 for a Recycling Processor. <br /> <br />Three firms responded to the request and after review and a request for each respondent to <br />provide their best and final offer, Sonoco Recycling, LLC is recommended as the Recycling <br />Processor. The contract provides for the processing, marketing and sale of Recyclable Material <br />at their Material Recovery Facility (MRF) located in Raleigh, NC. The contract establishes a <br />processing cost not subject to huge fluctuations. In addition, the contract uses the composition <br />of material delivered by Orange County to the processor as the basis for establishing the <br />commodity value. This allows Orange County to receive a fair value for its material and not be <br />part of a facility composite number. A draft contract is attached. Final terms, including certain <br />pricing components, are still under negotiation. The maximum amount of the contract is set <br />forth and will not be modified. <br /> <br />FINANCIAL IMPACT: Because of the downward trend in the commodity markets, costs to <br />process and market recycling material has increased significantly. The estimated cost of the <br />processing contract for two years is $1,600,000. However, there is an estimated cost savings of <br />$176,000 as a result of Orange County staff backhauling residual material for disposal. <br /> <br />SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to <br />this item: <br />• GOAL: ESTABLISH SUSTAINABLE AND EQUITABLE LAND-USE AND <br />ENVIRONMENTAL POLICIES <br />The fair treatment and meaningful involvement of people of all races, cultures, incomes and <br />educational levels with respect to the development and enforcement of environmental laws, <br />regulations, policies, and decisions. Fair treatment means that no group of people should <br />1