Orange County NC Website
1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: June 15, 2021 <br /> Action Agenda <br /> Item No. 8-h <br /> SUBJECT: Contract for Recycling Processor <br /> DEPARTMENT: Solid Waste <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Robert Williams, 919-918-4904 <br /> PURPOSE: To approve and authorize the County Manager to sign a two year contract with Waste <br /> Management Recycling America, LLC, for the Processing, Marketing and Sale of Recyclable <br /> Material. <br /> BACKGROUND: Orange County issued a Request for Proposals on March 3, 2021 for a <br /> Recycling Processor. <br /> Three firms responded to the request, and after review and a request for each respondent to <br /> provide their best and final offer, Waste Management Recycling America, LLC was selected as <br /> the recommended Recycling Processor. Waste Management Recycling America, LLC is a new <br /> service provider for Orange County. The contract provides for the processing, marketing and sale <br /> of Recyclable Material at the company's Material Recovery Facility (MRF) located in Morrisville, <br /> NC. The contract establishes a revenue sharing option and uses the composition of material <br /> delivered by Orange County to the processor as the basis for establishing the commodity <br /> "blended" value. This allows Orange County to receive a fair value for its material and not be part <br /> of a facility composite number. In addition, the location of the processing facility reduces travel <br /> expenses for hauling recycling material. <br /> Finally, the contract provides for Orange County to deliver at least 75% of collected municipal <br /> solid waste (MSW) to the Waste Management transfer station, resulting in reduced tipping fees <br /> for MSW when compared with current tipping fees being paid. <br /> Final terms of the contract are still under negotiation. The maximum amount of the contract is set <br /> forth and will not be modified. <br /> FINANCIAL IMPACT: Because of the downward trend in the commodity markets, costs to <br /> process and market recycling material have increased significantly over the last five years. In <br /> addition, tipping fees for MSW have also increased. The estimated cost of the recycling <br />