HomeMy WebLinkAboutAgenda - 01-21-2010 - 4fORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: January 21, 2010
Action Agenda
Item No. 4-~
SUBJECT: Agreement Renewal -Removal of Scrap Tires
DEPARTMENT: AMPS/Solid Waste PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
Pam Jones, AMPS Director, 245-2652
Renewal Agreement Gayle Wilson, Solid Waste Director,
968-2885
PURPOSE: To approve an agreement renewal with Central Carolina Holdings, LLC of
Cameron, North Carolina for the removal of scrap tires.
BACKGROUND: In 2001, Orange County entered into an agreement with Central Carolina
Holdings, LLC of Cameron, North Carolina for the removal of scrap tires from the central
collection point at the landfill. In September 2004, the State Treasurer's office and staff at the
Local Government Commission assisted Central Carolina Holdings in obtaining long term debt
financing. As part of the negotiations of the deal, the Treasurer's office recommended that
Central Carolina Holdings offer North Carolina counties afive-year extension of existing
contracts, with no escalators. Upon approval of the Orange County Board of Commissioners, a
five-year agreement extension with Central Carolina Holdings, LLC was executed at the present
rate of $80.86 per ton -and remained in effect from March 1, 2005 through February 28, 2010,
with no escalators. This proposed agreement is a renewal from March 1, 2010 until February
28, 2015 with no price increase from the previous agreement.
The agreement states that to the extent possible a minimum of 40% of Orange County's tires
be recycled in some manner. Current recycling practices consist of using shredded tires in
leachate bed construction where allowed, crumb rubber, and as a boiler fuel at permitted power
plants.
FINANCIAL IMPACT: North Carolinians pay a 1 % tax on tire purchases 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 a county receives does not
pay its basic expenses. In Fiscal Year 2008-2009, Orange County received $134,157 through
this program. At the current rate of $80.86 per ton with an estimated 1,500 tons of scrap tires
per year, the County's cost for this contract would be approximately $121,290. Staff expects
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that State distributions for FY 2009-2010 will fully cover the cost of this agreement. Sufficient
funds are allocated in the Solid Waste Management Department's FY 2009-10 operating
budget to cover the cost.
RECOMMENDATION(S): The Manager recommends that the Board approve the renewal of
the agreement with Central Carolina Holdings, LLC and authorize the Chair to sign the
agreement on behalf of the Board.
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STATE OF NORTH CAROLINA
AGREEMENT FOR REMOVAL
OF SCRAP TIRES
THE COUNTY OF ORANGE
This Agreement, made and entered into this 21st day of January , 2010 by and
between Orange County, on behalf of its Solid Waste Department (herein referred to
as "County") and Central Carolina Tire, (herein referred to as "Central Carolina
Tire").
WHEREAS, the County wishes to contract with Central Carolina Tire for removal of
scrap tires from the Orange County Landfill, and
WHEREAS, Central Carolina Tire wishes to provide these services
NOW THEREFORE, it is mutually agreed as follows:
1. This contract shall be in effect from March 1 2010 to Febr~ti 28 2015. If
mutually agreeable, the County and Central Carolina Tire may exercise an
option for an additional two (2) years through February 28, 2017. Any such
option shall be in writing and signed by the Parties to this Agreement.
2. Non-Appro nation. Central Carolina Tire acknowledges that County is a
governmental entity and the validity of this Agreement is based upon the
availability of public funding under the authority of its statutory mandate. In
the event that public funds are unavailable and not appropriated for the
performance of County's obligations under this Agreement, then this
Agreement shall automatically expire without penalty to County immediately
upon written notice to Central Carolina Tire of the unavailability and non-
appropriation of public funds. It is expressly agreed that County shall not
activate this non-appropriation provision for its convenience or to circumvent
the requirements of this Agreement, but only as an emergency fiscal measure
during a substantial fiscal crisis.
3. Duties of Central Carolina Tire. Central Carolina Tire agrees to provide:
a. Removal of all scrap tires, including rims received at the Orange
County Landfill on Eubanks Road;
b. No more than approximately one load (10 to 12 tons) will remain on
the ground at one time during the term of the contract;
c. All loading and hauling will be conducted by Central Carolina Tire
and all personnel required for such loading and hauling will be
provided by Central Carolina Tire;
d. A minimum of forty percent (40%), and to the extent possible all,
scrap tires will be recycled;
e. Landfilling ofnon-recyclable scrap tires is discouraged;
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f. All state and federal regulations will be followed regarding
transportation and disposal of scrap tires;
g. The County will, utilizing the landfill scales, determine the amount of
scrap tires removed by Central Carolina Tire. Each load of scrap tires
removed from the landfill will be weighed. The invoice to the County
will be calculated according to landfill scale records.
4. Duties of the County: The County agrees:
a. Payment: To keep a record of all scrap tire tonnages removed by
Central Carolina Tire and to pay monthly at a rate of $75.86 plus five
($5.00) dollars per ton for loading, a total of $80.86, per ton for the life
of the contract.
• Should Central Carolina Tire fail to perform its duties under
the terms of this Agreement County may, without fault or
penalty, withhold any payment associated with the work to
be performed until such time as said work is completed.
b. To provide an area at the landfill of appropriate size to conduct scrap
tire activities. Loading facilities will be maintained by the County.
5. Insurance Requirements: Central Carolina tire will maintain and provide proof
of the following insurance requirements:
a. Workers Compensation: Coverage to apply for all employees for
statutory limits in compliance with the applicable state and federal
laws. The policy must include employers' liability with a limit of
$100,000 each accident, $100,000 bodily injury by disease each
employee and $500,000 bodily injury by disease policy limit.
b. Comprehensive General Liability: Coverage shall have minimum
limits of $1,000,000 per occurrence, combined single limit for bodily
injury liability and property damage liability. This shall include
premises and operations, independent contractors; products and
completed operations and contractors; products and completed
operations and contractual liability.
c. Business Auto Liability. Coverage shall have minimum limits of
$1,000,000 per occurrence, combined single limit for bodily injury
liability and property damage liability. This shall include owned
vehicles, hired and non-owned vehicles and employee non-ownership.
d. Additional Insured. The County is to be named as an additional insured
on the Comprehensive General Liability policy.
e. Additional Insurance Requirements. Current, valid insurance policies
meeting and the above requirements shall be maintained for the
duration of the event. Renewal certificate shall be sent to the County
5
30 days prior to any expiration date. There shall also be a 30 day
notification to the County in the event of cancellation or modification
of any stipulated insurance coverage. Certificates of insurance on an
Accord 25 Form meeting the required insurance provisions shall be
forwarded to The County of Orange's Purchasing Agent. Wording on
the Certificate which states that no liability shall be imposed upon the
company for failure to provide such notice is not acceptable and if
such wording appears shall be void and unenforceable. Original
policies or certified copies of policies may be required by the County
at any time.
SPECIAL REQUIREMENTS:
a. Hold Harmless. Central Carolina Tire agrees to protect, defend, indemnify and
hold harmless the County form all loss, liability, claims or expense (including
reasonable attorneys' fees) arising from bodily injury, including death or
property damage to any person or persons caused in whole or in part by the
negligence or willful misconduct of the Central Carolina Tire except to the
extent same are caused by the negligence or misconduct of the County.
b. Termination. This Contract may be terminated according to either of the
following provisions:
1. Default: if either party hereto deems the other party hereto to be in default
of any provision hereof, the claiming party shall provide notice in writing
to the defaulting party of said default. If said defaulting party fails to
correct the default within twenty (20) working days from the date of notice,
the other party may terminate this contract immediately. In case of such
termination the party terminating this contract shall forthwith give the other
party written notice of such termination.
2. Mutual Agreement: This Contract may be terminated by mutual agreement
of the parties hereto, at any time.
c. Non-waiver. Failure by County at any time to require the performance by
Central Carolina Tire of any of the provisions hereof shall in no way waive or
affect the County's right hereunder to enforce the same, nor shall any waiver
by the County of any breach be held to be a waiver of any succeeding breach
or a waiver of this Non-Waiver Clause.
d. Non-assignment. Central Carolina Tire shall not assign all or any part of this
Agreement, including rights to payments, to any other party without the prior
written consent of the County.
e. Entire Agreement. The parties have read this Agreement and agree to be
bound by all of its terms, and further agree that it constitutes the complete and
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exclusive statement of the Agreement between the parties unless and until
modified by a writing signed by the parties.
f. Fuel Surcharge Adjustment. The rate for services as described in the agreement
for removal of scrap tires shall remain at $80.86 per ton with a fuel surcharge
to be added to each load using the following formula:
Price er Gallon Price Adjustment er Mile
$1.75 - $1.99 $0.05
$2.00 - $2.74 No Adjustment
$2.75 - $3.24 Plus $0.05
$3.25 - $3.74 Plus $0.10
$3.75 - $4.25 Plus $0.15
The round trip mileage charge from the "County" to "Central Carolina Tire" is
134 miles. The price per gallon will be established on the first business day of
each month by calling the Diesel Fuel Hotline at (202) 586-6966 at 12:00
noon, and obtaining the average diesel price for the East Coast.
IN TESTIMONY WHEREOF, the parties have hereunto set their hands and seals the
day and year first above written.
COUNTY:
By:
Chair
ATTEST:
By:
Clerk to the Board
[SEAL]
CENTRAL CAROLINA TIRE: WITNESS:
Approved as to technical content.
Department Director
Approved as to form and legal sufficiency.
County Attorney
This instrument has been pre-audited in the manner required by the Local Government
Budget and Fiscal Control Act.
Finance Director