HomeMy WebLinkAboutAgenda - 09-09-2004 - 5ht
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: September 9, 2004
Action Agenda y
Item No. ~~-
SUBJECT• Contract Renewal -Removal of Scrap Tires
DEPARTMENT: Purchasing/Solid Waste PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
Contract
INFORMATION CONTACT:
Pam Jones, 245-2652
Gavle Wilson, 968-2885
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To approve a contract renewal with Central Carolina Holdings, LLC of Cameron,
North Carolina for the removal of scrap tires.
BACKGROUND: On March 1St, 2001, Orange County entered into an agreement with Central
Carolina Holdings, LLC of Cameron, North Carolina for the removal of scrap tires. This
contract, which has historically included a 3% escalation clause., would have expired in
February 2007.
However, the State Treasurer's office and staff at the Local Government Commission recently
assisted Central Carolina Holdings in obtaining long term debt financing. As part of the
negotiations of the deal, the Treasurer's office strongly 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, afive-year contract
extension with Central Carolina Holdings, LLC would be executed at the present rate of $80.86
per ton and would remain in effect from March 1, 2005 through February 28, 2010, with no
escalators.
The contract 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, 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 the county receives does
not pay their basic expenses. In fiscal year 2003-2004 Orange County received $112,719.99
through this program. At the current rate of $80.86 per ton with an estimated 1,050 tons of
scrap tires per year, the County's cost for this contract would be approximately $84,903. Staff
.2 ,1
expects that State distributions for FY 2004-05 will fully cover the cost of this contract.
Sufficient funds are allocated in the Solid Waste Management Department's FY 2004-05
operating budget to cover the cost.
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.
3
STATE OF NORTH CAROLINA AGREEMENT FOR
THE COUNTY OF ORANGE REMOVAL OF SCRAP
TIRES
This Agreement, made and entered into this 24~' day of August, 2004 by and between The
County of Orange, 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 1.2005 to February 28 2010.
If mutually agreeable, the County and Central Carolina Tire may exercise an
option for an additional two (2) years, through February 28, 2012.
2. 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;
d) to the extent possible (minimum 40%) scrap tires will be recycled;
e) land filling of recyclable scrap tires is discouraged;
f) Central Carolina Tire will provide an employee to load the tires on a
regular basis, at least weekly;
g) all state and federal regulations will be followed regarding transportation
and disposal of scrap tires;
h) The County will determine the amount of scrap tires removed by Central
Carolina Tire utilizing the landfill scales. 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.
3. Duties of the County: The County agrees to keep a record of all scrap tire tonnages
removed by Central Carolina Tire and to pay monthly at a rate of $80.86 per ton for
the life of the contract. The County will provide an area at the landfill of appropriate
size to conduct scrap tire activities. Loading facilities will be maintained by the
County.
4. Insurance Requirements: Central Carolina Tire will maintain and provide proof of the
following insurance requirements:
4
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.
SPECIAL REQUIREMENTS:
a. The County is to be named as an additional insured on the Comprehensive
General Liability policy.
b. 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 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. Original policies or certified copies of policies maybe required
by the County at any time.
c. Hold Harmless
Central Carolina Tire agrees to protect, defend, indemnify and hold harmless the
County from 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 contractor except to the extent same are caused by the negligence or
misconduct of the County.
d. This Contract may be terminated according to either of the following provisions:
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. Incase 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.
e. 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
$0.75 0- $0.99 -$0.05
$1.00 - $1.24 No Adjustment
$1.25 - $1.49 +$0.05
$1.50 - $1.74 +$0.10
$1.75 - $2.00 +$0.15
The round trip mileage charge from the "County" to "Central Carolina Tire" is
91 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:
Barry Jacobs, Chair
CONTRACTOR:
ATTEST:
By:
Donna Baker
WITNESS:
This instrument has been pre-audited in the manner required by the Local Government
Budget and Fiscal Control Act.
Finance Director
ti
,~
6
STATE OF NORTH CAROLINA
The County of ORANGE
I, , a Notary Public for said County and State,
do hereby certify that Donna Baker personally appeared before me this date and
acknowledged that she is the Clerk to the Board of Commissioners of Orange County,
and that by authority duly given and as the act of Orange County, the foregoing
instrument was signed in its name by Barry Jacobs, Chair, sealed with its official seal,
and attested by herself as its Clerk.
WITNESS my hand and official seal, this the day of
Notary Public
My Commission expires:
STATE OF NORTH CAROLINA
COUNTY OF
2004.
I, , a Notary Public, do hereby certify that
personally appeared before me this day and acknowledged the due
execution of the foregoing Agreement.
WITNESS my and hand official seal, this the day of
2004.
Notary Public
My Commission expires: