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HomeMy WebLinkAboutAmendment Grant for baler on 02-01-2011to Contract #4119NCDENR North Carolina Department of Environment and Natural Resources Division of Purchase and Services Beverly Eaves Perdue Michael G. Bryant Dee Freeman Governor Director Secretary April 27, 2012 AMENDMENT NO. 1 AMENDMENT TO CONTRACT NUMBER 4119 BETWEEN Orange County AND THE NORTH CAROLINA DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES Pursuant to the Paragraph in the North Carolina General Contract Terms and Conditions Clause pertaining to Amendments of Contract Number 4119, the Department of Environment and Natural Resources and the Contractor mutually agree to change the contract ending date from June 30, 2012 to December 31, 2012. This no -cost time extension is to allow the Contractor to complete the required services as described in Attachment A which is incorporated as part of this amendment. It is the intent of this amendment to address the provision(s) noted only, and in no way should this amendment be construed to further modify this contract. All other terms and conditions remain the same. Please indicate acceptance by your signature below. Approved: — &'_A�4& — Orange County AN za Return two (2) original- signed documents to the address specified below for execution by the Department: DENR Division of Purchase & Services 1605 Mail Service Center Raleigh INC 27699 -1605 This amendment when fully executed by all parties will be forwarded to the Contractor. cc: Rob Taylor, DENR DPPEA Jackie J. Moore, DENR Office of the Controller Wanda Andrews, DENR Division of Purchase & Services ORIGINAL 1605 Mail Service Center, Raleigh, North Carolina 27699 -1605 Phone: 919 - 707 -85251 FAX 919 - 715 -07201 Internet: www.enr.state.nc.us /purchase An Equal Opportunity 1 Affirmative Action Employer NorthCarofina naturally Attachment A Amd 1 , DENR Contract 4119 ` Memorandum To: Karl Sanders, Purchasing Section Chief From: Rob Taylor, Community and Business Assistance SectioS i Division of Environmental Assistance and Outreach (I Date: April 10, 2012 Subject: Change of Scope and No Cost Extension for Orange County, Contract # 4119 Orange County was awarded a 2011 Community Waste Reduction and Recycling Grant for $29,968. As a result of changes in recycling program priority and terms with their markets for materials, county staff has recently requested to change the project budget and timeline associated with grant contract #4119. Attached you will find a document with a revised Grant Project Timeline and Project Budget. These changes do not impact the total grant award. Upon review, the Division of Environmental Assistance and Outreach supports these changes and respectfully request that the grant contract be amended to reflect this revised timeline and budget. Please feel free to contact me at 919 - 707 -8139 or rob.taylor@ncdenr.gov if you have any questions or concerns. I appreciate your assistance. Attachments: • Letter from Orange County requesting change in project scope • Memorandum from Orange County requesting time extension • Revised Timeline and Budget • Form 6100 Attachment A Amd 1 Orange County Solid Waste ManagemenTR Contract 4119 P.O. Box 17177 Chapel Hill, NC 27516 -7177 (919) 968 -2885 FAX(919)932-2900 www.co.orange.nc.ustrecycling �rrt' igtf� Orange County Landfill 932 -2989 Orange Community Recycling 968 -2788 February 28, 2012 Mr. Rob Taylor NCDAEO 1639 Mail Service Center Raleigh NC 27699 -1639 Ref: Grant Contract # 4119 Dear Rob: This is to request a change in the use of grant funds that Orange County was awarded during the 2011 grant round for local governments, grant contract #4119. We now want to use the $11,968 that was initially awarded to buy three roll -off containers to haul tear -off shingles to a recycling market to instead help pay for part of the baler we plan to buy to improve the efficiency, safety and density of our baling process for rigid, non - bottle plastics, mixed paper and other materials that might also require baling. The baler was also to be purchased using an additional $18,000 from that same grant. We estimate the baler will cost about $50,000 when purchased and installed, so shifting the $11,968 in funds from the purchase of roll -off containers to the purchase of a baler will still keep Orange County's share of the match well above the 20% hard match required by the grant. The reason for the change is that we are no longer expecting favorable terms from the local licensed shingle recycling vendor i.e. sufficient revenue from the combination of hauling shingles to market or from selling the shingles themselves to cover program costs and minimally acceptable tip fee revenue losses. Those two potential sources of revenue combined with an anticipated increase in the tonnage of shingles due to a lowered tipping fee would have made up for the projected revenue loss we anticipated by lowering the tipping fee 50% for loads of shingles only from $44 per ton for mixed C &D to $22 per ton for shingles only. Once the shingle recycler we'd planned to use determined it was far cheaper for them to haul the shingles themselves that anticipated source of hauling revenue was eliminated, Additionally the shingle recycler determined that the value of what they deemed a 'processing fee' was to be set at $2 per ton, rather than a higher value we had projected. Further with the depressed building market and overall recession causing deferred maintenance, there was some doubt as to our ability to make up all other lost revenue from a possible doubling of shingle tonnage coming into the landfill due to the proposed 50% lower tipping fee; doubling shingle tonnage would have arithmetically allowed break even, without any hauling revenue or processing fee revenue. At further issue internally, was the fact that we are now faced with closing the MSW landfill, transition to single stream recycling and rebuilding one of our convenience centers. This big increase in work load, along with the standard set of everyday challenges has we feel diminished our ability to effectively take Attachment A Amd 1 DENR Contract 4119 on another project at this time. We certainly do not rule it out in the future, given the ongoing demand for tear off shingles in asphalt hot mix. We remain committed to ongoing waste reduction efforts. For the above reasons, we request that DENR allow us to modify our grant contract to put aN the state granted funds to a newer modernized safer baler to handle some materials for recycling. We anticipate that baler, installed will cost $50,000 or more so we do not anticipate any problem with meeting the matching funds requirement. Please advise if you need anything further. Thank you. Sincerely, A Gayle Wilson Director, Solid Waste Management Attachment A Amd 1 ' DENR Contract 4119 Orange County Solid Waste Management oliVotZ P.O. Box 17177 Chapel Hill, NC 27516 -7177 (919) 968 -2885 FAX (919) 932 -2900 www.co.orange.nc.ustrecycling Orange County Landfill 932 -2989 Orange Community Recycling 968 -2788 Memorandum To: Rob Taylor, North Carolina, DEAO From: Cody Marshall, Recycling Programs Manager Subject: Request for Grant Contract Extension Date: April 5, 2012 In addition to the change in the requested use of grant funds described by Orange County Solid Waste Director, Gayle Wilson, in his letter to you on February 28, 2012, Orange County would like to request additional time to complete our grant project. The need for additional time is primarily a result of the delayed implementation of the project. The acquisition of the baler may not be complete until June 30, 2012. I anticipate that an extension of the contract term through December 31, 2012 should allow ample time for Orange County to install the baler and provide the state with data and results of the improvements associated with the project. Attachment A Amd 1 DENR Contract 4119 r Y Revised New Recycling Baler Grant for Orange County NC Submitted by: Blair L. Pollock For: Orange County Solid (Waste Management Department P.O. Box 17177 Chapel Hill NC 27516 (919) 968 -2788 (919) 968 -2900 bpollockn co.orange.nc.us Submittal Date: March 18, 2012 Attachment A Amd 1 DENR Contract 4119 Detailed Description of Proposed Graat Proiect The original grant proposal submitted in March 2011 was for two projects, with a Part A for the shingle recycling rolloffs and part B for the horizontal baler with in -feed conveyor. This is a revised proposal to request that all grant funds be used for purchase of the baler as the shingle project is not feasible at this time for Orange County due to fiscal and workload constraints. We do intend to reconsider shingle recycling in the future. The baler is needed to replace existing unsafe, inefficient and inadequate equipment and will be readily integrated into the existing operation making it safer, quicker and more efficient. The County can provide all necessary matching funds as part of the current solid waste budget for FY 2011 -12. This project is to expand and improve efficiency in recyclable baling operation Detailed Description of Project Orange County currently bales mixed paper and rigid [non- bottle] plastics, separately, at the recycling operations area at the Orange County landfill. To do this we use an Orange County -owned vertical baler and a leased horizontal baler. Neither of these machines is ideal for the materials we are handling. Considerable manual labor is required when baling, and the resultant bales, particularly the rigid plastics bales, are light and this limits the county's ability to efficiently ship and market this material. To improve operational efficiency and safety, and to increase the options for marketing rigid plastics, Orange County proposes to purchase a new horizontal baler. While we will no longer bale large amounts of mixed paper as we are converting to single stream in 2012 -13, the newer, better baler will be more efficient and faster for those materials we will bale. This new baler will be installed in the location currently occupied by the leased horizontal baler and the county - owned vertical baler. The horizontal baler will be returned to its owner, saving Orange County $3,000 each year, and the vertical baler will be modified and installed in our electronics recycling facility for baling computer plastics also improving efficiency for hauling and handling those materials. The proposed new baler will create a safer work environment for employees. It will have a higher loading height as opposed to the current process in which employees push material down into to the hopper which is a more dangerous configuration with greater potential for accidents. Orange County anticipates that this new baler will save considerable money on labor, and the County may be able to market the rigid plastics for greater revenue due to heavier bale weight or at least make fewer trips to market, saving fuel and labor. If the County decides to continue to collect paper from government building separately from cans and bottles, we will also consider baling this paper for more efficient transport to market and potentially better pricing. 2 Attachment A Amd 1 DENR Contract 4119 Bulleted list showing project milestones and general implementation dates (note: project must be complete in one year). o June 30, 2012 — Complete purchase, acquisition and installation of horizontal baler and associated facility improvements. Begin operations using new baler. o December 31, 2012 — Prepare and submit final report to State. Protect Budget for Baler Protect State Orange Co Grant Orange Co. Other Item Award Cash Match Contributions Project Total Purchase and Install Horizontal Baler $ 29,968 $6,232 $ 19,800 $56,000 Beverly Eaves Perdue Governor Blair L. Pollock Orange County Solid Waste Planner Post Office Box 17177 Chapel Hill, NC 27516 -7177 Dear Mr. Pollock, Michael G. Bryant Director May 16, 2012 Natural Resources Enclosed is a fully executed copy of Amendment No. 1 for Contract No. 4119 between Orange County and the Department of Environment and Natural Resources. Invoices or matters regarding work to be performed should be directed to the Contract Administrator, Rob Taylor, as indicated on page four (4) of the contract document. Please include Contract No. 4119 on each invoice submitted for payment. Dee Freeman Secretary Should you have any questions regarding the contract, you may contact me at (919) 707- 8538. Sincerely, .� Purchasing Agent Purchase and Contract Section Enclosure cc: Rob Taylor, DENR DPPEA Jackie J. Moore, DENR Office of the Controller 1605 Mail Service Center, Raleigh; North Carolina 27699 -1605 Phone: 919 - 707 -85251 FAX: 919 -707 -85251 Internet: httP:Hportal.ncdenr.orq /web /ps/ An Equai Opportunity ;Affirmative Action Employer One NorthCarohna Naturally