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HomeMy WebLinkAboutAgenda - 06-24-2008-4tORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 24, 2008 Action Agenda Item No. -~- ---~ SUBJECT: Renewal of Food and Organic Waste Collection and Composting Contract DEPARTMENT: Solid Waste Management PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Proposed Food and Organic Waste Collection and Composting Contract Addendum INFORMATION CONTACT: Gayle Wilson, 968-2885 Pam Jones, 245-2650 PURPOSE: To renew the contract that enables the County Solid Waste Management Department to provide collection and composting services for separated food waste, organic material and animal bedding to commercial and institutional establishments throughout Orange, including UNC-Chapel Hill. BACKGROUND: Judy D. Brooks Contractor, Inc. of Goldston, North Carolina is a provider of food and organic waste collection and composting services. Brooks Contracting has provided food and organic- waste collection and composting services to Orange County since 2001. Brooks provides collection carts, collects food and other acceptable organic waste, and composts it at its facility in Chatham County. In June of 2005, the BOCC approved a contract with Brooks for the provision of food and organic waste collection and composting services. This contract authorized athree-year initial term, with atwo-year extension. This proposed addendum engages Brooks for the two-year extension through June 2010 allowed for in the contract approved three years ago. For FY 2008-2009, the food waste and animal bedding programs are projected to divert as much as 2,550 tons of compostable material from disposal in the Orange County Municipal Solid Waste Landfill. FINANCIAL IMPACT: The cost of this contract for Fiscal Year 2008-2009 is estimated at $221,160 annually (Food Waste $185,360 and Animal Bedding $35,800). This amount is included in the proposed Solid Waste Management Department FY2008-09 budget. RECOMMENDATION(S): The Manager recommends that the Board approve the renewal contract with Brooks to collect and compost food waste and authorize the Chair to sign the agreement, subject to final review by staff and the County Attorney. STATE OF NORTH CAROLINA THE COUNTY OF ORANGE ADDENDUM TO AGREEMENT FOR RECYCLING SERVICES Addendum to that certain Agreement effective July 1, 2005 between The County of Orange, on behalf of its Department of Solid Waste Management, (hereinafter "County"), and Judy D. Brooks Contractor, Inc., a North Carolina Corporation, (hereinafter "Contractor") for the collection and composting of separated food and organic waste from selected businesses and other locations in Orange County North Carolina, In consideration of the mutual promises and conditions set forth herein, the County and Contractor agree to amend the Agreement as follows: Term of Agreement: Section 2 of the Agreement is amended as follows: The renewal term of the. Agreement will be for two (2) years unless otherwise agreed by the parties: the period from July 1, 2008, through June 30, 2010 (hereafter referred to as initial term) assuming that funds are appropriated annually and the performance of Contractor is satisfactory. The level of performance expected is defined in this addendum and the associated Agreement. Assuming that neither County nor the Contractor desire to alter the_ material terms of the Agreement, and the continuation of this Agreement beyond the initial term is desired by both County and the Contractor, this Agreement may be extended for an additional renewal term of two years, or from July 1, 2010 through June 30, 2012. Terms contained herein that have no consequence on the overall outcome or cost of the Agreement may be amended during the course of this initial or any subsequent renewal term through negotiation between the Contractor and County. If substantive changes to terms are desired, an amendment to this agreement may be executed or a new contract maybe signed. Scope of Services Section 3 of the Agreement is amended as follows: Those services to be performed by Contractor as listed in original Agreement shall be expanded to include the following: (f) upon collection of Food Waste and other compostable Organic Materials, Contractor shall either rinse collection container, or shall insert a compostable liner into collection container. At sites where compostable liners are used, County, Contractor, and Generator shall all make a good faith effort to ensure that compostable items are placed within the liner to eliminate the need to rinse the collection container. Cost of Service• Section 4 of the Agreement is amended as follows: The cost of Food Waste Collection Services for FY 2008-2009 shall be $80.00 per ton for the first 2,300 tons collected. The first 2,300 tons collected shall be known as the "Base Tonnage." If the amount of material collected during the course of a FY exceeds the base tonnage, then the per-ton cost of service for the tonnage collected beyond that shall be reduced by $20.00 per ton. The cost of service for Animal Bedding Collection Services for FY 20008-2009 shall be a flat rate of $42.00 per collection per month. For example, if a single site is collected three times during the course of a month, this shall represent (3) collections billed at $42.00 each. The cost of service for Animal Bedding Sites is independent of the amount (tonnage) of materials collected. When providing Food Waste Collection Services, when and if the Contractor uses compostable liners, Contractor may charge County $0.70 per liner or bag. Charges for compostable liners will be itemized as a separate line on the monthly invoice for services performed under this Agreement. County and Contractor agree that this "per bag" or "per liner" fee shall represent a fair approximation of the actual unit cost of the purchase price of the compostable bags or liner plus a small handling fee. The per-ton cost of service for Food Waste Collection for future Fiscal Years will be negotiated annually, with any increase in the per-ton cost not to exceed an. inflation factor of three percent (3%). This inflation factor, if any, shall also be applied to the cost of services for tonnage beyond the base tons. Additionally, the base tonnage beyond which the County receives acost-per-ton price break (2,300 tons for FY 2008-2009) shall be allowed to inflate annually, and this "base tonnage" price break point beyond which the County receives a reduced cost of service shall be negotiated between County and Contractor. The cost of Animal Bedding Collection for future Fiscal Years will be negotiated annually, with any increase not to exceed an inflation factor of three percent (3%). The per-bag or per-liner cost for compostable Liners for future Fiscal Years will be negotiated annually, with the intention of keeping the cost that the Contractor charges County in line with Contractor's actual unit cost plus a small handling fee. The per-bag cost may increase or decrease depending on the actual unit cost paid by Contractor. County may request documentation of Contractor's actual costs at time the per-bag price is established each year. Full Force and Effect Except as amended by this Addendum, the Agreement shall remain in full force and effect. 2 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: Signature Printed Name and Title ATTEST: Donna S. Baker, Clerk to the Board WITNESS: Signature Printed Name and Title This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. Finance Director 3 STATE OF NORTH CAROLINA ORANGE COUNTY I, , a Notary Public for said County and State, do hereby certify that Donna S. 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 2008. Notary Public My Commission expires: STATE OF _ COUNTY OF 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 hand and official seal, this the day of 2008. Notary Public My Commission expires: 4.