HomeMy WebLinkAboutAgenda - 04-01-2008-4kORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 1, 2008
Action Agend-~a
Item No.
SUBJECT: Landfill Compactor for Orange County Landfill
DEPARTMENT: Purchasing/Solid Waste
Management
PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
Equipment Proposal
Reimbursement Resolution
INFORMATION CONTACT:
Pam Jones, 245-2652
Gayle Wilson, 968-2885
PURPOSE: To consider purchase of a Landfill Compactor for the Orange County Landfill in
order to obtain additional compaction and extend the life of the landfill.
BACKGROUND: Landfill compactors are used to place and compact garbage delivered to the
Orange County Landfill. Currently, the Solid Waste Management Department has two of these
machines, one located in the Municipal Solid Waste. (MSW) landfill and one in the Construction
and Demolition (C&D) landfill. Each of the two current machines weighs 75,000 pounds. The
proposed machine weighs 110,000 pounds.
The current MSW landfill is expected to reach capacity in mid 2011. At that time, all County
generated MSW will be transferred out of the County through a transfer station. The Board of
County Commissioners is currently involved in a process of selecting a transfer station site. The
current time frame for completion of such a facility, based on the adopted transfer station siting
process, is late 2011, but delays in identifying acquiring, permitting or constructing a new site
could create an even larger gap in landfill capacity and availability of the new transfer station.
Additionally, as discussed in a March 27, 2008 Manager's Memorandum, a change in state
enforcement of Construction & Demolition wastes will cause the mid-2011 to be modified to early
2011.
Staff has considered several different options that could provide the necessary extra capacity or
to alternatively manage waste for an interim period. These alternatives include expanding
material bans, implementation of new or expanded recycling programs, and contingency and
temporary transferring of waste using dump and reload operations. These options are unable to
provide substantive time extensions. However, another option which could provide Orange
County considerable additional time is to increase the waste compaction rate within the landfill,
essentially squeezing more waste into a given space. This can be accomplished by increasing
the weight of the compactor. Staff's internal calculations indicate that the County could achieve
several months of additional capacity and the County's engineering consultant has verified these
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conclusions. Of course, the sooner the County could begin use of a heavier machine, the more
capacity that can be created.
By increasing the current approximate 1,200 pounds per cubic yard to approximately 1,400
pounds per cubic yards landfill life can be extended by approximately 6-7 months. The current
manufacturer of the type of compactors currently utilized by the County, Terex, now
manufactures a new unit that can provide this extra compaction. This new unit weighs 110,000
pounds and is currently utilized in many of the surrounding counties such as Alamance County
(3), Davidson County (3), Cumberland County (4), City of High Point (3), Craven County (1) and
Rockingham County (3). Switching to this heavier machine would provide the best opportunity
for extending the landfill life until a new transfer station is developed and available. Road
Machinery, Inc. of Statesville, North Carolina has a newly manufactured machine in stock.
A concern regarding possible noise levels associated with the use of the current compactors at
the landfill was recently raised. However, staff is not aware of any complaints related to noise
and the use of the current compactors. The noise associated with this new compactor will be
comparable to the levels with the current compactors.
NC GS 143-129 article (e)(6) allows for the sole source purchase of equipment when
performance or price competition for a product are not available; when a needed product is
available from only one source of supply; or when standardization or compatibility is the
overriding consideration. It is staffs belief that this purchase meets the first two of these criteria.
The Terex compactor is unique due to the fact that it is the only compactor on the market that:
• Provides three wheel design that allows full width compaction in one pass
• Allows the operator to have a better line of site to both the front and rear of the unit due to
the "sideways" positioning of the seat, which helps to reduce accidents
• Is only unit on the market that provides this level of compaction
FINANCIAL IMPACT: The cost of this machine new is $645,225, which staff recommends that
the County debt finance fora 59-month period to take advantage of prevailing low interest rates
and to improve the cash position of the Enterprise Fund. Assuming that financing can be
obtained at a 4.25% interest rate, the estimated annual payment for the truck for the next 59
months should be approximately $145,954 plus repairs and maintenance outside the warranty.
Sufficient funds will be requested in the Solid Waste Enterprise Fund FY-2008/09 budget for the
debt service payments.
The tipping fee revenue generated by an additional six months of capacity would be about
$1,363,000.
RECOMMENDATION (S): The Manager recommends that the Board approve the purchase a
Terex Trashmaster TC 550 landfill Compactor to be provided by Road Machinery, Inc. of
Statesville, North Carolina in the amount of $645,225; authorize the Purchasing Director to
execute the necessary paperwork, and authorize the Chair to sign it, subject to final review by
Staff and County Attorney and approve the attached reimbursement resolution.
OAD
ACHINERY Roadl Machinery Services, Inc.
ERV/CES, /NC. P•O. Box 5392 • 1336 Northside Drive • Telephone (704) 872-9528
STATESVILLE, NORTH CAROLINA 28687
March 14, 2008
Mr. Gayle Wilson
Orange County Solid Waste Management
P.O. Box 17177
Chapel Hill, N.C. 27516-7177
Dear Mr. Wilson:
This letter is written to confirm a recent verbal proposal made by our company
Vice President Steve Heath. As Steve stated, Road Machinery Services, Inc. is prepared
to provide Orange County with a new Terex TC550 Trashmaster Landfill Compactor.
The machine is currently in our Statesville, N:C. inventory and is available for immediate
shipment.
The machine would be equipped with all standard features including air
conditioning and cab pressurizer (see enclosed specification sheet). In addition we would
include options as follows:
• AM/FM stereo w/ 24V to 12V converter.
• Rear vision camera system - 7 inch color LCD.
• Afex Fire Suppression System
• Terex 4 year/7000 hour Extended Powertrain Warranty.
The price of the machine as specified would be $645,225.00 excluding sales tax
FOB Orange County Landfill. Please note that any repairs or maintenance (other than
warranty repairs) would be provided at normal charge-out rates. I thank you for your
many years as a valued customer. If you need further information please contact me.
Sincerely,
Mark Hiatt
Vice President
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REIMBURSEMENT RESOLUTION -
LANDFILL COMPACTOR
WHEREAS, the Manager has described to the Board the desirability of
adopting a resolution, as provided under federal tax law, to facilitate the County's using
proceeds of tax-exempt financing to restore the County's funds when the County makes
capital expenditures prior to closing on the financing.
BE IT RESOLVED by the Board of Commissioners of Orange County,
North Carolina, as follows:
Section 1. The project is the acquisition of a new landfill compactor.
Section 2. The County intends to finance the acquisition. The expected
type of financing (which is subject to change) is installment financing pursuant to Section
160A-20 of the General Statutes. The expected maxiinuin amount of bonds or other
obligations to be issued or contracted for the purchase is $645,225.
Section 3. The County intends that fiends that have been advanced, or
may be advanced, from the County's solid waste enterprise field for project costs will be
reimbursed from the financing proceeds.
Section 4. The County intends that the adoption of this resolution will be
a declaration of this County's official intent to reimburse project expendihires from
financing proceeds.
~ ~ ~ ~ ~ ~ ~
I certify that the foregoing resolution was duly adopted at a meeting of the
Board of Commissioners of Orange County, North Carolina, duly called and held on
April 1, 2008, and that a quorum was present and acting throughout such meeting. Such
resolution remains in full effect as of today.
Dated this day of April, 2008.
[SEAL]
Donna Baker
Clerk, Board of Commissioners
Orange County, North Carolina