HomeMy WebLinkAboutAgenda - 02-17-2015 - 6bORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: February 17, 2015
Action Agenda
Item No. 6 -b
SUBJECT: Contract Renewal — Removal of Scrap Tires
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DEPARTMENT: Finance /Solid Waste PUBLIC HEARING: (Y /N) No
ATTACHMENT(S):
Original Contract
Contract Renewal Amendment
INFORMATION CONTACT:
Gayle Wilson, 919 - 968 -2885
Paul Laughton, 919 - 245 -2152
PURPOSE: To approve a contract renewal with Central Carolina Holdings, LLC of Cameron, North
Carolina for the removal of scrap tires.
BACKGROUND: On August 24, 2004, Orange County entered into an agreement with Central
Carolina Holdings, LLC of Cameron, North Carolina for the removal of scrap tires. This contract was
amended on March 1, 2005 and March 1, 2010 and included an option to extend until February 28,
2017 if all parties are in agreement.
The contract states that a minimum of 40% of Orange County's tires will be recycled. Current
recycling practices consist of using shredded tires in leachate bed construction where allowed, crumb
rubber production, and as a boiler fuel at permitted power plants. Currently all standard car and
pickup tires are recycled.
To County staff's knowledge, Central Carolina Holdings, LLC does not pay all of the employees
associated with service to Orange County Solid Waste a living wage of $12.76 /hour.
FINANCIAL IMPACT: North Carolinians pay a 2% tax on tire purchases for normal car and pickup
vehicles 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 for basic expenses. In fiscal year 2013 -2014 Orange County received
$161,731 through this program.
At the current rate of $80.86 per ton with a revised estimate of 1,100 tons of scrap tires for current
year, the County's disposal cost for this contract would be approximately $88,946. While Staff
cannot say with certainty, it is expected that State distributions will continue to fund the cost of this
contract. One hundred twenty seven thousand dollars is allocated in the Solid Waste Management
Department's FY 2014 -15 operating budget.
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.
STATE OF NORTH CAROLINA
AGREEMENT FOR REMOVAL
OF SCRAP TIRES
THE COUNTY OF ORANGE
This Agreement, made and entered into this 21 st day of 7anuary , 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 February 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. 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 of non - recyclable scrap tires is discouraged;
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.
3. 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.
4. 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
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.
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M
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:
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. Nan - 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
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
per Gallon
Price Adjustment per Mile
$1.75
- $1.99
($0.05)
$2.00
- $2.74
No Adjustment
$2.75
- $3.24
Plus $0.05
$3.25 - $3.74 IPIus $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
CENTRAL CAROLINA TIRE:
d-1 g dd4
Approved as to technical content.
cnaL '� U 14,
Depar7,Aent Director
Approved as to f and legal sufficiency.
— L)L —
C my Attorney
ATTES
IC
[SEAL]
WITNES
This instrument has been pre- audited in the manner required by the Local Government
Budget and Fiscal Control Act,
C/,�
Finance Director
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STATE OF NORTH CAROLINA
THE COUNT'S OF ORANGE
AGREEMENT FOR
REMOVAL OF SCRAP
TIRES
This Agreement, made and entered into this 24ft' day of August, 2004 by and betweun The
County of Orange, on behalf of its Solid Waste Dupartrnont (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:
L 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_
I Duties of Central Carolina Tire; Central Caro. lina 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 weeldy;
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 tore 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:
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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._Copprohensive 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 iron -owned vehicles and employee non - ownership.
EECIi,A,L .MQUIRE1!'llliaNTS:
a, The County is to be named as an additional inswed 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 shalt 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 may be 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-
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) worldng days from the data 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
per Gallon
Price Aq justmn i er' lVlilc
$0.75 0- $0.99
40.05
$1.00
- $1.24
No Adjustment
$1.25
- $1.49
+$0.05
$1.50
- $1.74
+$0.10
$1.75
- $2.00
-1-$0.15
The round trip mileage charge frorn tho "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.
Donna Baker
CONTRACTOR: WITNESS:
This instrument has been pre - audited in die manner required by the Local Government
Budget and Fiscal Control Act.
finance Director
STATIC OF NORTH CAROLINA
The County of ORANGE
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Z, �— , a Notary Public for said County and State,
do hereby ce&ftY 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 baud and official seal, this the � day of d �� 2004.
Notary PubRc
My Commission: expires:
STATE OF NOT CAROLINA.
COUNTY OF, :: zr�
a Notary Public, do hereby certify that `f Lpy '
Yjjjfj21j *f personally appeared before me this day and acknowledged the due
execution of the foregoing Agreement.
WITNESS nay and hand official seal, this the day of 20K
MU
My Corurnission expires :L9A-
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NORTH CAROLINA
CONTRACT AMENDMENT
ORANGE COUNTY
THIS CONTRACT AMENDMENT ( "Amendment ") is made and entered into this 28"' day of February, 2015 by and
between ORANGE COUNTY (hereinafter referred to as "County ") and CENTRAL CAROLINA TIRE (hereinafter
referred to as "Central Carolina Tire ").
WITNESSETH:
THAT WHEREAS, the County and Central Carolina Tire entered into a contract dated March 1, 2005, for the provision
of Removal of Scrap Tires, which was amended on January2l, 2010 (hereinafter the "Original Agreement "); and
WHEREAS, the County and Central Carolina Tire desire to extend the Original Agreement while keeping in effect all
terms and conditions of the Original Agreement not inconsistent with the terms and conditions set forth below.
NOW THEREFORE, for and in consideration for the mutual covenants and agreements made in the Original Agreement
and herein, the parties agree to amend the Original Agreement as Follows:
1. The Term of the Original Agreement is hereby extended through February 28, 2017.
2. Except for the changes made herein, the Original Agreement shall remain in full force and effect to the extent it is
not inconsistent with this Amendment.
IN TESTIMONY WHEREOF, this Amendment has been executed by the parties hereto, as of the date first above
written.
ORANGE COUNTY
Chair
Approved as to technical content
Department Director
CENTRAL CAROLINA TIRE
Printed Name /Title
This instrument has been pre- audited in the manner required by the Local Government Budget and Fiscal Control
Act.
Office of the Chief Financial Officer
Approved as to form and legal sufficiency:
Office of the County Attorney