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HomeMy WebLinkAboutAgenda - Item 8-k - Contract Amendment - Clean Harbors Environmental Services ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 19, 2018 Action Agenda Item No. 8-k SUBJECT: Contract Amendment - Clean Harbors Environmental Services DEPARTMENT: Solid Waste ATTACHMENT(S): 1. Contract Amendment #3 2. Summary of Previous Contract Documents INFORMATION CONTACT: Robert Williams, 919-968-2885 John Roberts, 919-245-2318 PURPOSE: To approve an amendment to the contract with Clean Harbors Environmental Services, a Massachusetts corporation, for the Collection, Processing and Disposal of Household Hazardous Wastes. BACKGROUND: Since 2003, the County has operated a permanent household hazardous wastes collection program on the landfill site at Eubanks Road through contract services. Following a request for proposals in 2012, Clean Harbors Environmental Services was awarded a contract to collect, process and dispose of household hazardous wastes for a five year period with the County having the option to extend the contract for two (2) additional two (2) year periods. In 2012, the contract was amended to expand the program to include collection at the Walnut Grove Waste and Recycling Center. A two year extension of the contract was approved in 2017. Under the original contract, either party has the right to terminate the contract with 30 days’ notice. In May 2018, Clean Harbors notified the County of its intent to terminate the Contract as of July 1, 2018. However, Clean Harbors also provided a price structure setting forth a rate increase whereby it is willing to continue the Contract until July 1, 2019. It is proposed that the County amend the contract with Clean Harbor to continue for the additional year while the County considers options for future household hazardous wastes collection. FINANCIAL IMPACT: The Department estimates an annual increase of $63,000 in additional operating costs due to the increased rates by the vendor. For FY 2017-18, the Department budgeted $240,000 to cover contractual costs. For FY 2018-19, the Department increased the household hazardous wastes collection budget to $287,000 in anticipation of cost increases due to additional operating hours and increased usage of the household hazardous wastes collection facility. As amended, the cost for household hazardous wastes collection is projected to increase to $350,000 pending approval of this amendment. 1 In an effort to find more favorable pricing and keep costs at current levels, the Department is moving forward with issuing a request for proposals (RFP) for household hazardous wastes collection services. If more favorable prices are not found through the RFP process, the Department will seek a budget amendment to cover the projected overage in the fall of 2018. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this item: • GOAL: ESTABLISH SUSTAINABLE AND EQUITABLE LAND-USE AND ENVIRONMENTAL POLICIES The fair treatment and meaningful involvement of people of all races, cultures, incomes and educational levels with respect to the development and enforcement of environmental laws, regulations, policies, and decisions. Fair treatment means that no group of people should bear a disproportionate share of the negative environmental consequences resulting from industrial, governmental and commercial operations or policies. RECOMMENDATION(S): The Manager recommends that the Board approve the contract amendment to the Contract with Clean Harbors Environmental Services for the loading, transporting, and disposal of household hazardous wastes and authorize the Manager to execute the contract amendment on behalf of the Board. 2 Attachment 1 NORTH CAROLINA ORANGE COUNTY CONTRACT AMENDMENT #3 THIS CONTRACT AMENDMENT ("Amendment") is made and entered into this ___ day of ___June__ 2018 by and between ORANGE COUNTY (hereinafter referred to as "County") and Clean Harbors Environmental Services, Inc. (hereinafter referred to as "Provider"). WITNESSETH: THAT WHEREAS, the County and Provider entered into a contract dated May 15, 2012 amended by addendum September 5, 2013 and again on June 1, 2017 for the disposal of household hazardous waste materials (hereinafter the "Original Agreement"); and WHEREAS, the County and Provider desire to amend the Original Agreement while keeping in effect all terms and conditions of the Original Agreement, as amended, 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, as amended, and herein, the parties agree to amend the Original Agreement, as amended, as follows: 1. Attachment C, 10.0 The Pricing Table is amended to the following : ITEM UNIT PRICE PER UNIT (As of July 1, 2018) Household Hazardous Waste- Collection and Processing Pound $0.85 Attendant Hourly Wage- Eubanks Weekend & Overtime Pay $3500.00/month Attendant Hourly Wage- Walnut Grove Weekend & Overtime $3500.00/month 3 Pay Additional Site Labor (if needed) Hour $0.00 LCY1 CYLE and CYSM Cylinders Each $15.00 LCY2 CYLE Cylinders Each $25.00 2. Except for the changes made herein, the Original Agreement, as amended, 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: PROVIDER: __________________________ _________________________ County Manager Title _____________________ 4 Attachment 2 SOLID WASTE MANAGEMENT 1207 Eubanks Road Phone (919) 968-2788 PO Box 17177 Fax (919) 932-2900 Chapel Hill, North Carolina 27516 www.orangecountync.gov/recycling BOCC JUNE 19, 2018 Meeting Agenda Item 8-k— Contract Amendment - Clean Harbors Environmental Services Summary of Previous Contract Documents • Original Contract o Scope: Provider Responsible for collection, processing and disposal of household hazardous waste at two locations, Eubanks Road location and Walnut Grove Waste and Recycling Center and for the maintenance of all necessary records. o Term: The original contract term was July 1, 2012 through June 30, 2017 with option to renew for two (2), two (2) year renewal periods. o Termination: For convenience by either party upon 30 day written notice o Cost: Original cost to the County was $0.56 per pound of material processed by the provider and an attendant wage supplement paid to the provider of $1,750 per month for the Walnut Grove Waste and Recycling Center. • Amendment 1 o Scope: Expanded hours at Walnut Grove Convenience Center upon opening of expanded Center o Term: September 5, 2013 through June 30, 2017 o Cost: Increase attendant wage supplement paid to the provider for Walnut Grove location to $1,900 per month • Amendment 2 o Scope: Expand hours at Eubanks Waste and Recycling Center upon opening of new center o Term: Renewed for two year period; July 1, 2017 through June 30, 2019 o Cost: County pays $0.59 per pound processed by the provider and a $1,900 per month attendant wage supplement to the provider for service at the Eubanks Waste and Recycling Center • Amendment 3 – Current Proposed Amendment provided at Attachment 1 o Scope: No change o Cost: County to pay $0.85 per pound processed by the provider and a supplement of $3,500 per month for service at the Eubanks Waste and Recycling Center and $3,500 per month for service at the Walnut Grove Waste and Recycling Center 5