HomeMy WebLinkAboutAgenda - 06-15-2021; 8-h - Contract for Recycling Processor 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 15, 2021
Action Agenda
Item No. 8-h
SUBJECT: Contract for Recycling Processor
DEPARTMENT: Solid Waste
ATTACHMENT(S): INFORMATION CONTACT:
Robert Williams, 919-918-4904
PURPOSE: To approve and authorize the County Manager to sign a two year contract with Waste
Management Recycling America, LLC, for the Processing, Marketing and Sale of Recyclable
Material.
BACKGROUND: Orange County issued a Request for Proposals on March 3, 2021 for a
Recycling Processor.
Three firms responded to the request, and after review and a request for each respondent to
provide their best and final offer, Waste Management Recycling America, LLC was selected as
the recommended Recycling Processor. Waste Management Recycling America, LLC is a new
service provider for Orange County. The contract provides for the processing, marketing and sale
of Recyclable Material at the company's Material Recovery Facility (MRF) located in Morrisville,
NC. The contract establishes a revenue sharing option and uses the composition of material
delivered by Orange County to the processor as the basis for establishing the commodity
"blended" value. This allows Orange County to receive a fair value for its material and not be part
of a facility composite number. In addition, the location of the processing facility reduces travel
expenses for hauling recycling material.
Finally, the contract provides for Orange County to deliver at least 75% of collected municipal
solid waste (MSW) to the Waste Management transfer station, resulting in reduced tipping fees
for MSW when compared with current tipping fees being paid.
Final terms of the contract are still under negotiation. The maximum amount of the contract is set
forth and will not be modified.
FINANCIAL IMPACT: Because of the downward trend in the commodity markets, costs to
process and market recycling material have increased significantly over the last five years. In
addition, tipping fees for MSW have also increased. The estimated cost of the recycling
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processing portion of the contract for two years is $1,200,000, and the cost of the MSW tipping
fee portion of the contract for the two years is up to $1,150,000. Also, the MSW tip rate will be
reduced from $49 per ton to $47 per ton. It will save an estimated $49,000 in fees over the term
of the contract.
SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated
with this item.
ENVIRONMENTAL IMPACT: The following Orange County Environmental Responsibility Goal
impact is applicable to this item:
• ENERGY EFFICIENCY AND WASTE REDUCTION
Initiate policies and programs that: 1) conserve energy; 2) reduce resource consumption;
3) increase the use of recycled and renewable resources; and 4) minimize waste stream
impacts on the environment.
RECOMMENDATION(S): The Manager recommends that the Board authorize the County
Manager to sign a Contract with Waste Management Recycling America, LLC, for the processing
of recyclable material, and disposal of MSW, after review and approval by the County Attorney,
in an amount not to exceed $2,350,000 for the initial two year term and to sign future renewals
and amendments.