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HomeMy WebLinkAboutAgenda - 09-07-2005-5lORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 7, 2005 Action Agenda Item No. 5-1 SUBJECT: Bid Award: Landfill Compactor for Orange County Landfill DEPARTMENT: Purchasing/Solid Waste Management PUBLIC HEARING: (Y/N) No ATTACHMENT(S): None INFORMATION CONTACT: Pam Jones, 245-2652 Gayle Wilson, 968-2885 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider awarding a bid for a Landfill Compactor for the Orange County Regional Landfill to Road Machinery Inc of Statesville, North Carolina. BACKGROUND: Orange County currently owns two landfill compactors, which are highly specialized pieces of equipment that operate on the face of a landfill and compress waste to the maximum extent possible. Compacting the waste saves valuable airspace in the landfill and effectively increases both the capacity and life of the landfill, The compactor that is the subject of the proposed bid award will be used at the construction and demolition (C&D) landfill on the north side of Eubanks Road, C&D landfill compactors are replaced every six years per the County's landfill equipment replacement schedule. The unit due for replacement during the 2005-2006 fiscal year is a 2000 REX 3-70C, The County's new C&D landfill is expected to open for operation in 2006, and with an estimated life of at least 15 years, it is likely that future work at the new C&D landfill will necessitate replacement of this new compactor in another six years or so, The County's ten-year solid waste management plan, 2005-15 recommended Capital Investment Plan, and solid waste equipment replacement schedule for FY 2005-06 all incorporated plans to make this equipment acquisition. The adopted 2005-06 Solid Waste Management departmental budget includes funding for first year installment financing of this purchase. The County stations its other compactor for daily operations on the mixed solid waste (MSW) landfill on the south side of Eubanks Road, That compactor was replaced several years ago, and in light of the anticipated closing of the MSW landfill when it reaches capacity (expected in 2010), there are no plans to purchase any future replacements for that piece of equipment. The County's Solid Waste Management plan contemplates the establishment and operation of a transfer station after the MSW landfill closes, but because of its nature there is no use for this kind of compactor in a transfer station operation. Under certain circumstances, North Carolina General Statute 143-129 allows local governments to make z purchases without a separate bidding procedure. This type of acquisition can be made from any contractor that has, within the past 12 months, contracted to furnish the item to: (1) the federal government or any federal agency, (2) the state of North Carolina or any agency or political subdivision of the state; or (3) any other state or agency or political subdivision of that state, if the contractor is willing to extend the same or more favorable price and other terms to the local government. This process is called "piggy-backing" a bid. Staff proposes to "piggy back" on the County of Rowan, North Carolina, which was awarded to Road Machinery Inc of Statesville, North Carolina October 24, 2004 for a Terex 3-75E Trashmaster Landfill Compactor. Orange County would obtain the compactor at a final cost of $335,900.00. This includes the trade in (sale) of the County's Rex 3-70C compactor. Pursuant to the statute, Orange County advertised its intentions ten (10) days before this meeting. 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. This has helped to reduce accidents at the landfill. It is also important to note that by piggybacking this bid will allow the County to avoid an increase in cost of the unit due to increases in the worldwide cost of steel. FINANCIAL IMPACT: Total purchase price, if approved by the Board, would be $335,900. Staff recommends that the compactor be financed over a 59-month period to take advantage of prevailing low interest rates and to maintain the cash position of the Solid Waste enterprise fund. Assuming that financing can be obtained at an interest rate of 4.5%, estimated annual payments for the truck for the next five years should be roughly $76,515. RECOMMENDATION(S): The Manager recommends that the Board: 1) award a bid for a TerexTrash master 3-75E to Road Machinery Inc. of Statesville North Carolina in the amount of $335,900; 2) authorize the Purchasing Director to execute the necessary paperwork, and 3) authorize the Finance Director to obtain appropriate financing and execute all associated paperwork.