Meeting Date: February 3, 2020
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Bid Results and Contractor Recommendations for the Rutherford County Recycling Materials Transport, Processing, and Marketing
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Summary:
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Contracts for the Recycling Materials Transport, Processing and Marketing are due to expire on June 30, 2020. RFPs for these services were issued and proposals were accepted on December 12, 2019.
At the January 6, 2020 meeting, Solid Waste Director James Kilgo and Engineer David Odom provided information and recommendations regarding the Recycling Materials Transport, Processing, and Marketing to begin on July 1, 2020.
Currently Republic Services processes in county recyclable materials at essentially zero cost. Unfortunately, changing market conditions currently value the recycle material at significantly less than the cost of hauling and processing. In order to encourage lowest cost bids, and reduce risk for both contractor and County, a bid process was designed to separate processing and hauling cost from material market value. Processing and hauling were bid as essentially fixed costs per ton to the County. Market value for the material is based on published market index values, and the County receives a % share of the calculated material market value. Bidders provided a quote for the percentage of share, and a minimum dollar amount per ton for the county share.
The low bidder was Curbside Management whose proposal had significantly better combined hauling and processing cost per ton than the competitor and provided better share percentage and minimum for county portion of shared market value of material. Curbside Management's only exception was for addition of an annual escalation of hauling and processing cost, indexed to CPI.
Decisions will need to be made regarding a fee structure for recycling in the future. Because the bid received from Curbside Management is valid until 60 days from December 12, 2019, it was recommended that a decision be postponed until additional research can be performed.
The Board voted to table the discussion on the proposals until the February meeting and requested that information be provided on the total tons that are recycled in Rutherford County and that information on other counties’ and other areas’ actions on recycling be provided to the Board.
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Budget:
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Contact Information:
James Kilgo, Solid Waste Director
james.kilgo@rutherfordcountync.gov <mailto:james.kilgo@rutherfordcountync.gov>
287-6002
David Odom, Odom Engineering
davidodom@odomengineering.com <mailto:davidodom@odomengineering.com>
828-247-4495
Recommended Motion:
recommended action
Authorize the County Manager and the County Attorney to negotiate terms of contract with Curbside Management as contractor for hauling, processing, and marketing of recycle materials, and authorize the County Manager, Finance Officer, Clerk to the Board, and other County officials to sign and execute all documents in support of this action.