TITLE
Title
CONTRACT FOR THE DISPOSAL OF SCRAP TIRES
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SPONSOR
Sponsor
J. Leslie Bell (Lorelei Elkins)
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BACKGROUND
Background
Scrap tires are collected at the Guilford County Scrap Tire and White Goods Collection Facility, the four (4) annual community recycling events held throughout the County, and occasional tire dump-site cleanups. Collection of scrap tires allow residents and businesses to dispose of tires safely and legally, reducing illegal dumping and tire fires and providing reuse options for the materials. The program is supported by the State Scrap Tire Management Fund distributions, projected for FY24/25 at $974,000. The County’s scrap tire disposal program collects approximately 10,300 tons of tires annually.
Residents can drop off five (5) tires free each fiscal year with a per-tire charge after that limit. The cost per tire charged by Guilford County for passenger, truck, and oversized tires will reflect current charges approved by the State. The proposed contract includes an increase from $1.07 to $1.13 per passenger vehicle tire, an increase from $5.49 to $5.75 per heavy truck tire, and an increase from $0.0477/lb. to $0.05/lb. for oversized tires (weight tickets are required).
Disposal fees charged by Guilford County will be adjusted each fiscal year to reflect the rates charged by the disposal provider for the agreement term. These increases are based on the February Consumer Price Index (CPI) and will be effective July 1. As with the previous contracts, these charges will, in turn, be paid to Central Carolina Tire Holdings to dispose of the tires. Accurate monthly reports showing the number of tires collected will continue to be required and provided as part of this contract. Liberty Tire Recycling has been a reliable and professional company with which to do business.
Purchasing solicited these services on three (3) different occasions this past year, with no other cost effective pricing being submitted from any other service providers. The other regional tire recycling companies indicated that they could not meet the equipment specifications and capacity required by the County.
The scrap tire program is funded through quarterly State tax distributions and fees collected at the Guilford County Scrap Tire and White Goods Collection Facility.
State Tax Distribution Revenue Collected
FY22/23 $1,007,472.99 $20,664.22
FY23/24 $1,019,700.21 $15,340.84
This contract for scrap tire disposal services with Central Carolina Holdings is effective for a one (1) year term, with the option to extend for four (4) additional one (1) year renewals at the same pricing and terms and conditions upon mutual written agreement. The not to exceed annual amount is $1,000,000.
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BUDGET IMPACT
Budget Impact
NO ADDITIONAL COUNTY FUNDS REQUIRED
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REQUESTED ACTION
Requested Action
Approve a not to exceed contract with Liberty Tire Recycling D/B/A Central Carolina Holdings, L.L.C. for $1,000,000 a year for the disposal of scrap for one initial year with the option to extend for four (4) additional one (1) year renewals for a five (5) year total of $5,000,000. Approve commensurate disposal fee adjustments charged by Guilford County to reflect the rates charged by Central Carolina Tire for the term of the disposal agreement.
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