TITLE
Title
APPROVE CONTRACT AMENDMENT BETWEEN GUILFORD COUNTY AND CENTRAL CAROLINA HOLDINGS, L.L.C. D/B/A CENTRAL CAROLINA TIRE DISPOSAL FOR THE DISPOSAL OF SCRAP TIRES
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SPONSOR
Sponsor
J. Leslie Bell
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BACKGROUND
Background
The existing evergreen contract (Contract #19886-08/05-074) between Guilford County and Central Carolina Tire Disposal was entered into in July 2005. The attached amendment is proposed to be effective for an initial three (3) year term effective July 1, 2016 through June 30, 2019 with a County option to renew and extend for two (2) additional one-year renewal terms. The attached amended contract primarily revises three (3) specific terms of the existing evergreen agreement which include the following:
1) Term #5 - While the base price per ton paid by Guilford County to Central Carolina Tire Disposal (both with and without optional labor provided by the Provider) does not change, the amended contract provides for an annual adjustment for cost of business inflationary increase not to exceed 2%. The Consumer Price Index (CPI) for Southeastern United States, all items, as issued by the Bureau of Labor Statistics will be used to determine any inflationary increase. The change in the CPI shall be measured by comparing the CPI of March of the then-current year to the CPI of March of the previous year. Historical CPI to date for the Southeastern US is attached.
2) Term #6 - The cost per tire charged by Guilford County for passenger vehicle tires, truck tires, and oversized tires, and included in the existing contract has been revised to reflect current charges approved by the State. Current fees include an increase from $.73 to $.82 cents per passenger vehicle tire, an increase from $3.65 to $4.19 per truck tire, and the $.0365/lb for oversized tires remain unchanged (weight tickets are required). These charges, as with the existing contract, also will be paid to Central Carolina Tire Disposal for disposal of said tires. Accurate monthly reports showing the number of tires collected will continue to be required and provided as part of this contract.
3) Terms #3 & #4 (Contract Period of Coverage) - The amended contract period of coverage changes from evergreen to an initial contract term of three (3) years with a County option to renew and extend for two (2) additional one-year renewal terms. The County, no later than 180 days prior to the expiration of the initial contract term, shall give Central Carolina Tire Disposal written notice of its intent to exercise its renewal option. All terms and conditions of the agreement shall apply to both the initial term and the renewal terms, except as otherwise expressly provided.
Services provided by Central Carolina Tire Disposal have been acceptable to date, and meet the tire disposal needs of Guilford County. While tire disposal cost is estimated to be approximately $600,000 for FY 2015-2016, the fire earlier this year at New River Tire Recycling in Pilot Mountain limits available potential cost-effective options in the region at this time.
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BUDGET IMPACT
Budget Impact
NO ADDITIONAL COUNTY FUNDS REQUIRED
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REQUESTED ACTION
Requested Action
Approve contract amendment between Guilford County and Central Carolina Holdings LLC, D/B/A Central Carolina Tire Disposal, in substantial form, not anticipated to exceed $750,000 for FY 2016-2017, to be effective July 1, 2016 for an initial term of three (3) years with a County option to renew and extend for two (2) additional one-year renewal terms.
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