TITLE
Title
CONTRACT EXTENSION WITH LIBERTY TIRE RECYCLING, D/B/A CENTRAL CAROLINA HOLDINGS, L.L.C. FOR THE DISPOSAL OF SCRAP TIRES
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SPONSOR
Sponsor
J. Leslie Bell (Lorelei Elkins)
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BACKGROUND
Background
The attached contract extension is proposed to be effective for a four (4) month term effective July 1, 2024, through October 31, 2024. The contract extension is due to receiving no bids for scrap tire disposal, a State mandated operation. A re-bid, Request for Proposals was sent out May 29, 2024, for a start date of November 1, 2024.
Scrap tires are collected at the Guilford County Scrap Tire and White Goods Collection Facility, the four (4) community recycling events held throughout the County, as well as occasional tire dump-site cleanup. Collection of scrap tires provides residents and businesses the opportunity to dispose of tires in a safe and legal way, reducing illegal dumping, tire fires, and provides 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 10,200 tons of tires per year.
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 vehicle tires, truck tires, and oversized tires will reflect current charges approved by the State and based on the February 2024 Consumer Price Index (CPI-U) of 3.7%. Effective July 1, 2024 fees will increase from $1.03 to $1.07 per passenger vehicle tire, an increase from $5.29 to $5.60 per truck tire, and an increase from $.0460/lb. to $.0477/lb. for oversized tires (weight tickets are required).
Disposal fees charged by Guilford County are adjusted each fiscal year to reflect the rates charged by the disposal provider for the term of the disposal agreement. These charges will also 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.
The budgeted contract cost for the extension period is not expected to exceed $367,000. Had we continued with the FY23/24 contract amount, the four-month extension would be $342,476 which is $24,524 less than the extension cost. This represents an overall increase of approximately 7.16% for the first four (4) months of FY24/25. At the beginning of each fiscal year, scrap tire disposal prices are subject to change, at minimum, based on the CPI-U. Additionally, other factors (e.g., labor cost) may contribute to changes in contract pricing. Services provided by Central Carolina Tire Disposal have been acceptable to date and meet the tire disposal needs of Guilford County.
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BUDGET IMPACT
Budget Impact
FUNDS COMMENSURATE WITH ADOPTION OF THE FY 2024/25 BUDGET
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REQUESTED ACTION
Requested Action
Approve contract extension, in substantial form, with Liberty Tire Recycling d/b/a Central Carolina Holdings, L.L.C. for the disposal of scrap tires in an amount not to exceed $367,000 effective July 1, 2024 through October 31, 2024.
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