TITLE
Title
CONTRACT WITH CENTRAL CAROLINA HOLDINGS, L.L.C. D/B/A CENTRAL CAROLINA TIRE DISPOSAL FOR THE DISPOSAL OF SCRAP TIRES AND DISPOSAL FEE ADJUSTMENT
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SPONSOR
Sponsor
J. Leslie Bell (Clyde Harding)
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BACKGROUND
Background
The attached contract is proposed to be effective for a one (1) year term effective July 1, 2023 through June 30, 2024. The initial contract, effective July 1, 2020, was approved with the option to extend for three (3) additional one (1) year renewals at the same pricing and terms and conditions upon mutual written agreement of both Parties. The contract primarily revises one (1) specific term of the existing agreement which includes the following:
1) Term #3 (Contract Period of Coverage) - This Contract shall be in effect for one (1) year, beginning July 1, 2023 and ending June 30, 2024. The initial contract, effective July 1, 2020, was approved with the option to extend for three (3) additional one (1) year renewals at the same pricing and terms and conditions upon mutual written agreement of both Parties. This (FY23/24) is the 3rd of three (3) optional one (1) year renewals per the initial contract.
The cost per tire charged by Guilford County for passenger vehicle tires, truck tires, and oversized tires reflect current charges approved by the State. The State only allows Guilford County to charge its residents the rates charged by the disposal provider. 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. The FY2024 adopted budget included fee adjustments based on CPI (South region) with fees increasing from $.98 to $1.03 cents per passenger vehicle tire; an increase from $5.02 to $5.29 per truck tire; and, an increase from $.0437/lb to $.0460/lb for oversized tires (weight tickets are required). The increase is due to a 5.3% CPI (South region) increase for the south region from March 2022 to March 2023 (attached).
Accurate monthly reports showing the number of tires collected will continue to be required and provided as part of this contract.
The budgeted contract amount is $1,018,300 for FY 2022-23, and is $1,027,429 for FY 2023-24, which is an increase of $9,129 (while the CPI for the South region increased by 5.3%, the scrap tire tonnage is projected to decrease for FY 2023-24.
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BUDGET IMPACT
Budget Impact
NO ADDITIONAL COUNTY FUNDS REQUIRED
FEE ADJUSTMENTS ARE INCLUDED IN THE ADOPTED FY 2023-24 BUDGET
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REQUESTED ACTION
Requested Action
Approve contract, in substantial form, between Guilford County and Central Carolina Holdings LLC, D/B/A Central Carolina Tire Disposal, not anticipated to exceed $1,027,429 to be effective July 1, 2023 through June 30, 2024. This (FY 2023-24) is the 3rd of three (3) optional one-year renewals of the initial contract approved for FY 2020-21.
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