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, 2020 through June 30, 2021 with a County option to renew and extend for three (3) additional one-year renewal terms. 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, 2020 and ending June 30, 2021, 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 cost per tire charged by Guilford County for passenger vehicle tires, truck tires, and oversized tires will reflect current charges approved by the State. Current fees include an increase from $.85 to $.87 cents per passenger vehicle tire, an increase from $4.36 to $4.43 per truck tire, and an increase from $.0379/lb. to $.0385/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 term of the disposal agreement. 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.
The budgeted contract amount for FY 2019-20 is $802,000 and $1,070,000 for FY 2020-21, which is an increase of approximately $268,000. The large increase is mainly due to a new Central Carolina Tire Disposal handling surcharge for off-the-road (ORT) tires beginning July 1, 2020. Services provided by Central Carolina Tire Disposal have been acceptable to date and meet the tire disposal needs of Guilford County. Further, while another potentially viable option was vetted, the final determination was that that vendor lacked the capacity to process the quantity of tires collected by Guilford County.
MWBE Vendor Diversity Code: Non-Minority - White Male (WM)
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BUDGET IMPACT
Budget Impact
FUNDS COMMENSURATE WITH ADOPTION OF THE FY 2020-21 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 $1,070,000 to be effective July 1, 2020 for an initial term of one (1) year with an option for three (3) one-year renewal terms. Approve commensurate disposal fee adjustment charged by Guilford County to reflect the rates charged by Central Carolina Tire for the term of the disposal agreement.
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