WORK SESSION AGENDA REQUEST

Sponsor:

Board of Supervisors Meeting Date: 

Raymond E. Graham, Chairman, Cedar Run District

October 13, 2005

Staff Lead:

Department: 

Anthony I. Hooper, Deputy County Administrator

County Administration

Topic: 

A Work Session to Review the Proposed Contracts for Solid Waste and Recylcing Hauling Services and the Purchase of Solid Waste and Recycling Equipment

Topic Description:

 

Solid Waste and Recycling Equipment:

 

The County currently owns five compactors located at convenience sites.  The balance of the equipment used for the County’s waste and recycling collection services are rented from the current contractor.  The County received bids for equipment that provide the option to either purchase or lease the collection equipment.  Attached are charts that illustrate the equipment recommendations for each site.  Site constraints that impact the ability to empty containers and to provide for the best traffic flow for citizens using the site are the determining factor on which equipment is utilized. 

 

Two bids were received to purchase equipment and three bids to lease equipment.  Comparing the low purchase option to the low lease option (attached) it appears that the purchase option will result in a payback period of 2-4 years.  Since a compactor can be expected to last 10+ years and containers  15+ years, it makes long term financial sense to purchase this equipment.  In addition to the acquisition costs associated with the purchase option, there will be periodic maintenance expenses that will be provided by existing employees and periodic contractual repairs (welding).

 

Based on the significant long term cost savings, its recommended that the County purchase the needed collection equipment.

 

Hauling Contract

The County contract with ERO expires on Novemeber 15, 2005.  A detailed request for proposals was prepared to provide waste and recyclable material hauling services from the convenience sites, the School system and other County buildings.  In addition, offerors were requested to provide equipment prices for the County to consider renting, lease purchase, or outright purchase. The request for proposals was released on August 31, 2005, a mandatory pre-proposal meeting held on September 8th, a tour of the sites offered on September 14th, and proposals received on September 29th.  A committee of County and School staff interviewed all four firms that responded to the request and negotiations were conducted with the top offerors.

 

The proposed service provides a number of changes from the current agreement including:

▪ comprehensive equipment pricing to allow the County option to purchase or rent containers

   from the hauler or directly from an equipment distributor

▪ procuring recycling processing services (purchasing of recyclable materials) in a separate

   procurement to maximize County revenue

▪ County staff hauling from Corral Farm convenience center to increase collection capacity

▪ replacing open top (loose) containers with compactors to add collection capacity, minimize the

   total number of hauls, minimize hauling during public hours, and to reduce/eliminate site closures

▪ standardizing public access to containers at 48 inches for compactors, and 5 feet for open-top and

  closed-top containers

▪ standardizing recycling services at all sites including newspaper, cardboard, plastic, glass, cans,

   mixed paper and metal

▪ standardizing bulk waste collection services at all convenience centers

 

Upon completing interviews and negotiations with the top firms, the selection committee determined that Potomac Disposal Services was the top-ranked firm to provide services to both the County and the School System.  The recommended service includes providing 5 roll-off trucks and 2 front-end loaders which will allow most hauling during non-public service hours.  After evaluating equipment rental versus purchase pricing, it was determined that the County would benefit financially to purchase equipment directly from an equipment distributor through a separate procurement.

The approximate annual price of the recommended agreement is $600,000, as shown below:

 

Convenience Centers (excludes waste hauling at Corral Farm) - $500,000

 ▪ 2,000 waste pulls x $200/pull = $400,000

▪    300 recycling pulls to processor x $210/pull = $63,000

▪    200 recycling pulls to Corral Farm x $175/pull = $35,000

 

School System - $65,000

▪ Waste hauling (front-load & compactor service) = $35,000

▪ Recycling hauling = $30,000

 

Other County Locations (General Services, Parks & Recreation, Hospital Hill, Jail) - $35,000

▪ Waste hauling = $30,000

▪ Recycling hauling = $5,000

 

 

Requested Action of the Board of Supervisors: 

N/A

 

Financial Impacts Analysis:

N/A

 

Identify any other Departments, Organizations or Individuals that would be affected by this request:

Department of Environmental Services