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Consent-Community Services # 28.
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| Board of Supervisors |
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| Subject |
| Approve sixth amendment to Agreement No. 16-112 with B&D Geerts Construction, Inc. for operation of the construction and demolition recycling facility at the landfill. (No general fund impact) (Echiburu/Kieffer) |
| Recommended Action |
- Approve sixth amendment to Agreement No. 16-112 with B&D Geerts Construction, Inc. for operation of the construction and demolition recycling facility at the landfill; and
- Authorize the Chair of the Board to sign the agreement.
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| Strategic Plan Goal(s) |
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Sustainable Environment |
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| Reason for Recommended Action/Background |
On July 12, 2016, the Board approved an agreement with B&D Geerts Construction (B&D Geerts) for operation of the construction and demolition (C&D) facility at the landfill. Operations under this agreement began on July 22, 2016. Mixed construction and demolition waste (wood, lumber, metal, sheetrock, plastic, etc.) is received at the facility for recycling to help landfill customers meet the recycling mandates that are often part of a construction building permit. Typical operations at the C&D facility involve ground sorting a portion of the C&D waste by B&D Geerts staff to remove recyclable commodities and sending a portion of the unsorted material to an off-site sorting facility where the material is further processed for recycling. On December 11, 2018, the Board approved the third amendment to the agreement locking in a competitive off-site transfer and sorting rate ($63.80 per ton) for calendar year 2019. The fourth amendment was approved on July 9, 2019, extending the term of the agreement and adjusting the rates. The fifth amendment was approved March 24, 2020, adjusting the rates for the remainder of calendar year 2020.
Economic conditions have continued to reduce the value of many recycled commodities such as wood, cardboard and plastic. Recycled wood has taken a severe hit with the continued closure of the Woodland Biomass plant. The reduced value of these recycled commodities has had a direct impact on the fees the landfill must charge for C&D. Over the last several years, the Board has approved amendments to B&D Geerts agreement to lock in the offsite sorting rate at the Sierra Waste Recycling &Transfer Station (Sierra) in Sacramento and Florin-Perkins Public Disposal Site (Florin-Perkins). County staff negotiated a new rate (sixth amendment) for off-site hauling and sorting ($79.20 per ton) at the Sierra site. This rate reflects a per ton fee of $72 plus 10% B&D Geerts mark-up, including transportation to Sierra's site. To ensure a favorable agreement was negotiated, the other two off-site C&D sorting facilities in the Sacramento area were contacted. The off-site sorting rates offered by the Florin-Perkins Public Disposal ($64.90 per ton plus $330 per load transportation) site were competitive with the Sierra site and therefore this site was also included in the attached amendment to provide a second option should there be capacity issues at the Sierra site. The rate at the remaining off-site sorting facility was 15% higher and therefore is not included in the amendment. Both the Sierra and Florin-Perkins rates correspond to an increase of approximately 6 percent over 2020 rates. As previously mentioned, this is due to the overall lack of markets for recycled commodities, particularly wood which makes up the largest recyclable fraction of C&D. Staff will be recommending corresponding increases to the C&D rates charged to landfill customers with the next master fee amendments. |
| Collaborations (including Board advisory groups and external partner agencies) |
| County Counsel has approved the agreement as to form. |
| Competitive Bid Process |
Request for Proposals (RFP) Service Requested: A RFP for operation of the C&D facility was issued on May 11, 2016 with proposals due on June 3, 2016. Two proposals were received.
Evaluation Criteria Included in RFP
- Overall responsiveness and compliance with RFP requirements (5 points) Financial Stability (10 points)
Staff Experience (including jurisdictional references) (15 points)
Past performance and compliance history (15 points)
Project Management Experience (25 points)
Cost Proposal (20 points)
Exceptions to agreement (5 points)
Bids Received
| Bidder |
Bid |
| B&D Geerts Construction |
Actual, not to exceed $85.99 per ton |
| Zanker Road Resource Recovery |
$75 per ton |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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Explanation (Expenditure and/or Revenue) |
| Further explanation as needed: |
| The landfill receives approximately 15,000 tons of mixed C&D annually. Applying the $79.20 per ton results in an annual fiscal impact of $1,188,000, which is a very conservative estimate. Sufficient funds are budgeted in FY 20/21, and in FY 21/22, based on increased fees to be presented with the next master fee resolution. |
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