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Consent-Community Services # 32.
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| Board of Supervisors |
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| Subject |
| Approve third 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 third 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) |
Operational Excellence
Sustainable Environment |
| Reason for Recommended Action/Background |
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 13, 2016, the Board approved the first amendment to the agreement locking in a competitive off-site transfer and sorting rate ($52.80 per ton) for calendar year 2017. The second amendment was approved on December 12, 2017, again locking in competitive rates ($57.20 per ton) for calendar year 2018.
Since the beginning of the agreement, B&D Geerts has successfully operated the facility and met the mandated sixty-five percent diversion requirement in their agreement. Additionally, B&D Geerts management and staff have worked closely with landfill staff to develop several very popular markets for material diverted from the facility, including reusable lumber, wood mulch and firewood. Between July 2016 and November 2018, 397 tons of reusable lumber and wood mulch was sold.
Reason for Recommended Action:
Over the last several years, economic conditions have continued to reduce the value of many recycled commodities such as wood, cardboard and plastic. 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. With the current rate set ($57.20 per ton) to expire at the end of 2018, county staff negotiated a new rate (third amendment) for off-site hauling and sorting ($63.80 per ton). This rate reflects a per ton fee of $58 plus 10% B&D Geerts mark-up. 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 ($65.55 per ton) site were competitive with the Sierra site ($63.80 per ton) 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 6% higher and therefore is not included in the amendment. |
| Collaborations (including Board advisory groups and external partner agencies) |
| County counsel has approved the amendment 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 Jue 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)
Proposals Received
| Proposer |
Price |
| 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 amount of material sent to an off-site sorting facility varies month-to-month based on the amount of C&D material customers bring to the landfill and the amount of ground sorting B&D Geerts staff do. The above fiscal impact is based on an average of 1,000 tons per month being sent off-site and the increased cost of approximately $7 per ton over a 12-month period. Sufficient funds are available in this fiscal year to cover this increase. Future funds will be budgeted in FY 2019-20 to cover this increase and rates charged to landfill customers will be adjusted the next time landfill fees are presented as part of a master Fee Resolution.
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