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  Consent-Community Services   # 29.       
Board of Supervisors   
Meeting Date: 11/22/2016  
Brief Title:    Metals Recycling Agreement
From: Taro Echiburu, Director, Community Services
Staff Contact: Linda Sinderson, Deputy Director, Community Services, x8859

Subject
Approve agreement with Universal Service Recycling, Inc. for on-call collection and recycling of ferrous and non-ferrous metals, including the servicing (removal of Freon, oil, capacitors, fluorescent bulbs, batteries and mercury switches) of appliances collected from the Yolo County Central Landfill, the Yolo County Construction and Demolition Recycling Facility and the Yolo County Esparto Convenience Center; for the Division of Integrated Waste Management for the term of November 22, 2016 to November 30, 2017. (No general fund impact; estimated $125,000 in annual revenue for the Sanitation Enterprise Fund) (Echiburu/Juhler)
Recommended Action
Approve agreement with Universal Service Recycling, Inc. (Universal) for on-call collection and recycling of ferrous and non-ferrous metals, including the servicing (removal of Freon, oil, capacitors, fluorescent bulbs, batteries and mercury switches) of appliances collected from the Yolo County Central Landfill (landfill), the Yolo County Construction and Demolition (C&D) Recycling Facility and the Yolo County Esparto Convenience Center (transfer station); for the Division of Integrated Waste Management (division) for the term of November 22, 2016 to November 30, 2017.

 
Strategic Plan Goal(s)
Operational Excellence
Sustainable Environment
 
Reason for Recommended Action/Background
The landfill, C&D, and transfer station operations currently accept 1,800 tons annually of discarded miscellaneous scrap metal, cords, non-PCB capacitors, microwaves, appliances, etc. from residents and businesses.  The current collection and recycling agreement has expired and a new agreement is sought in order to maintain diversion goals.  Through a competitive Request for Proposals (RFP) process that was concluded on October 14, 2016, Universal was identified as the most qualified metals waste recycling firm, and has offered the best pricing and operational methods for the requested services.

The Integrated Waste Management Act of 1989 requires local jurisdiction to maintain or exceed 50% waste diversion.  One method by which Yolo County meets this goal is recycling ferrous and non-ferrous metals, including appliances. While general scrap metal is legal to dispose of in landfills, appliances, which contain hazardous waste cannot. Since the inception of AB 939 the division has implemented and maintained a successful metal waste recycling program.

The division would like to continue offering the current scrap metal and appliance recycling program at the landfill, C&D facility and transfer station.  Under the most recent metals agreement, which was held by ALCO Iron and Metal, the American Metals Market (AMM) pricing, (the rate paid to the county) was very low due to a downturn in the recycling market.  Now that the market has rebounded, the new agreement will provide a higher payment rate.  Approval of this agreement is anticipated to allow the division to again accept scrap metal free of charge and appliances at nominal fees from residents and businesses, while maintaining full cost recovery for the recycling operation run by County staff.

On September 30, 2016, the division released a request for proposals using the county’s web-based BIDSYNC service.  The two metals recyclers who responded with proposals were SIMS Metal Management and Universal, both located in Sacramento. Alco Iron & Metal Co., our current contractor did not put in a proposal based upon higher haul rates from our facilities to their yard in San Leandro.  Although both proposals would provide the similar services including storage bins, transportation and recycling of the collected metal waste materials, Universal’s proposal offers both higher payments in all four metals categories as well as next day service which will better serve our operation.
Collaborations (including Board advisory groups and external partner agencies)
County Counsel has approved the agreement as to form.

Fiscal Impact
No Fiscal Impact
Fiscal Impact (Expenditure)
Total cost of recommended action:    $   0
Amount budgeted for expenditure:    $   0
Additional expenditure authority needed:    $   0
On-going commitment (annual cost):    $   0
Source of Funds for this Expenditure
$0
Explanation (Expenditure and/or Revenue)
Further explanation as needed:
This one-year agreement, with the option to extend, will allow the division to continue to provide metal waste and appliance recycling to the public through November of 2018.  Based on the historical tonnage collected at the landfill, the county will receive an estimated $125,000 annually from Universal, which will cover the division’s expenses for the entire metals waste collection and recycling program. 
 
In addition, if the tonnage anticipated is received, the division anticipates removing the current tipping fee charged to customers for scrap metal at the landfill and begin accepting this commodity for free again in 2017, when master fees will be reviewed again.  The approval of this agreement will also continue to provide the much needed collection and servicing (proper extraction of Freon, batteries, fluorescent bulbs, capacitors and mercury switches) of appliance waste at a low per unit cost for recycling.  The division’s operations at the landfill, C&D facility and transfer station are funded through disposal fees collected from customers arriving at these facilities.  No general fund money is used in the operation of any of these facilities.
 
Attachments
Att. A. Agreement
Att. B. Exhibit A
Att. C. Exhibit B

Form Review
Inbox Reviewed By Date
Financial Services Tom Haynes 11/15/2016 05:44 PM
County Counsel Phil Pogledich 11/16/2016 06:02 AM
Form Started By: lsinderson Started On: 11/02/2016 04:33 PM
Final Approval Date: 11/16/2016

    

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