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Consent-Community Services # 22.
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| Board of Supervisors |
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| Subject |
| Approve second 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 second amendment to Agreement No. 16-112 with B&D Geerts Construction, Inc. for operation of the construction and demolition of 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 |
On July 13, 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. Approval of this agreement represented a change in operational strategies from previous agreements in that the rate structure of the agreement was a time and materials base with a not-to-exceed cap. Then, on December 13, 2016, the Board approved the first amendment to the agreement locking in a competitive off-site transfer and sorting rate for calendar year 2017.
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 the off-site Sierra Waste Recycling &Transfer Station (Sierra) in Sacramento, where the material is processed over a sort line.
Since the beginning of the agreement, B&D Geerts has successfully operated the facility and met the mandated fifty percent diversion requirement in their agreement, with most months exceeding seventy percent. 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.
Over the last several years, economic conditions have dramatically reduced the value of many recycled commodities such as wood, metal, 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. Last year, the Board approved the first amendment to B&D Geerts agreement to lock in the offsite sorting rate at the Sierra facility for calendar year 2017. With this rate set to expire, B&D Geerts and county staff negotiated the rates included in the attached second amendment. To ensure a favorable agreement was negotiated, the other two off-site C&D sorting facilities in the Sacramento area were contacted. These facilities’ rates were found to be higher than the new negotiated rates for Sierra.
Because the off-site sorting rates at Sierra’s facility for calendar year 2018 have increased, it likely will be necessary to raise the C&D rates the landfill charges its customers when other landfill fees are updated for the new fiscal year. In the meantime, county staff will be working to develop additional markets for recyclable commodities from the facility to help offset this increase. |
| Collaborations (including Board advisory groups and external partner agencies) |
| County Counsel has approved the amendment and resolution as to form. |
| Competitive Bid Process |
- The original B&D Geerts agreement (16-112) was awarded through a competitive Request for Proposals (RFP). During this process, two proposals were received and ranked by a review committee. The Board awarded the agreement to B&D Geerts Construction at their meeting on July 13, 2016.
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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 the Sierra 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 500 tons per month being sent to the Sierra facility and the increased cost of $4.40 per ton over a 12-month period. Sufficient funds are available in this fiscal year and will be budgeted in next fiscal year to pay for this. |
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