Okaloosa County BOCC — 2013 meeting #1139 (date undetermined) — YARD TRASH OPERATIONS — reading text

YARD TRASH OPERATIONS Chronology of events: Dec ’12 – Initial estimate given by Warrior Tractor to repair Morbark 7600 in-line grinder (2001 model) at $32,000. Guidance provided for FY 2014 budget considerations was to contract out grinding services versus buying new grinder (close to $1 million) Feb ’13 – Warrior Tractor picked up grinder for estimate and repairs Feb ’13 – Estimate had grown to $60,000 with the possibility of more repairs needed Mar ’13 – Board approved sending grinder to auction grinder and use proceeds to prepare grinding site for contract grinding, repair existing Morbark 1300 Tub Grinder (1996 model) in- house (estimate $30,000), and apply towards contract grinding Apr ’13 - Began preparation of bid specs for contract grinding Initial research indicated that contract grinding could be done for $10/ton which is equivalent to our in-house cost to do the same Began stockpiling material as Tub Grinder went down for Repairs Early May ’13 - Issued emergency PO for contract grinding as stockpile had exceeded existing site capacity Early May ’13 - Decision made to send out grinder for repairs as it exceeded Fleet’s capabilities. Grinder picked up by Warrior Tractor in Montgomery May ’13 - PO issued to Young’s Contracting (only bidder) out of Niceville at a rate of $15.77 per ton May ’13 - Warrior Tractor has responded with a verbal estimate of $80,000 to perform repairs based on a list given them by our department and other items that they have found since receiving the machine Analysis: 1. If Young’s pricing is an indication of what we can expect to pay for a one year contract to grind then based on existing tonnages we are looking at in excess of $250,000 to contract grind yard trash at Wright Landfill 2. A new grinder (Morbark 6600) can be purchase off of a government contract for $684,000 3. In less than three years of contract grinding we would pay the equivalent of a new grinder 4. Benefit of maintaining a yard waste operation by the County is: We receive recycling credits (currently 17,000 tons annually) through FDEP toward the State mandated goal of 75% by 2020 We derive revenue for the solid waste fund of $40.70 per ton (approx $691,900 annually) We avoid the cost of fill material for use in compliance issues, erosion control, contour development, etc at a price of $10 per cubic yard delivered (estimated value = 17,000 CY x 5 cy/ton x $10 = $850,000) Issue: Do we contract grind or purchase a new grinder?