Okaloosa County BOCC — July 21, 2015 — Attachment A 070915 — reading text

Component “CTFI” = Current commercial tipping fee “CTF2” = New commercial tipping fee Sample Calculation of Disposal Component Adjustment Assumptions: Current Disposal Component = $2.17/cubic yard CTF1 = $54.20/Ton CTF2 = $55.20/Ton Disposal Component Adjustment: = ROUND(2.17*(55.20/54.20),2) = $2.21/cubic yard Page 47 Note: Final Agreement terms and conditions will be modified based upon the residential service level selected by the Board and final negotiations with the Successful Proposer upon Board approval. Okaloosa County Solid Waste and Recyclables Collection, Transfer, Processing and Disposal Agreement Attachment A: Draft Agreement EXHIBIT 6 – CALCULATION OF RECYCLABLES PROCESSING PAYMENT The Contractor shall remit payment to the County monthly for all Recyclables delivered to the Transfer Stations, based on the inbound Tons as measured by the facility scales at which the Recyclables are initially received at the following payment calculations. Contractor acknowledges and accepts the following: a. The material percentages used for calculating the Average Market Value (AMV) are best estimates of the composition of the County’s Program Recyclables. Because different processors use different equipment and technologies, they will have varying amounts of processing Residue. Therefore, the material percentages do not attempt to estimate or include processing Residue. Contractor has utilized its industry knowledge and experience processing materials similar to Program Recyclables as defined herein in evaluating the accuracy of these percentages and developing its financial proposal. b. The material percentages used for calculating the AMV shall be revised only upon completion of a Program Recyclables composition study that meets the requirements specified herein.  The study entails sampling and manual sorting of inbound Program Recyclables, not processing Program Recyclables through a sorting line that includes mechanized equipment. Inbound Program Recyclables means Program Recyclables as initially collected by the Contractor and delivered directly to the STS. The final methodology is subject to written approval by the County.  The study shall be conducted by a qualified entity with demonstrated experience conducting recyclables composition studies in the Southeast United States. Selection of such entity is subject to written approval by the County.  The County reserves the right to have a representative onsite throughout the composition study.  Study results are subject to final approval by the County. If approved by the County, adjustments to the composition percentages provided in this Exhibit shall be made and shall become effective on the first day of the following month and for the remainder of this Agreement, or until further adjusted in a future composition study.  The composition study shall be paid for by the party requesting such study unless otherwise agreed upon in writing.  A Program Recyclables composition study may not be requested prior to six (6) months after the Commencement Date. Composition studies shall not be conducted more frequently than once per Agreement year. c. The market index (RecyclingMarkets.net) utilized is intended to reflect the average value, in the Southeast United States, of each material included in Program Recyclables. It is not intended to equate to the commodity revenue received by the Contractor. Contractor has taken this into consideration when developing its financial proposal. d. If at any time during the term of this Agreement Recyclingmarkets.net no longer posts or otherwise provides the applicable market indices, then the parties shall mutually select an appropriate replacement source for the required information from among the sources recycling industry professionals utilize to obtain reliable Recovered Material pricing information. e. Any and all costs associated with accepting, processing, marketing, and transporting Program Recyclables shall be the responsibility of the Contractor. f. The payment formula shall be used for calculating payment throughout the term of this Agreement. Payment per inbound Ton of Program Recyclables shall be as calculated as follows: a. Contractor shall calculate the AMV of the Program Recyclables each month. The AMV is defined as the sum of the RecyclingMarkets.net Southeast USA regional average commodity prices (U.S. Dollars per Ton) first posted in the month for which payment is being made. For illustrative purposes, Table 1 calculates the AMV based on the commodity prices first posted in April 2015. Page 48 Note: Final Agreement terms and conditions will be modified based upon the residential service level selected by the Board and final negotiations with the Successful Proposer upon Board approval. Okaloosa County Solid Waste and Recyclables Collection, Transfer, Processing and Disposal Agreement Attachment A: Draft Agreement EXHIBIT 6 – Calculation of Recyclables Processing Payment (Cont’d) Table 1 – Average Market Value of Program Recyclables Sample Calculation (April 2015) Average Market Material Index Market Material Index Description Value % by Value Value ($/Ton) weight ($/Ton) Mixed paper PS 1 baled, F.O.B. seller’s dock 50.00 $50.00 23.3% $11.65 Newspaper PS 8 baled, F.O.B. seller’s dock 57.50 $57.50 14.3% $8.22 Corrugated containers PS 11 baled, F.O.B. seller’s dock 80.00 $80.00 14.7% $11.76 Aseptic cartons PS 52 baled, F.O.B. seller’s dock 0.00 $0.00 0.4% $0.00 Glass (3 Mix) $/Ton, delivered ‐17.50 ($17.50) 19.2% ($3.36) Aluminum cans Cents/lb., sorted, baled and delivered 72.00 $1,440.00 1.9% $27.36 Other aluminum 50 percent of the Aluminum Can index 36.00 $720.00 0.3% $2.16 Steel cans/scrap metal $/Ton, sorted, baled and delivered 62.50 $62.50 3.0% $1.88 PET Cents/lb., baled and picked up 12.50 $250.00 4.5% $11.25 Natural HDPE Cents/lb., baled and picked up 30.50 $610.00 1.8% $10.98 Colored HDPE Cents/lb., baled and picked up 29.50 $590.00 1.8% $10.62 Plastics #3‐#7 Cents/lb., baled and picked up .02 $0.40 3.2% $0.02 Mixed bulky rigid Cents/lb., baled and picked up .25 $5.00 1.8% $0.09 Contamination N/A N/A $0.00 9.8% $0.00 100.0% $92.63 b. Contractor shall remit payment to the County based on that month’s AMV equal to the total inbound Tons of Program Recyclables as measured by the Transfer Station scales delivered by or on behalf of the County multiplied by the payment in Table 2. Table 2 – Payment per Inbound Ton of Program Recyclables based on the AMV Value Average Market Value ($/Ton) Contractor Payment to County Low High ($/Ton) <$80.01 $90.00 <<To Be Inserted >> $90.01 $100.00 <<To Be Inserted >> $100.01 $110.00 <<To Be Inserted >> $110.01 $120.00 <<To Be Inserted >> $120.01 $130.00 <<To Be Inserted >> $130.01 $140.00 <<To Be Inserted >> $140.01 $150.00 <<To Be Inserted >> $150.01 $160.00 <<To Be Inserted >> $160.01 >$170.00 <<To Be Inserted >> Sample Calculation of Program Recyclables Assumptions: Inbound Tons = 150 Calculated AMV = $92.63 Proposed payment for AMV $90.01‐$100.00 = $25.00 Inbound Tons * Proposed Payment = 150 * $25.00 = $3,750 Page 49 Note: Final Agreement terms and conditions will be modified based upon the residential service level selected by the Board and final negotiations with the Successful Proposer upon Board approval. Okaloosa County Solid Waste and Recyclables Collection, Transfer, Processing and Disposal Agreement Attachment A: Draft Agreement EXHIBIT 7 – TECHNICAL SPECIFICATIONS FOR ROLL CARTS Following are minimum requirements for the Roll Carts as required within the scope of this Agreement. Construction and Design  Must meet ANSI Standards Z245.30 and AZ245.60 “Type B/G” containers, all rules, regulation, and laws pertaining to this product.  Roll Carts must be produced by a major manufacturer.  Roll Carts must be universal and compatible with and capable of withstanding all U.S. industry‐standard semi‐automated and fully‐automated collection systems.  The upper lift point shall be permanently molded into the Roll Cart and the lower must be a 1” diameter galvanized free floating metal bar or composite equivalent, securely attached to prevent failure or loss. Molded bars are unacceptable.  Roll Carts must be designed to prevent the Roll Cart from falling into the truck hopper when lifted and turned upside down using a semi‐automated collection system. 