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Agenda 11/13/2012 Item #16C411/13/2012 Item 16.C.4. EXECUTIVE SUMMARY Recommendation to award Bid No. 12 -5925, "Removal of Agricultural Plastics at Immokalee Transfer Station," to Rational Energies, Inc., at no cost to Collier County. OBJECTIVE: Provide a turnkey approach to the removal of agricultural plastics from the Immokalee Transfer Station to be utilized into a renewable energy /beneficial reuse product. CONSIDERATIONS: On December 5, 2006, the Board of County Commissioners (Board) adopted the Integrated Solid Waste Management Strategy (Strategy) that included four components: source reduction, materials reuse, and recycling; diversion; optimizing existing assets and resources; and, obtaining additional facilities. The Solid and Hazardous Waste Management Department started stock piling agricultural - plastic (ag- plastic) at the Immokalee Transfer Station (ITS) in the early `90s for recycling. Over time, the ag- plastic was stacked into three different piles and covered with soil. The three ag- plastic hills are located in the northeast, northwest, and southeast areas of the property, covering approximately 13 acres of the 74 -acre site; an estimated volume of 5,000 tons. In February, 2008, RKO Industries, Inc. (RKO), a plastics recycling company located in Labelle, Florida, visited the ITS to determine if the ag- plastic could be utilized in their recycling process. After inspection of the site, RKO advised staff that their recycling plant was unable to process the volume of material available. Subsequently, staff requested a proposal from Waste Management, Inc. of Florida (WM) to remove the ag- plastic. The WM proposal included excavation and loading costs of $11.07 per cubic yard, and transportation and disposal costs of $48.50 per ton. The final destination was the Okeechobee Landfill, where the material would be buried. Based on cubic yards and tons, the proposal was approximately $1,218,970. Due to the high cost, and the lack of a beneficial reuse of the product, the excavation project was put on hold to allow staff to research emerging technologies that could reuse the ag- plastic in a way that might also offer potential recycling credits. The renewable energy /beneficial use market is constantly expanding with new technologies that provide a viable, proven process where plastics are converted to a crude oil state. A formal bid was solicited for the collection and removal of segregated waste plastic from the ITS for the purpose of recycling it into crude oil. The bid specified the plastic be collected, shredded, and densified to prepare it for the conversion process, and that the awarded bidder returns the three sites to grade level. The bid was structured with three financial options for the prospective bidders to consider: 1. Submit a zero cost to the County bid for removal of the material; 2. Submit the highest payment to the County per ton (based on 5,000 tons) for removal of the material; or, Packet Page -1967- 11/13/2012 Item 16.C.4. 3. Submit the lowest cost per ton to remove the material On July 31, 2012, Bid #12 -5925 was made available to 325 vendors; 20 vendors downloaded the bid specifications. A non - mandatory pre -bid meeting was held at the ITS on August 10, 2012, with a total of three vendors attending. Rational Energies, Inc., was the sole vendor to submit a bid by the due date of August 17, 2012. The bid is zero cost to the county. Rational Energies, Inc., will excavate and remove the plastic from the site, ship it to Sarasota, and bring the sites back up to grade at no cost to the County. The award of this bid to Rational Energies, Inc., provides opportunities for both parties. There is no cost to Collier County for the removal of the material from the ITS, nor to return the site to grade. Rational Energies, Inc., will process the materials into a crude oil product that will be made available to the market place, providing a cost effective, beneficial reuse product. FISCAL IMPACT: There is no fiscal impact associated with this bid award. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney's Office, is legally sufficient, and requires a majority vote for approval. - ERP GROWTH MANAGEMENT IMPACT: The removal of the segregated plastics at the ITS is compliant with the Solid Waste Sub - Element, Objective 3 (Recycle and Recovery), Policy 3.2, which requires the County to continue investigation and implementation of cost - saving measures for disposal operations, and requires the evaluation of other measures, including landfill mining, as new technologies and practices emerge. RECOMMENDATION: That the Board of County Commissioners award Bid No. 12 -5925, "Removal of Agricultural Plastics at Immokalee Transfer Station," to Rational Energies, Inc., at no cost the Collier County; and, authorize the Chairman to execute the document after review by the County Attorney. Prepared By: Linda Jackson Best, M.B.A., Waste Reduction and Recycling Manager, Solid and Hazardous Waste Management Department Attachments: 1. Contract 12 -5925, "Removal of Agricultural Plastics at Immokalee Transfer Station" 2. White Paper, Agricultural Plastic Dills Packet Page -1968- COLLIER COUNTY Board of County Commissioners Item Number: 16.C.4. 11/13/2012 Item 16.C.4. Item Summary: Recommendation to award Bid No. 12 -5925, "Removal of Agricultural Plastics at Immokalee Transfer Station," to Rational Energies, Inc., at no cost to Collier County. Meeting Date: 11/13/2012 Prepared By Name: Linda Best Title: Manager - Environmental Compliance,Solid Waste 10/8/2012 2:39:04 PM Submitted by Title: Manager - Environmental Compliance,Solid Waste Name: Linda Best 10/8/2012 2:39:05 PM Approved By Name: Joseph Bellone Title: Manager - Utility Billing & Cust Serv.,Utilities Finance Operations Date: 10/8/2012 3:02:57 PM Name: HapkeMargie Title: Operations Analyst, Public Utilities Date: 10/8/2012 3:10:46 PM Name: Susan Jacobs Title: Operations Analyst, Public Utilities Date: 10/8/2012 5:30:43 PM Name: WardKelsey Title: Manager - Contracts Administration,Purchasing & Ge Date: 10/9/2012 1:12:18 PM Name: WardKelsey Packet Page -1969- Title: Manager - Contracts Administration,Purchasing & Ge Date: 10/9/2012 1:12:35 PM Name: beth ryan Title: Manager - Solid Waste Operations, Solid Waste Date: 10/10/2012 12:23'30 PM Name: JohnsonScott Title: Purchasing Agent,Purchasing & General Services Date: 10/11/2012 4:19:17 PM Name: RodriguezDan Title: Director - Solid Waste,Solid Waste Date: 10/17/2012 8:18:23 AM Name: PepinEmily Title: Assistant County Attorney, CAO Litigation Date: 10/19/2012 1:31:42 PM Name: YilmazGeorge Title: Administrator, Public Utilities Date: 10/29/2012 10:22:26 AM Name: KlatzkowJeff Title: County Attorney Date: 10/29/2012 10:51:09 AM Name: GreenwaldRandy Title: Management /Budget Analyst,Office of Management & B Date: 10/29/2012 11:43:44 AM Name: OchsLeo Title: County Manager Date: 11/4/2012 10:09:52 AM Packet Page -1970- 11/13/2012 Item 16.C.4. 11/13/2012 Item 16.C.4. A G R E E M E N T 12-5925 for Removal of Agricultural Plastics at Immokalee Transfer Station THIS AGREEMENT, made and entered into on this day of , 20121 by and between Rational Energies, Inc., authorized to do business in the State of Florida, whose business address is 12200 Middleset Road, Suite 300, Eden Prairie, MN 55344, (the "Contractor ") and Collier County, a political subdivision of the State of Florida, (the "County" ): WITNESSETH: 1. COMMENCEMENT. The contract shall be for a two (2) year period, commencing on Board approval date and terminating two (2) years from that date. The County may, at its discretion and with the consent of the Contractor, renew the Agreement under all of the terms and conditions contained in this Agreement for two (2) additional one (1) year periods. The County shall give the Contractor written notice of the County's intention to extend the Agreement term not less than ten (10) days prior to the end of the Agreement term then in effect. 2. STATEMENT OF WORK. The Contractor shall provide plastic removal at the Immokalee Transfer Station in accordance with the terms and conditions of Bid #12- 5925 and the Contractor's proposal referred to herein and made an integral part of this agreement. This Agreement contains the entire understanding between the parties and any modifications to this Agreement shall be mutually agreed upon in writing by the Contractor and the County Project or Contract Manager or her designee, in compliance with the County Purchasing Policy and Administrative Procedures in effect at the time such services are authorized. 3. THE CONTRACT SUM. The Contractor shall provide removal of the waste plastic at zero ($0) cost to the County. Contractor shall be responsible for all costs associated with the removal, including the preparation and shipping of the material as well as the material's ultimate disposal of residual materials. At completion of the removal of the Ag- plastic hills, at its sole expense, the Contractor will fill and sod the reclaimed areas to return the land back to grade as usable land. 4. SALES TAX. Contractor shall pay all sales, consumer, use and other similar taxes associated with the Work or portions thereof, which are applicable during the performance of the Work. Page 1 of 7 Packet Page -1971- 11/13/2012 Item 16.C.4. 5. NOTICES. All notices from the County to the Contractor shall be deemed duly served if mailed or faxed to the Contractor at the following Address: Rational Energies, Inc. Attn: Steven Wachter, Vice President 12200 Middleset Road; Suite 300 Eden Prairie, MN 55344 Tel: 952/240-1182 Fax: 952 - 681 -7161 All Notices from the Contractor to the County shall be deemed duly served if mailed or faxed to the County to: Collier County Government Center Purchasing Department 3327 Tamiami Trail, East It Naples, Florida 34112 Attention: Purchasing & General Services Director Telephone: 239 -252 -8975 Facsimile: 239- 252 -6480 The Contractor and the County may change the above mailing address at any time upon giving the other party written notification. All notices under this Agreement must be in writing. 6. NO PARTNERSHIP. Nothing herein contained shall create or be construed as creating a partnership between the County and the Contractor or to constitute the Contractor as an agent of the County. 7. PERMITS: LICENSES: TAXES. In compliance with Section 218.80, F.S., all permits necessary for the prosecution of the Work shall be obtained by the Contractor. Payment for all such permits issued by the County shall be processed internally by the County. All non - County permits necessary for the prosecution of the Work shall be procured and paid for by the Contractor. The Contractor shall also be solely responsible for payment of any and all taxes levied on the Contractor. In addition, the Contractor shall comply with all rules, regulations and laws of Collier County, the State of Florida, or the U. S. Government now in force or hereafter adopted. The Contractor agrees to comply with all laws governing the responsibility of an employer with respect to persons employed by the Contractor. 8. NO IMPROPER USE. The Contractor will not use, nor suffer or permit any person to use in any manner whatsoever, County facilities for any improper, immoral or offensive purpose, or for any purpose in violation of any federal, state, county or municipal ordinance, rule, order or regulation, or of any governmental rule or regulation now in effect or hereafter enacted or adopted. In the event of such violation by the Contractor or if the County or its authorized representative shall deem any conduct on the part of Page 2 of 7 Packet Page -1972- 11/13/2012 Item 16.C.4. the Contractor to be objectionable or improper, the County shall have the right to suspend the contract of the Contractor. Should the Contractor fail to correct any such violation, conduct, or practice to the satisfaction of the County within twenty -four (24) hours after receiving notice of such violation, conduct, or practice, such suspension to continue until the violation is cured. The Contractor further agrees not to commence operation during the suspension period until the violation has been corrected to the satisfaction of the County. 9. TERMINATION. Should the Contractor be found to have failed to perform his services. in a manner satisfactory to the County as per this Agreement, the County may terminate said agreement for cause; further the County may terminate this Agreement for convenience with a thirty (30) day written notice. The County shall be sole judge of non - performance. In the event that the County terminates this Agreement, Contractor's recovery against the County shall be limited to that portion of the Contract Amount earned through the date of termination. The Contractor shall not be entitled to any other or further recovery against the County, including, but not limited to, any damages or any anticipated profit on portions of the services not performed. 10. NO DISCRIMINATION. The Contractor agrees that there shall be no discrimination as to race, sex, color, creed or national origin. 11. INSURANCE. The Contractor shall provide insurance as follows: A. Commercial General Liability: Coverage shall have minimum limits of $1,000,000 Per Occurrence, $1,000,000 aggregate for Bodily Injury Liability and Property Damage Liability. This shall include Premises and Operations; Independent Contractors; Products and Completed Operations and Contractual Liability. B. Business Auto Liability: Coverage shall have minimum limits of $1,000,000 Per Occurrence, Combined Single Limit for Bodily Injury Liability and Property Damage Liability. This shall include: Owned Vehicles, Hired and Non -Owned Vehicles and Employee Non - Ownership. C. Workers' Compensation: Insurance covering all employees . meeting Statutory Limits in compliance with the applicable state and federal laves. The coverage must include Employers' Liability with a minimum limit of $1,000,000 for each accident. Special Requirements: Collier County Government shall be listed as the Certificate Holder and included as an Additional Insured on the Comprehensive General Liability Policy. Pase 3 of 7 Packet Page -1973- 11/13/2012 Item 16.C.4. Current, valid insurance policies meeting - the requirement herein identified shall be maintained by Contractor during the duration of this Agreement. The Contractor shall provide County with certificates of insurance meeting the required insurance provisions. Renewal certificates shall be sent to the County ten (10) days prior to any expiration date. Coverage afforded under the policies will not be canceled or allowed to expire until the greater of: ten (10) days prior written notice, or in accordance with policy provisions. Contractor shall also notify County, in a like manner, within twenty - four (24) hours after receipt, of any notices of expiration, cancellation, non - renewal or material change in coverage or limits received by Contractor from its insurer, and nothing contained herein shall relieve Contractor of this requirement to provide notice. Contractor shall ensure that all subcontractors comply with the same insurance requirements that he is required to meet. 12. INDEMNIFICATION. To the maximum extent permitted by Florida law, the Contractor shall indemnify and hold harmless Collier County, its officers and employees from any and all liabilities, damages, losses and costs, including, but not limited to, reasonable attorneys' fees and paralegals' fees, whether resulting from any claimed breach of this Agreement by Contractor, any statutory or regulatory violations, or from personal injury, property damage, direct or consequential damages, or economic loss, to the extent caused by the negligence, recklessness, or intentionally wrongful conduct of the Contractor or anyone employed or utilized by the Contractor in the performance of this Agreement. This indemnification obligation shall not be construed to negate, abridge or reduce any other rights or remedies which otherwise may be available to an indemnified party or person described in this paragraph. This section does not pertain to any incident arising from the sole negligence of Collier County. 12.1 The duty to defend under this Article 12 is independent and separate from the duty to indemnify, and the duty to defend exists regardless of any ultimate liability of the Contractor, County and any indemnified party. The duty to defend arises immediately upon presentation of a claim by any party and written notice of such claim being provided to Contractor. Contractor's obligation to indemnify and defend under this Article 12 will survive the expiration or earlier termination of this Agreement until it is determined by final judgment that an action against the County or an indemnified party for the matter indemnified hereunder is fully and finally barred by the applicable statute of limitations. 13. CONTRACT ADMINISTRATION. This Agreement shall be administered on behalf of the County by the Solid Waste Management Department. 14. CONFLICT OF INTEREST: Contractor represents that it presently has no interest and shall acquire no interest, either direct or indirect, which would conflict in any manner Aft with the performance of services required hereunder. Contractor further represents that no persons having any such interest shall be employed to perform those services. Page 4 of 7 Packet Page -1974- 11/13/2012 Item 16.C.4. 15. COMPONENT PARTS OF THIS CONTRACT. This Contract consists of the following component parts, all of which are as fully a part of the contract as if herein set out verbatim: Contractor's Proposal, Insurance Certificate, Bid #12 -5925 Removal of Agricultural Plastics at Immokalee Transfer Station Specifications/ Scope of Services and Addendum. 16. SUBTECT TO APPROPRIATION. Not applicable to this Agreement. 17. PROHIBITION OF GIFTS TO COUNTY EMPLOYEES. No organization or individual. shall offer or give, either directly or indirectly, any favor, gift, loan, fee, service or other item of value to any County employee, as set forth in Chapter 112, Part IIl, Florida Statutes, Collier County Ethics Ordinance No. 2004 -05, and County Administrative Procedure 5311. Violation of this provision may result in one or more of the following consequences: a. Prohibition by the individual, firm, and/or any employee of the firm from contact with County staff for a specified period of time; b. Prohibition by the individual and/or firm from doing business with the County for a specified period of time, including but not limited to: submitting bids, RFP, and/ or quotes; and, c. immediate termination of any contract held by the individual and/ or firm for cause. 18. IMMIGRATION LAW COMPLIANCE. By executing and entering into this agreement, the Contractor is formally acknowledging without exception or stipulation that it is fully responsible for complying with the provisions of the Immigration Reform and Control Act of 1986 as located at 8 U.S.C. 1324, et seq. and regulations relating thereto, as either may be amended. Failure by the Contractor to comply with the laws referenced herein shall constitute a breach of this agreement and the County shall have the discretion to unilaterally terminate this agreement immediately. 19. OFFER EXTENDED TO OTHER GOVERNMENTAL ENTITIES. Collier County encourages and agrees to the successful proposer extending the pricing, terms and conditions of this solicitation or resultant contract to other governmental entities at the discretion of the successful proposer. 20. AGREEMENT TERMS. If any portion of this Agreement is held to be void, invalid, or otherwise unenforceable, in whole or in part, the remaining portion of this Agreement shall remain in effect. 21. ADDITIONAL ITEMS /SERVICES. Additional items and/or services may be added to this contract in compliance with the Purchasing Policy. 22. DISPUTE RESOLUTION. Prior to the initiation of any action or proceeding permitted by this Agreement to resolve disputes between the parties, the parties shall make a good faith effort ,to resolve any such disputes by negotiation. The _negotiation shall be attended by representatives of Contractor with full decision - making authority and by County's staff person who would make the presentation of any settlement reached Page 5 of 7 Packet Page -1975- 11/13/2012 Item 16.C.4. during negotiations to County for approval. Failing resolution, and prior to the commencement of depositions in any litigation between the parties arising out of this Agreement, the parties shall attempt to resolve the dispute through Mediation before an agreed -upon Circuit Court Mediator certified by the State of Florida. The mediation shall be attended by representatives of Contractor with full decision - making authority and by County's staff person who would make the presentation of any settlement reached at mediation to County's board for approval. Should either party fail to submit to mediation as required hereunder, the other party may obtain a court order requiring mediation under section 44.102, Fla. Stat. 23. VENUE. Any suit or action brought by either party to this Agreement against the other party relating to or arising out of this Agreement must be brought in the appropriate federal or state courts in Collier County, Florida, which courts have sole and exclusive jurisdiction on all such matters. 24. PROTECT STAFFING: The Contractor's personnel and management to be utilized for this project shall be knowledgeable in their areas of expertise. The County reserves the right to perform investigations as may be deemed necessary to ensure that competent persons will be utilized in the performance of the contract. The Contractor shall assign as many people as necessary to complete the project on a timely basis, and each person assigned shall be available for an amount of time adequate to meet the contract requirements. The Contractor shall not change Key Personnel unless the following conditions are met: (1) Proposed replacements have substantially the same or better qualifications and/or experience. (2) that the County is notified in writing as far in advance as possible. The Contractor shall make commercially reasonable efforts to notify Collier County within seven (7) days of the change. The County retains final approval of proposed replacement personnel. 25. ORDER OF PRECEDENCE: In the event of any conflict between or among the terms of any of the Contract Documents, the terms of the ITB and /or the Contractor's Proposal, the Contract Documents shall take precedence. In the event of any conflict between the terms of. the ITB and the Contractor's Proposal, the language in the ITB would take precedence. M. ASSIGNMENT: Contractor shall not assign this Agreement or any part thereof, without the prior consent in writing of the County. Any attempt to assign or otherwise transfer this Agreement, or any part herein, without the County's consent, shall be void. If Contractor does, with approval, assign this Agreement or any part thereof, it shall require that its assignee be bound to it and to assume toward Contractor all of the obligations and responsibilities that Contractor has assumed toward the County. Page 6 of 7 Packet Page -1976- 11/13/2012 Item 16.C.4, IN WITNESS WHEREOF, the Contractor and the County, have each, respectively, by an authorized person or agent, hereunder set their hands and seals on the date and year first above written. ATTEST: Dwight E. Brock, Clerk of Courts By: Dated: (SEAL) First Witness TType /print witness name Second Witness TType /print witness namet Approved as to form and legal sufficiency: Assistant County Attorney Print Name BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA Bv: Fred W. Coyle, Chairman Rational Energies, Inc. Contractor Is Signature Typed signature and title Page 7 of 7 Packet Page -1977- 11/13/2012 Item 16.C.4. Co i coin Pubit Ufflibes D ion Solid 'Alaste Agricultural Plastic Hills Fact Sheet February 17, 2011 History: The Solid Waste Department started stock piling agricultural plastic at the Immokalee Transfer Site (ITS) in the early 90' for recycling. After researching for a local industry that can recycle this material, the Solid Waste Management Department decided to compile all the Ag- plastic in three different piles and cover them with soil. These three Ag- plastic hills are located in the Northeast, Northwest and Southeast of the property and cover an approximated total of thirteen (13) acres out of seventy four (74) acres of the entire site. 2/17/2011 Page Packet Page -1978- 11/1312012 Item 16.C.4. February 2008, RKO Industries Inc., a plastic recycling company located in Labelle visited the Immokalee Transfer Site to determine if this material can be recycled. After the visit RKO determined that half of the Ag plastic hill located at the north east side of the property will be enough. to cover the company's entire production for a year and their company will not be able to-process this large amount of material. March 25, 2008, Several core samples were taken from all the Ag- plastic hills to determine what kind of material was buried in these hills. The material filled one 100 yard trailer 75% for a total weight of 77,000 pounds (truck empty was 34,000). Items found include: • Plastic pots (minimum) • Ag plastic HDPE and LDPE, some of the plastic was decomposed due to the UV rays and heat. • Glass bottles(minimum) • Dirt Approximately 2' of soil were removed from the top of the hill before reaching the Ag- plastic. The material was very dense and compacted. Soil mix was ten percent or less. 2/17/2011 Paget Packet Page -1979- 11/13/2012 Item 16.C.4. Z /ii /Zu11 Page 3 Packet Page -1980- 11/13/2012 Item 16.C.4. Current Conditions: All three Ag- plastic hills are maintained by the Collier County Solid Waste Management Department. Exotics were removed and all of the hills are mowed on a monthly bases. Erosion control is also implemented to preserve the quality of the cover soil. 2/17/2011 Packet Page -1981- Page 4 11/13/2012 Item 16.C.4.