County Staff Drafts Report on Orcas Transfer Station Bids

County Staff Report Makes No Definitive Recommendations

On Nov. 14, Ed Hale, Solid Waste Utility Manager for the department of Public Works, sent a draft message to the County Council regarding the Orcas Transfer Station contract(s) situation. (The Council is scheduled to hear arguments by the Public Works staff regarding their recommendations for the Orcas Transfer Station operation this Tuesday, Nov. 20, in the afternoon.)

But the draft report hedges its recommendations, suggesting that the Council will have to make this “Solomon’s Choice” between the two vendors identified in contract negotiations, Cimarron Trucking and Orcas Recycling Services (ORS); the weight of the draft report is still evenly balanced between the experience of Cimarron and the community support for ORS.

The recommended motion in the draft report reads:

I move that staff draft contracts with (choose one or both vendors) consistent with the provisions described in the attachment to the staff report. Staff should present contracts for approval no later than January 2013 along with any rate adjustments relating to continuing county operations during 2013.

With emphasis added, the draft report also says:

“In consideration of a single vendor contract the evaluation of the vendor selection committee remains applicable for Cimarron Enterprises as there has been little change in their proposal. The proposal from ORS has changed repeatedly and improved substantially from the original proposal. These changes have addressed the shortcomings of the original proposal to the extent that Public Works staff can support the selection of either vendor.

“To that end the Public Works staff views Cimarron Enterprises as the more experienced and financially stable vendor.  However, ORS has greater community support for activities that will achieve the goals of the Solid and Hazardous Waste Plan.”

“Public Works staff has developed contract options for the two vendors as both separate operators, and joint operators of the facility. … More precise language will be developed by the Prosecuting Attorney’s office and some refinement of the terms for the final contract will be completed prior to submitting the contracts to the Council for public hearing.”

In the Executive Summary of the Draft report, it is stated:

Staff has identified three viable options for site operation:

1. Two contract solution with both Cimarron and ORS.
2. Single contract with Cimarron.
3. Single contract with ORS

After giving the background of the process and an analysis of rates, the report says:
“Choosing between the two vendors leaves us in much that same position as existed in August. While the differences are less significant the core issues of the decision remain the same. The choice may have been summarized best by comments in the VSC report which described CE as an established solid waste company that can offer the services proposed with little risk.  ORS was described as more akin to a “start-up” operation with greater risk of failure but more opportunity to implement programs that require the support of the community to separate waste and utilize products produced from those wastes.”

Effective date of operation and extending current contract

“Previous staff reports included concerns regarding the need to enter contracts quickly. At this time it is increasingly unlikely that either vendor will initiate operations prior to the end of the year. Staff has begun the process of extending the existing contract with Waste Management to provide services into 2013.

“There has also been some recent public discussion regarding continuation of services by the County. This seems to have initiated due to the existing cash balance in the Solid Waste Fund.  It should be understood that the existing cash balance exists because the fund recently borrowed $800,000.  Had that not occurred the cash balance at the end of this year would be a negative $400,000.

“Additionally, using recent historical numbers ignore two major factors.  First, the county has benefited from below market garbage and recycling disposal costs under the current 10 year contract. With the expiration of the contract on December 31, 2012 there will be a significant increase in disposal costs particularly for recyclable material. Second, the recent budgets have not included the capital investment necessary to maintain facilities for future operations.”