Submitted By: Tiffany Stewart
presenter
Presentation By: Dwayne Drake
end
Department: Public Works
FORMAL TITLE:
title
Five-year renewal of the agreement with D&G Solutions Group, LLC for yard and wood waste disposal services with an estimated aggregate expenditure of $2,664,656
end
OCALA’S RELEVANT STRATEGIC GOALS:
Operational Excellence
PROOF OF PUBLICATION:
N/A
body
BACKGROUND:
Residential yard and wood waste collected by the City of Ocala (City) during regular sanitation weekly routes, storm-related damages, and maintenance activities average approximately 14,000 tons, or 70,000 cubic yards, annually. The United States Army Corps of Engineers formula for converting vegetative debris from tons to cubic yards stipulates that one ton equals five cubic yards (14,000 tons multiplied by five cubic yards per ton equals 70,000 cubic yards). The estimated 70,000 cubic yard quantity is utilized in the first year of the City’s five-year yard and wood waste disposal contract, and a 3 percent increase is implemented each subsequent year for growth.
|
Year |
3% increase |
CY |
New Rate |
Total Annual |
|
1 |
$0.00 |
70000 |
$7.17 |
$501,900.00 |
|
2 |
$2,100.00 |
72100 |
$7.17 |
$516,957.00 |
|
3 |
$2,163.00 |
74263 |
$7.17 |
$532,465.71 |
|
4 |
$2,227.89 |
76491 |
$7.17 |
$548,439.68 |
|
5 |
$2,294.73 |
78786 |
$7.17 |
$564,892.87 |
|
|
|
|
|
$2,664,655.26 |
FINDINGS AND CONCLUSIONS:
On November 3, 2020, City Council approved a five-year yard and wood waste disposal contract with D&G Solutions Group, LLC (D&G), Contract No.: PWD/200619. Over the course of the initial five year contract term, D&G would be compensated at the rate of $4.25 per cubic yard for a total contract expenditure not to exceed $1,436,989. Two optional five-year renewal terms are available under the contract.
On September 6, 2022, City Council approved a $2.49 per cubic yard rate increase, increasing the disposal cost per cubic yard to $6.74, effective July 1, 2022, through the end of the initial contract term, November 5, 2025.
For the first available renewal term, D&G has proposed a 6.4% rate increase in the amount of $0.43 per cubic yard, bringing the contract rate to $7.17 per cubic yard. This is the first increase since the 2022 price per cubic yard adjustment. Public Works staff benchmarked this proposed rate and found that the Marion County Landfill gate rate is $7.50 per cubic yard ($37.50 per ton) and the Friends Recycling gate rate is $11.00 per cubic yard (although they recently indicated they are not accepting yard waste now).
Staff recommends approval of the second amendment to PWD/200619 for a five-year renewal term effective November 4, 2025, through November 3, 2030.
FISCAL IMPACT:
Funding for this agreement has been budgeted in account 453-023-326-534-53-34010 for Fiscal Year 2025-26 in the amount of $460,075; $515,702 will be budgeted in account 453-023-326-534-53-34010 for Fiscal Year 2026-27; $531,173 will be budgeted in account 453-023-326-534-53-34010 for Fiscal Year 2027-28; $547,110 will be budgeted in account 453-023-326-534-53-34010 for Fiscal Year 2028-29; $563,521 will be budgeted in account 453-023-326-534-53-34010 for Fiscal Year 2029-30; and $47,075 will be budgeted in account 453-023-326-534-53-34010 for Fiscal Year 2030-31.
PROCUREMENT REVIEW:
These services were procured in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
This amendment will be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
- Approve with Changes
- Table
- Deny