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 |1010|$0.00
70000
$7.17
$501,900.00|1010|$2,100.00
72100
$7.17
$516,957.00|1010|$2,163.00
74263
$7.17
$532,465.71|1010|$2,227.89
76491
$7.17
$548,439.68|1010|$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 t...
Click here for full text