Submitted By: Danielle Phillips
presenter
Presentation By: Darren Park
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Department: Public Works
STAFF RECOMMENDATION (Motion Ready):
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Approve the first amendment to the agreement with D&G Solutions Group, LLC for yard and wood waste disposal services for an additional contract expenditure of $561,271
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OCALA'S RELEVANT STRATEGIC GOALS:
Operational Excellence.
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
Residential yard and wood waste collected by the City during normal sanitation weekly routes, storm-related damages, and maintenance activities totals approximately 13,524.6 tons (67,623 cubic yards) annually. The United States Army Corps of Engineers formula for converting vegetative debris from tons to cubic yards stipulates that one ton is the equivalent of five cubic yards (13,524.6 tons multiplied by 5 cubic yards per ton equals 67,623 cubic yards). The estimated 67,623 cubic yard quantity is utilized in the five-year yard and wood waste disposal contract.
On November 3, 2020, City Council approved contract PWD/200619 with D&G Solutions Group, LLC ("D&G") for a five-year term in the amount of $1,436,989. The City's yard and wood waste disposal services bid was issued on August 11, 2020, two vendors responded as summarized in the chart below:
Bidder
Location
Bid Amount
Annual Amount
5-Yr Contract Amount
D&G Solutions Group, LLC
Ocala, FL
$4.25 per cubic yard
$287,398
$1,436,989
Stavola Tree Service, LLC
Candler, FL
$6.75 per cubic yard
$456,455
$2,282,275
Due to increased fuel, labor, and equipment expenses, D&G has requested a rate increase from $4.25 to $6.74 per cubic yard, a 59% increase, effective July 1, 2022, through November 3, 2025. The pricing is eligible for adjustment annually beginning in November of 2023 based on the CPI-U index and the City has the right to require a reduction in unit pricing should the CPI-U index de-escalate. The $2.49 increase per cubic yard is $0.01 per cubic yard lower than the second lowest b...
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