SUBJECT:
Title
Request Approval of Third Contract Renewal: 19B-111, Yard Waste Mulching - D&G Solutions Group LLC, Ocala, FL (Budget Impact - Neutral; annual expenditure of $850,000 as approved in the FY 21/22 budget)
Body
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INITIATOR: |
DEPARTMENT: |
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Susan Olsen, Director |
Procurement Services |
DESCRIPTION/BACKGROUND:
On March 19, 2019, the Board approved a contract with D&G Solutions Group LLC (D&G) for yard waste mulching and disposal. Yard waste at the Baseline Landfill and the eighteen (18) recycling centers is comprised of green and dried material such as leaves, limbs, fronds, branches, and dirt collected from residential and commercial sources. On March 30, 2022, Procurement Services received a letter from D&G (dated March 30, 2021) requesting a rate increase of seven percent (7%) to be effective on May 1, 2022; citing an increase in labor, parts, and materials costs. This request would increase the grinding portion of the contract from $13.94 to $14.92 per ton and whereas the hauling would increase from $2.50 to $2.68 per ton. In addition to the seven percent (7%) rate increase, a fuel escalation/de-escalation clause is being added due to the volatility of fuel. The base rate for on-road being at $2.99 per gallon while the base rate for off-road would be $2.50 per gallon. D&G will provide monthly reports to the using department showing the total usage and average cost calculation for both types of fuel.
BUDGET/IMPACT:
Neutral; expenditure not to exceed $850,000 as approved in the FY 21/22 budget. Funding from ZA423534-534101.
RECOMMENDED ACTION:
Recommended action
Motion to approve rate increase and allow staff to issue contract renewal, upon approval by Legal, authorize the Chairman and Clerk to execute the Third Contract Renewal with D&G Solutions Group LLC under 19B-111.
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