title
Resolution Authorizing Award of a Contract for Yard Waste Processing Services to Diversified Biomass Company (Recycling and Trash Services Enterprise Fund)
body
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Department: |
Public Works |
Meeting Date: |
6/3/2025 |
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Contact Name: |
Rick Porter |
Public Hearing: |
No |
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Contact Phone: |
910-341-0081 |
Advertising Date/Advertised By: |
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Attachments: |
Resolution for Contract Award; Bid Tab |
PURPOSE:
The purpose of this resolution is to authorize the award of a contract for processing yard waste and other vegetative refuse to Diversified Biomass Company, dba American Property Experts for $32.00/ton. This contract is for processing the yard waste and other wood refuse collected by the City Recycling and Trash Services (RTS) crews, debris removed by Stormwater operations, and City tree and park maintenance.
BACKGROUND:
The City's current contract for wood waste disposal is with Diversified Biomass Company of Wilmington, NC and was approved in 2020. It was approved as a three (3) year contract with two (2) 1-year extension options. The current contract extension expires on June 30, 2025, and the rate has been set at $24.19/ton for the entire 5-year contract history. The city fiscal year disposal quantities have ranged from 8393 tons (FY24) to 11,226 tons (FY20) over the past 5 years (figures do not include contracted hurricane debris removal).
This procurement was accomplished under the Intent to Bid process in 2025. Diversified Biomass Company (current provider) was the sole bidder for a new three (3) year contract with two (2) extension options of one (1) year each. The renewal options in years 4 and 5 may include consumer-price-index (CPI) rate adjustments to be approved by both parties. The calculation will be based on the non-seasonally adjusted, previous 12-month rate change, published by the US Bureau of Labor. City staff determined Diversified Biomass Company's bid is both responsive, responsible and the only bidder licensed by the NC Department of Environment and Natural Resources to accommodate the city’s disposal volumes. The initial contractor bid of $35.89 per ton exceeded staff forecasts used in FY26 budget preparation. This resulted in follow-up negotiations with the contractor and yielded an adjusted proposal of $32.00 per ton for the initial 3-year term, reducing the disposal cost forecast in year one by approximately $33,000. This Resolution awards the contract to Diversified Biomass Company. This contract will be funded by Recycling & Trash and Stormwater fees.
budget
BUDGET IMPACT:
Staff have estimated the site will be used for disposal at $32/ton in each of the next 3 years as follows:
• FY26 - estimated 8,595 tons for contract of up to $275,040
• FY27 - estimated 9025 tons for contract of up to $288,800
• FY28 - estimated 9476 tons for contract of up to $303,232
• Total contract value for 3 year term - $867,072
Approval of this proposal represents a 32% cost increase from the previous 5-year agreement.
recommendation
RECOMMENDATION / ACTION REQUESTED:
Approval of this resolution is recommended.