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Item M4County of Monroe BOARD COUNTY COMMISSIONERS Mayor Ge Neugent, District 2 The Florida Keys Mayor Pro Tern David Rice, District 4 Danny L. Kolhage, District 1 Heather Cafruthers, District 3 Sylvia J. Murphy, District 5 County Commission Meeting September 27, 2017 Agenda Item Summary #3431 ADD ON DAY OF MEETING: WILL BE M -4 BULK ITEM: No DEPARTMENT: Engineering / Roads TIME APPROXIMATE: STAFF CONTACT: Judith Clarke (305) 295 -4329 N/A AGENDA ITEM WORDING: Discussion and direction regarding contract with AshBritt, Inc for Disaster Response and Recovery Services for debris removal. ITEM BACKGROUND: As a result of a competitive solicitation process, the County awarded Ashbritt, Inc. ( "Ashbritt ") the contract and entered into an agreement on June 21, 2017 for Disaster Response and Recovery Services, which includes debris removal services. Due to the extraordinary damage left by Hurricane Harvey and Hurricane Irma, Ashbritt has encountered difficulty in procuring the necessary equipment and subcontractor services for debris removal is challenging. While Ashbritt is partially performing under the terms of the contract (i.e., Ashbritt has mustered less 20 percent of the 200 trucks it is obligated to provide for a Category 4 storm), Ashbritt has represented that it would be in a better position to fully perform including the 200 trucks if it received a price adjustment. The proposed price adjustment is in the proposed amendment to the contract, which is attached as back up. Ashbritt has requested the adjustment due to the unforeseen market conditions and has committed to revisiting the rate structure once the market conditions normalize in the next 30 days. The presence of providers under contract with the Florida Department of Transportation has complicated the situation because those contractors are reportedly syphoning off subcontractors that Ashbritt would normally rely upon to meet its contract obligations because FtibOT negotiated reimbursement rates in their contracts which are more lucrative to the contractors than the prices included in the County's contract with Ashbritt. The Governor has indicated that he will not authorize FDOT's contractors to replace Ashbritt in its entirety and relieve the County of responsibility for debris removal on County roads altogether. Currently, FDOT contractors are reportedly removing the more lucrative large piles of debris, leaving Ashbritt to clean up the less lucrative scraps. The County has the following options to consider, which are not necessarily mutually exclusive: 1) Proceeding under the existing rates in the agreement with Ashbritt 2) Adopting an amendment to the contract which increases the prices.* 3) Declaring Ashbritt in default and terminating the agreement for cause. ** 4) Authorizing staff to issue an Emergency RFP to solicit additional and/or replacement contractors. * * 5) Working with FDOT to coordinate areas of responsibility between their contractors and the County's contractor(s). *There is a risk that FEMA will not reimburse the County for the adjusted rate requested by Ashbritt. Federal Regulations [2 CFR 200.320(f)] potentially authorize reimbursement for these increased rates but staff's efforts to secure approval from FEMA of the proposed increase rates have been unsuccessful to date. ** Staff cautions against simply declaring the contractor in default while seeking bids from other qualified bidders because this will result in unnecessary delays in the removal of debris. Moreover, market conditions are such that there is no certainty that a competitive solicitation will result in lower prices than the existing rates or more trucks. In short, there is no guarantee that any replacement contractor(s) will be in a better position to perform than Ashbritt. PREVIOUS RELEVANT BOCC ACTION: BOCC awarded the contract and approved the Agreement for Disaster Response and Recovery Services with AshBritt, Inc. at its June, 21, 2017 meeting. CONTRACT /AGREEMENT CHANGES: Potential changes to Certain Unit Prices STAFF RECOMMENDATION: Based upon current information, staff recommends option 1. DOCUMENTATION: Proposed Amendment 1 to AshBritt contract FINANCIAL IMPACT: Effective Date: 9/27/17 Expiration Date: Total Dollar Value of Contract: Total Cost to County: Current Year Portion: Budgeted: Source of Funds: potential FEMA & State Funds CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: No Grant: County Match: Insurance Required: Additional Details: If yes, amount: N/A REVIEWED BY: Bob Shillinger Completed 09/26/2017 3:44 PM Judith Clarke Skipped 09/25/2017 5:29 PM Christine Limbert Skipped 09/25/2017 5:29 PM Budget and Finance Skipped 09/25/2017 5:27 PM Maria Slavik Skipped 09/25/2017 5:27 PM Kathy Peters Completed 09/26/2017 3:52 PM Board of County Commissioners Pending 09/27/2017 4:00 PM AMENDMENT 1 TO THE AGREEMENT FOR DISASTER RESPONSE AND RECOVERY SERVICES THIS AMENDMENT 1 to the Agreement for Disaster Response and Recovery Services is entered into this 27th day of September, 2017 between Monroe County, whose address is 1100 Simonton Street, Room 2 -216 Key West, Florida 33040, hereafter the "County ", and AshBritt, Inc., a Corporation of the State of Florida, whose address is 565 E Hillsboro Boulevard, Deerfield Beach, Florida 33441, its successors and assigns, hereinafter referred to as "CONTRACTOR ". WHEREAS, the County and Contractor entered into a contract on June 21, 2017 ( "Contract ") for Disaster Response and Recovery Services after conducting a competitive solicitation whereby Contractor was the highest ranked respondent; and WHEREAS, on September 4, 2017, Governor Scott declared a State of Emergency under Executive Order Number 17 -235; and WHEREAS, on or about September 9th, 2017, Hurricane Irma, a major hurricane, made landfall in Monroe County causing wide spread damage in the Keys; and WHEREAS, Hurricane Irma continued to cause wide- spread damage across the State of Florida; and WHEREAS, Hurricane Harvey, another major hurricane, had struck the State of Texas several weeks earlier causing damage to that area of the United States; and WHEREAS, the effects from Hurricane Harvey and Hurricane Irma have caused damage across the State of Florida and Texas which has resulted in a need for equipment and resources to perform disaster response and recovery services; and WHEREAS, 2 CFR 200.320(f) allows for procurement by noncompetitive proposals when public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation; and WHEREAS, while the Contractor has been performing under the contract, due to the conditions of limited resources and escalating market rates, the rates that were previously established by the competitive solicitation are not sufficient at this time to procure the equipment and services needed to expeditiously remove debris in order to mitigate and avoid threats to life, public health and safety and to promote the economic recovery of the community; and WHEREAS, the Contractor represents that this amount of wide spread damages to the State of Texas and Florida resulting from two major hurricanes could not be anticipated at the time of this procurement; and WHEREAS, it is most cost effective and expedient to use our already mobilized Contractor who has begun debris collection activities, but utilize these amended rates at this time to so the Contractor can procure adequate equipment and resources in an accelerated manner as needed under the current market conditions that exist due to the public exigency and emergency created by Hurricane Irma and Harvey; and WHEREAS, it is expected that these market conditions causing the established rates set forth herein will continue for the next 30 and the County will require further justification for the price adjustments made herein after 30 days and expects for readjustment(decrease) of the prices to be made at that time in accordance with market conditions; NOW THEREFORE, in consideration of the mutual covenants and provisions contained herein, the parties agree as follows: 1. Attachment A Scope of Work and Pricing shall be revised as follows: Description Unit Original Price Adjusted Price Collect and Haul Vegetative Debris CYD $3.50 0 - 15 miles CYD $7.75 $8.75 15.1- 30 miles CYD $11.50 > 30 miles CYD $15.95 $17.95 Collect and Haul Non - Vegetative C &D Debris CYD 1 $25.00 0 - 15 miles CYD $7.75 $12.00 15.1- 30 miles CYD $11.50 $14.50 > 30 miles CYD $15.95 $17.95 Collect and Haul White Goods 0 - 15 miles EACH $10.00 15.1- 30 miles EACH $25.00 > 30 miles EACH $50.00 Uncleaned refrigerators and freezers EACH $50.00 (new price category) (for 0 -15 miles, 15.1 -30 miles and > 30 miles Collect and Haul Electronic Waste (e- waste 0 - 15 miles CYD $80.00 15.1- 30 miles CYD $100.00 > 30 miles CYD $150.00 Collect and Haul Household Hazardous Waste 0 - 15 miles CYD $30.00 15.2- 30 miles CYD $45.00 > 30 miles CYD $65.00 Collect and Haul Seaweed 0 - 15 miles CYD $25.00 15.3- 30 miles CYD $25.00 > 30 miles CYD 1 $35.00 Debris Site Management Unit Original Price Adjusted Price Vegetative CYD $3.50 Non-vegetative CYD $3.50 $4.75 White goods Each $3.75 Household haz waste CYD $19.00 Electronic waste CYD 1 $25.00 2 Seaweed I CYD $6.50 White goods — refrigerators only Each $8.00 1 $12.50 Haul Out to Final Disposal 0 -60 miles CYD $8.00 $24.00 61 -100 miles CYD $6.00 $24.00 101 -130 miles CYD $8.00 $24.00 Greater than 130 miles CYD $12.25 $24.00 White goods Each $50.00 Hazardous Tree and Hanging Limb Removal Tree Limb Removal Per Tree $95.00 (per $95.00 (per (previously, limb) tree p er limb Any prices not changed in the chart above shall remain as stated in the original Contract. 2. In Attachment A, paragraph (1)C., the seventh bullet point is amended to read as follows: • Vegetative Debris reduction shall be performed by burning at the TDSR site only. 3. In Attachment A, paragraph (2)C., the following sentence is added: The Contractor shall maintain a minimum of 200 trucks in the County until the debris removal and hauling services are certified as complete by the County. 4. The County will require further justification after 30 days for price adjustments made herein and expects for the prices to readjust (decrease) in accordance with market conditions and be revised by subsequent amendment to the contract. 5. In all other respects the Contract dated June 21, 2017 remains in full force and effect. 3 In WITNESS WHEREOF each party hereto has caused this Amendment to be executed by its duly authorized representative. (SEAL) MONROE COUNTY Attest: KEVIN MADOK, CLERK By: Deputy Clerk (SEAL) Attest: By: Title By: Mayor /Chairman AshBritt, Inc. By: Title 4