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Agenda 04/25/2023 Item #16C 5 (To amend Agreement No.15-6365 with AshBritt Inc to increase the fee schedule rates 7% effective on the renewal date of 01/12/2023)04/25/2023 EXECUTIVE SUMMARY Recommendation to approve the Second Amendment to Agreement No. 15-6365 for “FEMA Acceptable Debris Removal for Disaster Generated Debris” with AshBritt, Inc., d/b/a AshBritt Environmental, to increase the fee schedule rates 7%, effective on the renewal date of January 12, 2023, and authorize the Chairman to sign the amendment. OBJECTIVE: To amend Agreement No. 15-6365 with AshBritt, Inc., to increase the fee schedule rates 7%, effective on the renewal date of January 12, 2023. CONSIDERATIONS: On January 12, 2016 (Agenda Item 16.C.1) the Board approved a library of vendors for performing debris removal services, with Ashbritt, Inc., for performance of disaster debris removal services. The contract terms included a five-year initial term and five one-year renewals that allow the vendor to request a price increase at the time of renewal. On September 11, 2018 (Agenda Item 16.F.1.), the Board ratified the first amendment of the Ashbritt, Inc., contract approved in Absentia on August 28, 2018, to incorporate rates for marine operations. Debris removal contracts are utilized countywide and are activated during a time of disaster to provide the resources necessary for the safe and timely removal of debris, and the expense for debris removal is usually a major portion of any disaster cleanup cost. Those costs are shared with the incorporated areas through interlocal agreements, and the Federal Emergency Management Agency (FEMA) has historically provided reimbursement between 75% to 100% of eligible expenses. Since contract approval, Ashbritt, Inc., has been activated for debris removal for both major Hurricanes Irma (2017) and Ian (2022). Ashbritt, Inc., was paid $63 million for Hurricane Irma debris removal and their current purchase order for Hurricane Ian is $36 million. On September 24, 2022, Ashbritt, Inc., requested a rate increase of 8.3%. Rate increases can only be requested at the time of renewal; therefore, the request was denied. At the time of the third contract ren ewal, AshBritt, Inc., requested a rate increase of 7.7%. The requested rates were evaluated for cost reasonableness and AshBritt, Inc., ultimately agreed to exercise the third of five contract renewals through January 11, 2024 with a rate increase of 7%. FISCAL IMPACT: The costs of debris removal depend upon the severity and nature of the storm. For Hurricane Ian, the fiscal impact is estimated to increase the debris removal expenses, estimated at $36 million, by approximately $32,000, since most of the removal work was done prior to the contract renewal date. If another storm, similar to Hurricane Ian, were to occur, the fiscal impact of the 7.0% increase is estimated to be approximately $2.5 million. Eligible debris monitoring and removal expenses are eventually reimbursed by FEMA, insurance, or interlocal partners; however, not all expenses are eligible for reimbursement. Funds for debris removal are within the Solid Waste Capital Project fund (474). Reserves for hurricane debris removal are held in Solid Waste Landfill Closure and Debris Mission Reserves fund (471). GROWTH MANAGEMENT IMPACT: There is no Growth Management impact resulting from this action. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality and requires majority vote for approval. -JAK RECOMMENDATION: To approve the Second Amendment to Agreement No. 15-6365 for “FEMA Acceptable Debris Removal for Disaster Generated Debris” with AshBritt, Inc., d/b/a AshBritt Environme ntal, to increase the fee schedule rates 7%, effective on the renewal date of January 12, 2023, and authorize the Chairman to sign the amendment. Prepared by: Kari Hodgson, P.E. Director, Solid & Hazardous Waste Management Division 16.C.5 Packet Pg. 1578 04/25/2023 Megan Gaillard, Interim Director, Utilities Finance ATTACHMENT(S) 1. [Linked] 15-6365 Ashbritt Contract (PDF) 2. 15-6365 AshBritt Amendment#1 (PDF) 3. 15-6365 AshBritt Amendment #2 (PDF) 16.C.5 Packet Pg. 1579 04/25/2023 COLLIER COUNTY Board of County Commissioners Item Number: 16.C.5 Doc ID: 25238 Item Summary: Recommendation to approve the Second Amendment to Agreement No. 15-6365 for “FEMA Acceptable Debris Removal for Disaster Generated Debris” with AshBritt, Inc., d/b/a AshBritt Environmental, to increase the fee schedule rates 7%, effective on the renewal date of January 12, 2023, and authorize the Chairman to sign the amendment. Meeting Date: 04/25/2023 Prepared by: Title: – Solid and Hazardous Waste Name: Bart Zautcke 04/13/2023 8:41 AM Submitted by: Title: – Solid and Hazardous Waste Name: Kari Hodgson 04/13/2023 8:41 AM Approved By: Review: Solid and Hazardous Waste Bart Zautcke Additional Reviewer Completed 04/13/2023 8:42 AM Procurement Services Ana Reynoso Level 1 Purchasing Gatekeeper Completed 04/13/2023 9:52 AM Procurement Services Sue Zimmerman Additional Reviewer Completed 04/13/2023 10:31 AM Solid and Hazardous Waste Kari Hodgson Additional Reviewer Completed 04/13/2023 11:26 AM Public Utilities Department Drew Cody Level 1 Division Reviewer Completed 04/14/2023 9:04 AM Procurement Services Sandra Herrera Procurement Director Review Completed 04/15/2023 12:17 PM Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 04/17/2023 3:11 PM Grants Erica Robinson Level 2 Grants Review Completed 04/18/2023 10:21 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 04/18/2023 10:47 AM Corporate Compliance and Continuous Improvement Megan Gaillard Additional Reviewer Completed 04/18/2023 10:49 AM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 04/18/2023 10:53 AM Grants Therese Stanley Additional Reviewer Completed 04/19/2023 9:15 AM Community & Human Services Maggie Lopez Additional Reviewer Completed 04/19/2023 9:19 AM County Manager's Office Dan Rodriguez Level 4 County Manager Review Completed 04/19/2023 11:07 AM Board of County Commissioners Geoffrey Willig Meeting Pending 04/25/2023 9:00 AM 16.C.5 Packet Pg. 1580 16.C.5.bPacket Pg. 1581Attachment: 15-6365 AshBritt Amendment#1 (25238 : AshBritt Amendment 2) 16.C.5.bPacket Pg. 1582Attachment: 15-6365 AshBritt Amendment#1 (25238 : AshBritt Amendment 2) 16.C.5.c Packet Pg. 1583 Attachment: 15-6365 AshBritt Amendment #2 (25238 : AshBritt Amendment 2) 16.C.5.c Packet Pg. 1584 Attachment: 15-6365 AshBritt Amendment #2 (25238 : AshBritt Amendment 2)