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Agenda 05/14/2024 Item #12A (Third amendment to agreement #15-6365 with AshBritt, Inc.)05/14/2024 EXECUTIVE SUMMARY Recommendation to approve the Third Amendment to Agreement No. 15-6365 for “Disaster Debris Management Removal and Disposal Services” with AshBritt, Inc., adjusting core disaster debris service fees by 3% and secondary camp and comfort service fees to current market rates, clarifying disputed line items for debris haul-out, designating the contractor as the primary vendor, waiving any purchasing irregularities, releasing the County from any disputes or claims related to Hurricane Ian Debris Haul-out, and authorize the Chairman to sign the Amendment. OBJECTIVE: To approve the Third Amendment to Agreement No. 15-6365 with AshBritt, Inc. CONSIDERATIONS: Florida Statute tasks local governments to provide disaster response and recovery services to help the public before, during, and after disasters. On January 12, 2016, the Board awarded Agreement No. 15-6365 (the “Agreement”) to three vendors, including Ashbritt, Inc., to perform disaster debris removal and other related disaster response services. The contract terms include a five-year initial term and five one-year renewals. We are currently in the fourth of the five one-year renewal periods. Ashbritt, Inc. has managed Collier County's recent disaster debris removal following Hurricanes Irma and Ian. The company's field operations were prompt and efficient, aligning with the County's expectations and contributing to the recovery efforts from these disasters. On September 11, 2018, the Board approved the First Amendment to the Agreement with Ashbritt, Inc., incorporating rates for marine operations. The Agreement was amended again on April 25, 2023, to adjust the Fee Schedule to reflect the Consumer Price Index (CPI). The Third Amendment adjusts the fee schedule for the CPI (3%), clarifies and adjusts the final haul-out billing table, adjusts disaster response services (Camp and Comfort Services) to reflect market rates for these seldom-used contingency services, and releases vendor claims associated with Hurricane Ian invoices. The Agreement was renewed on December 21, 2023; however, Ashbritt’s renewal is conditioned on amendment and clarification of the fee schedule. Per the standard procedure, compacted Construction & Demolition debris from Hurricane Ian was transported to the Okeechobee Landfill for final disposal, per the Debris Haul-out billing table of the Ashbritt contract. However, the billing approach for Hurricane Ian differed from that of Hurricane Irma. Ashbritt’s interpretation of the contract led to an original submission billed rate of $28.42/cu yd and a second submission rate of $25.17/cu yd, compared to a rate of $11.32/cu yd under the Hurricane Irma billing approach. This discrepancy in approach resulted in a $2.7 million short payment relative to the second submission invoiced amount for Hurricane Ian debris haul -out. To address the cause of the billing dispute, the Debris Haul-Out and Disposal rate table has been clarified. Clarifications include removing line items U040 and U041 increasing lines U037, U038, and U039 by 5%, and decreasing the price per yard/mile of line U042 to $0.13 from $0.20. As a result, the rate for the final haul to the Okeechobee landfill is estimated to be approximately $16.82 per yard. This adjustment, coupled with the designation of Ashbritt as the primary vendor, effectively resolves the $2.7 million disputed payment issue relative to the Hurricane Ian Debris Haul-out payment. Accordingly, the amendment releases and discharges the County from all claims that may have arisen in connection with the disputed payment, including but not limited to all services rendered in response to Hurricane Ian. Identifying Ashbritt as the primary vendor under contract 15-6365 is a departure from the terms initially established when the contract was approved and staff recommends waiving any purchasing irregularity resulting from this action. The Contracts for all three vendors for Disaster Debris Management Removal and Disposal Services will continue to be subject to performance driven proposals prior to any landfall including first 24hrs, 48hrs, 72 hrs and recovery including timeline driven deliverables till completion. 12.A Packet Pg. 265 05/14/2024 FISCAL IMPACT: The vendor has disputed the County’s $2.7 million short pay of Hurricane Ian invoices. The release of the vendor's claim is an element of the Third Amendment. Debris removal costs are dependent upon the severity and magnitude of each storm and can vary greatly. Under the Third Amendment, the cost of Hurricane Ian debris removal services would increase by approximately $1.6 million. Approximately 87.5% of costs have historically been reimbursed from FEMA, insurance, and interlocal partners. Funds for debris removal are paid out of the Solid Waste Capital Project fund (4074). Reserves for hurricane debris removal are held in Solid Waste Landfill Closure and Debris Mission Reserves fund (4071). GROWTH MANAGEMENT IMPACT: There is no Growth Management impact resulting from this action. LEGAL CONSIDERATIONS: This item is approved for form and legality and requires a majority vote for approval. -JAK RECOMMENDATION: To approve the Third Amendment to Agreement No. 15-6365 for “Disaster Debris Management and Disposal Services” with AshBritt, Inc., adjusting core disaster debris service fees by 3% and secondary camp and comfort service fees to current market rates, adjusting and clarifying disputed line items for debris haul-out, designating the contractor as the primary vendor, waiving any purchasing irregularities, releasing the County from any disputes or claims related to Hurricane Ian Debris Haul -out, and authorize the Chairman to sign the Amendment. Prepared By: Ed Finn, Deputy County Manager Kari Hodgson, P.E., Solid Waste Director ATTACHMENT(S) 1. [Linked] Ashbritt Amendment final (PDF) 2. [Linked] 15-6365 Ashbritt Contract 3. PP Slide Haul Out Clarification (PDF) 12.A Packet Pg. 266 05/14/2024 COLLIER COUNTY Board of County Commissioners Item Number: 12.A Doc ID: 27583 Item Summary: Recommendation to approve the Third Amendment to Agreement No. 15-6365 for “Disaster Debris Management Removal and Disposal Services” with AshBritt, Inc., adjusting core disaster debris service fees by 3% and secondary camp and comfort service fees to current market rates, clarifying disputed line items for debris haul-out, designating the contractor as the primary vendor, waiving any purchasing irregularities, releasing the County from any disputes or claims related to Hurricane Ian Debris Haul-out, and authorize the Chairman to sign the Amendment. Meeting Date: 05/14/2024 Prepared by: Title: Management Analyst II – County Manager's Office Name: Geoffrey Willig 01/02/2024 8:37 AM Submitted by: Title: Department Head - Public Utilities – Public Utilities Department Name: George Yilmaz 01/02/2024 8:37 AM Approved By: Review: Public Utilities Operations Support Joseph Bellone Additional Reviewer Completed 05/01/2024 2:12 PM Solid and Hazardous Waste Kari Hodgson Additional Reviewer Completed 05/08/2024 1:34 PM County Attorney's Office Sally Ashkar CAO Reviewer Completed 05/08/2024 2:26 PM Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 05/08/2024 3:42 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 05/08/2024 3:43 PM Office of Management and Budget Blanca Aquino Luque OMB Reviewer Completed 05/08/2024 3:56 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 05/08/2024 4:15 PM County Manager's Office Amy Patterson Level 4 County Manager Review Completed 05/08/2024 4:18 PM Board of County Commissioners Geoffrey Willig Meeting Pending 05/14/2024 9:00 AM 12.A Packet Pg. 267 Debris Haul Out and Disposal Pricing Clarification 1 •Delete mileage increment lines U040, and U041 to make table consistent with other contract tables. •Revise line U042 so that the per CY/Mile rate applies to miles over 60 (greater than highest mileage increment) •Pricing of lines U037, UO38 and UO39 adjusted by 5% •Provide an example of the calculation method May 14, 2024 Item 27583 12.A.c Packet Pg. 268 Attachment: PP Slide Haul Out Clarification (27583 : AshBritt, Inc., Third Amendment)