From
Bryce Davis, Purchasing Manager
Title
Award a prepositioned Disaster Debris Monitoring contract to DebrisTech, LLC for the in the amount not to exceed $20,000,000; Award a secondary prepositioned Disaster Debris Monitoring contract to Tetra Tech, Inc. in the amount not to exceed $20,000,000 should the primary be unable to perform; Award our prepositioned Disaster Debris Hauling contract to Ceres Environmental Services, Inc. in the amount not to exceed $20,000,000; Award a secondary prepositioned Disaster Debris Hauling contract to D&J Enterprises, Inc. in the amount not to exceed $20,000,000 should the primary be unable to perform; Each contract will be for an initial term of one year with the option for four one-year renewals and authorizethe City Manager to execute the renewal options on each contract.
Presenter
Patricia Redfearn, Solid Waste and Recycling Manager
Chase Wheeler, Emergency Management Coordinator
Recommend Action
Approve
Analysis
These estimated costs were derived using a hypothetical storm event with a set amount of debris to be hauled and reduced. Actual costs will depend upon the amount of materials generated by a large-scale debris generating event. This price agreement will only be used in the event of a large scale debris generating disaster.
Within the last three years, the mid-west has seen a number of catastrophic storm events that have produced large quantities of disaster debris. Each of these events has produced an unanticipated amount of construction and demolition waste, household hazardous waste, vegetative debris and appliances. These events can cost a community millions of dollars in unanticipated expense but a significant portion of it, if handled in accordance with Public Assistance directives, are reimbursable. Were Grand Prairie to experience a storm such as the tornado that struck Moore, Oklahoma on May 20, 2013, the city would need to be able to respond quickly to questions of how to best handle the additional storm-generated materials and how to do so in the most fiscally responsible manner.
City Staff requested proposals from qualified and experienced contractors for a stand-by contract for disaster debris hauling and monitoring in the event of a natural or man-made disaster. Disaster Hauling would be for the clearance, demolition, removal, reduction, and disposal of disaster debris as directed by the City in order to eliminate immediate threat to the public health and safety. Disaster debris monitoring services, if activated, would efficiently monitor the removal of large volumes of disaster-generated waste from a large area in a timely and cost-effective manner. Due to FEMA requirements, hauling and monitoring must be awarded to two separate Contractors.
Each contract will be for an initial term of one year with the option for four one-year renewals. Each term contract value would be $20,000,000 prepositioned and ready should we ever need disaster debris services.
RFP# 19060 was published on March 8th & March 15th, 2019 in the Star Telegram, bidsync.com, and directly distributed to 155 vendors. Five bids were received for debris hauling and four bids were received for debris monitoring as shown on Attachment A.
Primary vendors, DebrisTech and Ceres Environmental Services & secondary vendors, Tetra Tech and D&J Enterprises, meet all specifications and are recommended for award.
Financial Consideration
All of the City’s property and assets are currently insured through the Texas Municipal League (TML). However, the decision to request federal assistance comes after all local and state resources have been exhausted and an uninsured losses threshold has been exceeded. The Stafford Act states the following:
Section 401. Procedures for Declaration. All requests for a declaration by the President that a major disaster exists shall be made by the Governor of the affected state. Such a request shall be based on a finding that the disaster is of such severity and magnitude that effective response is beyond the capabilities of the state and the affected local governments and that the federal assistance is necessary. As a part of such request, and as a prerequisite to major disaster assistance under this Act, the Governor shall take appropriate response action under state law and direct execution of the state’s emergency plan. The Governor shall furnish information on the nature and amount of State and local resources which have been or will be committed to alleviating the results of the disaster and shall certify that, for the current disaster, state and local government obligations and expenditures (of which state commitments must be a significant proportion) will comply with all applicable cost-sharing requirements of this Act. Based on the request of a Governor under this section, the President may declare under this Act that a major disaster or emergency exists.
Therefore, the City requires additional reviews and approvals of accessing, appropriating and utilizing available funding until any FEMA assistance is provided. A Reimbursement Resolution request will be necessary to allow use of available funds such as reserves and will require repayment of such funds upon the approval of another funding mechanism, such as debt issuance.
Debt will be specific to an operation’s capital needs. Depending upon the nature of the specific debris generating event, debt issuance will vary by type, structure and dollar amount. Due to the emergency circumstances, this process nature would be expedited. It is estimated that debt funds may be available within 30-60 days or as quickly as a reimbursement resolution could be approved by City Council.