STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: January 22, 2020
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Elizabeth Reich
______________________________________________________________________
SUBJECT
Title
Authorize (1) Supplemental Agreement No. 2 to increase the service contract with National Waste Management Louisiana, Inc. dba NWMLA, Inc. for yard waste grinding services for the Department Sanitation Services in the amount of $544,475, from $2,177,900 to $2,722,375; and (2) the ratification of $700,000 to pay outstanding yard waste grinding service invoices associated with the October 20, 2019 tornado with National Waste Management Louisiana, Inc. dba NWMLA, Inc. - Total not to exceed $1,244,475 - Financing: Sanitation Operation Fund (subject to appropriations)
Body
BACKGROUND
This action does not encumber funds; the purpose of a service contract is to establish firm pricing for services, for a specific term, which are ordered on an as needed basis.
This increase to the services contract will allow for the continuation of yard waste grinding for the Department of Sanitation Services (SAN). SAN utilizes this service contract at the City's landfill and transfer stations for the grinding of yard and vegetated waste from shrub and tree trimming. Grinding is primarily used to reduce disposal volume and save airspace at the landfill. This service contract also allows for off-site yard waste grinding when delivery of the yard waste to the landfill or transfer station is not possible due to, but not limited to:
• Storm damage
• Non-weather-related emergencies
• Neighborhood clean-up projects
This increase to the current contract will allow the City to continue to receive services while a new contract is solicited.
The ratification of funds is needed to pay outstanding invoices that were a result of drastically reduced funding of the current contract. This unforeseen reduction in available funds was due to an increase of emergency services caused by the October 20, 2019 tornado. While historical actuals were used to determine the funding needs in the current contract, the unforeseen natural disaster, outpaced the original estimates.
On November 10, 2015, the City Council authorized a living wage policy that requires contractors to pay their employees a “living wage” rate as established annually by the Massachusetts Institute of Technology Living Wage Calculator for Dallas County by Resolution No. 15-2141. This supplemental contract includes the most current living wage of $11.71.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On January 13, 2016, City Council authorized a three-year service contract for yard waste grinding services at the City's landfill and transfer stations with National Waste Management Louisiana, Inc. by Resolution No. 16-0125.
FISCAL INFORMATION
Sanitation Operation Fund - $1,244,475.00 (subject to appropriations)
M/WBE INFORMATION
In accordance with the City’s Business Inclusion and Development Plan adopted on October 22, 2008, by Resolution No. 08-2826, as amended, the M/WBE participation on this contract is as follows:
|
Contract Amount |
Category |
M/WBE Goal |
M/WBE % |
M/WBE $ |
|
$544,475.00 |
Other Services |
23.80% |
0.00% |
$0.00 |
|
• This contract does not meet the M/WBE goal, but complies with good faith efforts. |
|
• Supplemental Agreement No. 2 - 0.00% Overall M/WBE Participation |
OWNER
National Waste Management Louisiana, Inc. dba NWMLA
Christopher Roberts, Operations Manager