STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: April 28, 2021
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Elizabeth Reich
______________________________________________________________________
SUBJECT
Title
Authorize a three-year service price agreement for scrap tire removal from the Trinity River and removal of trash and debris from creeks, channels, vacant lots, and Lake Ray Hubbard for the Water Utilities Department - Good Earth Corporation, lowest responsible bidder of two - Estimated amount of $2,620,000 - Financing: Stormwater Drainage Management Fund ($2,500,000) and Dallas Water Utilities Fund ($120,000)
Body
BACKGROUND
This action does not encumber funds; the purpose of a service price agreement is to establish firm pricing for services, for a specific term, which are ordered on an as needed basis according to annual budgetary appropriations. The estimated amount is intended as guidance rather than a cap on spending under the agreement, so that actual need combined with the amount budgeted will determine the amount spent under this agreement.
This service price agreement will provide for scrap tire removal from the Trinity River and removal of trash and debris from creeks, channels, vacant lots, and Lake Ray Hubbard. Through Citywide initiatives to remove litter from the City's creeks, lakes and rivers, the City realized the necessity to remove the numerous tires that have been illegally dumped in the Trinity River causing deteriorating water quality. The awarded vendor will be responsible for transporting and disposing of tires in accordance to the Texas Commission on Environmental Quality (TCEQ).
The City owns Lake Ray Hubbard which is used as a major water source. The accumulation of trash and debris in the Rowlett Creek portion of the lake has generated numerous complaints from citizens. Although the debris has not adversely affected water quality of the lake, the removal of the trash and debris is consistent with the TCEQ's Texas Surface Water Quality Standards as they relate to floating debris and aesthetic conditions.
As part of the solicitation process and in an effort to increase competition, the Office of Procurement Services used its procurement system to send out email notifications to vendors registered under relevant commodity codes. To further increase competition, the Office of Procurement Services uses historical solicitation information, the Internet, and vendor contact information obtained from user departments to contact additional vendors.
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. The current calculated living wage during the solicitation process of this contract is $12.38; the selected vendor meets this requirement.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On January 22, 2014, City Council authorized a three-year service contract for scrap tire removal from the Trinity River and trash and debris removal from Lake Ray Hubbard with Good Earth Corporation, Inc. and Hess Construction, LLC by Resolution No. 14-0174.
FISCAL INFORMATION
Fund |
FY 2021 |
FY 2022 |
Future Years |
Stormwater Drainage Management Fund |
$900,000.00 |
$850,000.00 |
$750,000.00 |
Dallas Water Utilities Fund |
$ 0.00 |
$ 0.00 |
$120,000.00 |
Total |
$900,000.00 |
$850,000.00 |
$870,000.00 |
M/WBE INFORMATION
In accordance with the City’s Business Inclusion and Development Policy adopted on September 23, 2020, by Resolution No. 20-1430, as amended, the M/WBE participation on this contract is as follows:
Contract Amount |
Procurement Category |
M/WBE Goal |
M/WBE % |
M/WBE $ |
$2,620,000.00 |
Other Services |
N/A |
30.00% |
$786,000.00 |
• The Business inclusion and Development Policy does not apply to Other Service contracts, however the prime contractor is subcontracting with certified M/WBEs. |
• Good Earth Corporation - Local; Workforce - 79.00% Local |
PROCUREMENT INFORMATION
Method of Evaluation for Award Type:
Low Bid |
• Recommended vendor is based on the lowest competitive quoted price, who is also technically and financially capable of performing and completing the contract, and otherwise meets all material specification requirements |
|
• Negotiations are not allowed |
The Office of Procurement Services received the following bids from solicitation number BF21-00014101. We opened them on January 7, 2021. We recommend the City Council award this service price agreement to the lowest responsive and responsible bidder by group.
*Denotes successful bidder
Bidders Address Amount
*Good Earth Corporation 7922 Forney Rd. Group 1 - $ 750,000.00
Dallas, TX 75087 Group 2 - $ 1,750,000.00
Group 3 - $ 120,000.00
Hess Construction LLC 3330 Cobb Pkwy. Group 1 - $32,000,000.00
Acworth, GA 30101 Group 2 - $44,400,000.00
Group 3 - $ 450,000.00
OWNER
Good Earth Corporation
Ron Points, Owner
Kevin Points, President