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HomeMy WebLinkAboutPR 21805: CONTRACT RENEWAL WITH ARDURRA GROUP, HURRICANE HARVEY PROJECTS City of «; -T� oft rthur www.PortArthurTx.gov INTEROFFICE MEMORANDUM Date: 02/9/2021 To: The Honorable Mayor and City Council Through: Ron Burton, City Manager From: Kandy Daniel, Interim Director of Finance RE: PR No. 21805 -Approval of Contract Renewal with Ardurra Group for recovery grant management and administration services related to Hurricane Harvey projects Introduction: The intent of this Agenda Item is to seek City Council's approval a one year contract extension with Ardurra Group in an amount not to exceed an additional $2.22 million for recovery grant management and administration services related to Hurricane Harvey projects. The new contract period will end on March 31, 2022. Background: The City experienced significant costs and property damage as a result of Hurricane Harvey. Staff continues working to maximize expense reimbursements and project funding available through FEMA and other sources. On March 27,2018,the City Council approved Resolution 18-120 authorizing the City Manager to execute a one year agreement with Ardurra Group for recovery grant management and administration services in an amount not to exceed$1.7 million. The initial contract allowed for renewals up to four(4) additional years. On March 19, 2019, the City Council approved Resolution 19-096 authorizing a one year extension of the contract, providing additional contract funding in the amount not to exceed $1.75 million(Total contract amount not to exceed $3.45 million). "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 City of of rthur Ie�us www.PortArthurTx.gov On March 17, 2020, the City Council approved Resolution 20-096 authorizing a second year contract renewal with Ardurra Group in an amount not to exceed an additional $1.05 million (Total contract amount not to exceed$4.5 million). $3.5 million is for FEMA Public Assistance and FEMA 406 Mitigation related Projects and $1 million is for FEMA 404 Mitigation project development and project management activities. This proposed resolution authorizes the execution of a third year contract renewal with Ardurra Group in an amount not to exceed an additional $2.22 million (Total contract amount not to exceed$6.72 million). $3.62 million is for FEMA Public Assistance and FEMA 406 Mitigation related Projects and $3.1 million is for FEMA 404 Mitigation project development and project management activities. Budget Impact: At the current level of damages, it is now anticipated that approximately $5 million of the $6.72 million contract will be reimbursed through FEMA and/or CDBG Grants leaving a potential cost to the City of$1.72 million. There are several projects under FEMA review which could result in a greater level of FEMA reimbursement and reduce the out of pocket cost to the City.Additional support from TDEM through SB7 will have a positive impact on the City's cost share on these projects as well. At some point a budget amendment may be necessary to cover any costs not reimbursed through FEMA, Insurance or Grants. The contract will be paid from the Hurricane Harvey account#147-2300-901.54-00. Recommendation: It is recommended that City Council approve a one year contract extension with Ardurra Group in an amount not to exceed an additional $2.22 million for recovery grant management and administration services related to Hurricane Harvey projects. The new contract period will end on March 31, 2022. "Remember,we are hereto serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 P.R. NO. 21805 2/9/21 KD RESOLUTION NO. A RESOLUTION AUTHORIZING A ONE YEAR EXTENSION OF THE CONTRACT WITH ARDURRA GROUP, LLC FOR DISASTER RECOVERY GRANT MANAGEMENT AND ADMINISTRATION SERVICES AND PROVIDING ADDITIONAL CONTRACT FUNDING OF $2.22 MILLION;FUND AVAILABILITY IS SUBJECT TO REIMBURSEMENT FROM FEMA AND/OR OTHER SOURCES;TO BE PAID FROM HURRICANE HARVEY ACCOUNT# 147-2300-901.54-00. WHEREAS, Hurricane Harvey brought an unprecedented amount of damage to the City of Port Arthur; and WHEREAS, funds are available from the Federal Emergency Management Agency (FEMA) grant programs, and WHEREAS, the City does not have sufficient staffing with the specific knowledge and expertise to develop projects and manage these sources of revenue to maximize the benefit to the citizens of Port Arthur; and WHEREAS, after a review of proposals submitted by qualified firms through an advertised process, Ardurra Group, LLC was selected as the firm to best meet the needs of the City; and WHEREAS,On March 27,2018,the City Council approved Resolution 18-120 authorizing a one year agreement with Ardurra Group, LLC for recovery grant management and administration services; and WHEREAS,On March 19,2019,the City Council approved Resolution 19-096 authorizing a one year extension with Ardurra Group, LLC for recovery grant management and administration services; and WHEREAS,On March 17,2020,the City Council approved Resolution 20-096 authorizing a one year extension with Ardurra Group, LLC for recovery grant management and administration services; and WHEREAS, the City has been satisfied with the performance of Ardurra Group,LLC and deems it in the best interest of the citizens to renew the contract for an additional year. NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That City Council hereby authorizes the extension of the agreement for one year with an amended termination date of March 31, 2022. Section 3. That the City Council hereby authorizes an increase to the total contract compensation amount from $3.5 million to$3.62 million for FEMA Public Assistance and FEMA 406 Mitigation projects and from$1 million to$3.1 million for FEMA 404 project development and project management activities, for a total contract amount not to exceed $2.2 million. (See attachment"A"for contract summary) Section 4. That a copy of the caption of this Resolution shall be spread upon the Minutes of the City Council. READ, ADOPTED, AND APPROVED, this day of , 2021 AD, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: Councilmembers: NOES: Thurman"Bill" Bartie, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED AS TO FORM: Valecia R. Tizeno, City Attorney APPROVED FOR ADMINISTRATION: Ron Burton, City Manager APPROVED AS TO AVAILABILITY OF FUNDS: Kandy Danierl Interim Finance Director ATTACHMENT "A" (Contract Summary—Ardurra Group, LLC) Attachment A Ardurra Group Contract Summary Hurricane Harvey Recovery Grant Management and Admin Services 5 year contract renewable annually at April 1 Project Public 404 Resolution# Assistance Development Total 18-120 1,700,000 1,700,000 19-096 1,000,000 750,000 1,750,000 20-096 800,000 250,000 1,050,000 Total Approved 3,500,000 1,000,000 4,500,000 Additional Requested 120,000 2,100,000 2,220,000 Total 3,620,000 3,100,000 6,720,000 ATTACHMENT "B" (Contract with Ardurra Group, LLC) AR © URRA 2032 Buffalo Terrace Houston,TX 77019 www.ardurragroup.com February 8, 2021 City of Port Arthur Attention: Ron Burton City Manager P.O. Box 1089 Port Arthur, TX 77641 Hand Delivered to 444 4th St. Port Arthur, TX 77641 Subject: Disaster Management Contract Ardurra Project No. 2018-0235-00 Dear Mr. Burton, Ardurra wishes to express our gratitude for the trust and partnership that has been established during the existing contractual agreement with Port Arthur in assisting with the recovery from the devastation due to Disaster 4332, Hurricane Harvey. During this partnership, together we have been able to identify and develop a myriad of projects designed to help make the City whole following the storm damages created by Harvey. We trust that during the course of our current contract period there has been expert support and guidance provided and that we have reached a level of partnership that greatly aids in the recovery process designed to move the City through the treacherous federal process, all the while identifying additional opportunities to find broader scopes of work and funding to serve the City. Accordingly, and pursuant to our current agreement for Disaster Consultation services with the City of Port Arthur, Section 3 (Terms and Termination), Ardurra hereby respectfully requests an additional amendment to the contract which is set to terminate on April 1, 2021. The following amendments are presented for your review and approval: strikethrough language to be deleted and underlined language to be added 3. Term and Termination: This agreement shall begin on April 2, 2018 and terminate on April 1, 2019 April, 1 2020, April 1, 2021 April 1, 2022. This agreement may be terminated for convenience by either party upon 60 day written notice to the other party. Upon such termination, CITY shall pay Consultant, at the rates set out in Exhibit B,for services satisfactorily performed up through the date of termination. Notwithstanding any provision in this Agreement to the contrary, CITY will not be required to pay or reimburse Consultant for any services performed or for expenses incurred by Consultant after the date of the termination notice that could have been avoided or mitigated by Consultant. 4. Compensation: Consultant shall be paid for the services as set forth in Exhibit B, attached and incorporated for all purposes. The total compensation under this Agreement for the above term shall not exceed Three Million Five Hundred Thousand Dollars ($3,620,00.00) for FEMA Public Assistance and FEMA 406 Mitigation related projects. This equates to no additional funds over the period of extension. The total compensation for the current contract period (4/2/20—4/1/21) for the 404 FEMA Hazard Mitigation project management is amended to a total compensation amount of($3,100,000.00). Subsequent to the compensation amendment, the contract period shall be amended to terminate on April 1,2022. CONTRACT PERIOD CONTRACT TASK NOT TO EXCEED PROJECTED AMOUNT CITY COSTS April 2020—April 2021 FEMA Public Assistance from $2.7M to $3.5M $1.6M April 2021 —April 2022 FEMA Public Assistance from $3.5M to $3.6M $1.6M April 2020—April 2021 404 Hazard Mitigation from 750K to $1M $175K Project Development/ (amended to $3.1M Management 2/21) April 2021 —April 2022 404 Hazard Mitigation from $3.1M to $3.1M $175K Project Management At the current level of damages and anticipated FEMA participation, the projected FEMA support for reimbursement of Direct Administrative Costs relative to Public Assistance projects equals $1.9M. It is noted that these projections are based on the current damage estimates and has decreased based on the recovery of insurance benefits and FEMA determination of identified damages being removed as eligible. There are several projects under FEMA review which could result in a greater level of FEMA reimbursement and reduce the out of pocket cost to the City. There is also an anticipated level of assistance from TDEM through SB7 that will offset a portion of the City's cost share. At the current level of damages and anticipated FEMA participation, the projected FEMA support for reimbursement of Administrative Costs relative to the 404 Mitigation projects is greater than$3.1M. Additional support from SB7 will have a positive impact on the City's cost share on these projects as well. CITY shall pay Consultant in accordance with the Texas Government Code 2251. Consultant must submit invoices for all services for Public Assistance/406 Mitigation Services and 404 Hazard Mitigation Services separately, which invoices must include dates of service and details of services provided. Payment for delivery of services rendered shall not be unreasonably withheld or delayed. If CITY disapproves any amount submitted for payment by Consultant, CITY shall remit payment of approved charges and give Consultant specific reasons for disapproved items in writing. Upon resolution of any disputed charges, Consultant shall submit an amended invoice covering any remaining charges to CITY. Thank you for your confidence and partnership in the recovery of the City of Port Arthur. Please do not hesitate to contact me should you have any questions regarding this request. Respectfully, Craig Taffaro Ardurra Technical Director- Federal Recovery Programs EXHIBIT B RATE SCHEDULE Labor Category Hourly Rate-Total including All Expenses Principal $ 240 Project Team Leader $ 225 Public Assistance Officer I $ 100 Public Assistance Officer II $ 120 Public Assistance Officer III $ 140 Mitigation Specialist I $ 120 Mitigation Specialist II $ 130 Mitigation Specialist III $ 150 Appeals Specialist $ 150 Insurance Specialist I $ 100 Insurance Specialist II $ 120 Insurance Specialist III $ 140 Cost Estimator I $ 100 Cost Estimator II $ 130 Accounting Supervisor $ 180 Accountant Level II Journal Entry $ 130 Grant Administrator $ 160 Sr. Grant Administrator $ 180 Programmer $ 130 Senior Programmer $ 150 Damage Assessment Specialist I $ 125 Damage Assessment Specialist II $ 145 Damage Assessment Specialist III $ 165 Closeout Specialist I $ 100 Closeout Specialist II $ 120 Closeout Specialist III $ 140 Debris Specialist I $ 115 $ 130 Debris Specialist II REST OF PAGE LEFT BLANK INTENTIONALLY