ORDINANCE approving and authorizing agreements between City of Houston and (1) PEACE OF MIND COMFORT SOLUTIONS, LLC, (2) PEREZ DEMOLITION, INC, (3) EMMANUEL ENTERPRISES LLC, and (4) COMPASS ABATEMENT SERVICES LLC for Demolition Services for the Department of Neighborhoods; providing for a maximum amount - 3 Years with 2 one-year options - $3,000,000.00 - Dangerous Building Consolidated Fund

Formal Bids Received April 21, 2022, for P05-N31223 – An Ordinance approving and authorizing various contracts between the City of Houston and (1) Peace of Mind Comfort Solutions LLC, (2) Perez Demolition Inc, (3) Emanuel Enterprises LLC, and (4) Compass Abatement Services LLC, in the maximum amount of $18,189,839.30 for demolition services for the Department of Neighborhoods.

Specific Explanation:

The Director of the Department of Neighborhoods and the Interim Chief Procurement Officer recommend that City Council approve an ordinance approving and authorizing various contracts between the City of Houston and (1) Peace of Mind Comfort Solutions LLC, (2) Perez Demolition Inc, (3) Emanuel Enterprises LLC, and (4) Compass Abatement Services LLC  for a three-year term, with two (2) one-year options to renew  in the maximum  amount of $18,189,839.30 for demolition services for the Department of Neighborhoods.  The department is funding $3,000,000.00 of the maximum amount with previously appropriated funds and an additional appropriation of $15,189,893.30 will be requested at a later date. The Director may terminate this Agreement at any time by giving 30 days written notice to Contractor, with a copy of the notice to the Chief Procurement Officer.

The scope of work requires the contractor to provide all labor, materials, equipment, safety, insurance, transportation, and permits necessary to perform all operations in connection with the demolition and disposal of buildings and sites that are declared dangerous within the City of Houston and Harris, Montgomery, and Fort Bend counties. The scope includes demolition and disposal of the main structure and accessory structures, removal of excess debris, filling septic tanks with fill dirt, capping sewer disconnects and placing fill dirt to level the property. The scope also includes swimming pool/spa removal and securing and boarding services. All the above-mentioned services could be needed to be performed in an expedited time frame. The overall site is to be left in a manner that enables the property owner to mow the lot once the grass is re-grown.

This Invitation to Bid (ITB) was advertised in accordance with the requirements of the State of Texas bid laws.  Prior to issuing the solicitation, the Strategic Procurement Division canvassed the City’s registered vendor data base, as well as the market, to identify potential bidders who could possibly provide the type of services needed. Several prospective respondents downloaded the solicitation from SPD’s e-bidding website, and ten (10) bids were received as outlined below.

M/WBE Subcontracting:

This contract was awarded with a 11% MWBE participation goal. Below is a breakdown of participation by each vendor.

Peace of Mind Comfort Solutions LLC submitted a MWBE participation plan calculating to 11% MWBE participation.

Perez Demolition Inc submitted a MWBE participation plan calculating to 11% MWBE participation.

Emanuel Enterprises LLC submitted an MWBE participation plan calculating to 11% MWBE participation.

Compass Abatement Services LLC submitted an MWBE participation plan calculating to 11% MWBE participation.

Pay or Play Program:

The proposed contract requires compliance with the City's 'Pay or Play' ordinance regarding health benefits for employees of City contractors. Peace of Mind Comfort Solutions LLC and Emanuel Enterprises LLC have elected to pay into the Contractor Responsibility Fund. Compass Abatement Services, LLC has elected to do both, to pay into the Contractor Responsibility Fund and provide health benefits to eligible employees in compliance with City policy. Perez Demolition Inc. submitted Pay or Play Program Employee Waiver Request forms (POP-8) and they were approved by the department’s Pay or Play liaison.

Hire Houston First:

This contract requires compliance with the City's 'Hire Houston First' (HHF) ordinance which promotes economic opportunity for Houston businesses and supports job creation. While Perez Demolition Inc and Compass Abatement Services, LLC are HHF designated, they were the lowest bidders, therefore the HHF preference was not applied to the award of this contract. Peace of Mind Comfort Solutions LLC and Emanuel Enterprises LLC are not designated companies, no firms were within three percent.

Fiscal Note:

No significant Fiscal Operating impact is anticipated as a result of this project.

Appropriating Ordinance No. 2022-82, passed on February 2, 2022

$3,000,000.00 - Dangerous Building Consolidated Fund (1801) - Previously appropriated by Ordinance No. 2022-82