ORDINANCE approving and authorizing first amendment to agreement between City of Houston and LETCO GROUP LLC, dba LIVING EARTH, to extend the contract term from November 19, 2023 to November 18, 2024, Amend Exhibit F (Fees and Costs Schedule), and add other required provisions for Wood and Yard Waste Processing Services for the Solid Waste Management Department

S05-L26575.A1 – Approve an ordinance authorizing a first amendment to Contract No. 4600014912 between the City of Houston and The LETCO GROUP LLC, dba Living Earth (approved by Ord. No. 2018-646 on August 15, 2018) to extend the contract term from November 19, 2023 to November 18, 2024 and amend Exhibit F (Fees and Costs Schedule) for wood and yard waste processing services for the Solid Waste Management Department.

Specific Explanation:

The Director of the Solid Waste Management Department and the Chief Procurement Officer recommend that City Council approve an ordinance authorizing a first amendment to the contract between the City of Houston and The LETCO GROUP LLC, dba Living Earth to extend the contract term from November 19, 2023 to November 18, 2024 and amend Exhibit F (Fees and Costs Schedule) for wood and yard waste processing services for the Solid Waste Management Department.

The original contract was awarded on August 15, 2018, by Ordinance No. 2018-646 for a three-year term with two one-year options to renew in the amount not to exceed $3,687,933.73. The contract term was from August 27, 2018 through August 26, 2023. Prior to expiration, the contract was extended for 90-days until November 19, 2023. Expenditures as of October 11, 2023 totaled $3,177,526.28. There is sufficient spending authority remaining in the contract to carry the City through the extended one-year period. The Fees and Costs schedule is being amended to increase unit prices due to major increases in costs related to fuel, labor, supplies, and labor shortage.

The scope of work requires the contractor to furnish all tools, supplies, transportation, equipment, labor, training and supervision necessary to provide wood and yard waste processing services for the Solid Waste Management Department.

MWBE Subcontractor:

This contract was awarded with a 13% goal for MWBE Participation. The LETCO GROUP LLC, dba Living Earth is achieving 27.49% of the required MWBE goal.

Fiscal Note:

No additional spending authority is required. Therefore,  no Fiscal Note is required as stated in the Financial Policies.