STRATEGIC PRIORITY: Transportation & Infrastructure
AGENDA DATE: December 11, 2024
COUNCIL DISTRICT(S): 9
DEPARTMENT: Dallas Water Utilities Department
EXECUTIVE: Dev Rastogi
______________________________________________________________________
SUBJECT
Title
Authorize a construction services contract with Muniz Construction, Inc. for the installation of a wastewater interceptor in Garland Road/St. Francis Avenue/San Fernando Way/San Rafael Drive - Not to exceed $7,557,510.00 - Financing: Wastewater Capital Improvement G Fund
Body
BACKGROUND
On March 9, 2022, the City Council authorized a construction services contract with Ark Contracting Services, LLC for the installation of approximately 21,930 feet of water and wastewater mains at seven locations, by Resolution No. 22-0477. Ark Contracting Services, LLC began work at Garland Road/St. Francis Avenue/San Fernando Way/San Rafael Drive for the installation of approximately 4,300 feet of 30-inch diameter wastewater main. After installation of approximately 60% of the wastewater main, the tunneling subcontractor demobilized from the site in March 2024 due to non-payment from the prime contractor.
Despite exhaustive efforts by Dallas Water Utilities Department (DWU) and the City Attorney’s Office (CAO) to work with the contractor and surety company, neither has upheld their contractual obligation to complete the work and construction activities have been on-hold. In response, the City of Dallas terminated the contract with Ark Contracting Services, LLC on August 30, 2024. Since the issues of non-payment arose and the subcontractor demobilized from the site, the City of Dallas has been in contact with the surety. The surety finally notified the City of Dallas on October 8, 2024, that they will not assume the contract or sublet the remaining work, citing litigation filed by Ark Contracting, LLC. Based on the surety’s response and failure to assume their obligations under the contract, the City of Dallas is left with no other feasible or timely option than to enter into a new construction contract to complete the work.
Currently, the construction site is secure but existing tunneling shafts and fencing block portions of San Fernado Way limiting thru traffic. Leaving the project in its current state with three, approximately forty-foot-deep open construction shafts is a public safety issue, major nuisance, and public inconvenience. If action is not taken soon, the integrity of the constructed tunnel shafts as well as the completed portions of tunnel will be at risk. To preserve property of the City and public health and safety it is critical that the City proceed with an emergency procurement. In accordance with the City’s Administrative Directive 4-05, DWU solicited bids from contractors with a history of completing similar work, including one minority contractor. DWU received and reviewed three bids to complete the remaining work at Garland Road/St. Francis Avenue/San Fernando Way/San Rafael Drive, and the proposal submitted by Muniz Construction, Inc., in the amount of $7,557,510.00 was determined to be the lowest responsible bid.
This action will authorize a construction services contract with Muniz Construction, Inc. to complete the installation of the wastewater interceptor in Garland Road/St. Francis Avenue/San Fernando Way/San Rafael Drive. Upon execution of the construction contract, Muniz Construction, Inc. will compete the remaining work which is estimated to take approximately eight months. DWU will document all costs and work with the CAO to preserve all rights under the original construction contract, including reimbursement of expended costs to complete the work.
ESTIMATED SCHEDULE OF PROJECT
Begin Construction January 2025
Complete Construction August 2025
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On March 9, 2022, the City Council authorized a construction services contract with Ark Contracting Services, LLC for the installation of water and wastewater mains at seven locations, by Resolution No. 22-0477.
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
Wastewater Capital Improvement G Fund |
$7,557,510.00 |
$0.00 |
$0.00 |
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 |
|
$7,557,510.00 |
Construction |
N/A |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
N/A |
N/A |
N/A |
|
• The Business Inclusion and Development Policy does not apply to Emergency Procurements. |
|
• Muniz Construction, Inc. - Local; Workforce - 75.00% Local |
PROCUREMENT INFORMATION
The following three bids with quotes were received on November 5, 2024:
*Denotes successful bidder
Bidders Bid Amount
*Muniz Construction, Inc. $7,557,510.00
1835 Garden Springs Drive,
Dallas, TX 75253
SYB Construction Company $8,290,871.00
John Burns Construction Company of Texas, LLC $9,931,972.00
OWNER/EXECUTIVE
Muniz Construction, Inc.
Ramon Muniz, President
MAP
Attached