PILLAR: Sustainable
AGENDA DATE: April 8, 2026
COUNCIL DISTRICT(S): Citywide, Outside
DEPARTMENT: Dallas Water Utilities Department
PRIORITY: Infrastructure
______________________________________________________________________
SUBJECT
Title
Authorize Supplemental Agreement No. 1 to the Construction Manager at Risk (CMAR) Agreement with Archer Western Construction LLC, to provide City’s acceptance of Guaranteed Maximum Price Proposal 1 for construction services associated with the Improvement Component No. 1 portion of the Elm Fork Water Treatment Plant Water Quality Improvements Program, in an amount not to exceed $90,000,000.00 (which includes a CMAR contingency of $1,202,500.00 and an Owner’s contingency of $1,790,500.00) - Not to exceed $90,000,000.00, from $4,087,120.00 to $94,087,120.00 - Financing: Water Capital Improvement F Fund ($56,000,000.00) and Water Capital Improvement G Fund ($34,000,000.00)
*In alignment with Water and Wastewater Capital Improvement Program.
Body
BACKGROUND
The Elm Fork Water Treatment Plant (EFWTP) located in Carrollton, Texas was originally constructed in the 1950s and is the second largest of three water treatment plants serving Dallas Water Utilities (DWU) customers. In 2006, DWU commissioned a water quality study that included the evaluation of finished water quality at each of its three water treatment plants. The recommendations included the implementation of biologically active filtration at each plant. DWU has successfully executed the implementation of these improvements at the East Side and Bachman Water Treatment Plants and is working to implement improvements at the EFWTP. The next steps include construction of a new filter complex and sedimentation basins, yard piping and two elevated storage tanks, presedimentation basins and plant influent improvements, electrical improvements, chemical improvements, and decommissioning of phased out facilities to convert treatment operations, improve finished water quality, address hydraulic limitations, and replace existing infrastructure at the end of its useful life.
DWU evaluated delivery methods for the EFWTP Water Quality Improvements (WQI) Program and determined a Construction Manager at Risk (CMAR) to be the best approach based on management of the overall schedule, allowing assets to be placed in service sooner, increased cash flow flexibility to meet fiscal constraints, increased cost certainty, better management and mitigation of project risks, and to reduce the potential for gaps between projects where completed assets would remain inactive. In April 2024, DWU issued a request for proposals for a CMAR to provide preconstruction and construction phase services for the EFWTP WQI Program. Three companies submitted proposals. Based on experience, qualifications, project approach and the cost proposal, DWU selected Archer Western Construction, LLC as the best value proposer and City Council authorized a CMAR Agreement to provide pre-construction and construction services on November 13, 2024.
As the CMAR, Archer Western Construction, LLC executes the EFWTP WQI Program in two phases: pre-construction services and construction services. Since November 2024, they have been performing under the pre-construction phase, which consists of project management and planning, working closely with the engineer and DWU to provide constructability reviews and recommendations, conducting biddability, risk reviews and value engineering, and preparing Guaranteed Maximum Price (GMP) proposals for each improvement component. DWU has been working collaboratively with the CMAR and the engineer to refine proposed Improvement Components (IC) and develop GMP proposals.
DWU has budgeted for six GMP proposals covering a period from 2025 through 2031 to complete all improvement components. The anticipated construction cost for the WQI program is estimated at approximately $600 to $700 million and will be completed in 2033. All GMP proposals will be brought forward for individual consideration and approval by the City Council after extensive review by DWU and its engineers.
This Supplemental Agreement No. 1 is for the first improvement component package (IC1). This first GMP proposal was developed based on the IC1 cost model and approved by DWU and the engineer after negotiations with the CMAR. The scope of work for IC1 consists of three packages. The first package is for the construction of a filtered water flume, filtered water junction structure and access vault and the second package is for rerouting two 16-inch diameter residual pipes around Pump Station No. 1. These two packages were publicly bid, and a contractor for each package was selected based on experience and best value. DWU and the CMAR have developed a list of potential future improvements to include in the third package, which are in various phases of design. Future work to include in the third package will be selected based on priority as determined by DWU. The third package work is projected to bid in 2026.
ESTIMATED SCHEDULE OF PROJECT
Begin Services May 2026
Complete Services June 2028
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The Transportation and Infrastructure Committee was briefed by memorandum regarding this matter on October 21, 2024. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=13386080&GUID=6FE9C0F6-9298-4042-8BB4-DF69D5C799AB>
On November 13, 2024, the City Council authorized a Construction Manager-at-Risk Agreement with Archer Western Construction, LLC, to provide pre-construction and construction services for the Elm Fork Water Treatment Plant Water Quality Improvements Program, by Resolution No. 24-1621.
FISCAL INFORMATION
|
Fund |
FY 2026 |
FY 2027 |
Future Years |
|
Water Capital Improvement F Fund |
$56,000,000.00 |
$0.00 |
$0.00 |
|
Water Capital Improvement G Fund |
$34,000,000.00 |
$0.00 |
$0.00 |
|
Total |
$90,000,000.00 |
$0.00 |
$0.00 |
Original Contract $ 4,087,120.00
Supplemental Agreement No. 1 (this action) $90,000,000.00
Total $94,087,120.00
LOCAL PARTICIPATION
|
Prime |
Status |
Workforce % |
|
Archer Western Construction LLC |
Local |
0.00% |
OWNER/EXECUTIVE
Archer Western Construction LLC
Jeff Polak, Vice President
MAP
Attached