STRATEGIC PRIORITY: Core
AGENDA DATE: September 10, 2025
COUNCIL DISTRICT(S): 12
DEPARTMENT: Department of Facilities and Real Estate Management
EXECUTIVE: Donzell Gipson
______________________________________________________________________
SUBJECT
Title
Authorize an increase to the construction services with Phoenix I Restoration and Construction, LLC, for the demolition of the existing façade, full Exterior Insulation and Finish System replacement, and replacement of all sheathing at the Family Gateway North facility located near the intersection of Preston Road and President George Bush Turnpike – Not to exceed $1,350,000.00 – Financing: FY 2025-26 Community Development Block Grant Fund
Body
BACKGROUND
The facility located near the intersection of Preston Road and President George Bush Turnpike was constructed in 1988 as a Candlewood Suites and acquired by the City of Dallas on December 9, 2020, for use as a transitional emergency shelter. Facility operations and program management were contracted to Family Gateway, Inc. through a City Council-authorized facility use agreement on May 25, 2022, by Resolution No. 22-0802.
On May 28, 2024, a severe storm caused significant damage to the roof and interior finishes. A full roof replacement was completed in October 2024; however, continued water intrusion revealed failures in the Exterior Insulation and Finish System (EIFS) façade, including cracked surfaces, deteriorated sealant joints, and inadequate flashing. These issues led to interior moisture damage, mold growth, and deterioration of window framing. Mold remediation was completed in accordance with state and industry protocols.
Initial plans called for removal of a 24-inch band of the EIFS system around all windows to address the water intrusion. As work commenced, the contractor discovered widespread deterioration throughout the façade, along with damage to portions of the interior sheathing and framing. Based on these findings, the scope of work was expanded to include full replacement of the EIFS system and all associated sheathing.
This action will authorize Change Order No. 3 to the construction services contract with Phoenix I Restoration and Construction, LLC, for the demolition of the existing façade, full Exterior Insulation and Finish System replacement, and replacement of all sheathing.
ESTIMATED SCHEDULE OF PROJECT
Begin Project September 2025
Complete Project April 2026
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On March 8, 2023, the City Council authorized a two-year contract, with three one-year renewal options with Phoenix I Restoration and Construction, LLC for job order services for minor construction, repairs, alterations, and improvements by Resolution No. 23-0355.
On March 26, 2025, the City Council authorized a work order under the existing two-year construction services contract with three one-year renewal options with Phoenix I Restoration and Construction, LLC for waterproofing and repairs by Resolution No. 25-0454.
The City Council was briefed by memorandum regarding this matter on September 5, 2025.
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
FY2025-2026 Community Development Block Grant Fund |
$337,500.00 |
$1,012,500.00 |
$0.00 |
LOCAL PARTICIPATION
|
Prime |
Status |
Workforce % |
|
Phoenix I Restoration and Construction, LLC |
Local |
60.87% |
OWNER/EXECUTIVE
Phoenix I Restoration and Construction, LLC
Dale Sellers, President and Chief Executive Officer
MAP
Attached