STRATEGIC PRIORITY: Sustainable
AGENDA DATE: May 28, 2025
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Dallas Water Utilities Department
EXECUTIVE: Dev Rastogi
______________________________________________________________________
SUBJECT
Title
Authorize an increase in the construction services contract with Omega Contracting, LLC for additional work associated with the installation of permitted water and wastewater services - Not to exceed $3,234,085.00, from $12,936,343.10 to $16,170,428.10 - Financing: Wastewater Construction Fund ($2,102,155.00) and Water Construction Fund ($1,131,930.00)
Body
BACKGROUND
On September 14, 2022, the City Council authorized a construction services contract with Omega Contracting, LLC for the installation and rehabilitation of approximately 29,960 feet of water and wastewater mains by Resolution No. 22-1377. Effective October 1, 2024, customers no longer have the option to use a city contractor to install permitted water and wastewater services and will be required to hire a bonded contractor to install those services. However, Dallas Water Utilities Department (DWU) received a significantly higher than anticipated volume of permitted water and wastewater service line requests prior to implementation of this policy. DWU is required to complete the installation of existing permits by a city contractor that were sold by the Department of Planning & Development before October 1, 2024, if requested for installation within one year of the permit date as per Sec 49-24(b)(3) of the City Code.
This action will authorize Change Order No. 1 to the construction services contract with Omega Contracting, LLC to complete water and wastewater service installation requests for the additional period of 12 months. Continuity of water and wastewater service installation will ensure compliance with City Code requirements and will avoid major disruption and delays to development efforts. The delay or disruption of permitted service line installations is likely to lead to non-compliance of the City Code, excessive customer complaints and will affect DWU’s efforts to meet the needs of future growth. Omega Contracting, LLC is highly experienced as they have completed a large number of water and wastewater service installations under several contracts with the City in the past and has provided a reasonable cost proposal for these services.
ESTIMATED SCHEDULE OF PROJECT
Begin Construction June 2025
Complete Construction June 2026
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On September 14, 2022, the City Council authorized a construction services contract for the installation of water and wastewater mains at 10 locations, by Resolution No. 22-1377.
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
Wastewater Construction Fund |
$2,102,155.00 |
$0.00 |
$0.00 |
|
Water Construction Fund |
$1,131,930.00 |
$0.00 |
$0.00 |
|
Total |
$3,234,085.00 |
$0.00 |
$0.00 |
Original Contract $12,936,343.10
Change Order No. 1 (this action) $ 3,234,085.00
Total $16,170,428.10
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 |
|
$3,234,085.00 |
Architecture & Engineering |
34.00% |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
34.01% |
100.00% |
$3,234,085.00 |
|
• This contract exceeds the M/WBE goal. |
|
• Omega Contracting, Inc. - Local; Workforce - 62.79% Local |
OWNER
Omega Contracting, Inc.
Luis Spinola, Owner
MAP
Attached