STRATEGIC PRIORITY: Transportation & Infrastructure
AGENDA DATE: December 11, 2024
COUNCIL DISTRICT(S): 9
DEPARTMENT: Dallas Water Utilities Department
EXECUTIVE: Dev Rastogi
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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 lef...
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