STRATEGIC PRIORITY: Mobility Solutions, Infrastructure, and Sustainability
AGENDA DATE: October 27, 2021
COUNCIL DISTRICT(S): Outside City Limits
DEPARTMENT: Water Utilities Department
EXECUTIVE: Majed Al-Ghafry
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SUBJECT
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Authorize the rejection of bids received for the Elm Fork Water Treatment Plant Filter Complex Project - Financing: No cost consideration to the City
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BACKGROUND
The Elm Fork Water Treatment Plant 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 water quality improvements at the East Side and Bachman Water Treatment Plants and is working to implement improvements at the Elm Fork Water Treatment Plant. The next step includes the construction of a new Filter Complex to convert treatment operations, address hydraulic limitations, and upgrade existing infrastructure at the end of its useful life.
On July 9, 2021, two bids were received for the Filter Complex Project. After reviewing the bids, it was determined that they were significantly higher than the engineer's estimate and the available project budget of $130 million. The lowest bid was just over $237 Million. The high costs were found to be influenced by current shortages in labor and materials, limited contractor competition in the North Texas market for the scope and scale of the project, and the risks associated with pricing volatility of raw materials given the multi-year project schedule.
In the best interest of the City of Dallas, DWU and the engineer for the project recommend...
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