ORDINANCE appropriating $1,000,000.00 out of Water & Sewer System Consolidated Construction Fund as an additional appropriation; approving and authorizing first amendment to contract between the City of Houston and ALSAY INCORPORATED for Ground Water Well Rehabilitation for Various Sites (Approved by Ordinance No. 2020-0528); providing funding for contingencies, construction management and CIP Cost Recovery relating to construction of facilities financed by the Water & Sewer System Consolidated Construction Fund - DISTRICTS A - PECK; B - JACKSON; C - KAMIN; F - THOMAS; G - TRAVIS and J - POLLARD

SUBJECT: First Amendment to the Construction Contract for Ground Water Well Rehabilitation Various Sites.

RECOMMENDATION: (Summary) Approve First Amendment to the construction contract with Alsay Incorporated for Ground Water Well Rehabilitation Various Sites and appropriate additional funds.

PROJECT NOTICE/JUSTIFICATION: This project is part of the City’s program to upgrade and rehabilitate ground water production facilities and is required to meet the area’s water demand and ensure compliance with the Texas Commission on Environmental Quality regulations.

LOCATION:  

PREVIOUS HISTORY AND SCOPE:    City Council approved the original Contract on June 17, 2020 under Ordinance No. 2020-0528. The scope of services under the Original Contract consisted of the rehabilitation of existing groundwater wells to increase pumping capacity and repair plugged well screens at various locations.  Rehabilitation of groundwater wells was required to meet the area’s water demand, the efficiency of the production facilities, increase public safety, and ensure compliance with the Texas Commission on Environmental Quality regulations. This project was designed by WSP USA, Inc. with 420 calendar days allowed for Construction. This project was awarded to Alsay Incorporated with an original Contract amount of $2,504,072.10.

SCOPE AND ADDITIONAL APPROPRIATION COSTS: Under the scope of the First Amendment, the work authorization is required for the additional scope of work as described in Change Order No. 3. The Contract documents call for the rehabilitation of ground water wells at various sites as designated by Drinking Water Operations. This rehabilitation scope includes the replacement of pumps and associated equipment. This Contract was due to expire on September 24, 2021, however, it remains active until the final work order has been closed out. An active On-Call ground water well rehabilitation contract is required to ensure regulatory compliance, reduce strain on current operating ground water wells and supply necessary service to utility customers.  This amendment is required due to the amount exceeding 25% threshold of the contract amount. Therefore, the City recommends adding this scope of work with an additional 117 days to the contract. The cost of this additional appropriation is $869,000.00.

The requested appropriation will cover the additional work identified and leave the 5% contingencies balance for the completion of the remaining contract work.

The total cost of this project is $1,000,000.00 to be appropriated as follow:

 HIRE HOUSTON FIRST: The proposed contract requires compliance with the City’s ‘Hire Houston First’ (HHF) ordinance that promotes economic opportunity for Houston business and supports job creation. In this case Alsay Incorporated, is a designated HHF company, but they were the successful awardee without application of the HHF preference.

PAY OR PLAY PROGRAM: The proposed contract requires compliance with the City’s ‘Pay or Play’ ordinance regarding health benefits for employees of City contractors. In this case, the Contractor provides health benefits to eligible employees in compliance with City policy.

M/WBE PARTICIPATION: The M/WBE goal established for this contract is 11%. The original Contract is in the amount of $2,504,072.10. The Consultant has been paid $2,046,193.61 (81.71%) to date. Of this amount, $236,021.74 (11.53%) has been paid to M/WBE sub-consultants to date. Assuming approval of the requested additional appropriation, the contract amount will increase to $3,373,072.10. According to Office of Business Opportunity, the Contractor’s to date MWBE/SBE performance is 11.53%. The Contractor proposes the following plan to continue to meet the M/WBE goal.

FISCAL NOTE: No significant Fiscal Operating impact is anticipated as a result of this project.

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Carol Ellinger Haddock, P.E., Director

Houston Public Works

WBS No. S-000200-0026-4

Ordinance No. 2020-0528, dated 06-17-2020

Total $1,000,000.00 from Fund No. 8500 – Water and Sewer System Consolidated Construction fund.

Original (previous) appropriation of $3,147,000.00 from Fund No. 8500 - Water and Sewer System Consolidated Construction fund.

R. Jeff Masek, P.E., CCM

Assistant Director, Capital Projects