ORDINANCE appropriating $525,000.00 out of Dedicated Drainage and Street Renewal Capital Fund – Ad Valorem Tax as an additional appropriation to Professional Engineering Services Contract between City of Houston and NEDU ENGINEERING, INC for FY17 Local Drainage Project Work Order Design Contract No. 2 (Approved by Ordinance No. 2017-0372, as amended); providing funding for CIP Cost Recovery relating to construction of facilities financed by the Dedicated Drainage and Street Renewal Capital Fund – Ad Valorem Tax

SUBJECT: Additional Appropriation to the Professional Engineering Services Contract between the City and Nedu Engineering Services, Inc. for FY17 Local Drainage Project Work Order Design Contract 2.

RECOMMENDATION: Approve an ordinance appropriating additional funds to the Professional Engineering Services Contract with Nedu Engineering Services, Inc.

PROJECT NOTICE/JUSTIFICATION: This project is part of the Capital Improvement Plan (CIP) and is required to preserve, repair, rehabilitate, or reconstruct the storm water drainage asset to such a condition that it may be effectively used for its designed functional purpose.

DESCRIPTION/SCOPE: This project consists of professional engineering services to resolve localized stormwater drainage problems that have been nominated by Transportation and Drainage Operations.  The project scope is established by each work order.  The work orders are prioritized based on a range of factors from public safety to level-of-service.

LOCATION: The projects are located throughout the City of Houston.

PREVIOUS HISTORY AND SCOPE: City Council approved the original contract on May 24, 2017 under Ordinance No. 2017-0372. The scope of services under the original contract consisted of Phase I – Preliminary Design, Phase II – Final Design, Phase III – Construction Phase Services and Additional Services as defined by the work order. Under this contract, the Consultant has completed the engineering investigation and design as determined by work orders. The below subsequent Council Actions associated with this contract include:

SCOPE OF THIS ADDITIONAL APPROPRIATION AND FEE: Under the scope of the additional appropriation, the Consultant will accomplish the following: allow the continuance of Phase II Basic Design and Additional Services, and Phase III Construction Phase Services, as they relate to existing and future stormwater maintenance, rehabilitation, and reconstruction projects.  The Basic Design and Additional Services fee for each work order will be negotiated based on the scope of service required and all phases will be paid on a reimbursable basis with an authorization not-to-exceed the agreed upon amount. A fee of $350,000.00 is budgeted for Basic Services and $150,000.00 for Additional Services.

The total requested appropriation is $525,000.00 to be appropriated as follows: $500,000.00 for contract services and $25,000.00 for CIP Cost Recovery.  The additional appropriation will enable the Contractor to continue work for the remainder of the contract, which expires June 2023. It is anticipated that a new award will be presented to City Council prior to the expiration of the current award.

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 project is 15.00%. The original contract amount and subsequent appropriations totals $1,700,000.00. The Consultant has been paid $1,187,945.00 (69.88%). Of this amount, $219,241.64 (18.46%) has been paid to M/WBE sub-contractors to date. Assuming approval of the requested additional appropriation, the contract amount will increase to $2,200,000.00. The Consultant proposes the following plan 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. M-420126-0098-3

Ordinance No. 2017-0372, dated 05-24-2017

Ordinance No. 2018-0945, dated 11-28-2018

Ordinance No. 2019-0772, dated 10-09-2019

Ordinance No. 2020-0368, dated 04-29-2020

Ordinance No. 2020-0787, dated 09-16-2020

Ordinance No. 2021-1017, dated 12-01-2021

Ordinance No. 2022-0458, dated 06-08-2022

Total $525,000.00 - Fund No. 4046 - Dedicated Drainage and Street Renewal Capital Fund - Ad Valorem Tax

Original appropriation of $300,000.00 from Fund No. 4042 – Street & Traffic Control and Storm Drainage – DDSRF.

First additional appropriation of $330,000.00 from Fund No. 4042 – Street & Traffic Control and Storm Drainage – DDSRF (Supported by Drainage Utility Charge).

Second additional appropriation of $275,000.00 from Fund No. 4042 – Street & Traffic Control and Storm Drainage – DDSRF (Supported by Drainage Utility Charge).

Third additional appropriation of $385,000.00 from Fund No. 4042 – Dedicated Drainage and Street Renewal Capital Fund – Drainage Charge.

Fourth additional appropriation of $262,500.00 from Fund No. 4042 - Dedicated Drainage and Street Renewal Capital Fund – Drainage Charge.

Fifth additional appropriation of $315,000.00 from Fund No. 4042 – Dedicated Drainage and Street Renewal Capital Fund – Drainage Charge.

Johana Clark, P.E., CCM

Senior Assistant Director, Transportation and Drainage

Phone: (832) 395-2274