ORDINANCE appropriating $472,379.51 out of Dedicated Drainage and Street Renewal Capital Fund – Drainage Charge as an additional appropriation to Professional Engineering Services Contract between City of Houston and GRADIENT GROUP, LLC for Magnolia Park Sec 2 Area Drainage and Paving Subproject 2; providing funding for CIP Cost Recovery relating to construction of facilities financed by the Dedicated Drainage and Street Renewal Capital Fund – Drainage Charge - DISTRICT I - MARTINEZ

SUBJECT: Additional Appropriation to the Professional Engineering Services Contract between the City of Houston and Gradient Group, LLC for Magnolia Park Sec 2 Area Drainage and Paving Subproject 2.

RECOMMENDATION:  Approve an ordinance appropriating additional funds to the Professional Engineering Services Contract with Gradient Group, LLC.

PROJECT NOTICE/JUSTIFICATION: This project is part of the Build Houston Forward to address the needs identified and prioritized through a worst first methodology, objective data, and benefit/cost analysis. It is required to improve the drainage of streets and reduce the risk of structural flooding.

DESCRIPTION/SCOPE: This project consists of the design of storm drainage, concrete, paving, curbs, sidewalks, driveways, and underground utilities to service Magnolia Park Sec. 2 Area.

LOCATION: The projects area is generally bound by Canal Street on the north, Harrisburg Boulevard on the south, East Navigation Boulevard on the east and North 77^th Street on the west.

PREVIOUS HISTORY AND SCOPE: City Council approved the original contract on December 1, 2021, under Ordinance No. 2021-1038. 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. Under this contract, the Consultant has accomplished Phase I - Preliminary Design.

SCOPE OF THIS ADDITIONAL APPROPRIATION AND FEE:   Under the scope of the additional appropriation, the Consultant will accomplish the following: Completing Phase II – Final Design, Phase III – Construction Phase Services and Additional Services. The scope was revised to extend storm water and water infrastructure beyond the original project limits to ensure continuity and connectivity between improvement areas. The Basic Services Fees for Phase II and Phase III are based on negotiated lump sum amount. The total Basic Services appropriation is $416,823.25.

The Contract also includes certain Additional Services to be paid either as a lump sum or on a reimbursable basis. The total Additional Services appropriation is $33,062.00.

The total requested appropriation is $472,379.51 to be appropriated as follows: $449,885.25 for contract services and $22,494.26 for CIP Cost Recovery.

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 Consultant provides health benefits to eligible employees in compliance with City policy.

M/WBE PARTICIPATION: The M/WBE goal established for this project is 25.84%. The original Contract amount totals $1,903,659.00. The Consultant has been paid $455,189.00 or 23.91%. Of this amount, $83,178.00 or 18.27% has been paid to M/WBE subconsultants to date. Assuming approval of the requested additional appropriation, the contract amount will increase to $2,353,544.25. The Consultant has proposed the following plan to meet the M/WBE goal.

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

____________________________

Randall V. Macchi, JD

Director, Houston Public Works

WBS No. M-410015-0002-3

$472,379.51 - Fund No. 4042 - Dedicated Drainage and Street Renewal Capital Fund - Drainage Charge 

Original appropriation of $1,998,841.95 from Fund No. No. 4042 - Dedicated Drainage and Street Renewal Capital Fund - Drainage Charge