ORDINANCE appropriating $11,809,341.40 out of Water Authorities Capital Contribution Fund NETL and $7,972,958.60 out of PWE-NETL Construction Fund; and approving and authorizing Professional Engineering Services Contract between the City of Houston and LOCKWOOD, ANDREWS & NEWNAM, INC for Design of the Northeast Transmission Line (Approved by Ordinance Nos. 2015-1073, 2015-1074, 2015-1075, 2015-1076, 2015-1077 & 2015-1078); providing funding for CIP Cost Recovery relating to construction of facilities financed by the Water Authorities Capital Contribution Fund NETL and the PWE- NETL Construction Fund - DISTRICTS B - DAVIS and E - MARTIN

SUBJECT:  Professional Engineering Services Contract between the City and Lockwood, Andrews & Newnam, Inc., for Professional Engineering Services for the Design of Northeast Transmission Line. WBS No. S-000900-0300-3.

RECOMMENDATION:  (Summary)  An ordinance approving a Professional Engineering Services Contract with Lockwood, Andrews & Newnam, Inc., and appropriate funds.

PROJECT NOTICE/JUSTIFICATION:  This contract supports the execution of the Northeast Transmission Line projects from the Northeast Water Purification Plant to the Water Authorities take-points for the Infrastructure Capital Improvement Program. The Northeast Transmission Line projects provide professional engineering services to assist the City of Houston (City) in meeting the current and future system demands and technical support to City staff on various elements of the transmission system.

DESCRIPTION/SCOPE:  This appropriation will fund a number of specific tasks to maximize the City’s use of available surface water from the Northeast Water Purification Plant. These tasks include various engineering services for the construction of new infrastructure. New infrastructure support includes feasibility studies, routing, and design for water transmission lines and appurtenances necessary to meet regulatory requirements.  The net result of these efforts will improve water system reliability and operational efficiencies stemming from the consolidation of groundwater pump station facilities and improvements at the Northeast Water Purification Plant.

LOCATION:  This contract provides engineering services for various projects located within Council Districts B and E including Key Map grid numbers 372 U, 372 V, 373 S, 373 T, 373 U, 373 V, 374 S, 374 T, 374 U, 374 W, 374 X, 374 Y, 374 Z, 375 S, 375 T, 375 U, 375 V, 375 W, 375 X, 375 Z, 376 V, 376 W, 376 X, 376 Y, 376 Z and 377 W.

SCOPE OF CONTRACT AND FEE (PREVIOUS HISTORY):  Under the scope of this contract, the consultant will perform program management (supporting the City’s management of the proposed design efforts), phase I - preliminary design, phase II - final design, phase III - construction services and additional services.  The basic services fee for phase I is based on the cost of time and materials with a not-to-exceed agreed upon amount.  The basic services fee for phase II and phase III will be negotiated on a lump sum basis after completion of phase I. The total basic services appropriation is $11,386,000.00.

The contract includes certain additional services to be paid either as lump sum or on a reimbursable basis.  The additional services include public meetings, surveying, geotechnical investigations, phases I and II environmental services, traffic control, surge analysis, and real estate assistance. Technical support encompasses specialized engineering services required for developing technical criteria for the transmission water line, water system modeling and City support efforts.  The total additional services, technical support, and program management appropriation is $5,816,000.00.

The total requested appropriation is $19,782,300.00 to be appropriated as follows: $17,202,000.00 for contract services and $2,580,300.00 for CIP cost recovery.

The contract also helps to meet the obligations the City has entered into with the Water Authorities.  On November 4, 2015, City Council approved the Third Supplement to Water Supply Contract with the Authorities which consisted of North Fort Bend Water Authority, Central Harris County Regional Water Authority, North Harris County Regional Water Authority and West Harris County Regional Water Authority by Ordinance Numbers 2015-1073, 2015-1074, 2015-1076 and 2015-1078, respectively.  The City Council also approved the Fourth Supplement to Water Supply Contract with the Authorities which consisted of Central Harris County Regional Water Authority and North Harris County Regional Water Authority on November 4, 2015 by Ordinance Numbers 2015-1075 and 2015-1077.  These supplements were for the cost sharing of the design and construction of water transmission lines from Houston’s Northeast Water Purification Plant to these Water Authorities’ transmission and distribution systems. According to the Third and Fourth Supplements to the Water Supply Contract between the City of Houston (City) and  other Water Authorities (Authority), the percentage of participants’ share for the project engineering efforts are as follow:

Segment 1

1. Including additional services and 15% CIP cost recovery

Segment 2

1. Including additional services and 15% CIP cost recovery

The proposed budgeted funding allocation for the aforementioned support services is outlined below:

·        Program Management                                                 $1,705,000.00

·        Engineering Project Design Services                        $13,257,000.00

·        Technical Support                                                           $890,000.00

·        Contingency                                                             __$1,350,000.00

          Total                                                                           $17,202,000.00

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 contract is 24%. Assuming approval of the requested appropriation, the contract amount will be $17,202,000.00.  The engineer proposes the following plan to meet the M/WBE goal participation:

Non-MWBE firms to be used in the contract:

ESTIMATED FISCAL OPERATING IMPACT: 

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

Ordinance No. 2015-1073, dated November 4, 2015

Ordinance No. 2015-1074, dated November 4, 2015

Ordinance No. 2015-1075, dated November 4, 2015

Ordinance No. 2015-1076, dated November 4, 2015

Ordinance No. 2015-1077, dated November 4, 2015

$19,782,300.00 Total Cost

$11,809,341.40 from Fund No. 8507 - Water Authorities Capital Contribution Fund NETL

Ravi Kaleyatodi, P.E., CPM

Phone: (832) 395-2326