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HomeMy WebLinkAboutItem 06 - 635 121 InterchangeMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: OCTOBER 2, 2018 SUBJECT: 635/121 INTERCHANGE PROJECT PROJECT UTILITY ADJUSTMENT AGREEMENT — NORTHGATE CONSTRUCTORS RECOMMENDATION: City Council consider a resolution authorizing a Project Utility Adjustment Agreement (PUAA) and subsequent work specific Utility Adjustment Agreement Amendments (UAAA) with NorthGate Constructors for the necessary relocation and adjustment of City water and wastewater facilities due to the 635/121 Interchange construction, and consider an ordinance appropriating funds for this agreement. FUNDING SOURCE: Funds are available in the Utility Enterprise Capital Fund in the amount of $4,500,000 for this purpose. BACKGROUND: The $370 million 635/121 Interchange project is a phase of the overall DFW Connector Project. This project will require the relocation of City water and wastewater facilities throughout the corridor. Staff is proposing to enter into a Project Utility Adjustment Agreement. This is the same vehicle the City used to relocate utilities in the original DFW Connector project. With the short timeline for each component of the 635/121 interchange project under the design/build concept, the standard process for City water and wastewater adjustments, including design, bid, and build, would pose significant potential for delays to the aggressive work schedule necessary to complete the project on time. By entering into an agreement whereby NorthGate designs and constructs our utility adjustments, this streamlines the process by taking advantage of their large engineering staff on site and their subcontractors that can undertake adjustments with very little lead time and can quickly adapt to an evolving schedule. The City still reserves the right to review all plans and can impose restrictions on the work schedule to protect our interests during peak use times of the year. The Project Agreement stipulates the general terms and guidelines under which the City and NorthGate Constructors will pursue our relocations and adjustments. Subsequent Utility Adjustment Agreement Amendments (UAAA) will be approved by staff as the construction components are designed and are ready for construction. Cumulative approvals of UAAAs will not exceed the cost estimate established in this Project Agreement without further City Council consideration. In this process, the City Council approves an agreement price based on the current engineer's estimate and the most up to date quantities available. The actual cost to the City will be based on construction plans approved by City staff and a public bid process. City staff and NorthGate Constructors currently estimate the total public relocations at $7.2 million which includes the City's contribution. Staff recommends approval RESOLUTION NO. 2018-078 A RESOLUTION OF THE CITY OF GRAPEVINE CITY COUNCIL APPROVING A PROJECT UTILITY ADJUSTMENT AGREEMENT; AUTHORIZING EXPENDITURES FOR THE PERFORMANCE OF SAID WORK; AND DECLARING AN EFFECTIVE DATE WHEREAS, the Texas Department of Transportation (TXDOT) has undertaken the reconstruction and widening of the DFW Connector through the use of a Comprehensive Development Agreement (CDA); and WHEREAS, the Developer Team selected by TxDOT through their CDA process as submitting the best proposal is NorthGate Constructors, and WHEREAS, the DFW Connector project will require the relocation of City water and wastewater facilities; and WHEREAS, NorthGate Constructors has sought and obtained unit cost estimates for the City's utility relocations in a competitive manner, and such process meets or exceeds the requirements of Chapter 252 of the Local Government Code; and WHEREAS, the City wishes to enter into a Project Utility Adjustment Agreement with NorthGate to provide for the adjustment of City water and wastewater utility facilities by NorthGate and its subcontractors to expedite the aggressive construction schedule for the DFW Connector; and WHEREAS, the City's share of the relocation and adjustment costs, including design, based upon the low bidder's unit costs and upon the latest quantity estimates for the utility relocations is $ 4,500,000; and WHEREAS, the City Council finds and concludes that the citizens are best served by the City approving the Project Utility Adjustment agreement with NorthGate, without the necessity of accepting additional competitive bids pursuant to Chapter 252, Texas Local Government Code; and WHEREAS, all constitutional and statutory prerequisites for the approval of this resolution have been met, including but not limited to the Open Meetings Act; and WHEREAS, the City Council deems the adoption of this resolution to be in the best interests of the health, safety, and welfare of the public. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That all matters stated hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. Section 2. The City Council approves the Project Utility Adjustment Agreement with NorthGate for a total amount not to exceed $4,500,000. Section 3. That the City Manager or his designee is authorized to take all steps necessary to enter into agreement and supplement amendments not to exceed said amount. Section 4. That this resolution shall take effect from and after the date of its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 2nd day of October, 2018. APPROVED: William D. Tate Mayor ATTEST: Tara Brooks City Secretary APPROVED AS TO FORM: City Attorney Resolution No. 2018-078 2 ORDINANCE NO. 2018-072 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, REVISING THE ADOPTED CAPITAL IMPROVEMENTS BUDGET FOR THE FISCAL YEAR ENDING IN 2019, PROVIDING FOR THE TRANSFER OF THE FUNDS; DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City Council of the City of Grapevine desires to relocate and adjust the City water and wastewater facilities due to the 635/121 Interchange construction; and WHEREAS, funding for the relocation and adjustment of City water and wastewater facilities is not currently included in the Fiscal Year 2018-2019 Capital Improvements Plan Budget; and WHEREAS, all constitutional and statutory prerequisites for the approval of this ordinance have been met, including but not limited to the Open Meetings Act and Chapter 211 of the Local Government Code; and WHEREAS, the City Council deems the adoption of this ordinance to be in the best interests of the health, safety, and welfare of the public. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That all matters stated hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. Section 2. That the City Council hereby authorizes an amount of $4,500,000 be appropriated from the Utility Enterprise Capital Fund for the relocation and adjustment of the City water and wastewater facilities due to the 635/121 Interchange construction. Section 3. That a copy of the revised FY 2018-2019 Capital Improvements Plan budget document shall be kept on file in the office of the City Secretary and on the City of Grapevine website. Section 4. That the terms and provisions of this ordinance shall be deemed to be severable, and that if the validity of any section, subsection, word, sentence or phrase shall be held to be invalid, it shall not affect the remaining part of this ordinance. Section 5. That the fact that the present ordinances and regulations of the City of Grapevine, Texas are inadequate to properly safeguard the health, safety, morals, peace and general welfare of the inhabitants of the City of Grapevine, Texas, creates an emergency for the immediate preservation of the public business, property, health, safety, and general welfare which requires that this ordinance shall take effect immediately from and after its passage and it is accordingly so ordained. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 2nd day of October, 2018. APPROVED: William D. Tate Mayor ATTEST: Tara Brooks City Secretary APPROVED AS TO FORM: City Attorney Ordinance No. 2018-072 2