Agenda No. 2.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | December 7, 2021 |
| Department: | Engineering |
| Subject: | Resolution No. 21-R-129 - Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas authorizing a contract with Texas Sterling Construction Co. for the Tri-County Parkway Project and authorizing the budget expenditures for the project. (B. James/K. Woodlee/J. Nowak) |
BACKGROUND
Tri-County Parkway currently contains numerous potholes, patches, and a wavy surface. The street has a lower Pavement Condition Index (PCI) score, indicating the street needs reconstruction. As part of the 2018 SPAM project effort, the City reconstructed the lowest PCI score section of Tri-County Parkway between I-35 and Corridor Parkway. However, SPAM project funding was not sufficient to reconstruct the entire length of Tri-County Parkway and it would take an extended period of time to secure enough SPAM funding to reconstruct the remainder of the street. Similarly, Lookout Road also has potholes, patches, and a wavy surface. SPAM funding was insufficient to reconstruct Lookout Road in a timely fashion.
The Schertz Economic Development Corporation (SEDC) wanted to speed up reconstruction of the remainder of Tri-County Parkway. SEDC also recognized that the existing sanitary sewer line in a portion of Tri-County Parkway and in Lookout Road was undersized and therefore not able to fully serve the area as needed. On November 17, 2019, the SEDC Board approved Resolution 2019-19, authorizing $4,050,000.00 of SEDC funds to the City of Schertz for reconstruction of the remainder of Tri-County Parkway; reconstruction of Lookout Rd between Tri-County Parkway and Doerr Lane; and to replace the sewer line in Tri-County Parkway form FM 3009 to Lookout Rd with a larger line; and replace the sewer line in Lookout Road between Tri-County Parkway and Doerr Lane with a larger line. Originally, the project was also to include installation of a traffic signal at the Tri-county Parkway/FM 3009 intersection. However, TXDOT would not approve a traffic signal installation at this time so the signal was removed from the project. TXDOT did indicate they would work with the City in the future to get the intersection signalized, once it met signal warrants.
One of the City’s on-call Engineering Firms, Halff Associates, was retained to design the project. The SEDC funding also funded the design of the project. The project was bid and bids were opened on September 21, 2021. The city received six bids, ranging from $4,524,163.98 to $5,954,686.00. Bids were evaluated by Staff and Halff Associates and the lowest bid received was deemed reasonable for the work contained in the project.
As the low bid received exceeded the funding provided for the project, options were considered for proceeding forward. Options included value engineering the project to reduce the cost; scaling the project back to fit the funding allocation; and secure additional funding for the project. In evaluating the options, the value engineering option was eliminated as there were not any real feasible ways to reduce the cost of the project. Of the remaining two options, it was most desirable to keep the project intact and secure additional funding for the project.
On October 28, 2021, the SEDC Board approved Resolution 2021-10, increasing the funding for the project to $5,290,000 (a $1,240,000 funding increase). The approved increase provides for $4,900,000 for project construction, covering the bid amount, plus an 8% construction contingency. While SEDC provided the additional funding, a Budget Amendment was also necessary in order to award the construction contract. On November 9, 2021, Council passed the first reading of 21-T-48, amending the budget to include the additional project funding. On December 7, 2021, Council is expected to pass the second reading of 21-T-48, which will allow the contract to be awarded.
The Schertz Economic Development Corporation (SEDC) wanted to speed up reconstruction of the remainder of Tri-County Parkway. SEDC also recognized that the existing sanitary sewer line in a portion of Tri-County Parkway and in Lookout Road was undersized and therefore not able to fully serve the area as needed. On November 17, 2019, the SEDC Board approved Resolution 2019-19, authorizing $4,050,000.00 of SEDC funds to the City of Schertz for reconstruction of the remainder of Tri-County Parkway; reconstruction of Lookout Rd between Tri-County Parkway and Doerr Lane; and to replace the sewer line in Tri-County Parkway form FM 3009 to Lookout Rd with a larger line; and replace the sewer line in Lookout Road between Tri-County Parkway and Doerr Lane with a larger line. Originally, the project was also to include installation of a traffic signal at the Tri-county Parkway/FM 3009 intersection. However, TXDOT would not approve a traffic signal installation at this time so the signal was removed from the project. TXDOT did indicate they would work with the City in the future to get the intersection signalized, once it met signal warrants.
One of the City’s on-call Engineering Firms, Halff Associates, was retained to design the project. The SEDC funding also funded the design of the project. The project was bid and bids were opened on September 21, 2021. The city received six bids, ranging from $4,524,163.98 to $5,954,686.00. Bids were evaluated by Staff and Halff Associates and the lowest bid received was deemed reasonable for the work contained in the project.
As the low bid received exceeded the funding provided for the project, options were considered for proceeding forward. Options included value engineering the project to reduce the cost; scaling the project back to fit the funding allocation; and secure additional funding for the project. In evaluating the options, the value engineering option was eliminated as there were not any real feasible ways to reduce the cost of the project. Of the remaining two options, it was most desirable to keep the project intact and secure additional funding for the project.
On October 28, 2021, the SEDC Board approved Resolution 2021-10, increasing the funding for the project to $5,290,000 (a $1,240,000 funding increase). The approved increase provides for $4,900,000 for project construction, covering the bid amount, plus an 8% construction contingency. While SEDC provided the additional funding, a Budget Amendment was also necessary in order to award the construction contract. On November 9, 2021, Council passed the first reading of 21-T-48, amending the budget to include the additional project funding. On December 7, 2021, Council is expected to pass the second reading of 21-T-48, which will allow the contract to be awarded.
GOAL
To obtain authorization from City Council to execute a construction contract with Texas Sterling Construction Co. for $4,524,163.98 and a not to exceed amount of $4,900,000.00 for the Tri-County Parkway Project.
COMMUNITY BENEFIT
The project will replace the existing sanitary sewer line in Tri-County Parkway between FM 3009 and Lookout Road and in Lookout Road from Tri-County Parkway to Doerr Lane with a larger sanitary sewer line and will reconstruct Tri-County Parkway from FM 3009 to Corridor Parkway and reconstruct Lookout Road from Tri-County Parkway to Doerr Lane. The larger sewer line will provide for additional sanitary sewer capacity in the area for existing and future development. Reconstruction of the pavement sections will provide a new driving surface and a stronger pavement section, capable of supporting the traffic loading on the streets.
SUMMARY OF RECOMMENDED ACTION
Authorize execution of the construction contract for the Tri-County Parkway Project to Texas Sterling Construction Co., for $4,524,163.98 and a not to exceed amount of $4,900,000.00.
FISCAL IMPACT
Funding for the project will come from $5,290,000.00 of Schertz Economic Development Corporation funding allocated for this project.
RECOMMENDATION
Staff recommends Council approve Resolution 21-R-129 and authorize award of the bid for the Tri-County Parkway Project to Texas Sterling Construction Co. for $4,524,163.98 and a not to exceed amount of $4,900,000.00.