Water Main Installation Horizontal Directional Drilling (HDD)

1. CITY OF ALAMO HEIGHTS
PUBLIC WORKS DEPARTMENT
CITY COUNCIL AGENDA MEMORANDUM
TO: Mayor and City Council
FROM: Patrick Sullivan, Director of Public Works
SUBJECT: Authorization to approve contract with Miller Brothers for water main installation
and consideration of an Ordinance to amend the FY 2023 Utility Fund Budget
DATE: April 10, 2023
SUMMARY
Staff seeks authorization to approve contract with Miller Brothers for water main installation
project via horizontal directional drilling (HDD) and consideration of an Ordinance to amend the
FY 2023 Utility Fund Budget. The water main installation is part of the City’s continued effort to
remedy the proximity of water and sewer mains mandated through the Texas Commission on
Environmental Quality (TCEQ).
BACKGROUND INFORMATION
The Texas Commission on Environmental Quality has mandated the City to separate the sanitary
sewer and potable water mains, known as the 4 x 2 issue. TCEQ has provided a deadline for all
such issues to be resolved by 2030, or possibly face penalties. As part of the City’s ongoing effort
to meet this requirement, Public Works seeks to secure a contract for water main installation in
preparation for the eventual relocation of water service to the front of the properties on Wildrose,
Cloverleaf and Rosemary, between Broadway and N. New Braunfels. The proposal under
consideration includes Rosemary, which was bid as an ad-alternate for budget consideration. A
future project will install piping to connect the newly-installed mains to new meters and then
individual residences.
Due to the narrow roadways on these three streets, the process of horizontal directional drilling
was sought to limit the disruption to residents affected by open cut installation. Competitive Sealed
Bid Proposals for HDD were advertised on January 25th
and February 1st
in the San Antonio
Express News, the official paper for all City-related notices. Four (4) responding proposals were
opened on February 24th
:
 Miller Brothers, $847,810.92
 Guerra Underground LLC., $1,075,396.00
 Vaca Underground Utilities Inc., $1,125,530.00
 Rangeline Utility Services LLC, $1,230,287.80
Grade criteria was set on points awarded for responsiveness to the following categories, with a
maximum amount of 100 points:
 Proposed price, 40 points
 Contract approach, 20 points
 Experience with past performance, 20 points
 Experience & qualifications of key personnel, 20 points
The submitted proposals were reviewed by Freese & Nichols, the City’s contracted engineer, and
staff. The review panel found none of the submitted proposals provided the requested history of

2. water main installation through the directional drilling method. On March 21st
, Freese & Nichols
team submitted a Request for Additional Information to all respondents seeking a second
opportunity to provide HDD project history for the firm and any subcontractors, as well as
appropriate references. As of the March 29th
deadline, only one respondent, Miller Brothers,
submitted the requested additional information.
Upon extensive review of the Competitive Sealed Bid Proposal and subsequent submitted
information, staff and Freese & Nichols selected Miller Brothers as the most qualified contractor
to perform the work to install water mains via horizontal directional drilling in the project area.
The FY 2023 Utility Fund Budget includes $450,000 for the water main relocation project. Driven
by the swift and volatile fluctuations in the cost for construction materials and high demand for
similar projects, the submitted project bids cost well beyond budgeted amounts. Funds are
available in the Utility Fund balance to cover the project cost.
POLICY ANALYSIS
Authorization of the contract with Miller Brothers for the water main installation project through
horizontal directional drilling is consistent with the City’s interest in providing enhanced
infrastructure improvements and complying with TCEQ requirements to maintain appropriate
separation between potable water and sanitary sewer infrastructure. The use of the Competitive
Sealed Bid Proposals provides the City with flexibility to weigh multiple criteria in selecting the
most qualified bidder to perform the work, to include cost and experience.
FISCAL IMPACT
The contract cost for the water main installation project on all three streets by Miller Brothers is a
bid cost of $874,811.00, plus a 5% contingency of $43,741.00 and an engineering fee with Freese
& Nichols of $51,500.00, for a not to exceed total of $970,052.00. City Council appropriated
funding in the amount of $450,000 for water main relocation in the FY 2023 Utility Fund Budget.
Approval of the Ordinance amends the FY 2023 Utility Fund Budget in an amount not to exceed
$520,052.00 to appropriate and pay for the Water Main Installation Project.
In the event that the ad-alternate was not proposed and Rosemary was to be delayed for future
considerations, the bid cost for two streets is $628,000.00, plus a 5% contingency of $31,400.00
and engineering fee with Freese & Nichols of $51,500.00 for a not to exceed total of $710,900.00.
COORDINATION
The proposed Water Main Installation Project was coordinated with Freese and Nichols, City
Attorney and City Manager.
ATTACHMENTS
Attachment A – Ordinance
Attachment B – City Engineer Recommendation Letter
_____________________
Patrick Sullivan
Director
______________________
Buddy Kuhn
City Manager

3. Attachment A
ORDINANCE NO. 2203
AN ORDINANCE AMENDING THE ADOPTED UTILITY FUND
OPERATING BUDGET FISCAL YEAR 2022-2023 BY $520,052 TO FUND
WATER MAIN INSTALLATION ALONG WILDROSE, CLOVERLEAF
AND ROSEMARY BETWEEN N. NEW BRAUNFELS AVENUE AND
BROADWAY AND SETTING AN EFFECTIVE DATE.
WHEREAS, the City of Alamo Heights issued a competitive sealed bid proposal for installation
of water mains in the current fiscal year 2022-2023 along Wildrose, Cloverleaf and Rosemary; and
WHEREAS, the proposals were reviewed by staff and city engineer to determine the best qualified
bid proposal, and Miller Brothers was selected as the best proposal for an amount not to exceed
$970,052; and
WHEREAS, the Utility Fund adopted budget for the project was $450,000 and the Utility Fund
budget will need to be amended by increasing it by $520,052 to appropriate and pay for the Water
Main installation Project; and
WHEREAS, the funds are available in the Utility Unrestricted Balance to fund the $520,052
budget amendment, and;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ALAMO HEIGHTS, TEXAS:
SECTION 1. The adopted Utility Fund operating budget for Fiscal Year 2022-2023 will be
amended by $520,052 from the Unrestricted Fund Balance to pay for the Water Main Installation
Project from account 50-535-9200.
SECTION 2. FINDINGS. The City Council finds all of the above recitals to be true and correct
and incorporates the same in this Ordinance as findings of fact.
SECTION 3. EFFECTIVE DATE. This Ordinance shall become effective upon its adoption.
PASSED AND APPROVED this 10th day of April, 2023.
_____________________________
BOBBY ROSENTHAL, MAYOR
ATTEST:
_________________________________
ELSA T. ROBLES, CITY SECRETARY
APPROVED AS TO FORM:
__________________________________
FRANK J. GARZA, CITY ATTORNEY

4. 9601 McAllister Fwy, Suite 1008 San Antonio, Texas 78216 210-298-3800 FAX 817-735-7491 www.freese.com
April 03, 2023
Mr. Pat Sullivan
Public Works Director
City of Alamo Heights
6116 Broadway
San Antonio, TX 78209
Re: Recommendation of Award of Contract
Broadway St. and N. New Braunfels Ave Water Main Improvements Project
FNI Project No. ALH22596
Mr. Sullivan,
Four bids were received for the above-referenced project on Friday, February 24th, 2023. The bids were evaluated
and checked for responsiveness. None of the contractors listed similar projects utilizing horizontal directional
drilling (HDD), as the method of pipe installation, in their bid proposals. The city requested this information from
the four bidders via email. Only one provided the required documents and was deemed responsive. Mathematical
errors were found, corrected, and noted in the attached bid tabulation. Correcting the errors did not change the
order of the bids.
The bidders from lowest bid to highest bid based on the total bid amount are as follows: Miller Bros., Guerra
Underground, LLC, Vaca Underground Utilities, Inc. and Rangeline Utility Services, LLC. A summary of the bids
received is provided in the table below and the detailed bid tabulation is attached to this letter.
Contractor Total Bid
Miller Bros $874,810.92
Guerra Underground, LLC $1,075,396.00
Vaca Underground Utilities, Inc. $1,125,530.00
Rangeline Utility Services, LLC $1,230,287.80
Freese and Nichols, Inc. (FNI) performed a reference check for Miller Bros., receiving input from five references.
The references provided positive feedback.
Having submitted the required information, and based upon their references, FNI recommends that the Broadway
St. and N. New Braunfels Ave Water Main Improvements Project be awarded to Miller Bros. for the Total Bid
amount of $874,810.92.
If you have any questions concerning this recommendation, please contact me at your convenience.
Sincerely,
Erin Mills, PE
Freese and Nichols, Inc.
Attachment B

5. ITEM DESCRIPTION UNIT QUANTITY
FNI
UNIT PRICE
FNI
TOTAL
MILLER
UNIT PRICE
MILLER
TOTAL COMMENTS
VACA
UNIT PRICE
VACA
TOTAL COMMENTS
RANGELINE
UNIT PRICE
RANGELINE
TOTAL COMMENTS
GUERRA
UNIT PRICE
GUERRA
TOTAL COMMENTS
Construction Items
1 Mobilization (5%) LS 1 $28,656 $28,656 $29,750 $29,750 $80,000 $80,000 $41,664 $41,664 $42,286 $42,286
2 Barricades, Signs, and Traffic Handling LS 1 $10,000 $10,000 $10,150 $10,150 $27,500 $27,500 $70,694 $70,694 $8,000 $8,000
3 Prepare and Implement Storm Water Pollution Prevention Plan (SWPPP) LS 1 $5,500 $5,500 $4,000 $4,000 $12,500 $12,500 $10,550 $10,550 $3,750 $3,750
4 6" Fusible HDPE Water Main via HDD LF 4,410 $125 $549,523 $129.98 $573,251 SUBMITTED TOTAL $573,211.80 $125 $551,288 SUBMITTED TOTAL $551,250 $152 $670,366 SUBMITTED TOTAL $670,320 $148 $652,724 SUBMITTED TOTAL $652,680
5 Pothole of Existing Utilities LS 1 $6,000 $6,000 $7,000 $7,000 $25,000 $25,000 $51,045 $51,045 $30,593 $30,593
6 6" HDPE MJ Adapter & Restrained Cap EA 12 $175 $2,100 $324 $3,888 $2,800 $33,600 SUBMITTED TOTAL 16280 $400 $4,800 $298 $3,576
ALT BID
1 Barricades, Signs, and Traffic Handling LS 1 5,000.00
$ $5,000 $5,075 $5,075 $8,000 $8,000 $35,350 $35,350 $4,000 $4,000
2 Prepare and Implement Storm Water Pollution Prevention Plan (SWPPP) LS 1 2,500.00
$ $2,500 $1,500 $1,500 $6,500 $6,500 $3,830 $3,830 $1,875 $1,875
3 6" Fusible HDPE Water Main via HDD LF 2,206 124.60
$ $274,868 $108.02 $238,292 $80 $176,480 $154 $339,724 $148 $326,488
5 6" HDPE MJ Adapter & Restrained Cap EA 6 175.00
$ $1,050 $324 $1,944 DID NOT MULTIPLE BY 6 $2,700 $16,200 $385 $2,310 $298 $1,788
SUBMITTED CALCULATED SUBMITTED CALCULATED SUBMITTED CALCULATED SUBMITTED CALCULATED
BASE $601,780 $628,000 $628,039 -$39 $729,850 $729,888 -$38 $849,074 $849,119 -$46 $741,245 $740,929 $316
ALT $283,418 $246,811 $246,811 $0 - $207,180 $207,180 $381,214 $381,214 $0 $334,151 $334,151 $0
TOTAL $885,197 $874,811 $874,850 -$39 $1,125,530 $937,068 $188,463 $1,230,288 $1,230,333 -$46 $1,075,396 $1,075,080 $316
Attachment B