HomeMy WebLinkAboutIR 10072 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10072
To the Mayor and Members of the City Council December 5, 2017
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SUBJECT: MINORITY BUSINESS ENTERPRISE PARTICIPATION IN THE
1875 DICKIES ARENA PROJECT
The Dickies Arena project began in earnest almost ten years ago, developed in concert with the
city's private sector partner, Event Facilities Fort Worth (EFFW), who undertook a number of
supporting infrastructure projects with the city in preparation for the new arena. These projects
included; construction of the McWane Parking (Trail Drive) lots (which included construction of a
major retaining wall along the boundary of the Botanic Gardens), management of the extension of
Trail Drive and related drainage improvements, and upgrades/expansion of the city utility system
which supported not only the arena site but also addressed long term service improvements to a
broader area. Almost immediately after Fort Worth voters approved the Arena project, construction
began on a 2,210 space parking garage to support the facility. After a community outreach initiative
conducted by EFFW was completed, MBE participation included 5 local companies undertaking
$1 ,600,064 of work on the garage.
Soon after construction began on the parking garage, planning began with EFFW, Beck
Construction and City personnel on MBE goals and parameters for construction of the Arena
Project. During the pre-construction phase, the Office of Business Diversity staff participated in the
selection committee that chose the Mechanical, Electrical, and Plumbing (MEPs) contractors. The
selected contractors, Walker Engineering and TD Industries, committed to a 30% and a 20% goal
respectively on MBE sub-participation in their bids. Since the selection of the MEPs, the Office of
Business Diversity has been active in providing listings of qualified MBEs to the MEPs and the
Beck Group.
After review of all scopes of work for the project, including a third party report which provided an
assessment of the availability of subcontracting opportunities and capacity, city personnel
determined the Arena MBE participation goal would be a minimum of 15%. The City of Fort Worth,
EFFW, Beck Construction, the Fort Worth Black Chamber of Commerce, the Fort Worth Hispanic
Chamber of Commerce and several clergy members organized a number of community events
which included outreach and information targeting MBE companies regarding Arena construction
opportunities. These events involved direct introductions between primary subcontractors with
MBE firms in a series of organized efforts to encourage the development of business relationships.
In addition, EFFW in coordination with Beck, developed both a Sub Default Insurance Program and
an Owner Controlled Insurance Program (OCIP). These insurance programs provide for all enrolled
Subcontractors to perform under comprehensive coverage provided through Beck. This approach
has further encouraged and allowed for participation of several small and minority businesses, by
eliminating the need to purchase individual insurance or provide individual bonding in order to
participate in the Arena project.
EFFW has retained Fort Worth-based Fernandez & Company, P.C., to audit MBE participation
throughout the entirety of the Arena project. While the audit is not required under the Master
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10072
To the Mayor and Members of the City Council December 5, 2017
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DJA�
o Page 2 of 2
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SUBJECT: MINORITY BUSINESS ENTERPRISE PARTICIPATION IN THE
1875 DICKIES ARENA PROJECT
Agreement, the parties agreed that providing information on a timely basis would be an important
management tool for the project. The Office of Business Diversity and Fernandez & Company, P.C.
also work together to ensure that the list of MBE firms doing business on the project with the Beck
Group and its contractors meet the City's BDE Ordinance requirements.
As of November 8, 2017, MBE subcontractor participation in construction of the Arena is projected
to be $51,718,071, or 15.34%. Another $5,925,752 in contracts already completed by MBE firms
is currently under review. Of the 16 subcontractors currently under contract, 11 are MBE
subcontractors, 7 of which have not previously participated on a Beck Construction project. There
has also been approximately $1,606,216 in work that EFFW is conducting on the Arena, separate
from Beck Construction that has achieved 100% MBE participation along with approximately
$1 ,269,840 in technical support and material testing that has achieved 40.86% MBE participation.
If you have any questions concerning this information, please contact Robert Sturns, Economic
Development Director at 817-392-2663 or robert.sturns@fortworthtexas.gov.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS