Exhibit 1 - Agenda Information Sheet - CO 2 - Mart
City of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: July 20, 2021
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the approval of Change Order No. 2 to the contract between the City of Denton and Mart, Inc.,
for additional construction services for the renovation of the American Legion Senior Center Hall located
at 629 Lakey Street; providing for the expenditure of funds therefor; and providing an effective date (RFP
7103 – Change Order No. 2 in the not-to-exceed amount of $27,286.86, for a total contract award aggregated
to $1,634,639.91).
INFORMATION/BACKGROUND
The American Legion Hall Senior Center, located at 629 Lakey Street, is one of the recreational facilities
used for active senior adult programmings such as sewing, educational seminars, exercise, table games,
fellowship, and monthly socials. The facility has two structures, the south side built in 1957 (2,500 square
feet) and the north side (2,600 square feet) built in 2003, which is connected by a covered walkway. The
buildings serve as a social and recreational gathering place for adults age 50 and older.
In the Summer of 2017, the Parks and Recreation Department provided a tour of this facility to the City
Manager. During the tour, it was noticed that several areas of the south structure built in the late 1950s had
cracks in the wall and showed signs of foundation settling. The north structure had no structural issues. As
a result, an engineering study was commissioned by Eikon Consulting to determine the stability of the
structure, provide a repair estimate, or a replacement estimate if the repairs were too costly.
Based on the age of the building, Eikon recommended that the cost to repair would exceed a full replacement
of the south structure. Eikon was contracted to complete the design and provide construction documents of
the new building and remodel of the existing north building.
RFQ 6626 was solicited in January 2017 for design documents and construction administration services on
the ALH renovation project and awarded to Eikon Consulting. The original project scope was to save the
north building, demolish the 2,500 square foot 1957 south building and construct a 2,500 square foot
addition onto the north building with no interior remodeling. The original construction budget was
$614,712.
During the Schematic Design phase, the scope increased to a 5,000 square foot addition and full interior
remodeling of the north building for an approved construction budget of $942,750. Eikon Consulting’s
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
contract was increased to $94,800 (10.06% of the construction budget) with a construction administration
services fee of $8,472 (extremely undervalued by any measure).
Staff received a construction budget estimate of $1,444,423 (53% over budget) in February of 2019.
Additional funds were committed to the project and staff began the permit process. Eikon’s lack of timely
responses addressing code and permit issues extended the permit process from four weeks to twelve weeks.
Additionally, the project property required a replat to proceed to construction.
The City elected to end Eikon’s contract responsibilities at the completion of the bidding phase on June 27,
2019, leaving construction administration services to another party third-party.
Originally, this building was bundled with the tennis center pro shop in North Lakes Park in anticipation of
achieving savings by grouping the facilities into one project. Unfortunately, it was determined after
evaluating the bids that it was more affordable to move forward with separate construction contracts from
two different construction firms. Mart Inc., from Irving, TX received the ALH contract via Council approval
on February 25, 2020.
Staff coordinated with Purchasing to utilize the Architect of Record (Bates-Martin Architects, Denton) to
fulfill construction administration services for the North Lakes Tennis Center and ALH projects. Purchasing
advised these services for ALH were too dissimilar to the North Lakes Tennis Courts to be utilized. The
staff proceeded to solicit a Request for Qualifications, advertised between April 24-28, 2020. Three firms
responded and Kirkpatrick Architecture Studios, Denton TX, received the highest evaluation scores on May
1, 2020.
In February of 2021, staff received funding from Risk Management to replace the ALH north building due
to wind and hail damage sustained during storms the previous year. To maintain continuity and the roof
warranty, staff coordinated with Purchasing for the first amendment to replace the roof on the existing ALH
structure simultaneously by Mart Inc., for $44,353.05. Additionally, several building envelope items require
additional work to ensure the areas where the old and new construction connect are sufficiently protected
from the elements for $27,286.86. Staff anticipates one final change order at the conclusion of this project
for delay claims from Mart Inc., due to an unforeseeable number of constructability issues from the original
architect, Eikon.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On February 25, 2020, City Council approved a contract with Mart, Inc., in the not-to-exceed amount of
$1,563,000 (Ordinance 20-431).
On June 21, 2021, Purchasing approved Change Order 1 with Mart, Inc., in the not-to-exceed amount of
$44,353.05.
RECOMMENDATION
Award Change Order No. 2 with Mart, Inc., for additional construction services for the renovation of the
American Legion Senior Center Hall located at 629 Lakey Street, in a not-to-exceed amount of $27,286.86,
for a total amended contract amount of $1,634,639.91.
PRINCIPAL PLACE OF BUSINESS
Mart, Inc.
Irving, TX
ESTIMATED SCHEDULE OF PROJECT
This project will be started upon approval with a completion date within 6 months.
FISCAL INFORMATION
These services will be funded from Certificates of Obligation Funds.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Original Contract and Ordinance
Exhibit 3: Change Order 1
Exhibit 4: Ordinance and Change Order 2
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Scott Gray, 940-349-7744.
Legal point of contact: Marcella Lunn at 940-349-8333.