Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: August 17, 2021
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute a Construction Manager at Risk Contract with Balfour Beatty
Construction, LLC, for the renovation of the Loop 288 Project, as set forth in the contract; providing for
the expenditure of funds therefor; and providing an effective date (RFQ 7671 – CMAR awarded to Balfour
Beatty Construction, LLC, in the not-to-exceed amount of $5,000.00 for pre-construction services).
INFORMATION/BACKGROUND
In support of initiatives relating to the housing crisis response system and to provide public assistance, staff
was directed to pursue the acquisition of the property at 909 North Loop 288 for a co-located day center
and overnight shelter to provide services to people experiencing homelessness or at-risk of experiencing
homelessness.
Property
The tract is located at 909 North Loop 288, on the west side of Loop 288 between US 377/380 (University
Drive) and FM 426 (McKinney Street). The property was originally designed as a nursing facility in 1975
and underwent improvements from 2004-2005, transforming the facility into its current use. The building
is approximately 34,284 square feet on +/-5.1 acres. The building is a one-story H-frame garden office
building on a concrete slab foundation with two spacious courtyards and +/- 2.0 acres of land for future
development opportunities.
Directly behind the building and parking lot is +/- 2.0 acres of vacant land marketed as a future development
pad site, in compliance with the current Public Facilities (PF) zoning designation approved on November
10, 2020 (ZCI20-0001). However, there are city electric and drainage easements on this vacant land that
may impact the development of the land. To the west and north of the Property, the City of Denton owns
approximately 26 acres of land (located at 1101 N Loop 288 and 1105 S Loop 288) also with a Public
Facilities (PF) zoning designation. The city-owned land to the west of the Property contains electric
transmission lines and some utility easements.
A review of major project milestones is provided in Prior Action/Review section. The project timeline and
next steps are provided in the Estimated Schedule of Project section.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Project Scope
The planning, programming, design analysis, and construction renovation of 909 N. Loop 288 to provide
for a co-located day center, overnight shelter, and supportive services to people experiencing and at risk of
homelessness.
Project Team
The approval of the Construction Manager at Risk contract will finalize the project team.
• Owner: City of Denton
• Architect: Kirkpatrick Architecture Studios
• CMAR: Balfour Beatty Construction, LLC
• Project Management Consultant: Peak Performance Value, LLC
Construction Manager at Risk (CMAR)
The Construction Manager at Risk (CMAR) is a delivery method that entails a commitment by the
Construction Manager (CM) to deliver the project within a Guaranteed Maximum Price (GMP) which is
based on the construction documents and specifications.
CMAR Advantages
• More collaborative construction delivery process
• Assists with value engineering cost estimating, and constructability review
• Method assists with the acceleration of the construction schedule
• Design firm & CMAR collaborate to select best value subcontractors
• Provides cost certainty with GMP
Request for Qualifications (RFQ) for a construction manager at risk for the renovation and construction of
the Loop 288 building- The Junction was sent to 1,274 prospective firms for these services. In addition,
the RFQ was placed on the Materials Management website for prospective respondents to download and
advertised in the local newspaper. Eight (8) statement of qualifications (SOQ) were received. The SOQs
were evaluated based on published criteria including qualifications of the firm, proven project success, and
the firm’s stability. Based upon this evaluation, a short-list of the two (2) most qualified received a Request
for Proposal and an Interview Invitation. After scoring the interviews and the proposals received, the
Evaluation Committee recommended Balfour Beatty Construction, LLC as the most qualified of the
candidates, subject to successfully negotiating an agreement with terms acceptable to the City.
NIGP Code Used for Solicitation: 906, 909, 910, 912, 913, 914, 925
Notifications sent for Solicitation sent in IonWave: 1274
Number of Suppliers that viewed Solicitation in IonWave: 43
HUB-Historically Underutilized Business Invitations sent out: 126
SBE-Small Business Enterprise Invitations sent out: 493
Responses from Solicitation: 8
The negotiations with Balfour Beatty Construction resulted in the AIA A133 Owner-CMAR Agreement
attached to the Ordinance, which authorizes Balfour Beatty Construction to provide preconstruction
services for the fee of $5,000. It is important to note this Agreement is only for preconstruction services
and anticipates an Amendment for the cost of the actual construction itself, which will come before the City
Council for their consideration and approval.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
• On April 21, 2020, City Council authorized the City Manager to enter into a contract for the purchase
of the property at 909 North Loop 288 for the purchase price of $5,200,000.00, authorizing the
expenditure of funds in the cash amount of $3,395,000.00 towards the purchase price and accepting
the donation value of the property from the seller of $1,805,000.00. (Ordinance No. 20-837)
• On June 16, 2020, the City Manager signed the Second Amendment to the Contract for Sale,
extending both the Absolute Review Period and the Closing Date.
• On June 23, 2020, the City Manager signed the Third Amendment to the Contract for Sale, again
extending the Absolute Review Period and the Closing Date.
• On June 30, 2020 (Ordinance No. 20-1235), the City Manager signed the Fourth Amendment to the
Contract for Sale to allow the current owner to address the City's concerns and for the owner to
compete for remediation of issues including:
(1) all leases shall have been terminated and tenants shall have vacated the property;
(2) all roof repairs needed on the Property shall be completed, and
(3) asbestos remediation of the Property shall be completed. inspected and reported.
• On August 28, 2020, the City took ownership of the facility.
• On Oct. 6, 2020, City Council approved a professional services agreement with Kirkpatrick
Architecture Studio for the design services of 909 N. Loop 288 to renovate the facility and
accommodate the proposed use and day-to-day operations (Ordinance ID 20-1951).
• On Nov. 10, 2020, City Council adopted an ordinance to change the zoning district and use
classification from Suburban Corridor (SC) to a Public Facilities (PF) Zoning District for this
property (ZCI20-0001).
• On Feb. 16, 2021, City staff presented to City Council in a work session an overview of key terms
for a draft Management Services agreement with The Junction and a project update (ID 21-056).
• On April 05, 2021, City staff presented to City Council in a work session regarding the proposed
design, construction budget and timeline, and construction method for the 909 N. Loop 288 facility
and a general project update.
• On June 22, 2021, City Council adopted an ordinance to execute with Our Daily Bread, Inc., a
Management Services and Operating Agreement to manage and operate the facility located at 909
N. Loop 288 and to execute with Our Daily Bread, Inc., a Termination Agreement providing for (1)
the termination of the lease for 300 S. Woodrow Lane and (2) the extension and termination of the
agreement for enhanced shelter services provided at such leased property effective concurrent with
the agreement start date to commence on the thirtieth (30th) day after the Loop 288 facility is issued
a certificate of occupancy.
RECOMMENDATION
Award a contract with Balfour Beatty Construction, LLC, for the renovation of the Loop 288 Project, in a
not-to-exceed amount of $5,000.
PRINCIPAL PLACE OF BUSINESS
Balfour Beatty Construction, LLC
Dallas, TX
ESTIMATED SCHEDULE OF PROJECT
The project is in the final stages of Phase 3.
With City Council approval of the CMAR contract, the project will proceed to Phase 4 – Preconstruction
• 08/17/2021 – Approve CMAR Pre-Construction Services Balfour Beatty Construction
• 09/07/2021 – 100% Construction Documents Release for Bidding
• 11/09/2021 – City Council Considers Final Exhibit A - GMP Amendment
(Notice to Proceed to Phase 5)
With City Council approval of the CMAR – GMP Amendment, construction would proceed to Phase 5 –
Construction
• 11/11/2021 – Construction Start Date
• 10/11/2022 – Substantial Completion of the Work
• 12/22/2022 – Owner Startup, Training & Move-in Complete; Facility Fully Operational
FISCAL INFORMATION
These services will be funded from Certificates of Obligation Funds.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Evaluation Sheet
Exhibit 3: Presentation
Exhibit 4: LLC Members
Exhibit 5: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Dani Shaw, 940-349-7237.
Legal point of contact: Marcella Lunn at 940-349-8333.