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Exhibit 1 - Agenda Information Sheet - Amendment 1City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: November 16, 2021 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute the CMAR Guaranteed Maximum Price Amendment to the Construction Manager At Risk Contract with Balfour Beatty Construction, LLC, for the renovation of the Loop 288 Project; providing for the expenditure of funds therefor; and providing an effective date (RFQ 7671 – CMAR Guaranteed Maximum Price Amendment awarded to Balfour Beatty Construction, LLC, in the amount of $9,779,701.00, with a total not-to-exceed amount $9,784,701.00). 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. 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. 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. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 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 The City used a two-step Construction Manager at Risk (CMAR) selection process to award Balfour Beatty Construction, LLC a CMAR Agreement authorizing BBC to provide preconstruction services for the fee of $5,000. The City Council was informed at that time an amendment for the cost of the actual construction itself would come before the City Council for their consideration on November 9, 2021. DISCUSSION Guaranteed Maximum Price (GMP) Today City Council is being asked to approve the first amendment to the CMAR contract approving the Guaranteed Maximum Price (GMP) which sets the limit, or maximum price, that the City will have to pay the contractor, regardless of the actual costs incurred. BBC received final bids from subcontractors for the construction of renovation and new buildings electronically on September 23, 2021, and the City was provided electronic copies of those bids that day. The first draft of that subcontractor bid analysis and award recommendation prepared by BBC was reviewed by the project team on October 8, 2021. After a detailed validation of the proposed construction cost by the City staff and its project/program controls consultant, Peak Program Value, LLC, the final GMP proposal is included in the Amendment now before Council. The City received strong participation from subcontractors in the bidding process across all but one bid package, which validated (and slightly improved on) the CMAR’s earlier cost estimates. The CMAR process gave the project team the ability to re-bid the one area we did not get good coverage (i.e. overhead doors) which generated savings to the City. The construction cost is a compilation of the best value subcontractor proposals from better than expected marketplace participation received by the CMAR. In order to capitalize on competitive pricing and avoid immediate price escalation in many construction trades (e.g. masonry, steel, roofing, finishes, kitchen equipment, etc.), the CMAR issued letters of intent to the selected subcontractors to lock in their pricing before it expired. This allowed more time to work on this GMP Amendment, so it could be brought forward with some additional items (e.g. the emergency generator, exterior skin replacement, etc.) included in the base contract, given the additional funding available now. This also allowed the City to lock in the pricing on these scope items before the bid pricing expired for them. The facility operator, Our Daily Bread (ODB) has committed to raising $896,035 or providing a combination of cash and donated furniture and equipment equivalent to this amount. To prevent the kitchen equipment bid package from seeing a 17% increase scheduled for December 1, 2021, the City used its funds to authorize this $618,498 purchase inside the GMP now. ODB will be responsible for replenishing the City’s budget for this amount in the next year. PRIOR ACTION/REVIEW (Council, Boards, Commissions) On August 17, 2021, City Council approved a contract with Balfour Beatty Construction, LLC, in the not- to-exceed amount of $5,000 (Ordinance 21-1691). RECOMMENDATION Award Amendment No. 1 with Balfour Beatty Construction, LLC, for Construction Manager At Risk Services for the renovation of the Loop 288 Project, in a total not-to-exceed amount of $9,784,701. PRINCIPAL PLACE OF BUSINESS Balfour Beatty Construction, LLC Dallas, TX ESTIMATED SCHEDULE OF PROJECT The project is in the final stages of Phase 4. With City Council approval of the CMAR – Exhibit A - GMP Amendment, the project would proceed to Phase 5 – Construction • 11/17/2021 – Construction Start Date • 10/05/2022– 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 and American Rescue Plan (ARP) Funds. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Original Ordinance and Contract Exhibit 3: Presentation Exhibit 4: LLC Members Exhibit 5: Ordinance and GMP Amendment 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.