Exhibit 1 - Agenda Information Sheet - CO 3City of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: February 1, 2022
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the approval of Change Order No. 3 to the contract between the City of Denton and Thalle
Construction Company, Inc., for the construction of the North South Phase II 36-inch/42-inch Water
Transmission Line Project for the City of Denton; providing for the expenditure of funds therefor; and
providing an effective date (IFB 6901 – Change Order No. 3 in the not-to-exceed amount of $439,304.64,
for a total contract award aggregated to $8,383,441.62).
INFORMATION/BACKGROUND
The North South Phase II Project extends approximately 10,000 linear feet of 36-inch and 42-inch of water
line from the 24-inch line along Roselawn Drive up to the Texas Department of Transportation (TxDOT)
facility at the intersection of northbound IH-35E Service Road and Bonnie Brae Road, with the pipeline
being within the Bonnie Brae Road right-of-way. This project is on the City’s water master plan and is
needed to provide more adequate and reliable water service to customers. The City entered into a contract
with Thalle Construction Company, Inc. on January 15, 2019, to complete the North South Phase II Project.
Change Order No. 1 totaled $32,140.71 and was approved by Purchasing on March 17, 2020. This change
order covered additional message boards, changes due to utility conflicts, and modifications associated with
the redesign of the 20-inch water line.
Change Order No. 2 totaled $113,189.27 and was approved on December 14, 2020, by the Public Utilities
Board (PUB) and on December 17, 2020, by City Council. This change order covered additional tie-in
locations requested by Water Utilities, the installation of a water gap/break-away fence within an easement
area, the installation of recycled asphalt millings (RAP), and added 120 days to the schedule.
Change Order No. 3 in the amount of $439,304.64 consists of the following:
Changes to existing and new items include:
• Additional Hydro-mulch required to seed areas not originally included in plans - $22,597.18
• Extended use of electronic message boards (6 additional months) - $6,246.66
• Bore Pit extension (20-inch lowering) due to rising water in original locations - $26,000.00
• The amount for Thalle to provide an additional warranty period from the standard 2 years to 5 years
on a section of the 20" lowering in lieu of performing a pressure test, in an effort to protect existing
20-year-old valves. (requested by Water Utilities) - $17,500.00
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
• Alignment adjustment due to unknown University of North Texas (UNT) sewer line. Required
redesign, removal of approximately 50 feet of installed line, and re-installation at new alignment
location. - $42,370.53
• Alignment adjustment due to unknown UNT sewer line. Per Texas Commission on Environmental
Quality (TCEQ) regulations, this section of pipe within the disturbed trench zone was cut out and
swapped for pressure-rated PVC and encased in concrete. - $4,590.27
Mediation items totaling $320,000.20 include:
• Amount City agrees is due to Thalle for additional efforts regarding the Differing Subsurface
Conditions Claim (boring under railroad area) - Mediation 7/8/2021 - $225,832.32
• Additional Joint Wrap Material for Covalence product (modified during bid) - Mediation 7/8/2021 -
$44,820.79
• Amount City agrees is due to Thalle for additional efforts due to gas line conflict STA 40+04.
Redesign and depth adjustments were made - Mediation 7/8/2021 - $49,346.89
Due to the rise in Covid19 cases, this item will be taken retroactively to the Public Utilities Board once
meetings resume.
PRIOR ACTION/VIEW (COUNCIL, BOARDS, COMMISSIONS)
On January 15, 2019, City Council approved a contract with Thalle Construction Company, Inc. in the not-
to-exceed amount of $7,798,807 (Ordinance 19-058).
On March 17, 2020, purchasing approved Change Order No. 1 with Thalle Construction Company, Inc. in
the not-to-exceed amount of $32,140.71.
On December 17, 2020, City Council approved Change Order No. 2 with Thalle Construction Company,
Inc. in the amount of $113,189.27. (Ordinance 20-2435)
On July 8, 2021, The City and Thalle Construction Company, Inc. appeared before a mediator in an effort
to resolve the following claims/denied change order requests:
Thalle
Request City Counter Mediation
Efforts
Remaining
Disputed
Differing Subsurface Conditions $ 471,709.76 $ 225,832.52 $ 225,832.52 $ 245,877.24
Joint Wrap Material $ 44,820.79 $ - $ 44,820.79 $ -
Gas Line Conflict STA 40+04 $ 80,051.53 $ - $ 49,346.89 $ 30,704.64
TOTALS: $ 596,582.08 $ 225,832.52 $ 320,000.20 $ 276,581.88
Though we were not able to agree on Thalle’s request to compensate for the Rail Road Flagging item at
their new requested price in the Differing Subsurface Conditions Claim, we did agree to compensate them
for the Joint Wrap Material required for the Covalence product and also agreed to partial compensation on
for gas line conflicts.
RECOMMENDATION
Award Change Order No. 3 with Thalle Construction Company, Inc., for the construction of the North
South Phase II 36-inch/42-inch Water Transmission Line Project for the City of Denton, in the not-to-
exceed amount of $439,304.64, for a total amended contract amount of $8,383,441.62.
PRINCIPAL PLACE OF BUSINESS
Thalle Construction Company, Inc.
Alvarado, TX
ESTIMATED SCHEDULE OF PROJECT
This project is complete. All lines are installed, in service, and working properly.
FISCAL INFORMATION
These items will be funded from Water Project Funds.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Original Ordinance and Contract
Exhibit 3: Change Order 1
Exhibit 4: Ordinance and Change Order 2
Exhibit 5: Ordinance and Change Order 3
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this project, contact: Robin Davis, 940-349-7713.
Legal point of contact: Marcella Lunn at 940-349-8333.