Exhibit 1 - Agenda Information Sheet - CO 3City of Denton
AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
CFO: Cassey Ogden
DATE: December 13, 2022
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute Change Order No. 3 to the Owner-Construction Manager
Agreement with Thos. S. Byrne, Inc., for the replenishment of Owner’s Contingency in the GMP for the
renovation of police headquarters and construction of the police substation and firing range; providing for
the expenditure of funds therefor; and providing an effective date (RFQ 7249 – CMAR Change Order No.
3 awarded to Thos S. Byrne, Inc., in the not-to-exceed amount of $4,831,479.00, for a total contract award
aggregated to $56,870,880.00).
INFORMATION/BACKGROUND
The City of Denton’s Public Safety projects includes the renovation of the existing headquarters building
to meet industry standards and accommodate a more efficient layout, a new remote substation to address
the identified need in that location, and an indoor firing range to allow the proper training of public safety
staff. These projects were part of the bond passed on November 5, 2019.
The design team, headed by Brandstetter Carroll, Inc. (BCI), was awarded the contract for the design and
engineering services for these three public safety projects in a not-to-exceed amount of $3,085,830 in the
second quarter of 2019. BCI was authorized to complete conceptual design through August 1, 2019. Design
work re-commenced immediately upon bond vote certification. BCI’s contract was amended in 2020 to
include additional scope for the Firing Range in a not-to-exceed amount of $649,650 and amended again in
2021 to reallocate services and fees within the contract without a change in the contract amount.
In response to procurement process Solicitation #7249, the City used a two-step Construction Manager at
Risk (CMAR) selection process to award Byrne Construction Services (BCS) a CMAR Agreement
authorizing BCS to provide preconstruction services for the fee of $45,000. Staff advised an Amendment
for the cost of the actual construction would come before City Council for their consideration late in 2020.
BCS received final bids from subcontractors for the construction of renovation and new buildings
electronically on October 21, 2020. The first draft of that subcontractor bid analysis and award
recommendation was reviewed by City staff and the project team on November 12, 2020. After a detailed
validation of the proposed construction cost by City staff and its project/program controls consultant, Peak
Program Value, LLC (PPV), the final Guaranteed Maximum Price (GMP) proposal of $46,039,401 was
included in the Amendment approved by Council on December 17, 2020. The Notice to Proceed with
Construction was issued on January 15, 2021.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
The original GMP Amendment included a 12% (or $5,900,000) for the Owner’s Contingency which is
designated for the City’s sole use, in the event of encountering unforeseeable conditions and at the City’s
discretion to add items to the CMAR’s construction scope. These unforeseeable conditions were presented
to Council in 2020 as being typical in a renovation of an existing building; and developing a large,
untouched site such as the Substation and Firing Range.
On November 9, 2021, when Change Order # 01 was presented to City Council it was noted the
“headwinds” requiring that Change Order would continue to impact the project, and Council would be
updated on those impacts in early 2022.
Since the November 9, 2021 meeting, the project team continued to encounter unforeseeable conditions, along
with a multitude of these very atypical events that significantly impacted both budget and schedule.
The list of these “headwinds” shown on November 9, 2021, AIS below are still impacting the project:
✓ Global supply chain interruptions further exacerbate local material shortages and drive costs up;
✓ Winter Storm Uri, impacting the construction schedule and increasing material scarcity;
✓ A strong “4th wave” of COVID cases and economic factors shrinking the available labor force;
✓ Energy prices soaring and impacting material production and transportation costs;
✓ Public & private demand for construction continues to rapidly increase in the DFW metroplex;
✓ The result is “order” times stretching (e.g. 6 days to 6 months) and aggressive market-wide
escalation;
In addition, these new project issues have been added to the project challenges since the November 9, 2022,
Council meeting:
✓ Existing steel structural damage & concrete floor movement were uncovered during demolition;
✓ Mechanical, electrical, and other systems deficiencies discovered during demolition;
✓ Utilities access and other unknown site issues; and
✓ Security and IT systems “order times” stretching out up to one year, among other unique delays.
This Owner’s Contingency was also noted in 2020 and 2021 for use in funding City-initiated changes to
include increasing the safety and security of staff and the public, improving operational effectiveness, and
improving the quality of the building. Moving scope and its associated funding (e.g. security, appliances,
and furniture) from outside the GMP into the CMAR’s contract was also discussed.
Staff is recommending the replenishment of this Owner’s Contingency in the GMP to address these issues,
and control installation management risks to the schedule.
It’s important to note again that all unused contingency will be returned to the City at the end of the project.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On April 21, 2020, City Council approved a CMAR contract with Thos S. Byrne, Inc., in the not-to-exceed
amount of $45,000 (Ordinance 20-853).
On December 17, 2020, City Council approved Amendment 1, with Thos S. Byrne, Inc., in the Guaranteed
Maximum Price of $46,039,401 (Ordinance 20-2471).
On November 9, 2021, City Council approved Change Order No. 1, with Thos S. Byrne, Inc., in the not-to-
exceed amount of $6,000,000, for a total not-to-exceed amount of $52,039,401 (Ordinance 21-2479).
RECOMMENDATION
Award Change Order No. 3 with Thos. S. Byrne, Inc., for the replenishment of Owner’s Contingency in the
GMP for the renovation of police headquarters and construction of the police substation and firing range,
in a not-to-exceed amount of $4,831,479, for a total amended contract amount of $56,870,880.
PRINCIPAL PLACE OF BUSINESS
Thos. S. Byrne, Inc.
Fort Worth, TX
ESTIMATED SCHEDULE OF PROJECT
The construction funded by this contract is projected to be complete by the Second Quarter of 2023, barring
further supply chain interruptions or other unforeseen circumstances. This will allow the three buildings to
be fully operational by September 1, 2023, which is fifteen (15) months later than the original contract
stated. This delay is due to the impacts of unforeseeable conditions, weather, scope of work added by the
City, and supply chain interruptions.
FISCAL INFORMATION
These construction services will be funded from General Obligation Bond funds, approved in 2019, as well
as Certificate of Obligation funds in the total project amount of $65,212,563. As discussed above, the City
will also be using non-bond sources.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Original Ordinance and Contract
Exhibit 3: Ordinance and GMP Amendment 1
Exhibit 4: Ordinance and Change Order 1
Exhibit 5: Change Order 2
Exhibit 6: Presentation
Exhibit 7: Ordinance and Change Order 3
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Trevor Crain, 940-349-7426.
Legal point of contact: Marcella Lunn at 940-349-8333.