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Exhibit 1 - Agenda Information SheetCity of Denton AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Cassey Ogden DATE: February 6, 2024 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 Sundt Construction, Inc., for pre-construction services of the Pecan Creek Water Reclamation Plant Expansion Project for the Water Utilities Department; providing for the expenditure of funds therefor; and providing an effective date (RFP 8289 – awarded to Sundt Construction, Inc., in the not-to-exceed amount of $2,452,441.00). The Public Utilities Board recommends approval (4 - 1). STRATEGIC ALIGNMENT This action supports Key Focus Area: Enhance Infrastructure and Mobility. INFORMATION/BACKGROUND The Pecan Creek Water Reclamation Plant (PCWRP) is the City’s only Wastewater Reclamation Facility and is currently permitted for an annual average capacity of 21 million gallons per day (MGD) and 46 MGD Peak 2-hour flow (P2HF). The facility treats 14-15 MGD of wastewater, which is 71% of the permit limit. The Texas Commission on Environmental Quality (TCEQ) requires a utility to begin design for capacity expansion when flows reach 75% of the permit limit and to begin construction of improvements when flows reach 90% of the permit limit. An updated discharge permit was submitted to the Texas Commission on Environmental Quality (TCEQ), which includes two additional phases of 26 MGD and 30 MGD, respectfully. TCEQ has approved the amended discharge permit. The expansion of PCWRP will include a new treatment train that will utilize membrane bioreactor (MBR) technology. MBR technology, a new process for PCWRP, offers increased capacity in a similar footprint as a conventional treatment process. The effluent result from MBR treatment is free of suspended solids and contains reduced bacterial and viral content, requiring minimal disinfection. This process allows the treated effluent to be discharged into sensitive receiving streams or to be reclaimed for applications such as irrigation. A new headworks facility, solids handling process, and ultraviolet disinfection upgrades are included in the project. The proposed project utilizes proven technology to effectively treat the influent at the location, resulting in high-quality effluent discharge and ensuring environmental sustainability. This expansion will provide a capacity upgrade to provide safe wastewater treatment services associated with the increased growth within the City and surrounding communities. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com To achieve the goal of completing the PCWRP Expansion, City staff evaluated the use of alternative delivery methods including CMAR to make project delivery more efficient. The City contracted with Freese and Nichols, Inc. to help develop and adopt new contract documents and receive coaching to successfully execute a CMAR project. This methodology works based on collaboration between the City, design engineer, and construction manager from the initiation of project design through construction. Although the work by law is required to be bid on, cost models are tracked through the design phase (open book) to establish a guaranteed maximum price for the project. The construction manager also provides and tracks a construction management plan and schedule throughout design development to help facilitate a seamless transition between design phase services and construction. By utilizing this methodology, the staff’s goal of construction sequencing to mitigate increasing costs, prepurchase equipment to plan for long lead times, and gain overall cost value will be prioritized. The purpose of this contract is for Sundt Construction, Inc. to provide pre-construction services including input on the constructability of the design as it is developed in collaboration with the City of Denton, and the proposed design professional engineer, Kimley-Horn and Associates, Inc. After the design is finalized, staff will request the Public Utilities Board and City Council to consider a subsequent contract with Sundt Construction, Inc., for construction phase services of the PCWRP Expansion Project. The total construction project cost is estimated at $200 million. Requests for Proposals were sent to 564 prospective suppliers, including 38 Denton firms, for this item. In addition, specifications were placed on the Procurement website for prospective suppliers to download and advertise in the local newspaper. Two (2) proposals were received and were evaluated based on published criteria including qualification and experience of the firm, delivery approach, phase services approach, quality assurance and control, preconstruction fees, construction fees, and general conditions cost. Based upon this evaluation, Sundt Construction, Inc. was ranked the highest and determined to be the best value for the City. NIGP Code Used for Solicitation: 913 - (Service Only) - Construction Services, Heavy (Incl. Maintenance and Repair Services) Notifications sent for Solicitation sent in Ion Wave: 564 Number of Suppliers that viewed Solicitation in Ion Wave: 17 HUB-Historically Underutilized Business Invitations sent out: 50 SBE-Small Business Enterprise Invitations sent out: 185 Responses from Solicitation: 2 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On January 22, 2024, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award a contract with Sundt Construction, Inc., for pre-construction services of the Pecan Creek Water Reclamation Plant Expansion Project for the Water Utilities Department, in a not-to-exceed amount of $2,452,441. PRINCIPAL PLACE OF BUSINESS Sundt Construction, Inc. Irving, TX SUSTAINABILITY MEASURES The expansion of the Pecan Creek Water Reclamation plant provides capacity increases needed to match the demand now and for projected future demand. Included in the expansion are new processes that maintain and exceed the requirements of the Texas Commission of Environmental requirements. The use of MBR technology and other upgrades ensures public health and safety, protecting the sensitive receiving stream. ESTIMATED SCHEDULE OF PROJECT The PCWRP Expansion project will be started upon approval of the design and CMAR contracts with a projected construction completion date of Q4 2026. FISCAL INFORMATION These services will be funded from Water Utilities account 640496545.1365.20100. Requisition #163344 has been entered into the Purchasing software system in the amount of $2,452,441. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Pricing Evaluation Exhibit 3: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: David Brown, 940-349-8480. Legal point of contact: Marcella Lunn at 940-349-8333.