Exhibit 1 - Agenda Information Sheet - GMP 2City of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: May 7, 2024
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 No. 2 to the
Construction Manager At Risk Contract with Sundt Construction, Inc., for the construction phase services
of the second work package for Neighborhood 2 and 6 Improvements for the Capital Projects Department;
providing for the expenditure of funds therefor; and providing an effective date (RFP 8055 – awarded to
Sundt Construction, Inc., including the second guaranteed maximum price in the partial not-to-exceed
amount of $37,615,516.43 and a total contract price of $51,505,116.43).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Enhance Infrastructure and Mobility.
INFORMATION/BACKGROUND
In November 2022, City Council approved a contract with Sundt Construction, Inc. to provide Construction
Manager at Risk (CMAR) pre-construction phase services for Neighborhoods 2 & 6. As the CMAR, Sundt
manages subcontractors, the project schedule, and the established Guaranteed Maximum Price (GMP)
packages. During the preconstruction phase, Sundt provided a cost model, followed by competitively
bidding the work off of the 90% design documents to arrive at the GMP proposal. Within the GMP
deliverable, Sundt has also provided a construction management plan, quality control plan, and proposed
sequencing schedule for the project. These items are a product of the collaboration by the City, CMAR, and
design engineer.
This Neighborhood 2 & 6 GMP work package #2 (GMP #2) contains 49 roadway segments that will be
reconstructed as part of the voter-approved 2019 Street Reconstruction Bond. Along with the full
reconstruction of the identified street segments, the project also includes the replacement of aging utility
infrastructure, enhanced sidewalk connectivity, and various street lighting upgrades. The Neighborhood 2
& 6 Improvement project is the second neighborhood project that will be delivered as a CMAR project and
it is the first CMAR project for the City that includes multiple GMP packages. The Neighborhood 2 & 6
project has been divided into three packages. GMP #1 was approved by City Council on November 14,
2023, and GMP #3 is expected to come before Council for consideration in December 2024. All phases of
Neighborhood 2 & 6 are on track to be completed by the end of 2026.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
The total cost of $37,615,516.43 for Neighborhood 2 & 6 construction GMP #2 consists of $36,115,516.43
total GMP; and a $1,500,000.00 owners contingency. The owner contingency is for the sole use of the City
and will be subject to written authorization by the City’s Project Manager.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On November 1, 2022, City Council approved a Professional Services Agreement with Kimley-Horn and
Associates, Inc., to provide design services for the Neighborhood 2 & 6 Improvements (Ordinance 22-
2192).
On November 1, 2022, City Council approved a construction manager at risk contract for pre-construction
phase services with Sundt Construction, Inc. (Ordinance 22-2195).
On November 14, 2023, City Council approved a construction manager at risk contract for construction
phase services with Sundt Construction, Inc. (Ordinance 23-2117).
On May 6, 2024, this item will be presented to the Public Utilities Board (PUB) for consideration.
RECOMMENDATION
Award a CMAR Guaranteed Maximum Price No. 2 Amendment with Sundt Construction, Inc., for
construction phase services for Neighborhood 2 & 6 Improvements for the Capital Projects Department, in
a second Guaranteed Maximum Price not-to-exceed amount of $37,615,516.43.
PRINCIPAL PLACE OF BUSINESS
Sundt Construction, Inc.
Irving, TX
ESTIMATED SCHEDULE OF PROJECT
Construction for Neighborhood 2 & 6 GMP #2 will be started in May 2024 with a projected completion
date of September 2026.
FISCAL INFORMATION
This contract will be funded from 2019 Street Reconstruction Bond account 350530473 and 350538473,
Water Utilities account 630498523, and Wastewater Collection account 640485545. Requisition #164708
has been entered into the Purchasing software system in the amount of $25,523,774.10. The remainder of
the funds will be added to the Purchase Order from future fiscal year allocations. The total amount of this
contract is $37,615,516.43.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Ordinance and Preconstruction Services Contract
Exhibit 3: Ordinance and Construction Services Contract
Exhibit 4: Presentation
Exhibit 5: Ordinance and GMP No. 2 Amendment
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Scott Fettig, 940-349-8909 & Seth Garcia, 940-349-
8938.
Legal point of contact: Marcella Lunn at 940-349-8333.