Exhibit 1 - Agenda Information Sheet - GMP 3City of Denton
AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: December 17, 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. 3 to the
Construction Manager At Risk Contract with Sundt Construction, Inc., for the construction phase services
of the third 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 third guaranteed maximum price in the partial not-to-exceed amount
of $28,145,400.15 and a total contract price of $79,650,516.58). The Public Utilities Board recommends
approval (5 - 0).
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 90% of 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.
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 #2 was approved on May 7, 2024. All phases of Neighborhood 2 & 6 are
on track to be completed by the end of 2026.
This Neighborhood 2 & 6 GMP work package #3 (GMP #3) 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.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
The total cost of $28,145,400.15 for Neighborhood 2 & 6 construction GMP #3 consists of $27,145,400.15
total GMP; and a $1,000,000.00 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 7, 2024, City Council approved Guaranteed Maximum Price Amendment No. 2 with Sundt
Construction, Inc. (Ordinance 24-901).
On December 9, 2024, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a CMAR Guaranteed Maximum Price No. 3 Amendment with Sundt Construction, Inc., for
construction phase services for Neighborhood 2 & 6 Improvements for the Capital Projects Department, in
a third Guaranteed Maximum Price not-to-exceed amount of $28,145,400.15.
PRINCIPAL PLACE OF BUSINESS
Sundt Construction, Inc.
Irving, TX
ESTIMATED SCHEDULE OF PROJECT
Construction for Neighborhood 2 & 6 GMP #3 will be started in December 2024 with a projected
completion date of October 2026.
FISCAL INFORMATION
These services will be funded from a combination of the following 2019 Street Reconstruction Bond and
Water Utilities accounts:
2019 Street Reconstruction Bond 350530473.1360.40100 $1,000,000
2019 Street Reconstruction Bond 350530469.1360.40100 500,000
Water Distribution 630498523.1360.40100 4,000,000
Wastewater Collection 640485545.1360.40100 1,000,000
2019 Sidewalk Bond 350538473.1360.40100 100,000
Total: $6,600,000
Requisition #167834 has been entered into the Purchasing software system in the amount of $6,600,000.
The remainder of the funds will be added to the Purchase Order from future fiscal year allocations. The
total amount of this contract is $28,145,400.15.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Ordinances, Preconstruction Services Contract, Construction Services Contract, GMP 1 and
GMP 2 Amendments
Exhibit 3: Presentation
Exhibit 4: Ordinance and GMP 3 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.