Exhibit 1 - Agenda Information Sheet - GMP 1City of Denton
AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Christine Taylor
DATE: March 4, 2025
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 construction phase services for Neighborhood 1B Improvements for the Capital Projects
Department; providing for the expenditure of funds therefor; and providing an effective date (RFP 8225 –
awarded to Sundt Construction, Inc., including the first Guaranteed Maximum Price in the partial not-to-
exceed amount of $31,872,570.02). The Public Utilities Board recommends approval (4 - 0).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Enhance Infrastructure and Mobility.
INFORMATION/BACKGROUND
To achieve the goal of completing the 2019 Street Reconstruction Bond Program within a six (6) year time
frame, City staff evaluated the use of alternative delivery methods including Construction Manager at Risk
(CMAR) to make project delivery more efficient. This methodology works based on collaboration between
the owner (the City), design engineer, and construction manager from initiation of project design through
construction and to deliver the project with a Guaranteed Maximum Price (GMP). Although the work by
law is required to be bid, 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 the CMAR project delivery method,
it will be more feasible to prioritize enhanced community engagement, construction sequencing, and overall
cost value.
The City of Denton 2019 Street Reconstruction Bond Program provides funding for the design and
reconstruction of aging street infrastructure throughout the City. Neighborhood 1B (NBHD-1B) is located
in northcentral Denton north of N Elm St and south of Loop 288. This neighborhood project area consists
of single-family residential homes, commercial businesses, and schools. This project will include the full-
depth reconstruction of 45 street segments within the NBHD-1B project area. This includes 25,000 feet
linear feet of roadway reconstruction with subgrade stabilization, 10,000 linear feet of water main
replacement, 16,800 linear feet of wastewater main replacement, asphalt paving, concrete curb and gutter,
and driveway replacements (limited to driveways that are within the existing right-of-way). The project will
adhere to a holistic approach aimed at limiting future construction disruptions by replacing other aging
public infrastructure within the limits of the project area.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
The purpose of this contract is for Sundt Construction, Inc. to serve as the CMAR and provide construction
phase services for the Neighborhood 1B Improvements project. As the CMAR, Sundt will manage
subcontractors, the project schedule, and the established GMP. During the preconstruction phase, Sundt
provided a cost model followed by competitive bidding on the work based on the 90% design documents
to arrive at the GMP No. 1 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 City used a one-step Construction Manager at Risk (CMAR) selection process to award Sundt
Construction, Inc. a CMAR Agreement authorizing to provide pre-construction services for the fee of
$267,000.00.
The total cost of $31,872,570.02 for Neighborhood 1B construction GMP #1 consists of $30,972,570.02
total GMP; and a $900,000.00 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 July 18, 2023, City Council approved a Professional Services Agreement with Kimley-Horn and
Associates, Inc., to provide design services for the Neighborhood 1B Improvements, in the not-to-exceed
amount of $3,076,300 (Ordinance 23- 1329).
On July 18, 2023, City Council approved a construction manager at risk contract for pre-construction phase
services with Sundt Construction, Inc., in the not-to-exceed amount of $267,000 (Ordinance 23-1330).
On February 24, 2025, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a Construction Manager at Risk contract with Sundt Construction, Inc., for construction phase
services for Neighborhood 1B Improvements for the Capital Projects Department, in a not-to-exceed
amount of $31,872,570.02.
PRINCIPAL PLACE OF BUSINESS
Sundt Construction, Inc.
Irving, TX
ESTIMATED SCHEDULE OF PROJECT
Construction for Neighborhood 1B GMP #1 will begin in March 2025 with a projected completion date of
October 2026.
FISCAL INFORMATION
This contract will be funded from a combination of the accounts listed below.
2019 Street Reconstruction Bond account 350550402.1360.40100 $15,539,857.91
Water Utilities account 630526523.1360.40100 4,911,434.34
Wastewater Collection account 640505545.1360.40100 9,921,637.47
2019 Bond Sidewalks 350551473.1360.40100 599,640.30
Total: $30,972,570.02
Requisition #168950 has been entered into the Purchasing software system in the amount of $16,500,000.
The remainder of the funds will be added to the Purchase Order from future fiscal year allocations. The
budgeted amount for this item is $31,872,570.02.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Ordinance and Preconstruction Services Contract
Exhibit 3: Presentation
Exhibit 4: Ordinance and GMP Amendment 1
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.