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Exhibit 1 - Agenda Information Sheet Amendment 1City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Christine Taylor DATE: August 5, 2025 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the approval of a first amendment to a Professional Services Agreement between the City of Denton and Kimley-Horn and Associates Inc., amending the contract approved by City Council on June 6, 2023, in the not-to-exceed amount of $14,952,000.00; said first amendment to provide additional engineering design and construction phase services for the Pecan Creek Water Reclamation Plant (PCWRP) Expansion Project for the Wastewater Department; providing for the expenditure of funds therefor; and providing an effective date (RFQ 7574-027 – providing for an additional first amendment expenditure amount not-to-exceed $18,840,500.00, with the total contract amount not-to-exceed $33,792,500.00). The Public Utilities Board recommends approval (5 - 0). STRATEGIC ALIGNMENT This action supports the Key Focus Area: Enhance Infrastructure and Mobility. INFORMATION/BACKGROUND The Pecan Creek Water Reclamation Plant (PCWRP) was built in 1961 and has a capacity of 21 MGD, million gallons per day. The 2023 Wastewater Master Plan concluded that the existing PCWRP needs an expansion to support Denton’s growth. TCEQ has approved an amended discharge permit to increase the PCWRP capacity to 30 MGD. The proposed expansion plan involves updating the existing facility with modern technologies, including membrane bioreactor basins, solids handling, UV disinfection, and new headworks. In March 2024, the City contracted with a consultant to perform a condition assessment of the existing PCWRP facility. The consultant prepared a comprehensive report that concluded the existing plant requires significant upgrades to ensure it complies with all State and Federal regulations and can operate efficiently for the next twenty years. As part of the condition assessment, an alternatives analysis was performed comparing the costs associated with refurbishing the existing facility to constructing a new water reclamation plant. The assessment indicated that constructing a new plant could potentially save the city up to $133 million over expanding and updating the existing plant. The savings include costs avoided for future construction, maintenance, operations, and regulatory compliance for the existing 60-plus-year-old plant. Once the new PCWRP is fully operational, the current facility will be decommissioned and demolished, freeing up valuable space for future facility needs. The new plant will incorporate the latest technology, significantly enhancing the city’s wastewater treatment processes and strengthening the protection of City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com nearby sensitive streams and ecosystems. This upgrade aims to ensure environmental safety and to improve the overall efficiency and reliability of wastewater management for decades to come. Due to the expanded scope, this proposed change order adjusts the existing contract with Kimley-Horn and Associates Inc. accordingly. • Preliminary Design and Final Design for a total of 30 MGD treatment capacity at PCWRP • CCA (Construction Contract Administration), RPR (Resident Project Representative) • Design of Operations / SCADA building, including Electrical, Maintenance, and Storage • Plant Non-Potable Water System and Chemical Feed System PRIOR ACTION/REVIEW (Council, Boards, Commissions) On March 22, 2021, the City Council approved RFQ 7574 for a prequalified list of firms to provide engineering services for various water and wastewater utilities projects for the Water Utilities Department (Ordinance 21-546). On June 6, 2023, the City Council approved a contract with Kimley Horn and Associates, Inc., in the not- to-exceed amount of $14,952,000 (Ordinance 23-1007). On July 28, 2025, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award Amendment No. 1 with Kimley-Horn and Associates, Inc., to provide additional engineering design and construction phase services for the Pecan Creek Water Reclamation Plant (PCWRP) Expansion Project for the Wastewater Department, in a not-to-exceed amount of $18,840,500, for a total amended contract amount of $33,792,500. PRINCIPAL PLACE OF BUSINESS Kimley-Horn and Associates Inc. Fort Worth, TX SUSTAINABILITY MEASURES The contract will assist the City of Denton with the engineering design and construction services necessary to permit the construction of the Pecan Creek Water Reclamation Plant. The new infrastructure will increase the city's wastewater treatment capacity. The facilities are essential to safely treating and discharging effluent to the sensitive receiving streams. ESTIMATED SCHEDULE OF PROJECT The amended anticipated schedule includes the following: • Sept 2023 Initial Project Kick-Off • Aug 2025 Amendment Approval • June 2026 Final Design • May 2027 Construction of Additional Treatment Train • July 2030 Substantial Completion FISCAL INFORMATION These services will be funded from the 5-year Capital Improvement Program bond, account 640496545.1360.20100. The total amount of this contract is $33,792,500. Funding has been identified from the previous year's CIP and allocated in the upcoming five-year CIP. Staff is actively pursuing low-interest loans from the Water Infrastructure Finance and Innovation Act (WIFIA) and the Texas Water Development Board (TWDB) Clean Water State Revolving Fund. Funded from prior Fiscal Years $17,292,500.00 Fiscal Year 2026 6,000,000.00 Fiscal Year 2027 2,625,000.00 Fiscal Year 2028 2,625,000.00 Fiscal Year 2029 2,625,000.00 Fiscal Year 2030 2,625,000.00 Total with Amendment $33,792,500.00 EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Original Ordinance and Contract Exhibit 3: Presentation Exhibit 4: Ordinance and Amendment 1 Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Jason Donnell, 940-349-8275. Legal point of contact: Marcella Lunn at 940-349-8333.