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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 Construction Manager at Risk (CMAR) preconstruction services contract between the City of Denton and Sundt Construction, Inc., amending the contract approved by City Council on February 6, 2024, in the not-to-exceed amount of $2,452,441.00, said first amendment to provide additional preconstruction design services and expand the timeline for the Pecan Creek Water Reclamation Plant Headworks and Expansion project for the Water Utilities Department; providing for the expenditure of funds therefor; and providing an effective date (RFP 8289 - providing for an additional first amendment expenditure amount not-to-exceed $296,273.00, with the total contract amount not-to-exceed $2,748,714.00). 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), the city's sole reclamation plant, was constructed in 1961. PCWRP currently can handle an average daily flow of 21 million gallons per day (MGD). Water Utilities completed the Wastewater Master Plan in 2023, which concluded that the PCWRP needs to expand to an average daily flow of 26 MGD to serve the City’s growth. The Texas Commission on Environmental Quality (TCEQ) approved an updated discharge permit that includes two additional phases of 26 MGD and 30 MGD, respectively. The City entered into an agreement with Sundt Construction to provide CMAR design phase services, including input on the constructability of the design as it is developed in collaboration with the City of Denton, and the design professional engineer, Kimley-Horn and Associates, Inc. The PCWRP Headworks and Expansion project is currently under design, focused on adding 5 MGD Membrane Bioreactor Basins, Solids Handling Facilities, UV Disinfection, and New Headworks with a construction manager at risk (CMAR) selected for the project. 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 City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 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. This amendment includes the additional costs associated with the change in project from a 5 MGD expansion and new headworks to building a new 30 MGD Water Reclamation Plant. This change will extend the schedule by four (4) months, which has increased staff effort of the Sundt preconstruction team. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On February 6, 2024, City Council approved a Construction Manager at Risk (CMAR) pre-construction phase contract with Sundt Construction, Inc., in the not-to-exceed amount of $2,452,441 (Ordinance 24- 156). On July 28, 2025, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award Amendment No. 1 with Sundt Construction, Inc., to provide additional preconstruction design services and expand the timeline for the Pecan Creek Water Reclamation Plant Headworks and Expansion project for the Water Utilities Department, in a not-to-exceed amount of $296,273, for a total amended contract amount of $2,748,714. PRINCIPAL PLACE OF BUSINESS Sundt Construction, Inc. Irving, TX SUSTAINABILITY MEASURES The contract will help the City of Denton with the pre-construction services necessary to permit the construction of the Pecan Creek Water Reclamation Plant. The new infrastructure will increase the city's wastewater cleaning capacity. The facilities are essential to safely treating and discharging effluent to the sensitive, accepting streams. ESTIMATED SCHEDULE OF PROJECT Upon approval, the PCWRP Expansion project design will be extended by 4 months with an estimated construction completion date of December 2030. FISCAL INFORMATION These services will be funded from account 640496545.1365.20100. Purchase Order #206310 will be revised to include the first amendment amount of $296,273. The total amount of this contract is $2,748,714. Staff are 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. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Original Ordinance and Contract Exhibit 3: 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.