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HomeMy WebLinkAboutExhibit 1 - Agenda Information Sheet - CO 1City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Christine Taylor DATE: May 19, 2026 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, ratifying Change Order No. 1 to the contract between the City of Denton and 4X Construction Group, LLC, for the Cell 6 Construction Project for the Solid Waste and Recycling Department; providing for the expenditure of funds therefor; and providing an effective date (CSP 8907 – Change Order No. 1 in the not- to-exceed amount of $618,467.03, for a total contract award aggregated to $5,491,222.03). The Public Utilities Board will consider this item on Monday, May 18, 2026. STRATEGIC ALIGNMENT This action supports Key Focus Area: Promote Sustainability and the Environment. INFORMATION/BACKGROUND The contract for this project was awarded to 4X Construction Group, LLC, through the City’s formal competitive proposal process. The contract was approved by City Council on March 24, 2026. Recently, the price of oil has been rising, directly impacting the petroleum-based products essential to this project. The project requires the installation of over 3.3 million square feet of specialized materials, including High-Density Polyethylene (HDPE) and Geocomposite liners. Because these materials are produced on demand and are highly susceptible to UV damage during storage, they cannot be purchased in advance. The Contractor has submitted a price increase of 23.5% based on documented supplier cost escalations. To remain on the timeline necessary to maintain regulatory compliance, the Solid Waste and Recycling Department and Procurement recommend processing this change order under the Declaration of Emergency process to remain on track with the critical path for the project. Any further delays can impact the Landfill’s capacity, which could result in violations of the Municipal Solid Waste Permit with the TCEQ and the Settlement Agreement with local neighbors, leading to significant fines, legal fees, and threats to public health. Therefore, the Declaration of Emergency is necessary to award Change Order No. 1 in the amount of $618,467.03. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On March 24, 2026, City Council approved a contract with 4X Construction Group, LLC, in the not-to- exceed amount of $4,872,755 (Ordinance 26-0342). City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com On May 18, 2026, this item will be presented to the Public Utilities Board (PUB) for consideration. RECOMMENDATION Approve ratifying Change Order No. 1 for the Cell 6 Construction Project for the Solid Waste and Recycling Department, in the not-to-exceed amount of $618,467.03, for a total contract award aggregated to $5,491,222.03. PRINCIPAL PLACE OF BUSINESS 4X Construction Group, LLC Mansfield, TX ESTIMATED SCHEDULE OF PROJECT This project has been awarded, with a contract time of six (6) months, to a substantial completion schedule. FISCAL INFORMATION These services will be funded from Cell 6 Construction Project account 660270595.1365.40100. Purchase Order #214556 will be revised to include the change order amount of $618,467.03. The total amended amount of this contract is $5,491,222.03. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Original Ordinance and Contract Exhibit 3: Ordinance and Change Order 1 Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Brenda Haney, 940-349-8056. Legal point of contact: Leah Bush at 940-349-8333.