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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: August 17, 2021 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 Balfour Beatty Construction, LLC, for the renovation of the Loop 288 Project, as set forth in the contract; providing for the expenditure of funds therefor; and providing an effective date (RFQ 7671 – CMAR awarded to Balfour Beatty Construction, LLC, in the not-to-exceed amount of $5,000.00 for pre-construction services). INFORMATION/BACKGROUND In support of initiatives relating to the housing crisis response system and to provide public assistance, staff was directed to pursue the acquisition of the property at 909 North Loop 288 for a co-located day center and overnight shelter to provide services to people experiencing homelessness or at-risk of experiencing homelessness. Property The tract is located at 909 North Loop 288, on the west side of Loop 288 between US 377/380 (University Drive) and FM 426 (McKinney Street). The property was originally designed as a nursing facility in 1975 and underwent improvements from 2004-2005, transforming the facility into its current use. The building is approximately 34,284 square feet on +/-5.1 acres. The building is a one-story H-frame garden office building on a concrete slab foundation with two spacious courtyards and +/- 2.0 acres of land for future development opportunities. Directly behind the building and parking lot is +/- 2.0 acres of vacant land marketed as a future development pad site, in compliance with the current Public Facilities (PF) zoning designation approved on November 10, 2020 (ZCI20-0001). However, there are city electric and drainage easements on this vacant land that may impact the development of the land. To the west and north of the Property, the City of Denton owns approximately 26 acres of land (located at 1101 N Loop 288 and 1105 S Loop 288) also with a Public Facilities (PF) zoning designation. The city-owned land to the west of the Property contains electric transmission lines and some utility easements. A review of major project milestones is provided in Prior Action/Review section. The project timeline and next steps are provided in the Estimated Schedule of Project section. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com Project Scope The planning, programming, design analysis, and construction renovation of 909 N. Loop 288 to provide for a co-located day center, overnight shelter, and supportive services to people experiencing and at risk of homelessness. Project Team The approval of the Construction Manager at Risk contract will finalize the project team. • Owner: City of Denton • Architect: Kirkpatrick Architecture Studios • CMAR: Balfour Beatty Construction, LLC • Project Management Consultant: Peak Performance Value, LLC Construction Manager at Risk (CMAR) The Construction Manager at Risk (CMAR) is a delivery method that entails a commitment by the Construction Manager (CM) to deliver the project within a Guaranteed Maximum Price (GMP) which is based on the construction documents and specifications. CMAR Advantages • More collaborative construction delivery process • Assists with value engineering cost estimating, and constructability review • Method assists with the acceleration of the construction schedule • Design firm & CMAR collaborate to select best value subcontractors • Provides cost certainty with GMP Request for Qualifications (RFQ) for a construction manager at risk for the renovation and construction of the Loop 288 building- The Junction was sent to 1,274 prospective firms for these services. In addition, the RFQ was placed on the Materials Management website for prospective respondents to download and advertised in the local newspaper. Eight (8) statement of qualifications (SOQ) were received. The SOQs were evaluated based on published criteria including qualifications of the firm, proven project success, and the firm’s stability. Based upon this evaluation, a short-list of the two (2) most qualified received a Request for Proposal and an Interview Invitation. After scoring the interviews and the proposals received, the Evaluation Committee recommended Balfour Beatty Construction, LLC as the most qualified of the candidates, subject to successfully negotiating an agreement with terms acceptable to the City. NIGP Code Used for Solicitation: 906, 909, 910, 912, 913, 914, 925 Notifications sent for Solicitation sent in IonWave: 1274 Number of Suppliers that viewed Solicitation in IonWave: 43 HUB-Historically Underutilized Business Invitations sent out: 126 SBE-Small Business Enterprise Invitations sent out: 493 Responses from Solicitation: 8 The negotiations with Balfour Beatty Construction resulted in the AIA A133 Owner-CMAR Agreement attached to the Ordinance, which authorizes Balfour Beatty Construction to provide preconstruction services for the fee of $5,000. It is important to note this Agreement is only for preconstruction services and anticipates an Amendment for the cost of the actual construction itself, which will come before the City Council for their consideration and approval. PRIOR ACTION/REVIEW (Council, Boards, Commissions) • On April 21, 2020, City Council authorized the City Manager to enter into a contract for the purchase of the property at 909 North Loop 288 for the purchase price of $5,200,000.00, authorizing the expenditure of funds in the cash amount of $3,395,000.00 towards the purchase price and accepting the donation value of the property from the seller of $1,805,000.00. (Ordinance No. 20-837) • On June 16, 2020, the City Manager signed the Second Amendment to the Contract for Sale, extending both the Absolute Review Period and the Closing Date. • On June 23, 2020, the City Manager signed the Third Amendment to the Contract for Sale, again extending the Absolute Review Period and the Closing Date. • On June 30, 2020 (Ordinance No. 20-1235), the City Manager signed the Fourth Amendment to the Contract for Sale to allow the current owner to address the City's concerns and for the owner to compete for remediation of issues including: (1) all leases shall have been terminated and tenants shall have vacated the property; (2) all roof repairs needed on the Property shall be completed, and (3) asbestos remediation of the Property shall be completed. inspected and reported. • On August 28, 2020, the City took ownership of the facility. • On Oct. 6, 2020, City Council approved a professional services agreement with Kirkpatrick Architecture Studio for the design services of 909 N. Loop 288 to renovate the facility and accommodate the proposed use and day-to-day operations (Ordinance ID 20-1951). • On Nov. 10, 2020, City Council adopted an ordinance to change the zoning district and use classification from Suburban Corridor (SC) to a Public Facilities (PF) Zoning District for this property (ZCI20-0001). • On Feb. 16, 2021, City staff presented to City Council in a work session an overview of key terms for a draft Management Services agreement with The Junction and a project update (ID 21-056). • On April 05, 2021, City staff presented to City Council in a work session regarding the proposed design, construction budget and timeline, and construction method for the 909 N. Loop 288 facility and a general project update. • On June 22, 2021, City Council adopted an ordinance to execute with Our Daily Bread, Inc., a Management Services and Operating Agreement to manage and operate the facility located at 909 N. Loop 288 and to execute with Our Daily Bread, Inc., a Termination Agreement providing for (1) the termination of the lease for 300 S. Woodrow Lane and (2) the extension and termination of the agreement for enhanced shelter services provided at such leased property effective concurrent with the agreement start date to commence on the thirtieth (30th) day after the Loop 288 facility is issued a certificate of occupancy. RECOMMENDATION Award a contract with Balfour Beatty Construction, LLC, for the renovation of the Loop 288 Project, in a not-to-exceed amount of $5,000. PRINCIPAL PLACE OF BUSINESS Balfour Beatty Construction, LLC Dallas, TX ESTIMATED SCHEDULE OF PROJECT The project is in the final stages of Phase 3. With City Council approval of the CMAR contract, the project will proceed to Phase 4 – Preconstruction • 08/17/2021 – Approve CMAR Pre-Construction Services Balfour Beatty Construction • 09/07/2021 – 100% Construction Documents Release for Bidding • 11/09/2021 – City Council Considers Final Exhibit A - GMP Amendment (Notice to Proceed to Phase 5) With City Council approval of the CMAR – GMP Amendment, construction would proceed to Phase 5 – Construction • 11/11/2021 – Construction Start Date • 10/11/2022 – Substantial Completion of the Work • 12/22/2022 – Owner Startup, Training & Move-in Complete; Facility Fully Operational FISCAL INFORMATION These services will be funded from Certificates of Obligation Funds. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Evaluation Sheet Exhibit 3: Presentation Exhibit 4: LLC Members Exhibit 5: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Dani Shaw, 940-349-7237. Legal point of contact: Marcella Lunn at 940-349-8333.