Exhibit 1 - Agenda Information Sheet - CO 1City of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement and Compliance
ACM: David Gaines
DATE: November 9, 2021
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute Change Order No. 1 to the Owner-Construction Manager
Agreement with Thos. S. Byrne, Inc., for the renovation of Police Headquarters, and construction of the
new Police Substation and Firing Range; providing for the expenditure of funds therefor; and providing an
effective date (RFQ 7249 – CMAR Change Order No. 1 awarded to Thos S. Byrne, Inc., in the not-to-
exceed amount of $6,000,000.00, for a total contract award aggregated to $52,039,401.00).
INFORMATION/BACKGROUND
The City of Denton’s Public Safety projects includes the renovation of the existing headquarters building
to meet industry standards and accommodate a more efficient layout; a new remote substation to address
the identified need in that location, and an indoor firing range to allow the proper training of the public
safety staff. These projects were part of the bond passed November 5, 2019.
The design team, headed by Brandstetter Carroll, Inc. (BCI), was awarded the contract for the design and
engineering services for these three public safety projects in a not-to-exceed amount of $3,085,830 in the
second quarter of 2019. BCI was authorized to complete conceptual design through August 1, 2019. Design
work re-commenced immediately upon bond vote certification. BCI’s contract was amended in 2020 to
include additional scope for the Firing Range in a not-to-exceed amount of $649,650 and amended again in
2021 to reallocate services and fees within the contract without a change in the contract amount.
In response to procurement process Solicitation #7249, the City used a two-step Construction Manager at
Risk (CMAR) selection process to award Byrne Construction Services (BCS) a CMAR Agreement
authorizing BCS to provide preconstruction services for the fee of $45,000. Staff advised an Amendment
for the cost of the actual construction would come before City Council for their consideration late in 2020.
BCS received final bids from subcontractors for the construction of renovation and new buildings
electronically on October 21, 2020. The first draft of that subcontractor bid analysis and award
recommendation was reviewed by City staff and the project team on November 12, 2020. After a detailed
validation of the proposed construction cost by the City staff and its project/program controls consultant,
Peak Program Value, LLC (PPV) the final Guaranteed Maximum Price (GMP) proposal of $46,039,401
was included in the Amendment approved by Council on December 17, 2020. The Notice to Proceed with
Construction was issued on January 15, 2021.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
CONSIDERATIONS
The original GMP Amendment included a 12% or $5,900,000 for Owner’s Contingency which is designated
for the City’s sole use, in the event of encountering unforeseeable conditions and at the City’s discretion to
add items to the CMAR’s construction scope. These unforeseeable conditions were presented to Council in
2020 being typical in a renovation of an existing building; and developing a large, untouched site such as
the Substation and Firing Range.
Since that meeting in 2020, the project team has indeed encountered these typical unforeseeable conditions,
along with a multitude of these very atypical events that significantly impacted both budget and schedule
including:
✓ Global supply chain interruptions further exacerbate local material shortages and drive costs up;
✓ Winter Storm Uri, impacting the construction schedule and increasing material scarcity;
✓ A strong “4th wave” of COVID cases and economic factors shrinking the available labor force;
✓ Energy prices soaring and impacting material production and transportation costs;
✓ Public & private demand for construction continues to rapidly increase in the DFW metroplex; and
✓ The result is “order” times stretching (e.g. 6 days to 6 months), and aggressive market-wide
escalation.
This Owner’s Contingency was also noted in 2020 for use in funding City-initiated changes to include
increasing the safety and security of staff and public; improving operational effectiveness, and improving
the quality of the building.
Staff is recommending the replenishment of this Owner’s Contingency in the GMP to include funding of
project components previously budgeted outside the GMP (e.g. AV, security, specialty storage, etc.) to
expedite procurement, and control installation management risks to the schedule.
It’s important to note again that all unused contingency will be returned to the City at the end of the project.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On April 21, 2020, City Council approved a CMAR contract with Thos S. Byrne, Inc., in the not-to-exceed
amount of $45,000 (Ordinance 20-853).
On December 17, 2020, City Council approved Amendment 1 with Thos S. Byrne, Inc., in the Guaranteed
Maximum Price of $46,039,401 (Ordinance 20-2471).
RECOMMENDATION
Award this Change Order No. 1 with Thos. S. Byrne, Inc., for the replenishment of Owner’s Contingency
in the GMP for the renovation of police headquarters and construction of the police substation and firing
range, in a not-to-exceed amount of $6,000,000, for a total amended contract amount of $52,039,401.
PRINCIPAL PLACE OF BUSINESS
Thos. S. Byrne, Inc.
Fort Worth, TX
ESTIMATED SCHEDULE OF PROJECT
The construction funded by this contract is projected to be complete by October 15, 2022, barring further
unforeseen circumstances. This will allow the three buildings to be fully operational by December 1, 2022,
which is five (5) months later than the original contract stated. This delay is due to the impacts of
unforeseeable conditions, weather, scope of work added by the City, and supply chain interruptions.
FISCAL INFORMATION
These construction services will be funded from General Obligation Bond funds, approved in 2019, as
well as Certificate of Obligation funds in the total project amount of $65,212,563.
Project costs include design and engineering; construction; furnishings; IT/teledata/AV/security systems;
and owner’s soft costs. Along with the previously approved contracts identified and other project expenses,
the project commitment total is currently $53,030,901.
The $6,000,000 requested in this proposed amendment would increase the project commitment total to
$59,030,901and is within the total project amount of $65,212,563.
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: Scott Gray, 940-349-7744.
Legal point of contact: Marcella Lunn, 940-349-8333