HomeMy WebLinkAbout2021-04-05 Agenda and BackupCity Council
City of Denton
Meeting Agenda
City Hall
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Council Work Session Room12:00 PMMonday, April 5, 2021
Note: Mayor Gerard Hudspeth, Mayor Pro Tem Jesse Davis and Council Members Birdia Johnson, Connie
Baker, John Ryan, Deb Armintor and Paul Meltzer will be participating in the work session via
video/teleconference.
After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a
Work Session on Monday, April 5, 2021, at 12:00 p.m. in the Council Work Session Room at City Hall, 215
E. McKinney Street, Denton, Texas at which the following items will be considered:
WORK SESSION
1. Work Session Reports
Receive a report, hold a discussion, and give staff direction regarding the proposed
design, construction budget and timeline, and construction method for the 909 N. Loop
288 facility and a general project update.
ID 21-431A.
NOTE: The City Council reserves the right to adjourn into a Closed Meeting on any item on its
Open Meeting agenda consistent with Chapter 551 of the Texas Government Code, as amended, or
as otherwise allowed by law.
C E R T I F I C A T E
I certify that the above notice of meeting was posted on the official website
(https://www.cityofdenton.com/en-us/government/open/agendas-minutes) and bulletin board at City Hall, 215
E. McKinney Street, Denton, Texas, on April 2, 2021, in advance of the 72-hour posting deadline, as
applicable, and in accordance with Chapter 551 of the Texas Government Code.
__________________________________________
CITY SECRETARY
NOTE: THE CITY OF DENTON'S DESIGNATED PUBLIC MEETING FACILITIES ARE
ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY
WILL PROVIDE ACCOMMODATION, SUCH AS SIGN LANGUAGE INTERPRETERS FOR THE
HEARING IMPAIRED, IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE
SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 940-349-8309 OR
USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RELAY-TX
SO THAT REASONABLE ACCOMMODATION CAN BE ARRANGED.
Page 1 Printed on 4/6/2021
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City of Denton
Legislation Text
City Hall
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
File #:ID 21-431,Version:1
AGENDA CAPTION
Receive a report, hold a discussion, and give staff direction regarding the proposed design, construction budget
and timeline, and construction method for the 909 N. Loop 288 facility and a general project update.
City of Denton Printed on 4/2/2021Page 1 of 1
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City of Denton
_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Community Services
CM/ DCM/ ACM: Sara Hensley, Interim City Manager
DATE: April 05, 2021
SUBJECT
Receive a report, hold a discussion, and give staff direction regarding the proposed design, construction
budget and timeline, and construction method for the 909 N. Loop 288 facility and a general project update.
BACKGROUND
In spring 2020, City Council provided direction to staff to purchase a facility located at 909 N. Loop 288
for a co-located day center and overnight shelter to provide services to people experiencing homelessness
or at-risk of experiencing homelessness.
This facility was selected for consideration due to its location, design comparable to the future intended
use, and connection to other services.
LOCATION AND LAND USE
Non-residential use along Loop
288, a primary arterial
Redevelopment of an
underutilized property
Bordered by City property (north
and west as depicted in red on the
map) and undeveloped property
On approximately 5.1 acres of
land (south)
FACILITY
Prior use as a congregate nursing
home facility
34,000+ sq. ft. building; one-
story; H-frame with 4 wings and
a common area.
CONNECTION TO SERVICES
Bus Stop in front of the building
Serve Denton (less than a mile
south)
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
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An overview of key dates and milestones is provided in the Prior Action/Review section below, but in short,
the City took ownership of the facility in August 2020 and in October 2020 (Ordinance ID 20-1951), the
City entered into a professional services agreement with Kirkpatrick Architecture Studio (KAS) for design
services to renovate the facility and accommodate the proposed use and day-to-day operations.
City staff has continued discussions and working with The Junction to consolidate and combine their current
two locations, at Our Daily Bread food kitchen (300 W Oak St) and Monsignor King Outreach Center
(MKOC) shelter (300 S. Woodrow Lane) to operate a co-located center and provide services from the Loop
288 facility. Staff worked with The Junction to draft an agreement for the management, operation and
provision of services at the Loop 288 facility. This agreement will be presented to City Council for approval
at a future council meeting.
City staff, The Junction, and other stakeholders worked on the design development with KAS. On Feb. 23,
2021, City staff presented to City Council in a work session an overview of key terms for a draft
Management Services and Operating agreement with The Junction and a project update (ID 21-056).
DISCUSSION
KAS’s design services have provided the City with the Project Scope including 100% design documents,
budget, and schedule. Staff is requesting City Council approval to proceed to amendment to the Professional
Services with Kirkpatrick Architecture Studio for construction documents, selection of construction
manager, and for staff to complete budget validation and project financial reconciliation.
909 N. Loop 288 Project Scope
The planning, programming, design analysis, and construction of 909 N. Loop 288 to provide for a co-
located day center and overnight shelter supported by City Council as a strategic priority.
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Staff is working with Peak Program Value (PPV) on project budget and controls. The project scope, budget,
and schedule have been validated Peak Program Value, LLC, the City’s project controls consultant, to be
in line with market value for similar design services.
Through the design development, staff worked with KAS to provide design options for the facility in phases
to allow for flexible construction and funding options as needed. Because of estimated cost escalation and
the increased timeline to the facility being fully operational resulting in delay and loss of services, staff is
recommending completion of all phases at once.
Final Budget
The following budget is based on the design presented today, current marketplace conditions, and projected
escalation.
Architect – Phase 3: Finalize Documents $267,280
Summary Estimated Amount
Building Renovations $5,971,696
Furnishings, IT/AV/Security, Equipment, Etc.$880,974
Soft Costs & Contingencies $1,468,572
Total of All Uses $8,321,242
Escalation (Current Market = 0.9%/MO)$499,275
Total of All Uses $8,820,516
The estimated cost of $8.82M is the full design and construction (to complete all sections/wings of the
building at once). Staff did request a cost breakdown if the building sections/wings were to be constructed
in phases to understand options.
Phasing would add approx. $1M in cost, plus additional costs for escalation of increased time
Phasing would add $136K to Architect Services.
Phasing would extend timeframe to construct an additional 11 months
Funding Evaluation
Staff is reviewing existing project funding as well as potential funding sources. Next steps for staff will be
to complete budget validation and project financial reconciliation.
City of Denton (Original Budget) $2,000,000
The Junction – Fundraising Commitment to FF&E/Alternatives (EST) $880,974
300 S. Woodrow (Sale 2.364 ac. with Building) (EST) $585,000
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Additional funding options are under review including funding from other governmental entities and
funding that may be available from the federal American Rescue Plan legislation. The City is still waiting
to receive additional information regarding American Rescue Plan legislation and associated guidance.
However, to keep the project on schedule for completion, staff recommends authorizing and issuing
Certificate of Obligation Bonds through the Notice of Intent for this year’s bond sale. Staff will continue
to closely review and evaluate potential funding sources to minimize the need for Certificate of
Obligation Bonds for this project and report back to Council in the next couple months.
Schedule
Based on completion of all phases at once.
April 5, 2021 – Anticipated City Council Notice to Proceed
Next 3 Months – Construction Manager at Risk (CMAR) Procurement Process
June 1, 2021 – Architect to start Construction Documents (Resource Constrained)
August & September, 2021 – Contractor Bids to Subcontractors & Prepare Final Cost (Guaranteed
Maximum Price - GMP)
October, 2021– Finalize City Permit Process
November, 2021 – CMAR’s
January, 2022 – Begin Construction
October, 2022 – Substantial Completion Date (Owner Start Up & Move In Begins)
December, 2022 – Fully Operational for Client Services
While the design concept would not change if the project were phased, construction in individual phases
increases the overall project duration by an estimated 11 months, due to the consecutive duration of each
separate phase becoming additive, and the efficiencies lost with multiple mobilizations, smaller crews, etc.
With each month of project extension in the phased model, there is additional cost of both the CMAR’s and
the architect’s staff. In addition, in today’s market cost escalation will significantly impact the labor and
materials purchased later in the project. At current estimated values, the project budget increases by more
than 11%. Please see the cost comparison provided below of the recommended one phase ($8.8M) versus
phasing (approximate total cost of $9.9.8M with 11% escalator).
All Phases Completed At Once (Recommended):
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Completed in 3 Phases (Not Recommended):
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Delivery Method
Project Delivery is a comprehensive process including planning and financing the design and construction
required to execute and complete a facility. Out of the delivery methods available [CMAR, Design-Build
(one entity, single contract), and Design-Bid-Build (three sequential project steps)], staff is recommending
CMAR for the project delivery method. Key considerations include:
Lower Project Cost: Lower fees and contingency in CMAR process; City and CMAR can also
decide to rebid subcontractor packages with poor participation.
Complete Cost Transparency: Subcontractor procurement process done with City oversight, and all
savings revert to the City.
Better Constructability & Less Changes: CMAR’s perspective & experience is included in planning
and design decisions.
Improvements in Delivery Schedule. Subcontractor procurement may begin before design
completion, reducing overall project schedule.
Collaborative Relationship. Construction Manager (CM) and Designer build collaborative
relationship early.
Risk Reduction. CMAR projects are proven to have less claims and litigation.
Other Project Actions Underway:
Contingent on the completion of Loop 288, staff is developing agreements to be presented to City Council
for consideration.
Management Services and Operating Agreement
Agreement with The Junction for the operation of the Loop 288 Facility
Termination of Current Enhanced Shelter Agreement with The Junction
Termination of Current Lease Agreement for 300 S Woodrow with The Junction
Potential Sale of 300 S. Woodrow
Property Sale of 2.364 Acres Building with Land Sale
Licensing Agreement for 8.662 Acres
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 seller of $1,805,000.00. (Ordinance No. 20-837)
o 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.
o 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.
o 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 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.
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In 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. 23, 2021, City staff presented to City Council in a work session an overview of key terms for
a draft Management Services and Operating Agreement with The Junction and a project update (ID 21-
056).
EXHIBITS
Exhibit 1 – Agenda Information Sheet
Exhibit 2 – Presentation
Respectfully submitted:
Dani Shaw
Community Services Manager
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909 N. Loop 288 BuildingCOMMUNITY SERVICESWORKING TO PROVIDE QUALITY AFFORDABLE HOUSING, A SUITABLE LIVINGENVIRONMENT, AND EXPANDING ECONOMIC OPPORTUNITY, PRINCIPALLY FOR PERSONS OF LOW TO MODERATE INCOME.10
AGENDARECAP OF PRESENTATION FROM FEB. 23, 2021•Review of Project Background•Review of Current and Proposed Collaboration with The Junction•Key Terms of a Management Services and Operating Agreement•Design Update•Next StepsTODAY’S PRESENTATION AND OBJECTIVES: PROJECT REVIEW•Project Scope•Rough Budget•Estimated Timeline•Seeking Direction From Council To Proceed With Next StepsID 21‐431 COMMUNITY SERVICES 2
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ID 21‐431 COMMUNITY SERVICES 3FACILITY SELECTIONLOCATION AND LAND USEoNon‐residential use along Loop 288, a primary arterialoRedevelopment of an underutilized propertyoBordered by City property (north and west) and undeveloped propertyoOn approximately 5.1 acres of land (south)FACILITYo34,000+ sq. ft. building; one‐story; H‐frame with 4 wings and a common area.CONNECTION TO SERVICESBus Stop in front of the buildingServe Denton (less than a mile south)Yellow ‐‐ purchased property for the centerRed – existing City property
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PROJECT SCOPEID 21‐431 COMMUNITY SERVICES 4The planning, programming, design analysis, and construction of 909 N. Loop 288 to provide for a co‐located day center and overnight shelter. PROJECT PHASES:oPurchase (completed)oZoning (completed)oDesign◦Phase 1 & 2 (completed) ‐ Schematic Design, Cost Estimates, Design Development◦Phase 3 (next) –Construction Design and CostCONSTRUCTION13
ID 21‐431 COMMUNITY SERVICES 5EMERGENCY SHELTERENHANCED SHELTERPROGRAM SERVICESCOMMERCIAL KITCHENCONCEPTUAL DESIGN14
ID 21‐431 COMMUNITY SERVICES 6CONCEPTUAL DESIGNCOMMERCIAL KITCHENEMERGENCY SHELTERPROGRAM SERVICES (Day Services)ENHANCED SHELTERProvide 3x Daily Meals and Food Security ServicesKitchenFreezerDry Food StorageReceiving Area for Food and DonationsStaff EntranceProvide overnight Emergency Shelter, Showers and Laundry Services120 Beds (10 Rooms, 6 Bunks)Restrooms and Showers (also Day Use)Emergency Shelter Intake AreaLaundrySitting Area for Day ShelterProvide extended stay shelter for transitional to housing clients.32 Beds (18 Rooms, 4 ADA)Potential for future development of a work programAdministrative officesEntry/ReceptionIntake/Case Management RoomsWellness/Exam RoomsComputer LoungeClassroomsAdministration officesRestroomsDINING HALLProvide Meals and ServicesDining HallOfficesProgram/Flexible Use Space Inclement Weather Overflow15
ID 21‐431 COMMUNITY SERVICES 7Architect – Phase 3: Finalize Documents $267,280Summary Estimated AmountBuilding Renovations $5,971,696Furnishings, IT/AV/Security, Equipment, Etc. $880,974Soft Costs & Contingencies $1,468,572Total of All Uses $8,321,242Escalation (Current Market = 0.9%/MO) $499,275Total of All Uses $8,820,516Notes:•The estimated cost of $8.82M is the full design andconstruction (to complete all sections/wings of thebuilding at once)•Staff did request a cost breakdown if the buildingsections/wings were to be constructed in phases tounderstand options•Phasing would add over $1M in cost, plusadditional costs for escalation of increased time•Phasing would add $136K to Architect Services.•Phasing would extend timeframe to construct anadditional 11 months•Staff recommends proceeding with all sections ofthe building constructed at onceBUDGET16
FUNDING EVALUATIONID 21‐431 COMMUNITY SERVICES 8ANALYSIS OF OPTIONS Estimated AmountTotal Budget $8,820,516City of Denton (Original Budget) $2,000,000The Junction – Commitment to FF&E (EST) $880,974300 S. Woodrow (Sale 2.364 ac. with Building) (EST) $585,000Additional Options for Consideration $5,354,542Other Governmental Entities Contribution $TBDFederal Options (CDBG/HOME/ARP, etc.) $TBDCO Bonds (up to $6M as needed for Gap)$AS NEEDEDNotes:•Bonds will be authorized for funding any gap to keepthe project on schedule for completion•Additional funding options are under review
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TIMELINEID 21‐431 COMMUNITY SERVICES 9Purchase(COMPLETE 08/20)• Facilities Assessment•Repairs•Security•ScopeZoning(COMPLETE 11/20)•SCPF•Neighborhood MeetingPhase 1 & 2 Architect(COMPLETE 02/21)•Schematic Design•Cost Estimates•Design DevelopmentPresent to City Council• Seek approval to Architect Phase 3•Rough Budget • SchedulePhase 3Finalize Concept• Architect Phase 3•Construction Design and Cost• Finalize Budget & SchedulePhase 4Bidding•Procure Contractor•Budget Validation•Bids•PermitsPhase 5ConstructionAll – 8‐10 mo.Facility Open•Substantial Completion – Oct. 2022•Operational – Dec. 202206/2104/05/21 08/21 01/22 12/22 ESTIMATED TIMELINE:18
NEXT STEPSStaff is recommending to proceed with all phases designed and constructed at once.FINALIZE DOCUMENTS ARCHITECT – Approve a Contract Amendment with the Architect for Phase 3 (next phase) oTo develop 100% construction documents, assist with project bidding and negotiation, and construction administrationoContract Amendment of $267,280 will be on April 20, 2021 City Council agenda for considerationPROCUREMENTCONTRACTOR ‐ Procure Construction Manager – CMAR Delivery MethodID 21‐431 COMMUNITY SERVICES 10
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NEXT STEPSCONTRACTOR PROCUREMENTProcure Construction Manager – CMAR Delivery Method RecommendedoLower Project Cost: Lower fees and contingency in CMAR process; City and CMAR can also decide to rebid subcontractor packages with poor participation.oComplete Cost Transparency: Subcontractor procurement process done with City oversight, and all savings revert to the City.oBetter Constructability & Less Changes: CMAR’s perspective & experience is included in planning and design decisions.oImprovements in Delivery Schedule. Subcontractor procurement may begin before design completion, reducing overall project schedule.oCollaborative Relationship. Construction Manager (CM) and Designer build collaborative relationship early. oRisk Reduction. CMAR projects are proven to have less claims and litigation.Expect CMAR Contract to be brought to City Council for consideration in June.ID 21‐431 COMMUNITY SERVICES 11
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OTHER PROJECT ACTIONS MANAGEMENT SERVICES AND OPERATING AGREEMENTAgreement with The Junction for the operation of the Loop 288 FacilityTermination of Current Enhanced Shelter Agreement Termination of Current Lease Agreement for 300 S Woodrow with The Junction POTENTIAL SALE OF 300 S. WOODROWProperty Saleof 2.364 Acres Building with Land Sale to the County Licensing Agreementfor 8.662 Acres ID 21‐431 COMMUNITY SERVICES 12
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CITY COUNCIL DIRECTIONID 21‐431 COMMUNITY SERVICES 13Provide direction to proceed with next steps of construction drawings, procuring contractor, and beginning constructionProvide other direction22