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Item 4F-4I MemoCITY OF SOUTH LAKE MEMORANDUM June 17, 2025 To: Alison Ortowski, City Manager From: Lauren LaNeave, Interim Director of Public Works Item 4F-41 Subject: Item 4F: Approve an amendment to the construction manager at -risk agreement with Byrne Construction Services to establish the Guaranteed Maximum Price for the Municipal Service Center and Public Safety Training Tower project, in an amount not to exceed $26,770,000. Item 4G: Approve an Amendment to Professional Services Agreement for Construction Management Services with Ramel Company, LLC for construction management services for the Municipal Service Center and Public Safety Training Tower project, to an amount not to exceed $520,485. Item 4H: Approve an Amendment to the Professional Services Agreement for Building Systems Commissioning Services with Matador Engineering Inc. for construction phase building system commissioning services for the Municipal Service Center and Public Safety Training Tower project, to an amount not to exceed $71,648. Item 41: Approve the Engineering Services Agreement with GeoTex Engineering for construction materials testing for the Municipal Service Center and Public Safety Training Tower project, in an amount not to exceed $167,000. Actions Requested: Item 4F: Approve an amendment to the construction manager at -risk agreement with Byrne Construction Services to establish the Guaranteed Maximum Price for the Municipal Service Center and Public Safety Training Tower project, in an amount not to exceed $26,770,000. Item 4G: Approve an Amendment to Professional Services Agreement for Construction Management Services with Ramel Company, LLC for construction management services for the Municipal Service Center and Public Safety Training Tower project, to an amount not to exceed $520,485. Page 1 of 8 Item 4F-41 Item 4H: Approve an Amendment to the Professional Services Agreement for Building Systems Commissioning Services with Matador Engineering Inc. for construction phase building system commissioning services for the Municipal Service Center and Public Safety Training Tower project, to an amount not to exceed $71,648. Item 41: Approve the Engineering Services Agreement with GeoTex Engineering for construction materials testing for the Municipal Service Center and Public Safety Training Tower project, in an amount not to exceed $167,000. Background Information: The purpose of Items 4F-41 is to seek City Council approval of contracts associated with the construction and finish -out of the Municipal Service Center and Public Safety Training Tower project. The Municipal Service Center and Public Safety Training Tower will be located on approximately 13 acres at 1605 Brumlow Avenue. The site will replace the existing Public Works Operations site at 1950 E. Continental Boulevard and will include a two-story administration building of approximately 17,400 square feet, a 16,200 square foot service bay building, a four-story 4,200 square foot public safety training tower, a 5,600 square foot pole barn for covered equipment storage, fuel station and comprehensive site improvements. The new facility will house all Public Works Operations divisions currently located at the existing facility, including streets, drainage, water, wastewater, traffic, and environmental services. It will also consolidate additional operational functions currently located elsewhere by bringing Southlake Water Utilities Customer Service and the Facilities Division into a single, purpose-built complex designed to support long-term operational needs. In addition, the project will provide a dedicated training facility for the Police and Fire Departments, including a four-story fire training tower. Construction is anticipated to begin in Summer 2025, with completion and department move -in projected for early 2027. Item 4F - Guaranteed Maximum Price (GMP) Amendment This delivery approach allows the City to engage a construction manager early in the design process to provide professional insight on constructability, scheduling, and cost estimating. The construction manager also administers the competitive bidding process for subcontractors and establishes a Guaranteed Maximum Price (GMP). The GMP represents the maximum amount the City will pay Page 2 of 8 Item 4F-41 for the construction of the project and includes all subcontracted work, general conditions, overhead, and fees. The CMAR method offers improved cost control, greater collaboration during design, and helps minimize delays and change orders. While the GMP sets a maximum construction cost, it excludes costs related to design changes, unforeseen conditions, or City -directed modifications — these are managed through the owner's contingency. Byrne Construction Services was selected as the CMAR for this project following a Request for Qualifications (RFQ) process. The City received 11 submissions and selected Byrne based on their strong qualifications, relevant experience, and overall preparedness to deliver a project of this scale and complexity. The City entered into a preconstruction services agreement with Byrne in 2023. During the preconstruction phase, Byrne provided constructability reviews, cost estimating, and value engineering support. They also administered a competitive subcontractor bidding process in April 2025 and submitted the Guaranteed Maximum Price (GMP) proposal on May 19, 2025. City staff, the project architect (RPGA Design Group), and the design management firm (Ramel Company, LLC) reviewed the GMP and confirmed it aligns with the project scope and bid documents. This includes the base construction cost of $26,150,000, as well as two additive alternates that provide options to replace flex base paving with concrete (totaling $620,000) throughout the site to reduce long- term maintenance. The GMP also includes a $1,290,000 owner contingency (6% of the cost of work), consistent with industry standards for managing unforeseen conditions or design adjustments within the existing budget. Item 4G - Construction Management Services The City contracted with Ramel Company, LLC in August 2024 to provide design management services during the preconstruction phase. Ramel supported staff by reviewing construction plans and schedules, coordinating with third -party entities, and facilitating communication between the architect, CMAR, and City team. With extensive experience in CMAR delivery, municipal projects, and previous work with Byrne Construction Services, Ramel added value by identifying potential design gaps and helping mitigate future construction risks. To ensure continuity and oversight through the construction phase, the City seeks to retain Ramel's services as construction manager. In this role, Ramel will report directly to the City's Project Manager Page 3 of 8 Item 4F-41 and oversee the quality, timeliness, and completeness of work performed by the CMAR. They will also assist with coordination among third -party vendors, utility providers, inspectors, and adjacent property owners. Ramel's responsibilities will extend from groundbreaking through project occupancy and financial closeout. Key tasks include monitoring construction progress, reviewing and advising on documentation such as RFIs, change orders, and schedule updates, and ensuring compliance with quality standards. This item seeks approval of an amendment to the professional services agreement with Ramel Company, LLC in an amount not to exceed $520,485. This amount is based on Ramel's proposal for 18 months of service, plus a contingency for up to three additional months at the same monthly rate. Item 4H - Building Commissioning Building Commissioning is an independent quality assurance process that verifies a facility's major systems —such as mechanical, electrical, and plumbing (MEP) —are designed, installed, and tested to meet the City's performance expectations and operational requirements. Although not required, commissioning is an industry best practice that enhances quality assurance, reduces operational risks, and improves long-term building performance. In March 2025, the City contracted with Matador Engineering, Inc. (Matador), a firm with certified commissioning agents (CxA), to provide pre -construction reviews of system designs, including HVAC, lighting, emergency power, plumbing and domestic hot water systems, the building envelope, and fire protection. For the construction phase, Matador's services will include visual inspections and functional testing of the MEP systems, building envelope, electronic safety and security systems, electrical power quality, and landscape irrigation systems. Additionally, they will provide enhanced training for City staff to ensure proper operation and maintenance of all building systems upon occupancy. This item seeks approval of an amendment to the professional services agreement with Matador Engineering, Inc. in an amount not to exceed $71,648 to support these commissioning services during construction. Item 41 - Materials Testing Materials testing is a third -party quality assurance and quality control process that ensures construction materials meet the project's specifications and performance standards. This work is performed Page 4 of 8 Item 4F-41 independently of the design and construction teams to provide objective verification. In March and April 2025, City staff distributed project plans to several firms to solicit proposals for materials testing services. GeoTex Engineering was the only firm to respond with the full capacity to perform the required scope of work. In May 2025, GeoTex submitted a proposal that includes moisture and density testing for earthwork, reinforced and structural steel observations, concrete mix and compressive strength testing, and inspections of masonry mortar and grout. This item seeks approval of an Engineering Services Agreement with GeoTex Engineering in an amount not to exceed $167,000. This amount includes GeoTex's proposed fee of $132,928 for baseline services, along with a contingency of $34,072 (25.6%) to accommodate any additional testing that may be necessary during the course of construction. Financial Considerations: Funding for Items 4F through 41 is available in the Capital Improvements Program as part of the Southlake Municipal Service Center and Public Safety Training Tower (MSC & PSTT) project. The total approved project budget is $46.6 million, funded through a combination of three sources: the Utility Fund (76.5%), General Fund (22.6%), and Crime Control and Prevention District Fund (0.9%). The $46.6 million budget supports all phases of project delivery, from early planning through construction and closeout. A high-level summary of the total project budget is provided below: Table 1. Proiect Costs / Budaet Capital Project Costs Total $ Planning / Feasibility $23,120 Design, & Testing $3,100,000 -Engineering, Land $4,410,000 Public Art $230,000 Construction $31,090,000 Project Contingency $7,746,880 TOTAL Project Costs / Budget $46,600,000 The construction line item includes the Guaranteed Maximum Price (GMP) contract under consideration tonight, including owner's contingency and additive alternates. This line also includes other Page 5 of 8 Item 4F-41 construction -related expenses, such as the fuel island, technology and security systems, furniture, fixtures, and equipment (FFE). Contracts for ancillary construction items will be brought to Council at a later date. Items 4F through 41 represent key components of the construction phase: the GMP Amendment, construction management, building commissioning, and materials testing. Each aligns with the approved scope of work and fits within the overall budget. No additional appropriation is being requested as part of this action. Strategic Link: This item links to the City's Strategy Map strategic focus areas are Safety & Security and Infrastructure & Development. It specifically relates to the City's Corporate Objectives F2: Investing to provide & maintain high quality public assets and B2: Collaborating with select partners to implement service solutions. Citizen Input/ Board Review: While these specific agreements have not been discussed with residents or did not require other board approval, this project has had ongoing board and community engagement as follows: • September 2019 (Neighborhood Meeting) — Staff received feedback from neighborhood residents on the original concept plan, which was to be constructed at the current Public Works Operations Facility (1950 E. Continental Boulevard). • November 7, 2023 (City Council Work Session) — Project update given to City Council. • December 2023 (SPIN Meeting) — Staff received feedback from neighborhood residents on the current project site (1605 Brumlow Avenue). • June 6, 2024 — Site Plan Approval by Planning & Zoning Commission • June 18, 2024 — Site Plan Approval by City Council • April 17, 2025 — Final Plat Approval by Planning & Zoning Commission • April 22, 2025 & May 27, 2025 — Discussion and Call to Artist Review by the Southlake Arts Council for Public Art Page 6 of 8 Item 4F-41 Legal Review: The Guaranteed Maximum Price Amendment has been reviewed and approved by the City Attorney. The Amendments to the Professional Services Agreement and Engineering Services are standard documents that have been reviewed and approved by the City Attorney. Alternatives: The City Council may approve or deny any of Items 4F-41 amendments and/or agreement. Supporting Documents: • Attachment A: Guaranteed Maximum Price Amendment to AIA Document A101 — 2017 Standard Form of Agreement between Owner and Contractor • Attachment B: Amendment to Professional Services Agreement for Construction Management Services • Attachment C: Amendment to Professional Services Agreement for Building Commissioning Services • Attachment D: Engineering Services Agreement with GeoTex Engineering Staff Recommendation: Item 4F: Approve an amendment to the construction manager at -risk agreement with Byrne Construction Services to establish the Guaranteed Maximum Price for the Municipal Service Center and Public Safety Training Tower project, in an amount not to exceed $26,770,000. Item 4G: Approve an Amendment to Professional Services Agreement for Construction Management Services with Ramel Company, LLC for construction management services for the Southlake Municipal Service Center and Public Safety Training Tower project, to an amount not to exceed $520,485. Item 4H: Approve an Amendment to the Professional Services Agreement for Building Systems Commissioning Services with Matador Engineering Inc. for construction phase building system commissioning services for the Municipal Service Center and Public Safety Training Tower project, to an amount not to exceed $71,648. Page 7 of 8 Item 4F-41 Item 41: Approve the Engineering Services Agreement with GeoTex Engineering for construction materials testing for the Municipal Service Center and Public Safety Training Tower project, in an amount not to exceed $167,000. Staff Contact: Lauren LaNeave, Interim Director of Public Works Mamerto A. Estepa, Jr., Project Manager Page 8 of 8