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Item 4G - Memo CITY OF SOUTH LAKE Item 4G MEMORANDUM September 15, 2026 To: Alison Ortowski, City Manager From: Pritam Deshmukh, PE Director of Public Works Subject: Award the contract for the construction of TW King Pump Station Improvements Phase I, to Taknek, LLC in an amount not to exceed $10,000,000. Action Requested: Award the contract for the construction of TW King Pump Station Improvements Phase I, to Taknek, LLC in an amount not to exceed $10,000,000. Background Information: This project is the first of a three-phase approach for site improvements that are designed to meet customer needs for increased demands, water quality, system resiliency, site security and regulatory compliance. In FY 2023, the City engaged FNI to perform site evaluation and preliminary design services for the buildout of the T.W. King Pump Station site, resulting in the development of this three-phase approach. This first phase of construction will focus on installation of a backup generator and electrical upgrades for emergency pumping, replacement of the three existing pumps and motors to increase operational efficiency and the addition of a fourth pump and motor to meet growing demands within the City. These phase 1 improvements are designed to address items identified in the City's Water Master Plan components, namely the 2017 Water Quality Evaluation, 2021 Risk and Resiliency Assessment (AWIA) and the 2022 Texas Senate Bill 3 (SB3) Emergency Preparedness Plan. Final design was completed Summer 2026. Solicitation of Proposals for this project began on June 19, 2026, and competitive sealed proposals were received and opened on July 24, 2026. The nine proposals received for this project are shown in the tabulation below: Page 1 of 3 Item 4G Proposer Proposal Amount Taknek, LLC $ 8,471,944.00 leconi, Inc. $ 9,262,244.00 Red River Construction, Co. $ 9,617,700.00 Felix Construction $ 9,766,000.00 Western Municipal Construction $ 9,968,200.00 CLW Water Group $ 10,228,000.00 Drake General Contractors $ 11,597,000.00 Associated Construction Partners $ 13,672,880.00 JBM Excavation, LLC $ 18,490,000.00 City staff reviewed and scored the nine proposals using best value criteria as described in the project manual. The evaluation criteria for this bid were the purchase price (50%); Qualifications of Key Personnel (15%); Similar Project Experience (10%); Quality of Goods and Services (20%); and the proposer's reputation (5%). The evaluation of the proposals, qualifications and references led to the recommendation of Taknek, LLC for this project. Taknek, LLC submitted the lowest base bid as well as the lowest total bid, and has successfully completed very similar projects including a nearly identical one in Waxahachie, TX in 2021. A representative from Waxahachie provided a positive reference statement and stated that they were able to execute a creative solution for ensuring the existing pump station was kept operable during construction. The bid from Taknek, LLC totaled $8,471,944. Staff is requesting authorization for $10,000,000, which includes $1,528,056 in construction contingency, approximately 18% of the contract value. This is consistent with the City's typical practice of carrying up to 20% contingency for projects with unforeseen field conditions. This project includes extensive excavation near existing critical water infrastructure, including the existing pumps and five-million-gallon ground storage tank. While the design team completed an on-site geotechnical evaluation and established protocols to protect the existing facilities, some subsurface and structural conditions cannot be confirmed until construction begins. The contingency will provide flexibility to address unforeseen conditions, including necessary modifications, repairs, or additional protection of existing infrastructure, while maintaining the project schedule and reliability of the City's water system. The anticipated start date is Fall 2026. City staff notified adjacent property owners of this project via post cards Winter 2025, when full design began. Post cards will be sent prior to construction beginning and will display a QR Code that when utilized will show a project website that will be created for communication purposes on this project. This project website will Page 2 of 3 Item 4G show the project area, discusses the history of this project, show excerpts from the plans of the proposed improvements, and have a section for monthly progress updates. A comprehensive communication plan will be implemented for the duration of the construction of this project to promote transparency and strong coordination with stakeholders. Financial Considerations: Funding for this agreement is budgeted as part of the approved Capital Improvement Program. Funding for this project is allocated in General Fund, Water Impact Fee Fund, Utility Fund, and Stormwater Utility System. Strategic Link: These items link to the City's Strategy Map by delivering on the focus areas of Infrastructure & Development. It provides this by focusing on Financial Objective F2: Investing to Provide & Maintain High Quality Public Assets. Citizen Input/ Board Review: None. Legal Review: This is the standard construction services contract that has been previously reviewed by the City Attorney. Alternatives: The City Council may approve or deny the agreement. Supporting Documents: Attachment A: Bid Tabulation Attachment B: Best Value Award Letter Staff Recommendation: Award the contract for the construction of TW King Pump Station Improvements Phase I, to Taknek, LLC in an amount not to exceed $10,000,000. Staff Contact: Pritam Deshmukh, P.E., Director of Public Works Jeff Ginn, P.E., City Engineer Tiffany Matthews, P.E., Civil Engineer Page 3 of 3