Title
Discuss and consider action to approve a construction contract with Core Construction in the amount of $77,631,160 for construction services associated with the City of Pflugerville Public Works Complex, and authorize the City Manager to execute the same.
Summary
This agenda item requests approval of a Guaranteed Maximum Price (GMP) construction contract with Core Construction in the amount of $77,631,160 for the Public Works Complex (FA2306) construction project. This amount is below budget amount that was allocated in the 5-year Capital Improvement Project Plan.
Following City Council approval of the Construction Manager At Risk (CMAR) contract with Core Construction in August 2024, City staff, the design architect (Marmon Mok), and Core Construction have been progressing preconstruction design and bidding of the Public Works Complex after finalizing the design of the project.
The City kicked off planning phases of the Public Works Complex in 2021, with the goal of designing a facility that would be able to serve the City as the population continues to grow. The facility is planned and designed to allow for the City to continue to provide exceptional service to residents. The facility is equipped for necessary infrastructure maintenance, including fleet services, sign shop, maintenance and operations equipment, as well as supporting the City’s Capital Improvement Program by providing adequate space for current and future staff anticipated with the full buildout of the City. The Public Works Department currently has 165 full-time employees, most of which office at the current Central Wastewater Treatment Plant. It was determined through a facility master plan and needs analysis that the current facility is currently undersized for the present and future Public Works staff and is unable to be expanded without impeding the operations of the Central Wastewater Treatment Plant. At current staffing levels, the Public Works Department is leasing 4 mobile construction trailers that cost $210,000 annually to provide enough office space for existing staff across the current complex. This presents challenges for the efficient operation of the entire department, while also not being the best long-term/economical decision to keep up with the continued growth of the City as these are meant for temporary leases until the Public Works Complex was constructed. Public Works staff has expanded the trailers to use all available space within the existing facility and there is not any more vacant space at the treatment plant for additional temporary trailers.
After the approval of the CMAR contract with Core Construction, , staff has been working collaboratively to ensure that the project did not have any constructability concerns while also ensuring that the complex would have the necessary utility extensions available to extend service to the facility. After working through the constructability review and final construction documents, Core advertised this project through a variety of channels to ensure the project was well bid and received as many qualified bidders on all of the trades as possible. With this significant outreach to the construction trades, it resulted in a plethora of qualified bidders on a variety of subdisciplines across the project with upwards of 10 bidders on some disciplines. Overall, there were over 200 individual bids on the subdisciplines across the project which resulted in a very competitive bidding environment resulting in a better overall price for the City.
The GMP Proposal being considered for this project is at a total cost of $77,631,160 for the entire project. This cost proposal includes all components of the construction of the facility as well as the equipment that will be required within the facility for staff to complete their essential tasks. This GMP also includes significant contingencies in the project to address any unforeseen issues that may arise during the construction of the facility. The proposal includes an overall project contingency of 5% ($3,881,558) that is shared between the City and the CMAR for both construction and design revisions that may be required. If these funds are not used at the end of the project, those funds are returned to the City. This proposal also includes a contingency fund of 1.5% ($1,164,467) in the event tariffs in the global economy impact large equipment suppliers for the project. With all of these contingencies in place within the GMP proposal, the project is still lower than the budgeted cost in the City’s approved 5-year CIP of $77,941,709 and should not impact the City’s approved contingency in the 5-year CIP of $7,771,786 resulting in an overall budget savings of just over $8 million compared to the budget for the project.
With this GMP Construction Contract, the City would enter into the construction phase of this critical project for the City’s Public Works Department that will allow the department to operate in a more efficient manner within one complex while also allowing for the City to grow as needed in the coming decades to serve the community for all of its infrastructure needs. If this contract is approved at the April 8th regular City Council meeting, Core would immediately begin mobilizing the necessary staging equipment to begin the site earthwork and begin foundation preparation. It is anticipated that all structures will be up by Summer 2026 with substantial completion slated for November 2026.
As this project is intended to better serve the staff that maintain the City’s critical infrastructure while also eliminating the City’s need to continue to lease space, it meets the City’s strategic goal of infrastructure by ensuring that the City can continue to maintain critical infrastructure at all times and also preparing the City for the growth of the City’s infrastructure in a responsible manner.
Prior City Council Action
On April 24, 2018, City Council approved the allocation of funding to begin the process of a Public Works Facilities Master Plan.
On April 27, 2021, City Council approved a Professional Services Supplemental Agreement with Freese & Nichols which contained the Public Works Facilities Master Plan.
On May 23, 2023, City Council approved a resolution authorizing the publication of the notice of intention to issue combination tax and limited revenue certificates of obligation in and estimated amount not to exceed $76,000,000 for facility and roadway improvement projects which includes the Public Works Complex.
On June 27, 2023, City Council approved Professional Services Agreement with Marmon Mok in the amount of $5,151,805 for professional engineering services associated with the Public Works Complex Project
On August 13, 2024, City Council approved a Construction Contract with Core Construction in the amount of $30,000 for Construction Manager At Risk (CMAR) services associated with the Public Works Complex Project.
Deadline for City Council Action
Action is requested on April 8, 2025
Funding Expected: Revenue __ Expenditure _X_ N/A __
Budgeted Item: Yes _X_ No __ N/A __
Budget Source: This project is funded through a combination of Certificates of Obligation from the general fund (50%) that have been previously issued and through Utility Revenue Bonds (50%) that will be issued as the project progresses through construction.
Amount: $77,631,160
1295 Form Required? Yes _X_ No __
Legal Review Required: N/A _X_ Required __ Date Completed: _____
Supporting documents attached:
Guaranteed Maximum Price Proposal - Core Construction
Public Works Complex Aerial Map
Recommended Action
Approve a construction contract with Core Construction in the amount of $77,631,160 for construction services associated with the City of Pflugerville Public Works Complex, and authorize the City Manager to execute the same.