STRATEGIC PRIORITY: Quality of Life, Arts & Culture
AGENDA DATE: September 11, 2024
COUNCIL DISTRICT(S): 7
DEPARTMENT: Park & Recreation Department
EXECUTIVE: John D. Jenkins
______________________________________________________________________
SUBJECT
Title
Authorize (1) Supplemental Agreement No. 2 to the construction manager at risk agreement with JE Dunn-Russell, a joint venture, to provide additional construction services for Part Two of the Cotton Bowl Renovation, Rehabilitation and Addition Project (Project), located at 3750 The Midway, in an amount not to exceed $65,015,823.00, which includes a Guaranteed Maximum Price for Construction of $63,122,159.00 and an owner’s contingency of $1,893,664.00, thereby increasing the agreement amount from $53,071,620.00 to $118,087,443.00. - JE Dunn-Russell, a joint venture; and (2) increase appropriations in an amount not to exceed $2,856,430.01 in the Fair Park Revenue Bond, Series 2023 Fund - Not to exceed $65,015,823.00 - Financing: Fair Park Revenue Bonds, Series 2023 Fund ($9,490,491.80) and 2024 Certificate of Obligation Fund ($55,525,331.20)
Body
BACKGROUND
On December 13, 2023, the City of Dallas authorized a Construction Manager at Risk agreement (CMAR agreement) with JE Dunn-Russell, a joint venture, to provide the preconstruction and construction services for the Project with a preconstruction services fee in the amount of $145,000.00 and a construction management services rate of two and ninety-five hundredths percent (2.95%) of the cost of construction within the total estimated project construction budget, by Resolution No. 23-1688.
On February 28, 2024, the City of Dallas authorized Supplemental Agreement No. 1, which included a Guaranteed Maximum Price (GMP) and an Owner’s Contingency, in an amount not to exceed $52,926,620.00, to provide an increase to the CMAR agreement with JE Dunn-Russell to provide construction services for Part One of the Project, by Resolution No. 24-0378.
The original scope for Part Two of the Project includes a renovation of restrooms and concession spaces on multiple levels, renovation of Levels 05 and 06, additional renovation on Level 7, removal of the ramps at the West Concourse, an expansion of the West Concourse for additional pedestrian circulation and mobile concessions, as well as installation of 6 elevators and 14 escalators. This work was priced by the CMAR as their base Guaranteed Maximum Price (GMP) in an amount of $58,560,833.00. The Project has an increased total estimated construction budget so that additional construction services and equipment (requested by the Park and Recreation Department), which were outside the original scope of the work, can completed during Part Two of the Project. Please note that the equipment would have to be provided in all cases by the City as an owner’s cost. By having the CMAR be responsible for that scope item, it will streamline the project completion as well as potentially be a cost savings measure.
Specifically, the additional construction services include further improvements to existing mechanical and plumbing systems, security improvements that include a video surveillance system and an access control system, structural repairs as well as food service equipment for kitchens and concession areas (as described above). This additional work was priced by the CMAR at $4,561,326.00. These prices combined make up the total GMP price stated above. The Project will continue to be constructed over two timeframes with Part One to be completed by September 12, 2024 and Part Two, to be completed by September 12, 2025.
ESTIMATED SCHEDULE OF PROJECT
Began Design May 2023
Completed Design July 2024
Began Construction of Part One March 2024
Complete Construction of Part One September 2024
Begin Construction of Part Two November 2024
Complete Construction of Part Two September 2025
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On August 10, 2022, subject to approval at a duly ordered special election, the City Council designated and authorized Venue Projects within the City of Dallas, as described, defined, and permitted by Chapter 334 to: (1) expand the Kay Bailey Hutchison Convention Center Dallas (“KBHCCD”) and its vicinity, and undertake other related improvements, including related infrastructure, to enhance the KBHCCD and its vicinity; (2) improve Fair Park Facilities -- the Automotive Building, an exhibit hall; the Centennial Building, an exhibit hall; the Band Shell, a music hall; the Music Hall, a music hall; the Cotton Bowl, a stadium; the Coliseum, a stadium, and related infrastructure; as well as designated a method of financing authorized by Chapter 334 to finance the Venue Projects, by Resolution No. 22-1136.
On November 21, 2022, the City Council received, approved, and adopted the report of the Ad Hoc City Council Canvassing Committee (AHCCCC) declaring that a majority of the votes cast at a duly ordered special election held on November 8, 2022 were in favor of Proposition A, on the question of approving and implementing a proposition: (1) designating the expansion of the Kay Bailey Hutchison Convention Center Dallas and certain improvements at Fair Park within the City of Dallas as venue projects and (2) designating the method of financing as an additional two percent hotel occupancy tax pursuant to Chapter 334, by Resolution No. 22-1720.
On December 14, 2022, the City Council authorize a resolution (1) making certain findings and determinations regarding the Convention Center Expansion Venue Project and the Fair Park Facilities Venue Project (“Venue Projects”); (2) creating and establishing among its various funds and accounts the Venue Projects Fund required by Texas Local Government Code Section 334.042; (3) directing the Chief Financial Officer to create all necessary accounts within the Venue Projects Fund; and (4) providing for the use of monies in the fund - Financing: This action has no cost consideration to the City, by Resolution No. 22-1817.
On December 14, 2022, the City Council approve an ordinance amending Chapter 44, “Taxation,” of the Dallas City Code, by amending Sections 44-48, 44-49, 44-50, and 44-52 to (1) provide for the imposition of an additional two percent hotel occupancy tax pursuant to Chapter 334 of the Texas Local Government Code and limiting its use to financing the Convention Center Expansion and Fair Park Facilities Venue Projects; (2) provide collection, reporting, payment, and recordkeeping requirements and procedures; (3) make certain non-substantive changes; and (4) provide an effective date - Estimated Revenue: Venue Project Fund , by Resolution No. 22-1818.
On June 14, 2023, the City Council authorized a resolution authorizing the preparation of plans and the payment of potential future costs and expenses for the issuance of (1) Special Tax and Revenue Bonds (Convention Center Venue Project), Series 2023 in a principal amount not to exceed $172,000,000; and (2) Special Tax Bonds (Fair Park Venue Project), Series 2023 in a principal amount not to exceed $51,000,000, by Resolution No. 23-0769.
On December 13, 2023, the City of Dallas authorized a Construction Manager at Risk agreement (CMAR agreement) with JE Dunn-Russell, a joint venture, to provide the preconstruction and construction services for the Project with a preconstruction services fee in the amount of $145,000.00 and a construction management services rate of two and ninety-five hundredths percent (2.95%) of the cost of construction within the total estimated project construction budget, by Resolution No. 23-1688.
On February 28, 2024, the City of Dallas authorized Supplemental Agreement No. 1 to provide an increase to the CMAR agreement with JE Dunn-Russell to provide construction services for Part One of the Project with a Guaranteed Maximum Price (GMP) in an amount not to exceed $52,926,620.00, which increased the agreement amount from $145,000.00 to $53,071,620.00, by Resolution No. 24-0378.
FISCAL INFORMATION
|
Fund |
FY 2024 |
FY 2025 |
Future Years |
|
Fair Park Revenue Bonds, Series 2023 Fund |
$9,490,491.80 |
$0.00 |
$0.00 |
|
2024 Certificate of Obligation Fund |
$55,525,331.20 |
$0.00 |
$0.00 |
|
Total |
$65,015,823.00 |
$0.00 |
$0.00 |
Original Construction Manager at Risk Contract $ 145,000.00
Supplemental Agreement No. 1 $52,926,620.00
Supplemental Agreement No. 2 (this action) $65,015,823.00
Total $118,087,443.00
M/WBE INFORMATION
In accordance with the City’s Business Inclusion and Development Policy adopted on September 23, 2020, by Resolution No. 20-1430, as amended, the M/WBE participation on this contract is as follows:
|
Contract Amount |
Procurement Category |
M/WBE Goal |
|
$65,015,823.00 |
Construction |
32.00% |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
48.42% |
48.42% |
$31,482,948.53 |
|
• This contract exceeds the M/WBE goal. |
|
• JE Dunn - Russell, a joint venture - Local; Workforce - 4.57% Local |
PROCUREMENT INFORMATION
On October 4, 2023, a solicitation for Construction Manager at Risk Services for the Cotton Bowl Renovation, Rehabilitation and Addition Project was publicly advertised by the City of Dallas. On October 20, 2023, two statements of qualifications were received.
On October 23, 2023, a selection committee scored and ranked the statements of qualifications and on October 25, 2023, the Park & Recreation Department sent a request for proposals to the two highest ranking respondents. On November 3, 2023, two proposals were received and on November 6, 2023, the selection committee interviewed the two proposers and ranked the proposals. JE Dunn-Russell, a joint venture, received the highest ranking, making them the best value proposer of the two respondents as the result of a qualifications-based selection process in accordance with applicable law.
OWNER/EXECUTIVE
JE Dunn - Russell, a joint venture
14951 North Dallas Pkwy. Ste 700
Dallas, TX 75254
Mark McElroy, Managing Partner
MAP
Attached