Title
Consider approving Resolution No. 2024-016 authorizing the City Manager to execute Change Order No. 1 for the design-build contract for the Multisport Facility with Lee Lewis Construction Inc. in the amount not to exceed $454,839, and amend the budget accordingly; and take appropriate action.
Body
BACKGROUND:
In 2022, the City awarded a design-build contract to Lee Lewis Construction Inc. (LLCI) to design and construct a multisport facility on city-owned land near Pike Street and IH-35 frontage road. Since the December 2022 approval, the City and LLCI have worked on final designs, site plan approvals, final pricing, and Texas Department of Transportation (TxDOT) surplus land acquisition. The project delay was needed to design the building and move through the stages of site plan approvals. During this time, cost increases in materials created the need to value engineer the facility to maintain the original maximum price of $23,355,161. The design-build contract A141 document approved in December 2022 between the City and LLCI has a maximum price of $23,355,161. The bond total was $23,810,000, with fees and other costs bringing the net bond to construct the facility to $23,355,161. During the year, the bond amount has earned interest that must be spent on the project. The earned interest on the bond covers the recommended increase of $454,839. This change order will allow the bond's earned interest to be added to the original purchase order with LLCI and amended in the budget.
DISCUSSION:
During 2023, interest income was earned on the bond amount. The additional revenue was not included in the budget and must receive Council authorization for an amendment and for the funds to be incorporated into the project. By law, any earned interest on the bond must be used on the project. The earned interest is over $50,000 and must have Council approval. Additional earned interest during FY 2023-24 will be handled during mid-year budget adjustments. The change orde...
Click here for full text