AGENDA CAPTION:
Title
Consider approval of Resolution 2025-174R, approving a change order to the contract with Austin Underground, Inc. for the Sessom Drainage and Street Improvements Project to add the construction of Gateway Monument Signs in the amount of $458,111.00; authorizing the City Manager, or her designee, to execute the change order on behalf of the city; and declaring an effective date.
Body
Meeting date: September 16, 2025
Department: Engineering and CIP
Amount & Source of Funding
Funds Required: $458,111.00
Account Number: C419-General ($458,111.00)
Funds Available: Yes
Account Name: C419-Sessom Drainage & Street Improvements
Fiscal Note:
Prior Council Action: 2022-62R, Sessom Dr Drainage and Street Imps Construction Contract Award;2024-13R, Change Order No 5 to add Hopkins/Guadalupe Intersection Improvements Construction.
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Background Information:
The attached Change Order to Contract 221-183 with Austin Underground, Inc., for the Sessom Dr. Drainage and Roadway Improvements Project, in the amount of $458,111.00, will add the Gateway Monument Signs Construction to the existing contract.
The City of San Marcos issued an Invitation for Bids (IFB 2025-089) for the Gateway Monument Signs Along IH-35 construction project on March 9th, 2025. The bids closed on April 10th, 2025, and the City only received one bid from G Creek Construction in the amount of $943,710.58, which was approximately 2.5 times higher than the engineer’s estimate of $377,905.00. Several bid items have significantly higher unit prices because, at the time of bidding, tariffs on metals significantly increased weekly. This bid was rejected by the Council on July 1st, 2025 (Resolution 2025-116R). It is becoming very difficult to get reasonable bids on projects less than $500K, and staff is using alternative strategies to get a fair project with competent contractors for City construction, such as requesting prices from existing contractors. The contractor on the Sessom Drive project has submitted a price of $458,111.00 to complete this work, which is $485,599.58 cheaper than the bids received in April. This cost is in line with the updated cost estimates provided by the design team.
The scope includes the construction of two Gateway Monuments within the Texas Department of Transportation (TxDOT) right-of-way, located approximately 1,100 feet north of Yarrington Road and the IH-35 Southbound Frontage Road Overpass, and approximately 4,100 feet south of Van Horne Trace and the IH-35 Northbound Frontage Road Intersection.
Tentative schedule to complete the construction of two Gateway Monument Signs is Fall 2025/Winter 2026.
Council Committee, Board/Commission Action:
NA
Alternatives:
NA
Recommendation:
Staff recommends approval of this change order.