Title
Consider and take action on a resolution authorizing a Construction Manager at Risk contract with CSA Construction, Inc. for the Southwest Water Reclamation Facility 2.0 MGD Expansion Project (WW2201) with a Guaranteed Maximum Price in an amount not to exceed $77,915,143, an additional $2,093,194 for a Work Change Directive budget, a construction material testing services contract with Terracon Consultants in an amount not to exceed $240,485, and a construction management, inspection, start-up, post-construction services contract with Freese and Nichols, Inc. in an amount not to exceed $5,766,321 for a total construction budget of $86,015,143 (Executive Director of Capital Projects)
Background:
Approval of this resolution will authorize a Construction Manager at Risk (CMAR) contract with CSA Construction, Inc. for the Southwest Water Reclamation Facility (SWWRF) 2.0 MGD Expansion Project (WW2201) with a Guaranteed Maximum Price (GMP) in an amount not to exceed $77,915,143, and an additional $2,093,194 for a Work Change Directive budget. This resolution also authorizes a construction material testing services contract with Terracon Consultants in an amount not to exceed $240,485, and a construction management, inspection, start-up, and post-construction services contract with Freese and Nichols, Inc. in an amount not to exceed $5,766,321 for a total construction budget of $86,015,143.
The City’s wastewater masterplan determined that the SWWRF expansion is needed to provide additional wastewater treatment capacity as the City’s west side of IH 45 area continues to grow with major developments currently underway and planned. The project will increase treatment capacity from 4.0 million gallons per day (MGD) to 6.0 MGD.
The Design Phase got underway in August 2023. Subsequently, the Council approved use of the CMAR delivery method for this project in October 2023 and selected CSA Construction, Inc. (CSA) to provide CMAR preconstruction phase services in April 2024. The CMAR delivery method was selected to improve cost control, support constructability review during design, and allow the CMAR, City, and design team to reconcile scope, cost, schedule, and procurement information before establishment of a GMP.
During the design phase, CSA provided cost models at progressive design milestones and participated in design coordination, constructability reviews, cost reconciliation, bid package planning, and equipment/vendor coordination. The City received cost models at the 30%, 60%, and 90% design stages before CSA submitted their GMP in June 2026, which was based on the “Issued for Bid” construction documents. Through use of this process, City staff, design consultant, and CSA were able to: 1) Optimize expansion size for the City’s needs at this time, and 2) Manage project costs through design and bidding which resulted in approximately $20M of savings as reflected in CSA’s GMP proposal.
The CMAR contract associated with the proposed GMP provides for the following major construction:
- New influent lift station
- Rehabilitation of existing headworks screen and structure
- New aeration basin and blower system
- New secondary clarifier with scum pump station
- Expansion of return and waste activated sludge pump facility
- New flow splitter structures
- Expansion of tertiary filtration system
- Expansion of ultraviolet (UV) disinfection facility
- Expansion of post-aeration basin
- Expansion of effluent pump station and improvement to existing effluent outfall
- New aerated sludge holding/aerobic digesters
- Expansion of sludge dewatering building with additional blowers
- Expansion of non-potable water system
- Expansion of plant drain system
- New odor control facility
- Expansion of electrical buildings and electrical infrastructure
- Additional back-up power generation
- Associated instrumentation and controls improvements
- Associated site civil work including yard piping, grading, and paving
On March 27, 2026, in accordance with the CMAR procurement requirements under Texas Government Code Title 10, Subtitle F, Chapter 2269, CSA publicly advertised requests for bids from trade contractors and subcontractors for the performance of the major construction elements of the Work. Construction bid requests were advertised in the Galveston Daily News, on the City of League City Purchasing website, through CivCast, and through Dodge Construction Network.
CSA received bids for the electrical, instrumentation, and controls construction on May 20, 2026, and the treatment plant units and building construction on May 21, 2026. These bids were checked, tabulated and evaluated and submitted to the City and the design consultant for review and comments. For the Treatment Plant Construction Package, CSA submitted a self-perform proposal as part of the GMP procurement records. This package includes the principal civil, yard, structural, process piping, and equipment installation work for the treatment plant improvements.
The proposed GMP at $77,915,143, is $5,914,788 below the 90% cost model. The final GMP breakdown is as follows:
1. Cost of the Work $64,602,436
2. CMAR Contingency $2,584,097
3. General Conditions $4,031,192
4. CMAR Fee $5,697,418
5. Builder’s Risk Allowance $1,000,000
Total GMP $77,915,143
The construction is anticipated to begin in November 2026. Based on the submitted construction duration of 36 months from Notice to Proceed, the final completion is anticipated by November 2029.
The Construction Material Testing services will be performed by Terracon Consultants. The Professional Services Agreement and Proposal is attached.
The Construction Management services will be performed by Freese and Nichols, Inc. The scope services include construction phase general administrative services, full-time resident project inspection, startup and commissioning services, SCADA programming, post-construction services, and warranty period assistance services. The Professional Services Agreement and Proposal is attached.
Attachments:
1. Proposed Resolution
2. Exhibit A - CMAR Contract with GMP Proposal
3. Overall Project Layout
4. Material Testing PSA - Terracon with Proposal
5. Construction Management PSA - Freese and Nichols with Proposal
6. CIP Project Sheet
7. CIP Aerial Map
8. Vendor Report Cards - Terracon, Freese and Nichols
FUNDING
{X} Funding in the amount of $86,015,143 is available from 2 funding sources, $83,000,000 is available from 2026 CO, fund 1358, with expenses charged to project expense string WW2201-CONSTRUCT-CONSTRUCT-2026WWCRF and $3,015,143 is available from Wastewater Capital Recovery Fees, fund 1045, with expenses charged to WW2201-CONSTRUCT-CONSTRUCT-CRF WW.
The breakdown is as follows:
Construction Contract CMAR with CSA $77,915,143 - 2026WWCRF
Materials Testing with Terracon $240,485 - 2026WWCRF
Construction Management with Freese Nichols (Split)
$4,844,372 - 2026WWCRF
$921,949 - CRF WW
Construction Contingency $2,093,194- CRF WW
STRATEGIC PLANNING
{X} Addresses Strategic Planning Critical Success Factor #1: Develop and Maintain our Infrastructure.