HomeMy WebLinkAboutC2026-105 - 6/30/2026 - Approved 00 52 27 CMAR AMENDMENT—PHASE 2 CONSTRUCTION
This Amendment for the Project is between the City of Corpus Christi (Owner) and Reytec Construction
Resources, Inc. (Contractor).
Owner and Contractor agree as follows:
Original Contract May 12, 2026 Ordinance 260736 $16,194,400.00
In the original Contract, Section 00 52 27 Agreement, is amended as follows:
ARTICLE 6—PHASE 2 CONSTRUCTION
6.01 Notice to Proceed—Phase 2
A. Contractor shall provide Performance and Payment Bonds in accordance with Article 6 of the
General Conditions.
B. The insurance required by Contractor to be provided in Article 6 of the General Conditions in
effect by the commencement of the Phase 2 Work. Notwithstanding anything to the contrary
and for clarity, property insurance required under this Agreement shall be effective upon
issuance of the Phase 2 Notice to Proceed.
C. Upon approval of the Contract Amendment, Owner will issue Contractor a Notice to Proceed
for Phase 2.
6.02 Construction Phase Services Contract Price
A. Owner will pay Contractor in accordance with the Contract Documents the sum of
$91,337,222.00 for a total Contract Price of$107,531,622.00, as full and total compensation,
including all expenses for the Phase 2 Scope of Work attached as Attachment 1.
B. Davis Bacon Wage Rates are required. The wage rate determinations are attached as
Attachment 2.
C. Submit invoices monthly in accordance with Article 17 of the General Conditions. Payment
equal to the full amount of the total earned value to date for completed Work minus 5%
retainage will be made through Final Acceptance.
6.03 Contract Time
CMAR Amendment—Phase 2 00 52 27- 1
Rev 5/2026
A. The Phase 2 Scope of Work is required to be Substantially Complete within 327 days after the
date when the Contract Times commence to run as provided in the Notice to Proceed and is to
be completed and ready for Final Acceptance within 30 days after the date when the Contract
Times commence to run.
B. Substantial Completion and Final Acceptance Liquidated Damages
1. Owner and Contractor recognize that time limits for specified Milestones, Substantial
Completion, and completion and readiness for Final Payment as stated in the Contract
Documents are of the essence. Owner and Contractor recognize that the Owner will suffer
financial loss if the Work is not completed within the times specified in this paragraph and
as adjusted in accordance with the General Conditions. Owner and Contractor also
recognize the delays, expense, and difficulties involved in proving in a legal or arbitration
proceeding the actual loss suffered by Owner if the Work is not completed on time.
Accordingly, instead of requiring any such proof, Owner and Contractor agree that as
liquidated damages for delay(but not as a penalty):
2. Substantial Completion: Contractor shall pay Owner$2,000 for each day that expires after
the time specified in this paragraph for Substantial Completion until the Work is
substantially complete.
3. Final Acceptance: Contrator shall pay Owner$500 for each day that expires after the time
specified in this paragraph for Final Acceptance until the Work is completed and ready for
Final Acceptance payment in accordance with Article 17 of the General Conditions.
4. Liquidated damages for failing to timely attain Substantial Completion and Final
Acceptance are not additive and will not be imposed concurrently.
5. The Owner will determine whether the Work has been completed within the Contract
Times.
All other terms and conditions of the original contract between the Owner and Contractor, and of any
amendments and/or change orders to the Contract Documents that are not specifically addressed herein,
shall remain in full force and effect.
CMAR Amendment—Phase 2 00 52 27-2
Rev 5/2026
CONTRACT DOCUMENT SIGNATURES
CITY OF CORPUS CHRISTI
94�� '
Jeff Edmonds (Jul 20, 2026 17:23:27 CDT) Steven K.Aranda(Jul 20, 2026 14:00:51 CDT)
Jeff H. Edmonds, P.E.
Director of Engineering Services
APPROVED AS
TO LEGAL FORM:
0 w
Janet Whitehead (Jul 20,2026 16:08:19 CDT)
Ord. 033961 AUTHORIZED
BY COUNCIL 6/30/2026
RH/SB
CMAR Amendment—Phase 2 00 52 27-3
Rev 5/2026
ATTACHMENT 1 — Proposal
CMAR Amendment—Phase 2 00 52 27-4
Rev 5/2026
•-�� CITY OF
CORPUS CH RISTI
AGENDA MEMORANDUM
Action Item for the City Council Meeting June 30, 2026
DATE: June 30, 2026
TO: Peter Zanoni, City Manager
FROM: Jeff H. Edmonds, P. E., Director of Engineering Services
JeffreyE(aD-corpuschristitx.gov
(361) 826-3851
Nicholas J. Winkelmann, P.E., Chief Operating Officer
N ickW(c-corpuschristitx.gov
(361)826-1729
Sergio Villasana Jr., CPA, CGFO, CIA, Director of Finance & Procurement
ser ivoV2(dcorpuschristitx.gov
(361) 826-3227
Construction Manager-At-Risk Contract Amendment No. 1 with Reytec
Construction Resources, Inc. for the Reclaimed Water for Industrial Use Project
CAPTION:
One-Reading ordinance authorizing Amendment No. 1 to the Construction Manager-At-Risk
(CMAR)contract with Reytec Construction Resources, Inc. of Houston and Corpus Christi, Texas
for Phase 2 construction services for the Reclaimed Water for Industrial Use Project in an amount
up to $91,337,222.00, establishing the Guaranteed Maximum Price (GMP) of $107,531,622.00
for the total construction of the project, including the reclaimed water transmission main, Oso
Water Reclamation Plant pump station and wet well, and associated infrastructure that will be
completed in May 2027; amending the FY 2026 Capital Budget; and establishing the City's intent
to reimburse itself for the prior lawful expenditure of funds relating to any capital expenditures
from the proceeds of one or more series of tax-exempt or taxable obligations to be issued by the
City in an aggregate amount not to exceed $109,000,000.00, with FY 2026 funding available from
Water Capital Fund.
SUMMARY:
This ordinance authorizes execution of a Phase 2 Construction Manager At Risk(CMAR)Contract
Amendment with Reytec Construction Resources, Inc., transitioning the Reclaimed Water for
Industrial Use Project from Phase 1 (Preconstruction Services) to Phase 2 (Full Construction
Services) and establishing a total construction Guaranteed Maximum Price (GMP) of
$107,531,622.
Phase 1 services have been substantially completed and included design coordination,
constructability reviews, cost estimating, schedule development, and procurement planning, as
well as early procurement and limited construction activities to secure long lead materials and
maintain the project schedule.
Approval of the Phase 2 GMP amendment authorizes Reytec, as CMAR, to proceed with full
construction of the project under a single, integrated contract, that will be completed May 2027.
The Phase 2 GMP establishes the total cost to complete construction of:
• The reclaimed water force main system from the Oso WRP to the Greenwood WRP.
• The Oso Water Reclamation Plant pump station and wet well.
• Associated electrical, mechanical, and accessary infrastructure.
Construction will be delivered through a phased, multi package approach designed to accelerate
completion, consisting of five (5) primary construction work packages:
• Four(4) pipeline segments along the transmission corridor, enabling multiple construction
crews to work concurrently.
• One (1) pump station and wet well package at the Oso Water Reclamation Plant.
This delivery strategy allows for simultaneous construction across multiple work fronts, reduces
schedule duration, mitigates construction and supply risks, and supports expedited delivery of this
critical drought response infrastructure project.
BACKGROUND AND FINDINGS:
The City of Corpus Christi has utilized treated wastewater effluent for non-potable reuse since the
1960s; however, only approximately 4.6% of total effluent is currently beneficially reused, with the
majority discharged to receiving waters. Expanding reuse capacity is a key component of the
City's long term water supply strategy.
On November 18, 2025, the City Council approved a Master Service Agreement with Ardurra
Group, Inc. to provide engineering design services for the Reclaimed Water for Industrial Use
Project. On May 12, 2026, City Council approved the Phase 1 CMAR contract with Reytec
Construction Resources, Inc. to initiate pre-construction services.
Since that time, the project has advanced to the 60% design level, supporting the development
of a refined construction strategy, procurement approach, and reliable cost estimate that form the
basis for the Phase 2 Guaranteed Maximum Price (GMP).
The Reclaimed Water for Industrial Use Project is a critical drought response and water resiliency
initiative, designed to expand delivery of treated effluent from the Oso WRP to the Greenwood
WRP system, increase beneficial reuse, and reduce reliance on potable water for industrial
demand.
Phase 1 CMAR services have been substantially completed and included:
• Constructability and design review to optimize construction approach.
• Development of detailed cost estimates for construction.
• Schedule development and phased construction sequencing.
• Identification and early procurement of long lead materials and equipment.
• Early construction activities to maintain the overall project schedule.
The Phase 2 scope of work includes:
• Construction of approximately 53,920 linear feet (10.5 miles) of 36-inch reclaimed water
force main.
• Construction of the Oso WRP reclaimed water pump station and wet well.
• Installation of electrical systems, vertical turbine pumps, and instrumentation and control
systems required for operation.
To accelerate project delivery and reduce overall schedule duration, the project has been
structured into a phased, multi package delivery approach consisting of seven (7) coordinated bid
packages, including five (5) subcontractor construction packages and two (2) procurement
packages.
This packaging strategy enables:
• Four (4) concurrent pipeline construction crews working along the 10.5-mile alignment.
• One (1) dedicated construction team for the pump station and wet well.
• Two (2) parallel procurement streams to secure critical long lead materials and equipment.
This parallel construction and procurement approach reduces overall project duration, mitigates
supply chain and cost escalation risks, and supports timely delivery of this critical infrastructure
project.
COMPETITIVE SOLICITATION PROCESS:
Reytec Construction Resources, Inc. was selected through a competitive Request for Proposals
(RFP) process and subsequently approved by City Council to perform Phase 1 CMAR
preconstruction services for the Reclaimed Water for Industrial Use Project based on
qualifications, project approach, and demonstrated experience.
During Phase 1, Reytec worked collaboratively with the City and the design consultant, Ardurra
Group, Inc., under a CMAR open book procurement and GMP development process and
included:
• Competitive solicitation and bidding of subcontractor construction work packages to
ensure market-based pricing.
• Solicitation of supplier quotations for procurement packages, including long lead materials
and equipment.
• Development of a comprehensive construction sequencing plan and project schedule,
aligned with procurement and construction phasing.
Through this collaborative approach, the Phase 2 Guaranteed Maximum Price (GMP) was
developed based on competitive market input, validated quantities, and defined project risks,
providing a high level of cost certainty and transparency to the City. The resulting GMP reflects
current market conditions, competitive subcontractor pricing, and a clearly defined allocation of
risks and contingencies, consistent with CMAR best practices and City procurement
requirements.
FISCAL IMPACT:
The fiscal impact to Corpus Christi Water for this item is $91,337,222.00 for the Reclaimed Water
for Industrial Use Project, with funding available from the Water Capital Fund. The total cost of
$107,531,622 includes both previously authorized Phase 1 activities and the proposed Phase 2
construction activities:
• Phase 1 (Pre-Construction Services and Early Work): $16,194,400, including
preconstruction services, early procurement of long lead materials, and limited early
construction activities.
• Phase 2 Construction GMP: $91,337,222 for a total of $107,531,622, which represents
the total not to exceed cost for full project construction and includes all Phase 1 costs.
The Guaranteed Maximum Price (GMP) establishes the total construction cost ceiling for the
project and incorporates all elements necessary to deliver a complete and operational reclaimed
water system. Because the FY 2026 Adopted Capital Budget did not include appropriations for
phase 2 actions, the budget must be amended to provide the necessary funding. Additionally,
official action to memorialize an intent to reimburse (in the amount of$109,000,000), enables City
staff to use appropriated funds to procure, assemble, and commission the Reclaimed Water for
Industrial Use project. Once debt is issued for the project, the interim funding will be reimbursed
with bond proceeds.
FUNDING DETAIL:
Fund: 4494 -Water 2026 CIP Rv Bds
Department: 45 -Water
Organization: 89 - Capital & Grants
Project: 25018 - Reclaimed Water for Industrial Use Project
Account: 550910— Construction Contracted
Activity: 25018
Amount: $91,337,222.00
RECOMMENDATION:
Staff recommends approval of the ordinance authorizing execution of the Phase 2 CMAR Contract
Amendment with Reytec Construction Resources, Inc., establishing a Guaranteed Maximum
Price (GMP) of$107,531,622 for total project construction.
Approval of this amendment will formally transition the project from Phase 1 (Preconstruction
Services) to Phase 2 (Full Construction Services), allowing the City to proceed immediately with
full implementation of the project under the established CMAR delivery framework.
LIST OF SUPPORTING DOCUMENTS:
Ordinance
GMP Information
Reytec Information
CIP Page
Location and Vicinity Map
Certification of Funds
Presentation
ATTACHMENT 2 — Wage Rate Determinations
General Decision Number:TX20260021 01/02/2026
Superseded General Decision Number:TX20250021
State:Texas
Construction Type: Heavy
Counties: Nueces and San Patricio Counties in Texas.
HEAVY CONSTRUCTION PROJECTS (including Sewer and Water Line Construction and Drainage Projects)
Modification Number Publication Date
0 01/02/2026
SUTX1987-001 12/01/1987
Rates Fringes
CARPENTER(Excluding Form Setting)....................$ 9.05
Concrete Finisher................ $ 7.56
ELECTRICIAN...................... $ 13.37 2.58
Laborers:
Common...................... $ 7.25
Utility..................... $ 7.68
Power equipment operators:
Backhoe..................... $ 9.21
Motor Grader................ $ 8.72
----------------------------------------------------------------
WELDERS- Receive rate prescribed for craft performing operation to which welding is incidental.
----------------------------------------------------------------
----------------------------------------------------------------
Note: Executive Order(EO) 13706, Establishing Paid Sick Leave for Federal Contractors applies to all contracts
subject to the Davis-Bacon Act for which the contract is awarded (and any solicitation was issued) on or after
January 1, 2017. If this contract is covered by the EO,the contractor must provide employees with 1 hour of
paid sick leave for every 30 hours they work, up to 56 hours of paid sick leave each year.
Employees must be permitted to use paid sick leave for their own illness,injury or other health-related needs,
including preventive care;to assist a family member(or person who is like family to the employee)who is ill,
injured,or has other health-related needs,including preventive care;or for reasons resulting from,or to assist
a family member(or person who is like family to the employee) who is a victim of, domestic violence, sexual
CMAR Amendment—Phase 2 00 52 27-5
Rev 5/2026
assault,or stalking. Additional information on contractor requirements and worker protections under the EO
is available at https://www.dol.gov/agencies/whd/government-contracts.
Note: Executive Order 13658 generally applies to contracts subject to the Davis-Bacon Act that were awarded
on or between January 1, 2015 and January 29, 2022, and that have not been renewed or extended on or
after January 30, 2022. Executive Order 13658 does not apply to contracts subject only to the Davis-Bacon
Related Acts regardless of when they were awarded.
If a contract is subject to Executive Order 13658,the contractor must pay all covered workers at least$13.30
per hour (or the applicable wage rate listed on this wage determination, if it is higher) for all hours spent
performing on the contract in 2025. The applicable Executive Order minimum wage rate will be adjusted
annually. Additional information on contractor requirements and worker protections under Executive Order
13658 is available at www.dol.gov/whd/govcontracts.
Unlisted classifications needed for work not included within the scope of the classifications listed may be
added after award only as provided in the labor standards contract clauses(29CFR 5.5 (a) (1) (iii)).
----------------------------------------------------------------
The body of each wage determination lists the classifications and wage rates that have been found to be
prevailing for the type(s) of construction and geographic area covered by the wage determination. The
classifications are listed in alphabetical order under rate identifiers indicating whether the particular rate is a
union rate(current union negotiated rate),a survey rate,a weighted union average rate,a state adopted rate,
or a supplemental classification rate.
Union Rate Identifiers
A four-letter identifier beginning with characters other than ""SU"", ""UAVG"", ?SA?, or ?SC? denotes that a
union rate was prevailing for that classification in the survey. Example: PLUM0198-005 07/01/2024. PLUM is
an identifier of the union whose collectively bargained rate prevailed in the survey forthis classification,which
in this example would be Plumbers. 0198 indicates the local union number or district council number where
applicable, i.e., Plumbers Local 0198. The next number, 005 in the example, is an internal number used in
processing the wage determination. The date, 07/01/2024 in the example, is the effective date of the most
current negotiated rate.
Union prevailing wage rates are updated to reflect all changes over time that are reported to WHD in the
rates in the collective bargaining agreement(CBA)governing the classification.
Union Average Rate Identifiers
The UAVG identifier indicates that no single rate prevailed for those classifications, but that 100%of the data
reported for the classifications reflected union rates. EXAMPLE: UAVG-OH-0010 01/01/2024. UAVG indicates
that the rate is a weighted union average rate. OH indicates the State of Ohio.The next number, 0010 in the
example, is an internal number used in producing the wage determination. The date, 01/01/2024 in the
example, indicates the date the wage determination was updated to reflect the most current union average
rate.
A UAVG rate will be updated once a year, usually in January,to reflect a weighted average of the current rates
in the collective bargaining agreements on which the rate is based.
CMAR Amendment—Phase 2 00 52 27-6
Rev 5/2026
Survey Rate Identifiers
The ""SU"" identifier indicates that either a single non-union rate prevailed (as defined in 29 CFR 1.2)for this
classification in the survey or that the rate was derived by computing a weighted average rate based on all
the rates reported in the survey for that classification.As a weighted average rate includes all rates reported
in the survey,it may include both union and non-union rates. Example:SUFL2022-007 6/27/2024.SU indicates
the rate is a single non-union prevailing rate or a weighted average of survey data for that classification. FL
indicates the State of Florida.2022 is the year of the survey on which these classifications and rates are based.
The next number, 007 in the example, is an internal number used in producing the wage determination.The
date, 6/27/2024 in the example, indicates the survey completion date for the classifications and rates under
that identifier.
?SU? wage rates typically remain in effect until a new survey is conducted. However, the Wage and Hour
Division (WHD) has the discretion to update such rates under 29 CFR 1.6(c)(1).
State Adopted Rate Identifiers
The ""SA"" identifier indicates that the classifications and prevailing wage rates set by a state (or local)
government were adopted under 29 C.F.R 1.3(g)-(h). Example: SAME2023-007 01/03/2024. SA reflects that
the rates are state adopted. ME refers to the State of Maine. 2023 is the year during which the state
completed the survey on which the listed classifications and rates are based. The next number, 007 in the
example, is an internal number used in producing the wage determination. The date, 01/03/2024 in the
example, reflects the date on which the classifications and rates under the ?SA? identifier took effect under
state law in the state from which the rates were adopted.
-----------------------------------------------------------
WAGE DETERMINATION APPEALS PROCESS
1) Has there been an initial decision in the matter?This can be:
a) a survey underlying a wage determination
b) an existing published wage determination
c) an initial WHD letter setting forth a position on a wage determination matter
d) an initial conformance (additional classification and rate) determination
On survey related matters, initial contact, including requests for summaries of surveys, should be directed to
the WHD Branch of Wage Surveys. Requests can be submitted via email to davisbaconinfo@dol.gov or by mail
to:
Branch of Wage Surveys
Wage and Hour Division
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
CMAR Amendment—Phase 2 00 52 27-7
Rev 5/2026
Regarding any other wage determination matter such as conformance decisions, requests for initial decisions
should be directed to the WHD Branch of Construction Wage Determinations. Requests can be submitted via
email to BCWD-Office@dol.gov or by mail to:
Branch of Construction Wage Determinations
Wage and Hour Division
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
2) If an initial decision has been issued,then any interested party(those affected by the action)that disagrees
with the decision can request review and reconsideration from the Wage and Hour Administrator(See 29 CFR
Part 1.8 and 29 CFR Part 7). Requests for review and reconsideration can be submitted via email to
dba.reconsideration@dol.gov or by mail to:
Wage and Hour Administrator
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
The request should be accompanied by a full statement of the interested party's position and any information
(wage payment data, project description, area practice material, etc.) that the requestor considers relevant
to the issue.
3) If the decision of the Administrator is not favorable, an interested party may appeal directly to the
Administrative Review Board (formerly the Wage Appeals Board). Write to:
Administrative Review Board
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210.
----------------------------------------------------------------
----------------------------------------------------------------
END OF GENERAL DECISION
CMAR Amendment—Phase 2 00 52 27-8
Rev 5/2026