title
Resolution Awarding a Construction Contract to J. M. Thompson Company of Cary, North Carolina for the Parks Operations Facility in the Amount of $11,971,273
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Department: |
Public Works |
Meeting Date: |
9/9/2025 |
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Contact Name: |
David Mayes |
Public Hearing: |
No |
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Contact Phone: |
910-341-5880 |
Advertising Date/Advertised By: |
N/A |
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Attachments: |
Attachment #1: Resolution; Attachment #2: Certified Bid Tab; Attachment #3: Esse Letter for Reconciled Award Amt |
PURPOSE:
The purpose of this resolution is to award a construction contract to J. M. Thompson Company of Cary, NC (“J. M.”) for the Parks Operations Facility project (“Project”) to be constructed at the corner of Melton and River Road.
BACKGROUND:
The Parks and Recreation Department provides several critical operational functions for the City, including urban forestry, park maintenance, amenity maintenance, and right-of-way mowing. The current facility that houses maintenance for the Department is located at 1702 Burnett Blvd. The main building is a converted residential structure built in 1923, with a wide variety of other aging structures. A significant portion of this property is located within the floodplain, further complicating division operations during flooding/hurricane events.
A space needs study was conducted in 2017, and building program requirements were established. Following the study, staff discovered that alignment of NCDOT project U5734, improvements to South Front St, would impact the site and thus require the City Operations Complex (“Complex”) to relocate. In 2019, City Council approved a resolution to purchase approximately 7.5 acres located at the corner of Melton and River Roads, in close proximity to the Complex.
Following this land purchase, the City pursued a design team through a request for qualifications (“RFQ”) process. Esse Architects (formerly Huffman Architects) was hired in early 2021, and the design process resulted in a project with the following major components:
• Operations Building (main office/workshop spaces)
• 15 Lane Covered Vehicle Storage (pull-through)
• Horticulture Preparation Building (chemical storage, potting, plant preparation)
• Greenhouse (2 bays) and Cold Frame (see note below about procurement)
• Bulk Storage Bins (mulch, topsoil, etc.)
• Staff Parking and Maintenance Yard
Several cost-saving efforts were incorporated into the design prior to bidding, including the following:
• Landscaping will be self-performed
• Greenhouse originally planned as 3 bays was reduced to 2 bays
• Flooring in Operations Building was changed from Terrazo to polished concrete
• Several items were included in the bid as alternate items
• The Parks and Recreation Department has identified furniture and fixtures for most needs within the new building from surplus building locations.
After identifying funding to cover the gap between the existing budget ($9.1M) and the estimate from January 2025 ($10.3M) plus start-up/inspection/IT infrastructure costs ($384,000), the Project was advertised, and bids were received on July 17th. The certified bid tab is attached and shows that a total of nine bids were received. Staff evaluated the bids with assistance from the design team and cost estimator and have assessed that the following factors have contributed to the difference between the January estimate of $10.3M and the bids received in July:
• Tariffs - 5% to 7% increase for mechanical/electrical equipment
• Steel - 11% to 20% increase per ton
• General cost escalation - 1.5% per quarter
The cost estimator reevaluated the project using current market confirmed costs for the time of the bid, which resulted in an update to $11.9M. Therefore, the certified bid amount is very competitive based on the current confirmed market prices.
The amount of $11,971,273 can be reconciled based on the following bid amount, alternate amounts, and value engineering credits (see attached letter):
• Base Bid Amount $11,782,000
• Alt 2A Heavy Duty Paving $95,000
• Alt 7 Rooftop Photovoltaics $160,000
• VE Delete 3rd Party LEED Consultant ($21,000)
• VE Masonry Veneer Changes ($46,527)
Alt 2A Heavy Duty Paving is recommended since it is the best long-term surface with minimal maintenance for the site and its use. Alt 7 Rooftop Photovoltaics are recommended as they will offset approximately $13,000/yr in electricity costs and help the City towards its clean energy goals. Return on investment for this system is conservatively estimated at 10 years without consideration for rising energy costs. Removal of the 3rd Party LEED consultant is recommended based on the depth of experience that the contractor has on prior LEED projects. Changes to the masonry veneer are recommended as a cost-saving measure.
Note about Greenhouse/Cold Frame - This structure has been designed by a company that has a contract with the Sourcewell purchasing cooperative. Therefore, a separate contract will be entered into for the purchase and assembly of the greenhouse and cold frame. J M Thompson’s responsibility will be to construct the foundation slab and utilities for the greenhouse and cold frame structure.
budget
BUDGET IMPACT:
There is a companion appropriation ordinance associated with the award of this construction contract. Majority of funds come directly from the project budget, with additional funds having been identified in the appropriation ordinance.
recommendation
RECOMMENDATION / ACTION REQUESTED:
Passage of the resolution is recommended.