City Council Meeting Date: June 9, 2026
Date: June 1, 2026
To: Erin Rinehart, City Manager
From: Jonathan Wheat, P.E., Director of Engineering
Shannon Hicks, P.E., Assistant City Manager
Title
Consider Authorizing The City Manager To Approve A Construction Contract With 3D Paving & Contracting, LLC For The Nob Hill Section II Street Reconstruction Project In An Amount Not To Exceed $4,332,910.00.
Body
Summary:
The purpose of this agenda item is to approve a construction contract with 3D Paving & Contracting, LLC, to reconstruct the final section of Nob Hill.
Background:
The Nob Hill Neighborhood Reconstruction project was included on the list of potential projects for the 2013 bond. Design of the project began in 2018, and the Nob Hill Alleys and Streets Section I projects were completed in 2021 and 2024, respectively. This final section of Nob Hill features the most concerning retaining walls in the neighborhood, as presented to Council on November 4, 2025. Council authorized design contract amendments in November 2020, February 2021, March 2022, and August 2023 for additional engineering study and design regarding the retaining walls in this section of Nob Hill.
This contract will provide for the reconstruction of five (5) streets and an alley in the Nob Hill neighborhood. Improvements consist of barricades and traffic control, replacement of 2.6 lane miles of street pavement, replacement of 700 LF of alley pavement, replacement of approximately 7,900 LF of sidewalks, construction of approximately 4,300 LF of sanitary sewer, construction of approximately 800 LF of water lines, and construction of 50 LF of storm sewer.
The engineer estimated construction cost is $5,646,110.00. As outlined below, the lowest bid is approximately 30% under the estimated cost. The contract duration is 365 calendar days.
Financial Implications:
Eleven (11) bids were received on May 4, 2026, and ranged from $3,939,010.00 to $5,804,930.00. State Law allows evaluation of selection criteria which comprises not only the price but the validity or reliability of the price along with contractor qualifications, including performance on past similar projects, experience of personnel assigned to the project, magnitude of municipal work, etc.
In consideration of all criteria, 3D Paving & Contracting, LLC has submitted the lowest qualified bid of $3,939,010.00. 3D Paving Contracting, LLC also has an excellent reputation with Carrollton and has successfully delivered several projects including the 2022 Alley Replacement, Crosby Street Reconstruction, Nob Hill Alleys Reconstruction, and Nob Hill Section I Street Reconstruction projects. Upon incorporation of all selection criteria based on price and qualifications, 3D Paving Contracting, LLC is concluded to be the most advantageous bidder for this project and offers the best overall value to the City.
With this road reconstruction staff recommends the inclusion of a construction contingency. The construction contingency provides an expedient manner to accommodate unforeseen costs and minor additions in work common in all construction projects. Examples include unexpected conditions discovered during construction, and changes to design that were not possible during plan generation. All charges against contingency must be supported by detailed pricing information and approved by the City through a formal change order. However, having advanced Council authorization ensures that work progress is not impeded. Typical construction contingencies for a project of this magnitude range from 2-5% of the total contract amount. However, due to the complexity of this project, staff recommends a 10% contingency ($393,900.00) be included in the contract, for a total amount not to exceed $4,332,910.00.
Funding is available in Account Units 854460 (Streets Consolidated), 854201 (Neighborhood Partnership), and 855160 (Utility Consolidated).
Impact on Community Sustainability:
This project will support the City Council’s strategic objectives and vision of building a community that families and businesses want to call home by:
• Improving neighborhood safety and walkability through reconstruction of substandard pavement and replacement of aging sidewalks. (Hospitality, Healthy, Accessible)
• Enhancing reliability of critical infrastructure by upgrading water, sewer, and storm systems, reducing emergency repair needs. (Optimize)
• Supporting long-term fiscal stewardship with a competitively bid project that reduces maintenance costs and efficiently reinvests in aging assets. (Economical)
• Strengthening the neighborhood’s appearance and livability through comprehensive reinvestment that supports stable, attractive residential areas. (Revitalized)
Staff Recommendation/Action Desired:
Staff recommends City Council authorize the City Manager to approve a construction contract with 3D Paving & Contracting, LLC. for the Nob Hill Section II Street Reconstruction project in an amount not to exceed $4,332,910.00. ($3,939,010.00 bid, and a $393,900.00 (10%) construction contingency).