CC MEETING: February 3rd, 2026
DATE: January 22, 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 Axis Contracting, Inc. For the Country Club Drive Improvements Project In An Amount Not To Exceed $5,788,121.70.
Body
BACKGROUND:
The Country Club Drive Improvements Project is located along Country Club Drive from N. Josey Lane to Kelly Boulevard. Improvements for this project includes approximately 2.6 lane miles of pavement replacement, approximately 3,400 linear feet of 16” water line, sanitary sewer, and storm sewer improvements.
The engineer estimated construction cost is $6,228,035.55. As outlined below, the actual lowest qualified bid is approximately 16% below estimated budget, while meeting all project goals.
FINANCIAL IMPLICATIONS:
Thirteen (13) bids were received on January 14th, 2026, and ranged from $5,261,121.70 to $6,940,134.00. State Law allows evaluation of selection criteria which includes not only the price but also the validity or reliability of the price along with contractor qualifications. Qualifications include performance on past similar projects, experience of personnel assigned to the project, magnitude of municipal work, etc.
In consideration of all selection criteria, Axis Contracting, Inc. has submitted the lowest qualified bid of $5,261,121.70.
Axis Contracting, Inc. not only has adequate experience and resources to perform the work, but they have also successfully delivered Plano Parkway Park - Phase 1 project with the City of Carrollton. Upon incorporation of all selection criteria based on price and qualifications, Axis Contracting, Inc. is concluded to be the most responsible bidder for this project and offers the best overall value to the City.
With this road reconstruction staff recommend 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 railroad coordination requirements, 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, given the potential issues working near the railroad crossing and tying into future work to be completed by the Dallas, Garland, and Northeastern Railroad, Inc. (DGNO), Staff recommend a contingency of 10% of the original contract amount, or $527,000.00.
This contract will not address the rail crossing as the City is not authorized to complete paving within DGNO’s right-of-way. Future rail work will be completed through an agreement with DGNO. DGNO is currently designing the work to be completed within the railroad right-of-way.
Funding is available in Account Unit 854460 (Streets 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:
• Repairing a significantly deficient collector roadway to improve safety and reliability for motorists (Accessible, Optimize).
• Enhancing stormwater infrastructure to reduce flooding risks and improve drainage performance (Healthy, Revitalized).
• Constructing sidewalks to promote pedestrian connectivity and accessibility for all residents (Accessible, Community).
• Supporting long-term economic stewardship by investing in durable infrastructure that reduces future maintenance costs (Economical, Thriving).
STAFF RECOMMENDATION/ACTION DESIRED:
Staff recommends City Council authorize the City Manager to approve a construction contract with Axis Contracting, Inc. for the Country Club Drive Improvements project in an amount not to exceed $5,788,121.70 ($5,261,121.70 original bid and $527,000.00 (10%) construction contingency).