Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Guarantee Agreement with DSE Hockey Centers, L.P. for the McKinney StarCenter Facility Expansion Project
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
(5A: Create Affordable Recreational and Cultural Arts Activities for
All Ages Throughout the City)
MEETING DATE: March 3, 2020
DEPARTMENT: City Manager’s Office
Public Works Department, Facilities Construction Division
CONTACT: Barry Shelton, Assistant City Manager
Patricia L. Jackson, PE, Facilities Construction Manager
RECOMMENDED CITY COUNCIL ACTION:
• Approval of the Resolution
ITEM SUMMARY:
• This resolution authorizes the City Manager to execute a guarantee agreement with DSE Hockey Centers, L.P. for the McKinney StarCenter Facility Expansion Project.
• DSE Hockey Centers, L.P. has agreed to assume responsibility for Stellar’s full, complete and proper performance of the project and provide the City of McKinney guaranty against uninsured claims that result in the total cost to complete the project to exceed the Guaranteed Maximum Price (GMP).
BACKGROUND INFORMATION:
• On December 3, 2019, the City Council approved a resolution authorizing the City Manager to execute an agreement with Stellar Industrial Solutions for design/build services for the McKinney StarCenter Expansion Project.
o The resolution for this agreement also authorized the City Manager to execute an escrow agreement with the Dallas Stars for partial project funding of $2,000,000.
• The following companion agenda items are also included on this council agenda:
o An ordinance amending the Fiscal Year 2019-2020 Annual Budget and the 2020-2024 Capital Improvement Program to provide funding for the design and construction of the McKinney StarCenter Expansion Project FC1709 for a total of $14,000,000.
o A revised lease agreement with DSE Hockey Centers, L.P.
FINANCIAL SUMMARY:
• The guaranteed maximum price of the StarCenter expansion project is $13,800,000.
o DSE Hockey Centers will contribute $2,000,000 towards the construction.
o On November 21, 2019, the McKinney Community Development Corporation (MCDC) approved a grant of $4,500,000 towards the construction.
o The remaining funding for the project is $7,500,000 of previously issued CO bonds.
• The associated budget amendment allocates $14,000,000 for the project. The additional $200,000 will be used for associated costs such as building commissioning, materials testing and project management.