Hawk Builders LLC Awarded Contract To Build New Senior Citizens Activity Center

After 2 years, the Sulphur Springs City Council this week finally selected a contractor to build a new Senior Citizens Activity Center, to be funded in part by a Texas Department of Housing and Community Affairs Community Development Block Grant-CV Community Resiliency Program Grant as well as voter approved bonds.

“Since March of 2020, City staff along with hired professionals have been working diligently to design a Senior Activity Center that meets all of our needs, and will provide for a great facility for many years to come,” Smith noted.

The process has continued, despite challenges such as delays in the design process, a change in architects, a pandemic which impacted not only ability of individuals to work and resulted in some supply chain issues as well as significant increases in construction costs. That time did allow the City to apply for the TDHCA grant, which the city was notified of selection for the grant in April. However, work could not begin until after the grant contract was signed, so that the city wouldn’t be out that cost. Any funds expended or work begun prior to that would not be eligible for reimbursement by grant funding.

After the city manager signed a contract for the state funding in October, the city was able to published in October and November in a local publication, as well as a Request for Proposal on BidNet Direct for the complete construction of the Senior Activity Center.

According to Assistant City Manager/Finance Director Lesa Smith, more than 400 contractors and suppliers were notified of the project, and 26 downloaded the plans and specifications. Only two sealed electronic proposals had been submitted electronically when the bid process concluded on Nov. 16, 2022. The low bid of $4,575,029 came from Hawk Builders LLC and the second bid was from Scott & Reid in the amount of $5,824,422.

The City used the Best Value Sealed Proposals method to accept proposals and evaluate the proposals based on pricing, timing, experience and other pre-determined criteria as described in the Project Manual. Both of the bids contain an owner’s contingency of $200,000, which can only be used at the City’s discretion, Smith noted.

The contingency funds would be utilized for any unexpected items that might come up, including any change orders not anticipated if there are any issued found with the architectural work or design. That is included in the bid cost.

Even accepting the low bid and adjusting the project budget, which has more than doubled since the bond proposition passed in November of 2019, the new Senior Citizens Center is still expected to be overbudget. The city has budgeted $2.42 million in grant funding, $1.5 million from bond proceeds and $175,767 in private funds raised. The rest of the cost is expected to come from the City’s general fund. Once the new facility is complete, Smith noted, the current building serving senior adults could be sold to recoup some overage, if needed.

When asked by Precinct 5 City Councilman Gary Spraggins about the impact on the City’s available funding, Smith noted the city is recommended to keep 20% to assure funding for continued operations. Using some of that funding for the senior center is not expected to put the city below that mark.

Overall, city staff recommended that the City Council approve the low bid of $4,575,029 and award the contract for construction of the new Senior Citizens Center to Hawk Builders LLC.

Place 1 City Councilman Jay Julian made a motion, which Place 2 Councilman Harold Nash seconded at the Dec. 6, 2022, regular City Council meeting, to award the contract to Hawk Buildings LLC at the low bid price for construction of a Senior Citizens Activity Center on Oak Avenue as part of the Community Resiliency Program Grant. The City Council was unanimously approved by the six members present at the meeting. (Place 2 Councilman Oscar Aguilar was not at Tuesday’s meeting.)