Title
Consider a memorandum/resolution approving a Design/Build Agreement with Synergy Commercial Construction for the design/build of a new office complex at Killeen Regional Airport, in the amount of $5,184,833.30.
Body
DATE: May 6, 2025
TO: Kent Cagle, City Manager
FROM: Mike Wilson, Executive Director of Aviation
SUBJECT: Design/Build Agreement with Synergy Commercial Construction
BACKGROUND AND FINDINGS:
CSI Aviation, Inc. (CSI) has been a tenant of the Killeen Regional Airport since 2018, and currently leases two (2) corporate aircraft hangars at Killeen Regional Airport. Over the past three (3) years, CSI has gradually moved various elements of their company from Albuquerque, New Mexico to the Killeen Regional Airport. They currently have sixty-four (64) full time employees working on-site at the airport, with several other employees assigned to Killeen but working remotely and/or splitting time between Killeen and their Albuquerque office. During this time, Aviation staff has been negotiating with CSI concerning relocating their corporate headquarters from Albuquerque, New Mexico to the City of Killeen, contingent on the construction and availability of adequate office space near Killeen Regional Airport.
In October 2024, the Aviation Department developed and advertised RFQ 25-08 for design and construction services for a Design-Build Project for a new 9,000 square feet office building at the Killeen Regional Airport. Five (5) proposals were received and reviewed by a selection committee made up of Aviation staff and our consultants.
In November 2024, Synergy Commercial Construction was selected as the contractor for the project.
The Synergy team held several meetings with CSI and Aviation staff to determine the design requirements of the building and the various site requirements. Several conceptional plans were presented and discussed with CSI and Aviation staff. Based on these meetings and discussions, Synergy developed and proposed a price for the building of $5,184,833.30.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This item conforms to local and state policies.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The total amount of expenditure in fiscal year (FY) 2025 for the design-build agreement will be $5,184,834 to this vendor
Is this a one-time or recurring revenue/expenditure?
One-time
Is this revenue/expenditure budgeted?
No
If not, where will the money come from?
The expenditure will be funded through a combination of sources, including $1,000,000 from the fund balance of the Governmental Capital Improvement Projects Fund (Fund 300); $684,834 from the fund balance of the Water and Sewer Capital Improvement Projects Fund (Fund 350); and $3,500,000 to be provided through the issuance of debt, such as revenue bonds.
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Upon the approval of this resolution, the expenditures will be appropriated on the FY 2025 Year-End Budget Amendment in the accounts XXX-56201-900-600-925022.
RECOMMENDATION:
Staff recommends that the City Council approve a design/build agreement with Synergy Commercial Construction, in the amount of $5,184,833.30, for the design/build of a new office complex at the Killeen Regional Airport and authorize the City Manager or designee to execute all contract documents and all change orders or actions within the amounts set by state and local law.
DEPARTMENTAL CLEARANCES:
Purchasing
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Agreement
Certificate of Interested Parties
Presentation