PRESENTER: Presenter
Jordan Matney, Deputy City Manager
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SUBJECT: Title
Discuss and consider a joint-bid contract between the City of New Braunfels and New Braunfels Utilities, with Pesado Construction Company, Inc. for construction of the Castell Avenue Phase 1 - Coll Street Improvements along with authorization for the City Manager to execute change orders up to the contingency amount, and construction-related expenditures within the project budget.
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DEPARTMENT: Transportation & Construction Services
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COUNCIL DISTRICTS IMPACTED: 5
BACKGROUND INFORMATION:
On March 9, 2023, the New Braunfels Economic Development Corporation (NBEDC) approved funding for final design of the Castell Avenue Phase 1 - Coll Street Improvements Project.
On January 26, 2026, City Council approved the issuance of a Competitive Sealed Proposal bidding solicitation for construction of the project. Construction bidding for this project was completed April 2, 2026. Four bids were received from qualified contractors and evaluated by the joint project team. Pesado Construction Company, Inc. has been selected as the best value with a total bid of $9,659,415.16. The construction cost includes $8,235,832.20 for drainage, roadway, and pedestrian improvements and $1,423,582.96 for water and wastewater improvements funded by NBU. City staff recommends an addition of $823,583 in owner contingency for the drainage, roadway, and pedestrian improvements, bringing the total of City-funded work items to $9,059,415.20.
The NBEDC has approved a total of $9,600,000 for the construction phase of the project which includes the construction costs and construction administration costs.
On June 25, 2026, the NBU board approved authorization of the CEO or his Designee to negotiate and execute a construction contract between NBU and the City of New Braunfels, jointly, with Pesado Construction Company, Inc. for the Castell Avenue Phase 1 - Coll Street Improvements project.
ISSUE:
Continue an ongoing program of infrastructure, construction and maintenance.
STRATEGIC PLAN REFERENCE:
☐Economic Mobility ☒Enhanced Connectivity ☒Community Identity
☐Organizational Excellence ☒Community Well-Being ☐N/A
FISCAL IMPACT:
The NBEDC has approved $9,600,000 for the construction phase of this project. Staff recommended to the NBEDC the issuance of a Certificate of Obligation to support the construction of this project, which will be considered by the City Council later this fiscal year.
Recommendation
RECOMMENDATION:
Staff recommends the approval of a joint-bid contract between the City of New Braunfels and New Braunfels Utilities, with Pesado Construction Company, Inc. for construction of the Castell Avenue Phase 1 - Coll Street Improvements along with authorization for the City Manager to execute change orders up to the contingency amount, and construction related expenditures within the project budget.
The NBEDC and City Council have previously voted to advance this project to final design and funding for construction of this infrastructure project:
