Buda council authorizes $1.2 million master services agreement for engineering inspections; first task order paid from developer escrow

Buda City Council on March 3 authorized the city manager to execute a task-order master services agreement with Lockwood, Andrews & Newman Inc. (LEN) for general engineering services not to exceed $1,200,000 over a five-year term.

The agreement will be used to issue discrete task orders; the first such task order covers construction inspection services for Persimmon Phase 1, Section 1 at an estimated cost of about $361,000. Hannah Kennedy, who presented the item on behalf of staff, said Persimmon will deposit funds into an escrow account and pay LEN invoices for that specific inspection work, which the city will administer as a pass-through.

Why it matters: the contract establishes an umbrella purchasing mechanism intended to speed procurement of engineering support while giving the city a named firm to perform on-site owner's‑representative work for major developments. Council members pressed staff about contract term, renewal mechanics and remedies if LEN’s performance is unsatisfactory.

Kennedy summarized the contract structure and budget rationale: “That is essentially a cap for this particular master services agreement,” she said, explaining the $1.2 million figure was a conservative estimate to cover multiple upcoming construction sections this fiscal year. She also described the five‑year term as an initial three‑year period with two automatic one‑year renewals.

Councilmember Warner Williams and others questioned the use of automatic renewals. “Auto renewals are something that a lot of governmental agencies have moved away from because we don't want people to make the assumption that just because you've won this initial solicitation ... you're gonna continue to do business with us over the next five years,” Warner Williams said, urging attention to performance review and termination rights. City Attorney Alan Grama confirmed the template used includes opportunities to cure and termination clauses.

Staff said LEN was selected from the city’s 2024 General Engineering Consultant (GEC) solicitation, with scope tailored to the firm’s capabilities; future task orders for other services and other firms on the GEC list will follow the same task-order approach. Kennedy said the $1.2 million cap was based on an estimate of four inspection sections (roughly $360,000 each) and would be revisited if Persimmon’s build‑out requires more work.

Council voted to approve the task‑order master service agreement; the motion carried on a voice vote.

What happens next: staff will issue the first task order for construction inspection of Persimmon Phase 1, Section 1 and establish the developer escrow to reimburse LEN invoices. City staff said they will not issue additional task orders under the agreement if LEN’s performance is unsatisfactory.