Item 3. Memo on MACC Reopening Delay — original pdf

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AUSTIN CAPITAL DELIVERY SERVICES DEPARTMENT TO: ESB MACC Advisory Board FROM: Heidi Tse, Capital Delivery Services Project Manager DATE: September 29, 2025 SUBJECT: Mexican American Cultural Center Substantial Completion Delay ___________________________________________________________________________ This memo provides an update following our September 10, 2025, announcement regarding the delay in reopening the ESB Mexican American Cultural Center, originally scheduled for November 1, 2025. Summary of Contractor Notices and Responses • May 21, 2025: The City issued a notice to the contractor for missing the milestone to enclose the building. In response, the contractor committed to increasing workforce capacity and maintaining a six-day workweek. These efforts led to a noticeable uptick in onsite activity and trade partner engagement. • August 19, 2025: A second notice was sent due to continued issues with incomplete building enclosure (missing glass and doors) and deviations from construction documentation. The contractor requested that certain corrections be deferred to the final completion phase and sought assistance resolving an Austin Fire Department comment regarding the fire system tie-in. They also proposed using a Temporary Certificate for Stocking to allow preliminary preparations by the Office of Arts, Culture, Music, and Entertainment (ACME). • September 9, 2025: During a regularly scheduled project meeting, the contractor, informed the Capital Delivery Services (CDS) Project Manager that the contractor’s internal building envelope test failed. This test is a fundamental benchmark for a fully enclosed building and an important prerequisite to obtaining a Temporary Certificate of Occupancy for furniture installation and staff move-in. • September 10,2025: Announcement to the MACC Advisory Board, completion of construction has been delayed. • September 12, 2025: Following our announcement to the Board, the City formally notified the contractor that substantial completion had not been achieved and requested a revised schedule and a plan of action. The contractor submitted a proposed revised timeline on September 19, 2025. The contractor has represented to the City a substantial completion of November 3, 2025. The contractor is committed to increasing the workforce capacity and maintaining a seven-day workweek. Due to failure in meeting the contract Substantial Completion date, liquidated damages (LD) is a means of recovering losses. Damages will be determined during close-out period / post construction. We understand and share your concern regarding this delay. Our team remains committed to working diligently and collaboratively to return this cherished cultural space to the community as soon as possible. We appreciate your continued support and patience as we strive to deliver a fully functional and welcoming facility. If you have any questions, please contact the board liaison, Michelle Rojas at 512-974- 3771 or michelle.rojas@austintexasgov . Kindest regards, Heidi Tse Capital Delivery Project Manager Austin Capital Delivery Service