HomeMy WebLinkAboutP.R. 12278 - lSI & CARNEYinteroffice
MEMORANDUM
To:
From:
Date:
Subject:
Mayor, City Council, City Manager
Mark T. Sokolow, City Attorney ~ ~
July 31,2003
P. R. No. 12278; Joint Council Meeting of August 1,2003
Attached is P. R. No. 12278 pertaining to the status of Phase I and Phase
II of the Design Build Agreement and Proposed Change Orders between the City of
Port Arthur Section 4A Economic Development Corporation, LSI and Carney
Engineering.
cc: Ike Mills, EDC Executive Director
Jim Wimberley, EDC Attorney VIA FACSIMILE: (409) 724-7585
LSI
Carney Engineering
Leslie McMahen, Director of Public Works
MTS/jb
Attachment
z.pr12278.memo
P. I~. No. 12278
07/3O/03 jb
RESOLUTION NO.
A RESOLUTION PERTAINING TO THE STATUS OF
PHASE I AND PHASE II OF THE DESIGN BUILD
AGREEMENT AND PROPOSED CHANGE ORDERS
BE'rWEEN THE CITY OF PORT ARTHUR SECTION
4A ECONOMIC DEVELOPMENT CORPORATION,
LSl AND CARNEY ENGINEERING
WHEREAS, the EDC Design Build Contract with LSI and Carney
Engineering was signed on May 12, 2003, which delineated $466,071 for Phase I
and $5,353,216 for Phase II with the total being $5,819,287 for the construction;
WHEREAS, on or about May 15, 2003, the EDC gave a Notice to Proceed
on Phase I;
WHEREAS, on July 30, 2003, the City Manager of the City of Port Arthur
and the Executive Director of the City of Port Arthur Section 4A Economic
Development Corporation gave a Notice to Proceed on Phase II, a copy of which
is attached as Exhibit "A"; and
WHEREAS, LSI and Carney Engineering have prepared two change
orders attached hereto as Exhibits "B" (July 24th and July 25th LSI letter
delineating a deduct for $109,867) and Exhibit "C" (July 29th LSI letter delineating
an addition of $80,175).
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF PORT ARTHUR:
Section 1. That the facts and opinions in the preamble are true and
correct.
z.pr12278
Section 2. That the change orders requested in Exhibit "B" is herein
approved so that there will be a deduct for $109,867, as this work will be
substantially done by another engineer and contractor.
Section 3. That the change order request in Exhibit "C" is herein
approved so that this will be an addition of $80,175.
Section 4. That the total construction costs for the improvements as
performed by LSI and Carney Engineering will be $5,789,595.
Section 5. That a copy of the caption of this Resolution be spread upon
the Minutes of the City Council.
READ, ADOPTED AND APPROVED on this __ day of , A.D.,
2003, at a Special Meeting of the City Council of the City of Port Arthur, Texas,
by the following vote: AYES: Mayor ,
City Council ,
NOES:
ATTEST:
OSCAR ORTIZ, MAYOR
EVANGELINE GREEN, CITY SECRETARY
z.pr12278
APPROVED AS TO FORM:
MARK T. SOKOLOW, CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
STEVE FITZGIBBONS, CITY MANAGER
APPROVED AS TO AVAILABILITY OF FUNDS:
REBECCA UNDERHILL, DIRECTOR OF FINANCE
z.pr12278
EXHIBIT "A"
OSCAR (~. ORTIZ, MAYOR
TOM GILl. AM, I1[, MAYOR PRO-TEM
COUNCIL MEMBERS:
CRAIG HANNAH
FELIX A. BARKER
THOMAS J. HENDERSON
JOHN BEARD, JR.
RONALD H. THOMPSON
ROSE MITCHELL CHAISSON
MICHAEL "SHANE" SlNEGAL
C~ty of
Texas
MARK T. $OKOLOW
CITY ATfO~NE¥
July 29, 2003
VIA lsi~e@aol.com
Kerry LaGrone
13810 Champion Forest Drive,
Houston, TX 77069
Suite 145
VIA tccarney@bigplanet.com
T. Craig Carney, P. E.
3005 Ridge Hollow Drive
Plano, TX 75023
RE: IASIS Hospital Project
Dear Mr. LaGrone and Mr. Carney:
On or about May 16, 2003, the IASIS/Williams & Rao
Economic Incentive Agreement was signed and you were given a
Notice to Proceed on Phase I as to the following:
3 o
Clear & grub highway and utility routes
Site fence installation around thirty (30) acres
of Hospital/MOB and roadways
Temporary construction entrances
Design work for first sixty (60) days
Schedule shall be as delineated in LSI proposal
with adjustments thereto based on the timing of
the Notice to Proceed
The price of $466,071 was subject to the exceptions as
denoted in Exhibit ~C" of your contract. Your last pay
request of June 30, 2003 indicated that you have incurred
$391,071 in billings. You have been paid this amount, less
$39,107 in retainage. You indicated that you will proceed to
complete this Phase this month at the original price of
$466,071 and will certify the completion of this work.
z,edc_lagrone.61tr
FO. BOX 1089 · PORT ARTHUR, TEXAS 77641-1089 · 409/983-8126 · FAX 40§/983-8124
Phase II was listed as follows in the contract:
ORIGINAL PHASE II
Utility and roadway design/administration.
Material testing.
Strip roadways
Roadway fill & preparation.
Lime stabilization to a depth of 6" @ 6% for the new
roads or roads.
Concrete roadways constructed to TXDOT standards for a
4-lane Park Central Boulevard
Concrete roadways constructed to TXDOT standards for
the 4-lane extension of Jimmy Johnson Boulevard
Street lights along Park Central Boulevard and the
Jimmy Johnson Boulevard extension
Sanitary sewer service to within 5 feet of the Hospital
building and the M.O.B. tied into the existing City of
Port Arthur system.
Storm sewer system for the new 4-lane roadways. System
to outfall at the adjacent DD7 pit
Storm sewer system for the 30-acre Hospital/MOB site.
Domestic water service lines to within five (5') feet
of the Hospital building and the MOB
8" Fire Water loop around Hospital/MOB brought to
within 5' of the Hospital building and the MOB
Other services as required from the EDC design build
contractor as delineated in the IASIS/EDC Economic
Incentive Agreement, that the design/builder has notice
of at the time of the signing of this Agreement.
Schedule shall be as delineated in the LSI Proposal
with adjustments thereto based on the timing of the
Notice to Proceed
This phase was determined to cost $5,353,216 and is
subject to the exceptions in Exhibit nC" of your contract.
The total of Phase I and Phase II was $5,819,287.
You have cleared and grubbed the proposed roadways,
except for the Hayes tract. Arceneaux and Gates has
indicated that there is an existing sewer line that runs
through Parcel 4, 6, 13, 14 and 17 of that plat and extends
to Highway 365. The EDC is in the process of purchasing
Parcel 4 and easements from Sun NLF. This closing is
scheduled for July 31, 2003. It is our understanding from
your subcontractor, Arceneaux & Gates, that the existing
water line ends on Parcel 4, the Sun tract. You will need to
z. edc_lagrone. 61tr
build and seed a 3.5 acre detention pond, including an
outfall structure, in Parcel 7. As you are aware, the water
line needs to be increased in size to 20" per the City's
contract with Dikita and that there is an overlap between
your contract and the City's Dikita contract, which will be
resolved by your July 24th Change Order. You have also
indicated that IASIS has given a Notice to Proceed for its
contractor, R.J. Griffin, that W.T. Byler Co. (the
subcontractor of R. J. Griffin) is presently working on the
site and that you need to coordinate action with this
subcontractor, W.T. Byler Co.
The updated Phase II is therefore as follows:
UPDATED PHASE II
Continue design preparation
Utility and roadway design/administration.
Material testing.
Strip roadways
Roadway fill & preparation.
Lime stabilization to a depth of 6" @ 6% for the new
roads or roads.
Concrete roadways constructed to TXDOT standards for a
4-lane Park Central Boulevard - Parcels 1, 2 and 3 with
medians and curb cuts as needed for the project
Concrete roadways constructed to TXDOT standards for
the 4-lane extension of Jimmy Johnson Boulevard -
Parcels 3, 4 and 22, with medians and curb cuts for SUN
NLF and as otherwise needed in the project
Street lights along Park Central Boulevard and the
Jimmy Johnson Boulevard extension (Spaced per
applicable lighting standards as needed to light the
roads, Parcels 1, 2, 3, 4 and 22)
Sanitary sewer service to within 5 feet of the Hospital
building and the M.O.B. tied into the existing City of
Port Arthur system.
Storm sewer system for the new 4-lane roadways. System
to outfall through Parcel 16 to the DD7 new Lateral
Ditch C6A.
Storm sewer system for the 30-acre Hospital/MOB site.
Domestic water service lines to within five (5') feet
of the Hospital building and the MOB
8" Fire Water loop around Hospital/MOB brought to
within five feet (5') of the Hospital building and the
MOB
z. edc_lagrone. 61tr
Other services as required from the EDC design build
contractor as delineated in the IASIS/EDC Economic
Incentive Agreement.
Build, fence and seed 3.5 acre detention pond in Parcel
7 as well as provide new outfall structure as required
Due to the pendency of the closing on the Sun NLF
property (Parcel 4 and easements), you need to hold off
doing work on this tract and the adjacent Sun NLF
property, until after the closing. You have indicated
that there will be no extra costs so long as the
closing occurs before August 8th, 2003.
Due to the pendency of the condemnation of the Hayes
tract (Parcel 22), you need to hold off doing work on
this tract, until after the condemnation. You have
indicated that there will be no extra costs so long as
the closing occurs before September 5, 2003.
The price for Phase II is $5,353,216. Nevertheless,
you have submitted two change orders which will require
approval of the Board of Directors of the City of Port
Arthur Section 4A Economic Development Corporation and will
require approval of the City Council.
Due to the pendency as to whether you or Dikita will do
the design revisions and construction services for the main
water transmission lines through the project, there may be a
change order to your contract at a deduct of $ 109,867.00,
as denoted in your letter dated July 24, 2003. If this is
approved, all public water transmission lines will be
provided to the Hospital property lines by others.
Due to the required work for the detention pond,
remobilization and existing ditch back fill, you are
requesting a change order at an increase of $80,175, as
denoted in your letter dated July 29, 2003.
If these two change orders are approved, there will be
a deduction of the price of Phase II to $5,323,524 and the
total price of the project (Phase I and Phase II) will be
$5,789,595. You have also indicated that Phase II will be
completed by May 1, 2004, with the design being completed by
December 15, 2003.
You are therefore being given this Notice to Proceed as
to the updated Phase II subject to your agreeing to the
terms herein. You will also need to immediately deliver
Performance and Payment Bonds for Phase II.
z. edc_lagrone. 61tr
SF/IM/ts
Sincerely,
City Manager ~
I~alious "Ike Mills
Executive Director of EDC
APPROVED AS TO FORM:
Mark T. Sokolow
City Attorney
A~REED TO:
Kerry LaGrone
Craig Carney /
Date: ~ ~t~~9
CC:
Mayor
City Council
City Manager
Arceneaux & Gates
z. edc_lagrone. 61tr
EXHIBIT "B"
LSI
GE~g,~AL CO~'TRACTOI~ .~ID CON~;TRKt¢?ION ~td~ER~
July 24, 2003
VIA FAX: 409-982-6743
Mr. Ste;e Fitzg~bons
City Manager- City of Port Arlhar
City I Iall - 444 4~' Street
Port Arthur, TX 77641
RF.: Ol't's'te water des~i,m and construction costs
Dear Mr. Filzgibbons,
}'ur~nant }o your request, lhe l'o]lowing rep~esent, the credit for offsite water deign and
con Sir ttc'Itoll,
De~illn - See attached proposal
Planning, coordination & project mgt tasks
Preliminary design
Finat design
Construction administration
$2,056 00
$18,600.00
$12,4OO.00
._*.3,81 .00
$ 34,867.00
Cnnstrt~etion . Sec attached pay application
Dameatic walet to Hospital & MOB
Credit Total
Sincerely,
Ker~ R. ~Orone
President
$75,000.00
$109,867.00
l ko Mills - Port Arthur Ecoumnic Devclopmem Corp. - 409-983-8222
Mark Soko!ow -. Cil3' AtWmey - 409-983-8124
l.es'tic _McMahen - City of Port Arthur - 409-983-8294
James Wimberley - EDC Attorney - 409-724-7585
Craig Carney - Carney Eng4ncering - 469,443-O144
Jam-, Snell - LS[
LSl/Carr~.'y Desig:t;Build Team
May 30. 2001
110sp~a2 Sire Dcv¢lopmcnt Project
Ditata Engineering MemoraMum
P RE-REQUIS ITE ,MATERIAL/SE RVICES
Doeumcntation/pLr. ns and/or ~rvices teqoir~ as pre-requisite Io our services are as lbtlows:
Preliminaq., site platt infom~atmn, accurately showing proposed lIosp:tal and MOB
footpri,,~, including proposed parking area. driveways, side,s~elks, building access points
and any prolapsed site f'aciliti~. B'~sJcatly the necessary information to layout and plan
the sanitary sewer, domes:ir water anti tim water system, storm lines, detentioWretention
drainage system, and roadvmys. This proposal has no provision lbr planing involving
more than 2 iterations of site layom alternatives. Inlbm~ation should be provided i,~ both
hard copy and electronic format (AuloCAD 2000).
Complete site geotechnical investigation report with recommendations on pavement
desibm section, suitability of fill m~teria} and depth of water table,
Sile topu~ap~y and en~neering sum'ey st'.owJng existing utilities t"ealltlres, utilities tie-in
i~fformation, adjacent pavement tie-in elevations, manholes, invert elevations etc,, as
requtred fOr proposed design tasks. Topography data should be available in both hard
cop~ aud DTM file (AutoCad 2000) f~rmat
COMPENSATION
Provision of professional engine¢:"ing dcsi~ and limited construction administration servmes per
scope of basic sen, ices. as descrit:ed herein, is proposed for a Lump Sum total tee or
g, 116,869,75 Fbc table ~low outlines the Ntsis for our fee proposal with a break-<iowa as
requested.
[;ce Schedule £m Basic Ser~iccs:
Ptaqn_i!~, Coordm~£o&L.3!Ld Pm} '<t Man.0gement
Prelim[_n~.qkDesi-,~n a~-d Plans lask.q
On-site Sardta~, Sewer System
On-site Domestic Water S~stem
On-site Fire Water System
Oft%itc Water M'ain
15.n5! Design an0 Plans tasks
On-site .%nitary Sewer System
On-site Domestic Water Syst;:m
On-site Fire Water System
LMaL-.
$14,722.15
$9,672.11
"l ~--" -'--'~
~9,814.77
g6.448.07
Of£-si~e Water Main _
onstm.ctmn Admrmstro. t~.~n ta_'¢k
(at 60 hrs. max. for the Project Engineer based on 6hfs, per w~k input
over an estimated 10 weeks cons~action ~riod tb~ mmstruction of}
dcsigned wu k only).
Retmbursable Ex.rises (mileage, printing, courier settees e~c,)
'Fatal Fee
$1.1.9g~t-$---~
$6,404.40 ~
$1.580 O0
MI~.869.75
P~e4
JUL-25-09 SAT 10:03 AH L~GRONE SERVICES F~X NO, 2814442350 P, 01/03
LSI
G, ENERAL CONTRACTORS AND CONSTRUCTION MAII'AGER/;
25,2003
VIA FAX: 409~982-6743
Mr. Steve Fitzgibbons
City Manager -- City of Port Arthur
City Hall - 444 .fh Street
Port Arthur, TX 77641
Re: Ot't'site water desil,m and construction cost clarification of July 24, 2003 correspondence,
Dear Mr. Fitzgibbons,
To fl~rth,:r clarify the credit requested yesterday (7-24-03), please be advised as follows.
CoastrtLction cost credit is all oft'site water service to thc thirty (30) acre tract per our
contract (see atlachcd sketch).
., 8" C-900 pipe 2100 linear feet
6" C-900 pipe 80 linear lkct
4 ca Fire hydrants
Tes,[,,~ oF i ~e
TcmporaD~ water 1o se~e IAS[S construction project
· All omlite water/fire loop remains in our contract t~r desig~¢mild
As you arc aware Dikita ~ngineering has declined, as of yesterday (attached), from pro~idin~ the
engineering work ol'!kred to ~heir firm. We need Io immediately reallocale this work to not recur
Rmher delays. It is crmcal that wc kno~ ffthe PAEDC w~shes to accept this credit by Monday,
July 28, 2003, If there are any questions or fu~her info~ation required, please advise.
Sir:cci'ely, ,~ //
I~'erry A, I_aC.l-rone
Pres/dent
CC: Ike Mills - Port Arthur Economic Development Corp. - 409-983-8222
~Mark Sokolow - City Attorney - 409-983-8124
Leslie McMahcn - Ci~ of Porn Arthur - 409-983-8294
James Wimberlcy ,.- EDC A~omey - 409-724-7585
Craig C~ey -. Carney Engineering -- 469-443-0144
Jason Snel~ ~ LSI
LAGROI~E S1/~I~VICES, INC.
13810 CHAMPION FORI~ST DRIVE - SUrl'E 1,$5
HOUSTON, TEXA,'3 77069
pl,h (2511 444-927S FX: (iai) 444-'2350
vOL. Igl.~ pO,. J O.R,JG,
(~ 15' U.C. $'wBfEL F--5
CF!/S~,~25G1 ,3 p.R J.C
Pti,,1 flU,
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R=1050.00'
~=09°03'45"
CH=165.gl' ///
cs=s 68-or55" w-~ 12 /
p.o.B.l
~'47'00" E 10~ ,
2.96' .; / /
~50.00' 17 / ,,'
°26'34" /// /
390.67' ///
3 5;
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R--550.00'
4.14' A_31o20,48-
i'l 2" W CH=29~ .17
27.2f CB=N 33o06,36'' W
,..2.'iL_
,S 62°26'12"
14.14'
N 72°33.48'`
11.30'
= 108.90'
=950.00'
/CH=108.84'
=N 69°'~ 6'45''
N 48~4T00'' W 852.94'
S 48°4.7.00" E 85,2.94'
A=355.62'
R=650.00'
A=31 ~20'48"
CH=351.20'
CB=$ 33°06,36" F-.
SUN NLF, LTD.
TRACT 1
125.984' ACS
CF,~ 953763~ pARC
O.P-R,J.C 380,1~87
----~..7 2 8 ~
ROEL 4
~RI< HAYEEI
.823 ACS. k~.
'O*P'R J'C:'
R=950,00'
A=23o52~09''
CH=392.91'
cs=N 54o03'38" 5
SABINE NECHES INC,
3.03 ACS.
CF~{19ggO 17733
MARK HAYES
JUL-~b-U~ bHJ JU:Uq RFI LHUKUNb ~bKVtUb5 DRX NU, ~Uiqqq~SbU K, US~U5
~ 97i24/2883 it:13 58555~5555
VIA FAX: ORIGNAL TO FOLLOW IN US MAI[,
Juiy 24, 2003
Craig Carney
Carney Engineering Company
3005 Ridge Hollow
Plane, Texas 75023
Dear Craig:
This letter is a written notification to inform Carney Engineering Oompany that
effective immediately, Oiklta Ente~l~flaes of Texu, Inc.. dba Dlklta
Engineering, i$ no longer intereated In the negotiations for subcontractural
work being offered by your company for the City of Port Arthur Section 4A
Economic D~velopment Corporation,
We regret having to come to this decision; however, our issues are too far apart
and lacking in timely resolutions, We hope there would be future opportunities
for us to team up again, and wish Carney Engineering continued success,
Sincerely,
DIKITA ENTERPRISES OF TEXAS. INC,
t. ucious L. Williams
President/CEO
Kerry R. LaGrone - President, LSI
Oscar Ortiz - Mayor, City of Port Arthur
Mark Sokolow - City Affomey, City of Port Arthur
Steve FiLzgibbons - City Manager, City at' Port Arthur
Ike Mills - PAEDC
Jim Wimberly - PAEDC Atlomey
{21 ~,'~ 634-88&4 F~ (2141 63B-74~6
3480 H~i'~cOy 365, Suite 304. Pod Arthur, T~(3s 77642
~-: [409) 7294]300 ¢m l~091 7:~9-2307
EXHIBIT "C"
dUL-~-U~ ~ U~iU~
LSI
~*uly 29, 2003
VIA F^X: 409-983-8222
409-982-6743
Mr. lke Mills
Ex~'ufiw Dir¢¢tor
Port Arfl~ur Section 4A Economic Development Corporation
P,O, Box 1089
Port Atflmr, Texas; 77641-1089
Mr. Stove Fimgibbons
City Manager - City of Port AtXhur
City Hall - 444 4t~ Street
Port ^rthttr, TX "/7641
RE: Desil!~uild -- PAEDC & IASIS Pcojeet
Dear SirS:
The following represents thc additional costs to remobilizc and provide a 3,5-acro detention pond
For thc 30-acre hospital site in l'cu of out falling tho storm sewcr system into the DD7 pond.
Excavate. approximately 4 f~¢t deep x 3.5 acm
dolcnt'ion pol~ with two foot berm at perimeter
· Design de~tontion pond and out fall to C6 canal
· Clearing 3.5 acres 3554
Out fall structure~paving~aftlcs
· 8 Foot chain link fence with gate
· Broadc~'tse~ding 3.5aores
· Remobilizatlon
Existing ditch back fill
i%locost
$ 5,250.00
$12,442.00
$19~75.00
$17,010.00
$ 918.00
$1o~so.oo
~15.750.(lg.
$80,175.00
La. OROll~ BF.~C~8, IRC.
13810 CHAMPION FORmal' DRIVE -
I{OU~N, T~ 77~9
PH= (181) a44-0275 Fg: (~11444-1a50
LSi
GF. lq:~q.L CONTP..ACTOR$ AII'D CONSTRUCTION
We lrus{ this meots with your approval. If them arc any f,~flhcr questions or informmton necdcd,
plcasc advise.
e~rr~ 1~.. I.~Oronc
Prcsidei~t
CC:
Mslie McMaJ~cn- 409-983-8294
Mark Sokolow - 409-983-8124
Craig Ca. rncy - 469-443-0144
Ja.~on Snell
LAGRORZ 8Z~VICSS,
t3810 CHAMPION FOR~b'T DP. WE - SUITr~ 145