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HomeMy WebLinkAboutPR 11969:SETEX CHANGE ORDER 5PUBLZC WORKS DEPARTMENT COUNC]'L ACTION MEMO TO FROM SUB3ECT DATE Steve Fitzgibbons, City Manager Leslie E. McMahen, P.E., Director of Public Works P.R. #11969 October 7, 2002 RECOMMENDATION Tt is recommended that the City Council approve Proposed Resolution No. 11969, authorizing the Mayor and City Manager to execute Change Order 5, decreasing the contract by $35,263 to a new contract amount of $629,180 to the contract dated November 27, 2001 between the City of Port Arthur and SeTEX Corporation of BeaUmont, Texas for the rehabilitation of the City-owned building at 441 AusUn Avenue for the Health Clinic Facility. Funding is available in FY 2002 Budget, Account No. 301- 1601-591.89-00, CTP 170. BACKGROUND The City's construction contract with SeTEX Construction for the new Health Department Building contained the provision that moving and purchasing of telecommunications equipment, installation of same and installation of all new cabling for both telephone and data needs was to be performed by Verizon Select Services, Inc. as a subcontractor to SeTEX. SeTEX and Verizon were unable to come to an agreement on a subcontract for the installation work, and Verizon informed the City that it would be unable to proceed with the work in the manner set out in SeTEX's contract. Verizon's legal department felt that Verizon should be contracting with the City directly. On May 28, 2002 the City approved Resolution No. 02-158 authorizing a sales/installation agreement with Verizon for telecommunications and data equipment and installation at the new City's Health Department facility in the amount of $35,263. Due to these circumstances, the contract with SeTEX is being decreased by Change Order No. 5 in order to reflect this change. BUDGETARY/FISCAL EFFECT Funding is available in 2003 Account No. 301-1601-591.89-00 CIP 170. STAFFING/EMPLOYEE EFFECT None. P.R. No. 11969 Page #2 SUMMARY It is recommended that the City Council approve Proposed Resolution No. 11969, authorizing the Mayor and City Manager to execute Change Order 5, decreasing the contract by $35,263 to a new contract amount of $629,180 to the contract dated November 27, 2001 between the City of Port Arthur and SeTEX Corporation of Beaumont, Texas for the rehabilitation of the City-owned building at zl41 Austin Avenue for the Health Clinic Facility. Funding is available in FY 2002 Budget, Account No. 301- 1601-591.89-00, C[P 170. Leslie E. McMahen, P.E. Director of Public Works file c:\cams~setexchangeorder5 P.R. No. 11969 10/07/02 vid RESOLUTION NO, A RESOLUT/ON AUTHOR/ZING THE MAYOR AND CZ'FY MANAGER TO EXECUTE CHANGE ORDER S, DECREASING THE CONTRACT BY $35,263 TO A NEW CONTRACT AMOUNT OF $629,180 FOR THE CONTRACT DATED NOVEMBER 27~ 2001 BETWEEN THE CITY OF PORT ARTHUR AND SE-rEX CORPORATION OF BEAUMONT~ TEXAS FOR THE REHABILITATION OF THE CITY-OWNED BUILDING AT 441 AUSTIN AVENUE FOR THE HEALTH CLINIC FACILITY. FUNDING BEING AVAILABLE IN FY 2003 ACCOUNT NO. 301- 1601-591.89-00 CIP 170 AND OTHER ACCOUNTS. WHEREAS, the bid for the rehabilitaUon of 441 Austin Avenue for the proposed City of Port Arthur Health Clinic Facility was awarded to SeTEX Construction CorporaUon of Beaumont, Texas on November 27, 2001; and, WHEREAS~ the original contract amount was $590,000; and, WHEREAS, approved Change Orders 1, 2, 3, and 4 have increased the original contract amount by $74,443 to a current contract amount of $664,~,43; and, WHEREAS, the Project Engineer and the City Manager have recommended the approval of Change Order 5, attached hereto as Exhibit "A" which removes the telephone system installation work from SeTEX's contract; and, WHEREAS~ the telephone system installation work included in SeTEX's contract was handled by a separate contract between the City and Vedzon Communications of Houston, Texas; and, WHEREAS, approval of Change Order No. 5 in the amount of $35,263 is herein deemed an appropriate action, and approval of Change Order No. 5 will decrease the existing contract to a new contract amount of $629,180; now, therefore, P.R. No. 11969 Page #2 BE IT RESOLVED BY THE CITY COUNC]'L OF THE CITY OF PORT ARTHUR: THAT, Change Order 5 is herein approved and the City Manager is authorized to execute said Change Order; and, THAT, a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED this the day of at a Ayes: __ , A.D. 2002 meeting of the City of Port Arthur, Texas by the following vote: Mayor: Councilmembers: Noes: Attest: Mayor City Secretary P.R. No. 11969 Page #3 APPROVED ASTO FORM: City Attorney APPROVED FOR ADMINISTRATION: Steve Fitzgibbons City Manager Leslie E. McMahen, P.E. Director of Pubic Works file c:\resolutions\setexchan georder$ CHANGE ORDER No. 1196~ l of~ PROJECT: City of PoaArthur Health Clinic CHANGE ORDER NO: 5 CONTRACTOR: SeTEXCONSTRUCTION CORP. DATE: 09/09/02 P. O. Box20678 Beaumont, Texas 77720-0678 The Contract is changed as follows: 1. Vedzon perAddendum No. 3 dated November 13, 2002 **See attached breakdown Not valid until signed by the Owner, Architect, and Contractor. ARCHITECT'S PROJECT NO.: 00069 CONTRACT DATE: 11/29/01 CONTRACT FOR: Renovation DEDUCT: ($35,263.00) TOTAL ($35,263.00) The original Contract Sum was ................................................................................................................ $590,000.00 Net change by prey ous y authorized Change Orders ............................................................................................ $ 74,443.00 The Contract Sum prior to this Change Order was ................................................................................................ $664,443.00 The Contract sum will be increased by this Change Order in the amount of ........................... ; ............................ ($35,263.00) The new Contract Sum including this Change Order will be .................................................................................. $629,180.00 The Contract Time will be increased by zero (0) days. The date of Substantial Completion as of the date of this Change Order therefore is NOTE: The summary does not reflect changes in the Contract Sum or Contract Time which have been authorized by Construction Change Directive. The LaBiche Architectural Group, Inc. 7999 Gladys Ave~Je, S~uite 101 Beaumont, ~/~ ~, ate: SeTEX CONS/TRUCTION CORP. P.O. Box City of Port Arthur P.O. Box 1089 Port Arthur, Texas 77641 By: Date: C;ON i HU ;I OOR September 4, 2002 Mr. Greg Wall The LaBiche Architectural Group, Inc. 7999 Gladys, Suite 101 Beaumont, Texas 77706 Re: Port Arthur Health Clinic Port Arthur, Texas P, IL No. 119~ Commerci~Pl Municipal Subject: "Change Order Request" Dear Grog: In a follow up to your memo dated August 13, 2002, we are responding as listed below our Change Order Request for the above referenced project which deletes the phone and data cabling system by Verizon since the City of Port Arthur is handling this work direct. Cost Recap: 1. Verizon per Addendum No. 3 dated November 13, 2002 2. SeTEX overhead and profit Deduct: $ 35,263.00 "No change" TOTAL DEDUCT COST THIS CHANGE DEDUCT: $ 35,263.00 We trust this meets with your approval, and after your review please issue us a change order deductive accordingly. Yours v~ truly, sr cc: file/job Larry Marbry/SeTEX Jobsite Leslie McMahen, P.E./City of Port Arthur P.O. BOX 20678 * BEAUMONT, TX 77720-0678 · OFFICE: (409) 842-8181 · FAX: (409) 842-2274