The URL can be used to link to this page

Home My WebLink AboutPR 21723: ARDURRA GROUP, INC. City Q,. ort rtti www.PortArthurTx.gov INTEROFFICE MEMORANDUM Date: December 15, 2020 To: The Honorable Mayor and City Council Through: Ron Burton,City Manager From: Alberto Elefano,P.E.,Public Works Director RE: P.R.21723:Authorizing the City Manager to amend the payment schedule in Appendix B- Billing Milestones of the contract for management and consultant services between the City of Port Arthur and Ardurra Group, Inc. of Houston,Texas for the Community Development Block Grant Mitigation Program(CDBG-MIT). Introduction: The intent of this Agenda Item is to authorize the City Manager to amend the payment schedule in Appendix B-Billing Milestones of the contract with Ardurra Group, Inc. of Houston, Texas (Consultant) for management and consulting services for the Community Development Block Grant Mitigation Program (CDBG-MIT). Background: Pursuant to Resolution 20-126,approved by Council,the City entered into a contract with Ardurra Group of Houston, Texas to help fulfill State and Federal Community Development Block Grant Mitigation(CDBG- MIT)responsibilities related to recovery in connection with any federally declared disaster. The Consultant has assisted the City and the Texas General Land Office(GLO) in the completion of CDBG-MIT qualified housing or non-housing project applications and has provided Grant Administration services for housing projects,non-housing projects,or both. The Consultant has proposed that the existing payment schedule of Appendix B-Billing Milestones be amended as follows: (1) billing milestones for the Project Application Submission through Notice of Selection be paid at 2% of the projected administrative allowance, not to exceed $50,000.00; and (2) that Notice of Selection to Project Closeout maintain levelized billing for the duration of the project divided by the project schedule ending with the project Close Out with the average monthly allowance varying by no greater than a 10%variance above the allowance on any monthly invoice. The modification to the Consultant's billing schedule will allow invoicing for percentage of work completed as opposed to payment when certain project milestones are met, since these projects have a five to ten year duration. "Remember,we are here to serve the Citizens of Port Arthur" 444 4t Street X Port Arthur,Texas 77641-1089 X 409.983.8182 X FAX 409.983.8294 Budget Impact: Funds are available in the CDBG Mitigation Account No. 148-2300-901.60-00. Recommendation: It is recommended that the City of Port Arthur's City Council approve PR 21723 with Ardurra Group of Houston, Texas authorizing the City Manager to amend the payment schedule in Appendix B-Billing Milestones of the contract for management and consulting services for the Community Development Block Grant Mitigation Program (CDBG-MIT). "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 PR No.21723 12/15/20 mje Page 1 of 3 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO AMEND THE PAYMENT SCHEDULE OF THE CONTRACT WITH ARDURRA GROUP, INC. OF HOUSTON, TEXAS FOR PROFESSIONAL SERVICES ASSOCIATED WITH THE MANAGEMENT AND ADMINISTRATION OF THE CITY OF PORT ARTHUR'S COMMUNITY DEVELOPMENT BLOCK GRANT MITIGATION PROGRAM (CDBG-MIT). FUNDS ARE AVAILABLE IN THE CDBG MITIGATION ACCOUNT NO. 148-2300- 901.60-00. WHEREAS, pursuant to Resolution 20-126, approved by City Council, the City entered into a contract with Ardurra Group of Houston,Texas (Consultant) to help fulfill State and Federal Community Development Block Grant Mitigation (CDBG-MIT) responsibilities related to recovery in connection with any federally declared disaster; and, WHEREAS,the Consultant has assisted the City and the Texas General Land Office (GLO) in the completion of CDBG-MIT qualified housing or non-housing project applications and has provided Grant Administration services for housing projects, non-housing projects, or both; and WHEREAS, the Consultant has proposed that the existing payment schedule of Appendix B-Billing Milestones, see Exhibit A be amended as follows: (1) billing milestones for the Project Application Submission through Notice of Selection be paid at 2% of the projected administrative allowance, not to exceed $50,000.00; and (2) that Notice of Selection to Project Closeout maintain levelized billing for the duration of the project divided by the project schedule ending with the project Close Out with the average monthly allowance varying by no greater than 10% variance above the allowance on any monthly invoice, See Exhibit B; and, PR No. 21723 12/15/2020 mje Page 2 of 3 WHEREAS, the modification to the Consultant's billing schedule will allow invoicing for percentage of work completed at the time as opposed to payment when certain project milestones are met, since these projects tend to have a five to ten year duration; and, WHEREAS, approval of amending the payment schedule of Appendix B-Billing Milestones of the contract with Ardurra Group, Inc. of Houston, Texas is herein deemed an appropriate action; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT, the facts and opinions in the preamble are true and correct; and, THAT, the City Manager is hereby authorized to amend the payment schedule in Appendix B-Billing Milestones of the contract with Ardurra Group, Inc. of Houston, Texas (Consultant) for management and consulting services for the Community Development Block Grant Mitigation Program (CDBG-MIT); 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 , A.D. 2020 at a meeting of the City of Port Arthur, Texas by the following vote: Ayes: Mayor: Councilmembers: Noes: PR No.21723 12/15/20 mje Page 3 of 3 Thurman "Bill" Bartie Mayor AiiEST: Sherri Bellard City Secretary APPROVED AS TO FORM: APPROVED FOR ADMINISTRATION: Valecia Tizeno Ron Burton City Attorney City Manager APPROVED AS FOR AVAILABILITY OF FUNDS: Kandy Daniel Acting Director of Finance Alberto Elefano, P.E. Director of Public Works Lih\ L, Cliftor4'Williams, CPPB Purchasing Manager EXHIBIT A APPENDIX B—Billing Milestones Compensation for this agreement shall be a lump sum percentage, not to exceed, of 6%of the grants received by the OWNER for all projects more than $1,000,000. Projects under$1,000,000 shall be compensated at 8%. Total fee is based on actual project value approval by the Texas General Land Office(GLO). A review of contract performance and budget status shall be conducted with the OWNER and the CONSULTANT at the below milestones of each separate project: Deliverable Billing Milestone Environmental Review Completed 5% Bid Advertisement 25% Construction Notice to Proceed 50% Final Wage Compliance Report 90% Project Closeout 100% REMAINDER OF PAGE LEFT BLANK INTENTIONALLY 17 EXHIBIT B APPENDIX B—Billing Milestones Due to the nature of the application and selection processes and the potential duration of each project, Ardurra Group, Inc. proposed that the payment schedule as noted in the current contract be amended to the following: Deliverable Billing Milestone Project Application Submission to Notice of 2%of Projected Admin Allowance Not To Exceed Selection $55,000 Notice of Selection to Project Closeout based Levelized billing for duration of the project on Approved Project calculated by the remaining Administrative Allowance for the approved project divided by the project schedule ending with project Close- out. The average monthly allowance may vary by no greater than a 10% variance above the allowance on any monthly invoice.