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Home My WebLink AboutPR 22512: CHANGE ORDER NUMBER 2 PARAMOUNT DESIGN & DEVELOPMENT, RECONSTRUCTION OF (4) HOMES INTEROFFICE MEMORANDUM Department of Development Services Division of Housing and Neighborhood Revitalization Date: April 13, 2022 To: Ron Burton,City Manager Mayor and City Council From: Beverly A.Freeman,Housing&Neighborhood Revitalization Manager RE: Proposed Resolution No. 22512 Nature of Request: The Housing Division recommends City Council adopt Proposed Resolution No. 22512 authorizing the City Manager to execute Change Order No.2 to contract between the City of Port Arthur and Paramount Design & Development for the demolition, site preparation, and reconstruction of four (4) homes, increasing the original contract amount by an additional $22,704.10. Staff Analysis/Considerations: The price adjustments for the reconstruction cost of four (4) homes were deemed necessary due to the increased costs of building materials, (ie. lumber, electrical components, plumbing supplies, roofing materials, concrete, rebar, and metal). The price adjustments for twoofthehcmes reflects as follows:(+$11,352.05 for 3847 32ndStreet);(+$11,352.05 for 1001 W.6th Street)fora total cost increase of$22,704.10. Budget Consideration: Funds are available in Account Number 105-13-033-5470.00-40-000, Project Nos. CD5115, CD6145, CD7145, and the Texas Department of Housing and Community Affairs (TDHCA) HOME Investment Partnerships Program Reservation System and Reservation System Participant Agreement#20180039, executed by the TDHCA. RECOMMENDATION: The Housing Division recommends City Council adopt Proposed Resolution No. 22512, authorizing the City Manager to execute Change Order No. 2 to the contract between the City and Paramount Design &Development as authorized by Resolution No. 20-447. P.R. No. 22512 4/13/22 BAF RESOLUITON NUMBER A RESOLUITON AUTHORIZING THE CITY MANAGER TO EXECUII'E CHANGE ORDER NO. 2 TO THE CONTRACT BETWEEN THE CITY OF PORT ARTHUR AND PARAMOUNT DESIGN & DEVELOPMENT OF BEAUMONT, TEXAS, FOR THE RECONSTRUC'ITON OF FOUR (4) HOMES, INCREASING THE CONTRACT AMOUNT BY $22,714.05 TO A NEW CONTRACT TOTAL OF $686,518.90. FUNDS WILL BE PROVIDED FROM ACCOUNT NO. 105-L3- 33-5470-0(M0-000, PROTECT NUMBERS CD5115,CD6145,CD7145,AND THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS HOME INVESTIVIENT PARTNERSHIPS PROGRAM RESERVATION SYSTEM WHEREAS, pursuant to Resolution No. 20-447, the City Council authorized a contract with Paramount Design&Development of Beaumont, Texas, for the site preparation, demolition, and reconstruction of four (4) homes in the amount of$658,725.80 (which includes a$15,000.00 contingency fund); and WHEREAS, pursuant to Resolution No. 21-464, the City Council authorized Change Order No. 1 to the contract with Paramount Design & Development of Beaumont, Texas, for the site preparation, demolition, and reconstruction of four(4) homes in the amount of$5,089.00 to a new contract total of$663,814.80; and WHEREAS,price adjustments for the reconstruction cost of two (2)homes were deemed necessary due to the increased costs of building materials, (i.e., lumber, electrical components, plumbing supplies, roofing materials, concrete, rebar and metal); and WHEREAS,the price adjustments for two home reflects as follows: (+$11,352.05 for 3847 32"Street);(+$11,352.05 for 1001 W.6th Street)fora total cost increase of$22,704.10;and WHEREAS,$15,000.00 in contingency fund will be utilized to cover a portion of the cost increase; however, the use of said contingency fund will require prior Council approval; and WHEREAS, in addition, staff is recommending that City Council approve Change Order No. 2 for an increase of$22,704.10 in substantially the same form as attached here to as Exhibits 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. Section 2. That the City Council hereby authorizes the City Manager to execute Change Order No. 2, to the contract between the City and Paramount Design & Development for an increase of$22,704.10 in substantially the same form hereto as Exhibit"A". Section 3. That the new contract total amount is $686,518.90. Section 4. That a copy of the caption of this Resolution be spread upon the minutes of the City Council. READ, ADOPTED AND APPROVED this day of , 2022 at the Regular Meeting of the City Council of the City of Port Arthur, Texas by the following Vote: AYES: MAYOR: COUNCILMEMBERS: NOES: THURMAN BILL BARTIE, MAYOR ATTEST: SHERRI BELLARD, CITY SECRETARY APPROVED FOR FORM: UtiaL, 4ZEO, CITY ATTORNEY APPROVED FOR ADMINISTRATION: RON BURTON, CITY MANAGER tQAA-4, 141Ce-b•A- BEVERLY FWMAN, HOUSING & NEIGHBORHOOD REVITALIZATION MANAGER / ' LL'JL I`, , CLIl- N WILLIAMS, CPPB, PURCHASING MANAGER APPROVED AS TO AVAILABILITY OF FUNDS: :14:4 ' '1\4° d` 14 KANDY DANIEL, INTERIM DIRECTOR OF FINANCE EXHIBIT "A " CHANGE ORDER NO. 2 Resolution No.20-447 ORIGINAL AGREEMENT DATE: December 22,2020 PROJECT DESCRIPTION: Reconstruction of Four (4) Homes in the total amount of $658,725.80 (which includes a contingency amount of$15,000.00). CHANGE IN SCOPE: Price adjustments to each home were needed to compensate for the increased costs in building materials (i.e., lumber, electrical components,plumbing supplies. roofing materials, concrete, rebar and metal). ORIGINAL CONTRACT AMOUNT: $658,725.80 which includes a contingency amount of$15,000.00. CHANGE NO.2 TO CONTRACT AMOUNT: ORIGINAL CONTRACT PRICE: $658,725.80 CURRENT CONTRACT PRICE(adjusted by previous CHANGE ORDER):$663,814.80 The Contract Amount due to this CHANGE ORDER will increase by: $22,704.10 The new CONTRACT AMOUNT including the CHANGE ORDER will be: $686,518.90 ORIGINAL CONTRACT DAYS: 140 NEW CONTRACT DAYS: 140 SIGNED AND AGREED TO on the day of ,2022. Paramount Design and Development Eric Broussard, Owner SIGNED AND AGREED TO on the day of , 2022. CITY OF PORT ARTHUR Ronald "Ron" Burton, City Manager • I i' Price Adiu"strts to 1001 W 6 fN St. Price adjustments reflect the increase in building material since Oct. 4 2021. Materials include lumber, electrical components, plumbing supplies, roofing material, concrete, rear, and metal. 1001 W. 6th St. $ 11,352.05 General Contractor 409 (; -055:I t'ARA.MCIUNTQLSiuN1[Ah1tIUMAIL_LG}d w w' PAHAMOUNrr)ESICGNiF-ANI.C<)M MAII wEeslit 01116-4\1, t _. �. !! tt )Ij • . PricpAdiustments to_3847 32nd st Price adjustments reflect the increase in budding material since Oct. 4 2021. Material;include lumber, electrical components, plumbing supplies, roofing material. concrete, rebar, and metal. 384/ 32nd st. $ 11,352.05 •/ r• - General Contractor 409 ur, 0553 YAt1A1dQ11NIZTSICiNiLA.M.“..:MAIiLUM www r•AkANI( PIIONE r MA►i ADDRrSS VNTUES�CNTi AMCqN WCBSITI