HomeMy WebLinkAboutPR 22571: AUTHORIZING THE TERMINATION OF THE CONTRACT WITH L & L GENERAL CONTRACTORS City of Port Arthur
Transit Department
Memorandum
To: Ron Burton,City Manager
From: Ivan Mitchell,Transit Director
Date: May 24,2022
Re: P.R.22571—Terminate Contract to Construct Port Arthur Transit's Storage Building
Nature of Request: Authorize the City Manager to terminate the contract with L&L General
Contractors to construct Port Arthur Transit's(PAT)new storage building in the amount not to exceed
$226,500.00.
Background: PAT issued an RFB to construct a new 1,000 sq. ft. storage building and received 3 bids
that were evaluated by Purchasing and PAT. Shortly after,I was contacted by the lowest bidder L&
L General Contractors of Beaumont,Texas,who requested the City expedite the approval process due
to the volatility in market prices. I agreed to expedite the process so approval could be issued by April
1,2022. This would enable L&L to lock in their prices with subcontractors. Pursuant to Resolution
No. 21-114,the City Manager was authorized to negotiate a contract with the lowest bidder L&L
General Contractors of Beaumont,Texas to construct PAT's new storage building which occurred
prior to my April 1,2022,commitment.
Subsequently,I informed L&L of the approval and scheduled a pre-construction meeting for April 5,
2022. At the pre-construction meeting I requested they provided their signed DBE commitment
paperwork prior to issuing a notice to proceed(NTP). As the conversation ensued it was determined
that L&L had not signed a contract with a DBE or performed a good faith effort to receive a waiver.
Therefore,I instructed them a NTP would not be issued until the DBE requirement was met. Their
failure to provide DBE participation led to a 1-month project delay.
After L&L met the DBE participation requirement,I held a second pre-construction meeting on May
6,2022. However,just prior to the meeting L&L submitted a change order request in the amount of
$38,617.00,a 17%increase bringing the project total to$265,117.00. As the conversation ensued L&
L stated they had not locked in prices with subcontractors so prices increased,but it was the City's
fault because we made them pursue DBE participation. Their statement does not hold truth as the
DBE requirement was stated in the bid documents. L&L failed to properly follow the procedures
within the bid package leading to the 1-month delay which led to a price increase which they expect
the City to mitigate via a change order.
The United States Department of Transportation requires the utilization of disadvantaged business
enterprises for reimbursement of costs associated with the contract. L&L Contractor's delay in
complying with the DBE requirements resulted in a cost increase due to market volatility.
Recommendation: It is recommended that the City Council approve proposed P.R. 22571 to terminate
the contract with L&L General Contractors for the construction of PAT's new storage building in the
amount not to exceed$226,500.00.
Budgetary/Fiscal Effect: Funding to pay for the construction is available in account 401-70-530-
8512-00-60-000.
P.R. 22571
5/24/2022 IM
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO TERMINATE THE
CONTRACT WITH L & L GENERAL CONTRACTORS OF BEAUMONT, TEXAS FOR
THE CONSTRUCTION OF PORT ARTHUR TRANSIT'S NEW STORAGE BUILDING
LOCATED AT 325 DALLAS AVENUE, PORT ARTHUR, TEXAS IN THE AMOUNT
NOT TO EXCEED $226,500.00. FUNDED BY ACCOUNT 401-70-530-8512-00-60-000.
WHEREAS,pursuant to Resolution No. 22-114, the City Manager was authorized to
negotiate a contract with L &L General Contractors of Beaumont, Texas; and
WHEREAS,a contract agreement was established between the City of Port Arthur and L
& L General Contractors in the amount not to exceed $226,500.00; and
WHEREAS, prior to the City issuing a notice to proceed L & L General Contractors
submitted a change order in the amount of$38,617.00, a 17% increase bringing the project total
to $265,117.00; attached hereto as Exhibit"A"; and
WHEREAS, the United States Department of Transportation requires the utilization of
disadvantaged business enterprises for reimbursement of costs associated with said contract; and
WHEREAS, L and L General Contractors' delay in complying with same resulted in
increased cost as reflected in said change order; and
WHEREAS, the contract can be terminated at the convenience of the City upon ten(10)
days notice, and
WHEREAS, PAT requests that the City Manager terminate the contract with L & L
General Contractors in its entirety.
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.
THAT,the City Manager is hereby authorized to terminate the contract with L& L
General Contractors of Beaumont, Texas to construct PAT's new storage building in the amount
not to exceed $226,500.00.
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 June, 2022 at a Regular
Meeting of the City of Port Arthur, Texas by the following vote: AYES:
Mayor:
Councilmembers:
P.R. 22571
5/24/2022 IM
NOES:
Thurman "Bill" Bartie, Mayor
ATTEST:
Sherri Bellard, City Secretary
AP%ROVED AS TO FORM:
vo-a kAiry
-
Val Tizene, City Attorney
APPROVED FOR ADMINISTRATION: APPROVED AS TO AVAILABILITY
OF FUNDS:
Account 401-70-530-8512-00-60-00
Ronald Burton Kandy Daniel
City Manager Interim Director of Finance
N
Clifton illiams, CPPB Iva Mitchell
Purchasing Manger Transit Director
P.R. 22571
5/24/2022 IM
Exhibit "A"
L fialL r GENERAL
~ = CONTRACTORti
01 Smacks?,L.anp I i9 m 3Ezi t t
'Is ill's UlmIde.TX Ts= 'LN;(Az
&30-51-6903 t* ti I F 4 9- 134
GADV Inc dba L&L General Contractors
11988 FM 365 West Rd.
Beaumont,TX 77705
Ph:409-796-1344
Fax:409-796-1341
Date: 05.05.2022
Contract Name: Construction of Storage Building @ Transit Station—PR 22421
Change Order#: 1
You are hereby authorized to proceed with the following work:
Cost Increase/Unforeseen changes/Differing Site Conditions
Below are the amounts by bid item:
1. Bid Item#1—Site Improvement— $ 11,270.00
2. Bid Item#2—Pre-Manufactured Metal Building—$20,010.00
3. Bid Item#3—Building Exterior—$2,852.00
4. Additive Alternate Bid Item#1— $ 4,485.00
This change order reflects:
X a cost increase of $ 38,617.00
All other terms,conditions and covenants of the aforementioned contract remain unchanged.
Dawn Scheneider Date
Engineer
City of Port Arthur Transit Department Date
Representative
L&L General Contractors Date
Representative