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Home My WebLink AboutPR 22479: AUTHORIZING A DEDUCTIVE CHANGE ORDER NO. 1 TO THE CONTRACT WITH ALLCO, LLC _ , City of V. ort rthu�- Texas INTEROFFICE MEMORANDUM WATER UTILITIES DEPARTMENT-ADMINISTRATION Date: July 22, 2022 To: The Honorable Mayor and City Council Through: Ronald Burton, City Manager From: Calvin Matthews, P.E., Water Utilities Director RE: PR No. 22479—Execute Main Wastewater Plant (WWTP) Improvement Project Change Order No. 1 Introduction: The intent of Proposed Resolution No. 22479 is to seek Council's authorization for the execution of deductive Change Order No. 1 with ALLCO, LLC of Beaumont, Texas for the improvements of the Main Wastewater Treatment Plant in Port Arthur, Texas with an updated projected budgetary impact of$67,409,178.00. The proposed cost reduction of$6,234,049.00 is a result of value engineering performed by Freese & Nichols, Inc., ALLCO, LLC, Golden Triangle Consulting Engineers, and the City of Port Arthur staff. Background: The Main Wastewater Treatment Plant is in need of major improvements. This project will include improvements to the Main Outfall Lift Station, Headworks, Primary Clarifiers and Vaults, Trickling Filters, Multipurpose Lift Station, Final Clarifiers and RAS/WAS Meter Station, Filters, Chlorine Contact Basins and Non-Potable Water System, Dewatering Building, Plant Drain Lift Station, Electrical & Instrumentation and Electrical Buildings, Mechanical Screens and Washer-Compactors. The Purchasing Division of the Finance Department advertised for bids in the Port Arthur News on November 17, 2021 and November 24, 2021, with one bid being received on January 12, 2022 from ALLCO, LLC of Beaumont, Texas. The bid amount received was $73,643,227.00 and the project was awarded to ALLCO, LLC of Beaumont, Texas by Council Resolution No. 22-147. The Main Wastewater Treatment Plant project is fully funded, with $56,237,412.00 from Account No. 404-40-000-8516-00-00-000, Project No. TW-0003-CON and $17,405,815.00 from 169-07- 015-8516-00-40-000, Project No. ARP002-GRE-WWT. Budget Considerations: The total projected budgetary amount of this change order is $6,234,049.00, reducing the total projected budgetary impact from $73,643,227.00 to $67,409,178.00. $56,237,412.00 will still be funded from a Texas Water Development Board (TWDB) loan, Account No. 404-40-000- 8516-00-00-000, Project No. TW-0003-CON, and $11,171,766.00 will be funded through an ARPA Grant and charged to Account No. 169-07-015-8516-00-40-000, Project No. ARP002- GRE-W WT. Recommendation: I recommend City Council approve PR No. 22479 authorizing the execution of deductive Change Order No. 1 with ALLCO, LLC of Beaumont, Texas, reducing the project cost by $6,234,049.00 as described/outlined above. PR No. 22479 7/22/22 bw Page 1 of 2 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE DEDUCTIVE CHANGE ORDER NO. 1 WITH ALLCO, LLC OF BEAUMONT, TEXAS, TO PROVIDE A COST REDUCTION OF $6,234,049.00 TO A NEW TOTAL CONTRACT AMOUNT OF $67,409,178.00 FOR THE REHABILITATION AND MODIFICATION OF THE MAIN WASTEWATER TREATMENT PLANT WITH FUNDING AVAILABLE THROUGH THE FOLLOWING: $56,237,412.00 FROM ACCOUNT NO. 404-40-000-8516-00- 00-000, PROJECT NO. TW-0003-CON AND $11,171,766.00 FROM 169-07-015-8516-00-40-000, PROJECT NO. ARP002- GRE-WWT. WHEREAS, Council approved Resolution No. 22-147, awarding the Main Wastewater Treatment Plant Rehabilitation project to ALLCO, LLC of Beaumont,Texas; and, WHEREAS, a proposed cost reduction of$6,234,049.00 is a result of value engineering performed by Freese & Nichols, Inc., ALLCO, LLC, Golden Triangle Consulting Engineers and the City of Port Arthur staff. 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 of the City of Port Arthur is hereby authorized and directed to execute Change Order No. 1 for ($6,234,049.00) with ALLCO, LLC of Beaumont, Texas in substantially the form as attached hereto as Attachment "A", for the rehabilitation and modification of the main Wastewater Treatment Plant in Port Arthur, Texas, to a new projected budgetary amount of$67,409,178.00; and, THAT, this project will be partially funded by $56,237,412.00 from a Texas Water Development Board (TWDB) loan and charged to Account No. 404-40-000-8516-00-00-000, Project No. TW-0003-CON; and, THAT, the balance of $11,171,766.00 will be funded through an ARPA Grant and charged to 169-07-015-8516-00-40-000, Project No. ARP002-GRE-WWT; and, PR No. 22479 7/22/22 bw Page 2 of 2 THAT, such funds shall be used only to make payments as required under this contract; and, 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 a 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: APPROVED AS TO FORM: aria ‘Xity07 Sherri Bellard Valecia Ti eno U City Secretary City Attorney APPROVED FOR ADMINISTRATION: APPROVED FOR FUNDING: CA-j i ) Ronald Burton Kandy Danie City Manager Interim Finance Director 4411 V46L alvin Matthews, P.E. Clifton Williams, CPPB Water Utilities Director Purchasing Manager ATTACHMENT A (CHANGE ORDER NO. 1) Change Order No. 1 Project Port Arthur Main Wastewater Treatment Plant Improvements Project Number Owner City of Port Arthur FNI: PTR22379 Contractor Allco, LLC CoPA: PR22416 Construction Manager Rami Abusheikh, PE Design Professional Murali Erat, PE CoPA Account No. 169-07-015-8516-00-40-000;404-40-000-8516-00-00-000 CoPA Project No. ARP002-GRE-WWT; TW-0003-CON Change Order No. 001 Date 07/21/2022 Make the following modifications to the Contract Documents: Item Description Change Amount 1 Delete Extra Work in Base Bid (Items C-01 through C-06). $ 405,500 2 Delete Alternate Bid Item D-02 (Aeration Basin Blower Building Improvements (w/Multi-Stage Centrifugal Blowers) from scope of work. $ 402,900 3 Change concrete pavement to HMA pavement (8"flex base w/2.5" asphalt surface). See civil sheets attached. $ 110,000 4 Change above ground flange nuts and bolts material type from 316 stainless steel to high-strength low-alloy corrosion resistant steel with cadmium plating. Change mechanical joint tee head bolts and nuts material type from 316 stainless steel to standard t-bolt that are high-strength low-alloy steel manufactured by Star Pipe Products. See revised specification Section 33 05 01.02 Ductile Iron Pipe and Fittings, 2.01. C. attached to this change order. $ 664,063 5 Provide insulation for exposed smaller diameter piping 2-inch in size and smaller instead of 4-inch as indicated in several contract drawings. Insulation shall be a minimum of%-inch in thickness. $ 70,000 6 Change lining type for all gravity ductile iron pipe and fittings from Protecto 401 Ceramic Epoxy Lining by Enduron or American Polybond Plus to cement mortar lining in accordance with AWWA C104 and bituminous seal coat. See revised specification Section 33 05 01.02 Ductile Iron Pipe and Fittings, 2.01. G. attached to this change order. $ 150,346 7 a) Change electrical conduit elbows 1.5 inches and larger from Sweeping PVC coated ARC to RNC,Type EPC-40-PVC. See revised specification Section 26 05 33, attached to this change order. b) Change all electrical rack mounting to handrail mounting. $ 152,605 9 In-lieu of galvanization of the helical piles, provide thicker wall material with a portion allocated as sacrificial steel under the worst-case corrosion of 1/8-inch material loss for all steel in contact with the soil over the 100-year design of the project. See revised specification Section 31 68 30 Helical Piles. $ 668,129 10 Change trickling filter media material from PVC to PolyPropyelene (PP). See revised specification Section 46 53 24 Trickling Filter Media attached to this change order. $ 298,000 11 Change material type for the double-wall chemical storage tank for sodium bisulfite from fiberglass reinforced plastic(FRP) to High-Density Polyethylene (HDPE). Replace specification Section 43 4145 Fiberglass Reinforced Plastic Storage Tanks with the attached Section 43 4143 Polyethylene Chemical Storage Tanks. $ 110,000 Change Order No. 1 Page 1 of 3 Change Order No. 1 12 Reduce scum trough length from full-radius to standard 6' beach and provide 4' cage/trough in lieu of 5'cage/trough for the Final Clarifiers. See attached changes to FC Sheets and specification Section 46 43 21.02 Circular Suction Header Collectors. $ 44,117 13 Remove one filter unit to reduce the total capacity from 45 MGD to 30 MGD. See revised FIL sheets and specifications Section 46 6141 Automatic Backwash Disk Filters. $ 1,604,700 14 Remove grit removal equipment from scope of supply. Remove specification Section 46 23 23 Grit Removal Equipment from the contract documents $ 997,500 15 Discount in contract price offered by the contractor without change in scope of work: a. Temporary bypass piping at headworks b. Suction clarifiers c. Gates d. Vertical centrifugal pumps e. Submersible pumps—Main Outfall Lift Station f. Building/architectural items g. Mechanical screen and washer compactor equipment h. Turbo blowers _._. __ ......__ $ 556,189 Net Change in Contract Price this Change Order $ 6,234,049 Net Change in Contract Times this Change Order 0 days The compensation in this Change Order is the full, complete, and final compensation for all costs Contractor may incur because of or relating to this change whether said costs are known, unknown,foreseen, or unforeseen at this time, including without limitation, any cost for delay, extended overhead, ripple or impact cost, or any other effect on changed or unchanged Work because of this Change Order. The changes in Contract Times are the complete and final adjustments for impacts to the ability of Contractor to complete the Work within the Contract Times and are the only adjustments to which Contractor is entitled. All terms and provisions of the Contract Documents remain in effect except as specifically modified by this Change Order. a. Original Contract Price $ 73,643,227 b. Previously Approved Change Order/Contract Amendment Amounts $ 0 c.Adjusted Contract Price( a+ b) $ 73,643,227 d. Contract Amendment Amount $ -6,234,049 e. Revised Contract Price(c+d ) $ 67,409,178 f. Percent Change in Contract Price to Date -8.5 Original Previous Current Substantial Completion Date 7/5/2026 N/A 7/5/2026 Final Completion Date 10/3/2026 N/A 10/3/2026 Change Order No. 1 Page 2 of 3 Change Order No. 1 Recommended by Design Professional: Recommended by Construction Manager: 07/21/2022 07/21/2022 Mural!Erat, PE Date Rami Abusheikh, PE Date (Freese and Nichols, Inc.) (Freese and Nichols, Inc.) Approved by Contractor: Approved by Owner: Tom Harrison Date Ronald Burton Date President City Manager Alko, LLC City of Port Arthur Approved by Owner: Calvin Matthews, PE Date Director of Water Utilities City of Port Arthur Change Order No. 1 Page 3 of 3