HomeMy WebLinkAboutPR 23784: CHANGE ORDER NO. 2 FROM ALLCO, LLC, SANITARY SEWER SERVICES AND SEWER MAIN City of
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INTEROFFICE MEMORANDUM
Date: July 19,2024
To: The Honorable Mayor and City Council
Through: Ron Burton,City Manager
From: John Cannatella,City Engineer (/t—
RE: PR 23784: Port Acres Drainage Improvement Project: Change Order No.2 from Allco,LLC,
of Beaumont,Texas,for the relocation of the sanitary sewer services and sewer main,for the
amount of$159,385.00 and the addition of eighteen(18)calendar days. Project No.
DR1 P03A.
Introduction:
The intent of this Agenda Item is to seek Port Arthur City Council's approval for the City Manager to
execute Change Order No. 2 with Allco, LLC, of Beaumont, Texas, for the relocation of the sanitary
sewer services and sewer main, for the amount of $159,385.00 and the addition of eighteen (18)
calendar days. Project No. DR1P03A.
Background:
Pursuant to Resolution No. 18-231, the City of Port Arthur adopted the 2018 Disaster Recovery and
Resiliency Plan(DRRP)for recovery activities following Hurricane Harvey. The City of Port Arthur,
as part of DRRP recovery activities, identified flood and drainage problems within the community of
Port Acres that were in dire need of mitigation and repair. The Port Acres Project was let for bidding.
Pursuant to Resolution No.23-485,the City of Port Arthur's City Council approved awarding the Port
Acres Drainage Improvement Project to the lowest responsible bidder, which was Allco, LLC, of
Beaumont, Texas, for the amount of$34,891,106.81. City staff, Arceneaux, Wilson & Cole (AWC)
of Port Arthur, Texas, and Allco, LLC, of Beaumont, Texas, performed Value Engineering on the
project proposal lowering the contract price by $1,736,424.04 in order to keep it within budget.
Pursuant to Resolution No. 24-032, the City of Port Arthur's City Council approved Change Order
No. 1,that detailed the Value Engineering Breakdown from Allco,LLC,(Allco)of Beaumont,Texas,
that reduced the contract amount of$34,891,106.81 by $1,736,424.04,to the new contract amount of
$33,154,682.77.
"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
.acres\Change Orders\Change Order
The Port Acres Drainage Improvement Project encountered additional costs due to necessary
relocations of existing infrastructure. These relocations are critical to ensure successful completion
and to avoid conflicts with the proposed drainage improvements. The additional costs for the project
are essential to achieve the project's goals and ensure durability. Given the current workload of City
personnel, outsourcing these tasks is the most feasible and efficient solution. To that end, a Field
Order No. 1 was issued to Allco ensuring that critical work would continue since work stoppage at
this juncture would be impractical, impact safety to the community, and incur excessive costs. Field
Order No. 1 informed the City Manager of the work that was required with the understanding that it
would go to the Port Arthur City Council in the form of Change Order No. 2.
Change Order No. 2 is being submitted by Allco for the relocation of the sanitary sewer services and
sewer main, and the addition of eighteen(18)calendar days. Proposed Change Order No. 2 increases
the contract amount by $159,385.00 from $33,154,682.77 to the new contract amount of
$33,314,067.77. Additionally, Change Order No. 2 proposes to add eighteen (18) calendar days
amending the original completion date of June 25, 2025 to the new completion date of July 13, 2025.
Budget Impact:
Funds are available in Drainage System Account No. 307-21-055-8515-00-10-000. Project No.
DR1 P03A.
Recommendation:
It is recommended that the City of Port Arthur's City Council approve PR No. 23784 authorizing the
City Manager to accept Change Order No. 2 from Allco,LLC,of Beaumont, Texas, for the relocation
of the sanitary sewer services and sewer main, and the addition of eighteen (18) calendar days.
Proposed Change Order No. 2 increases the contract amount by $159,385.00 from$33,154,682.77 to
the new contract amount of $33,314,067.77. Additionally, Change Order No. 2 proposes to add
eighteen (18) calendar days amending the original completion date of June 25, 2025 to the new
completion date of July 13,2025. Project No. DR1P03A.
"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.23784
7/18/2024 mje
Page 1 of 5
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
CHANGE ORDER NO. 2, TO THE CONTRACT BETWEEN THE CITY OF PORT
ARTHUR AND ALLCO, LLC, OF BEAUMONT, TEXAS, FOR THE PORT ACRES
DRAINAGE IMPROVEMENT PROJECT FOR THE RELOCATION OF THE
SANITARY SEWER SERVICES, SEWER MAIN AND THE ADDITION OF
EIGHTEEN (18) CALENDAR DAYS FOR THE AMOUNT OF $159,385.00 TO
THE NEW CONTRACT AMOUNT OF $33,314,067.77. FUNDING IS
AVAILABLE IN DRAINAGE SYSTEM ACCOUNT NO. 307-21-055-8515-00-
10-000. PROJECT NO. DR1P03A.
WHEREAS, pursuant to Resolution No. 18-231, the City of Port Arthur (City) adopted
the 2018 Disaster Recovery and Resiliency Plan (DRRP) for recovery activities following
Hurricane Harvey; and,
WHEREAS, the DRRP included mitigation planning and investment in infrastructure to
rebuild/repair streets, utilities, public facilities, water, sewer, and drainage; and,
WHEREAS, the community of Port Acres was selected as an area that has experienced
significant flooding due to rain events, flash flooding and drainage related issues; and,
WHEREAS, pursuant to Resolution No. 20-023, the engineering firm of Arceneaux,
Wilson, & Cole, LLC (AWC) of Port Arthur, Texas, was approved to provide a master drainage
plan, provide design specifications, and provide construction management services for the Port
Acres Drainage Project; and,
WHEREAS, the Port Acres Drainage Improvement Project was let for bidding with Allco,
LLC, of Beaumont, Texas, being the lowest qualified bidder for $34,891,106.81; and,
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PR No. 23784
7/18/2024 mje
Page 2 of 5
WHEREAS, pursuant to Resolution No. 23-485, the City of Port Arthur's City Council
approved awarding the Port Acres Drainage Improvement Project to Allco, LLC, (Allco) of
Beaumont, Texas; and,
WHEREAS, pursuant to Resolution No. 24-032, the City of Port Arthur's City Council
approved Change Order No. 1 for the performance of value engineering by City staff, AWC, and
Allco, LLC, of Beaumont, Texas, decreasing the contract amount of $34,891,106.81 by
$1,736,424.04 to the new contract amount of $33,154,682.77; and,
WHEREAS, the Port Acres Drainage Improvement Project encountered the need for
relocation and the addition of existing infrastructure regarding sanitary sewers and sewer main
service; and,
WHEREAS, Allco was issued Field Order No. 1 to perform the work since the current
workload of City personnel did not lend itself to being completed with City forces and work
stoppage would create a safety hazard for the community and incur excessive costs to the City,
see Exhibit A; and,
WHEREAS, Field Order No. 1, derived from the Task Order presented by AWC and
informing the City Manager, would be presented to the Port Arthur City Council in the form of
Change Order No. 2 as soon as practicable, see Exhibit B; and,
WHEREAS, AWC has submitted Change Order No. 2 from Allco, LLC, of Beaumont,
Texas, for the relocation of the sanitary sewer services and sewer main, and the addition of
eighteen (18) calendar days to the contract, see Exhibit B; and,
WHEREAS, proposed Change Order No. 2 increases the contract amount by $159,385.00
from $33,154,682.77 to the new contract amount of $33,314,067.77; and,
PR No. 23784
7/18/2024 mje
Page 3 of 5
WHEREAS, proposed Change Order No. 2 adds eighteen (18) calendar days amending
the original completion date of June 25, 2025 to the new completion date of July 13, 2025;
and,
WHEREAS, approval of PR No. 23784 for Change Order No. 2 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, Change Order No. 2 is herein approved and the City Manager is hereby authorized
to execute said Change Order No. 2 to the contract between the City of Port Arthur and Allco,
LLC, of Beaumont, Texas; and,
THAT, Change Order No. 2 increases the contract amount by $159,385.00 from
$33,154,682.77 to the new contract amount of $33,314,067.77; and,
THAT, proposed Change Order No. 2 adds eighteen (18) calendar days amending the
original completion date of June 25, 2025 to the new completion date of July 13, 2025; and,
THAT, Change Order No. 2 is herein attached in substantially the same form as shown
in Exhibit C; 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. 2024,
at a meeting of the City of Port Arthur, Texas by the following vote:
Ayes: Mayor:
Councilmembers:
S Engtneenng\PUBLIC WORKS'•PW-ENGINEERING\C.I P.PROJECTS\Year 2023\DRAINAGE PROJECTS\Pon Acres\Change Orders\Change Order 2\PR 23784 Port Acres CO 2.doc,
PR No.23784
7/18/2024 mje
Page 4 of 5
Noes:
Thurman Bill Bartle
Mayor
ATTEST:
Sherri Bellard
City Secretary
APPROVED AS TO FORM: APPROVED FOR ADMINISTRATION:4J: :. M. Black Ron Burton
11 iAAkAh---V14-7 6.6,44.
I1 : 'im City Attorney City Manager
PR No.23784
7/18/2024 mje
Page 5 of 5
APPROVED AS FOR AVAILABILITY OF
FUNDS:
cee(:),6QJ/Lail
Lynda (Lyn) Boswell, MA, ICMA-CM
Director of Finance
John Cannate , PE
City Engineer
i
Clifton Williams, CPPB
Purchasing Manager
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EXHIBIT A
THURMAN BILL BARITE,MAYOR - 414, RONALD BURTON,CPM
DONEANE BECKCOM, City of c CITY MANAGER
MAYOR PRO TEM l/>t s >.
�� �4 SHERRI BELLARD,TRMC
COUNCIL MEMBERS: CITY SECRETARY
WILLIE BAE LEWIS,JR. u r l r l h«r
TIFFANY L.HAMILTON EVERFIELD / JAMES M.BLACK
HAROLD L.DOUCET,SR. INTERIM CITY ATTORNEY
THOMAS KINLAW,III
DONALD FRANK,SR.
PROJECT FIELD ORDER
Project Name: Port Acres Subdivision Field Order No. 1
Drainage Improvement Project
Date: July 5, 2024 Engineer: AWC
Contractor: Allco, LLC Basis of Change: Field Work Order - Task
Adjustment to Contract Sum: $159,385.00
Contractor is authorized and directed to proceed with the following:
See attached: AWC Task Order. A change order will be placed on the agenda for the next Council Meeting
on July 46;2024.
30
1 � i � 2 `'1
Allco,L C a J annatella, PE ate
,77.o4,,, 7 al/a /2°24 — 211 / 'd`Y
AWC Date Dr. Hani Tohme, PE, Consultant Date
Ron Burton, City Manager Date Date
"Retnemher,ove are here to serve the Citizens of Port Arthur"
444 4`h Street X Port Arthur,Texas 77641-1089 X 409.983.8182 X FAX 409.983.8294
EXHIBIT B
./1.1
.. ARCENEAUX WILSON&COLE
engineering 1 surveying 1 alarming
TASK ORDER
Date: July 2, 2024
To: City of Port Arthur
From: Marc A. Ochoa, PE / Senior Project Manager
Project: Port Acres Subdivision Drainage Improvements
Subject: Sanitary Sewer Adjustments on 65th Street
Overview
The Port Acres Drainage Improvement project has encountered additional costs due to
necessary relocations of existing infrastructure.These relocations are essential to avoid
conflicts with the proposed drainage improvements. Below is a detailed breakdown of the
additional costs and requested schedule adjustments associated with these relocations.
Breakdown of Additional Tasks and Associated Cost
1. Relocation of Sanitary Sewer Service
- Location: West side at intersection of Jade Avenue and 65th Street.
- Reason: The sanitary sewer service for two houses must be moved to prevent
interference with the new drainage system.
- Cost Breakdown: Attached.
- Cost: $25,194.00
2. Relocation of Sanitary Sewer Main with Sewer Services
- Location: Along 65th Street
- Reason: This provides a new main on the north side of the proposed drainage
facilities to eliminate the use of conflict structures which will require constant
maintenance.
- Cost Breakdown: Attached
- Cost$134,191.00
409.724.7888
3120 Central Mall Drive
Port Arthur.TX 77642 Engineering Surveying
awceng.com F-16194 10194049
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Total Additional Cost
The total additional cost for relocating the necessary infrastructure components is
calculated as follows:
- Item 1 - Relocating Sanitary Sewer Service: $25,194.00
- Item 2 - Relocating Sanitary Sewer Main with Sewer Services: $134,191.00
Total Additional Cost on this Task Order: $159,385.00
Schedule Adjustments
To accommodate these relocations,we request the following extensions to the project
timeline:
- Item 1 - Relocating Sanitary Sewer Service: 3 additional calendar days
- Item 2 - Relocating Sanitary Sewer Main with Sewer Services: 15 additional
calendar days
Total Additional Days on this Task Order: 18 additional calendar days
Justification
The relocation of these utilities is critical to ensure the successful completion of the Port
Acres Drainage Improvement project.Without relocating these elements, the drainage
improvements cannot proceed as planned, which could lead to increased flooding risks and
potential project delays. Investing in these relocations now will mitigate future issues and
ensure the project's long-term effectiveness and reliability.
Furthermore, these relocation tasks cannot be completed by City personnel due to the high
volume of existing work orders. This necessitates outsourcing the work to ensure timely
completion and to avoid further project delays.
1
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By eliminating the use of conflict structures through these relocations,we also reduce the
overall maintenance requirements of the system. This proactive measure will lead to lower
long-term maintenance costs and improve the operational efficiency of the drainage
infrastructure.
It is important to note that these conflicts with underground utilities could not have been
identified during the design phase due to their subsurface nature. Despite thorough
planning and surveys, the exact locations and configurations of underground utilities often
remain unknown until excavation begins.This unforeseen challenge has necessitated the
current adjustments and additional costs.
Conclusion
The additional costs for the Port Acres Drainage Improvement project,totaling
$159,385.00, are necessary to address the conflicts with existing sewer infrastructure.
This investment is essential to achieve the project's goals and to ensure the durability and
functionality of the new drainage system. Given the current workload of City personnel,
outsourcing these tasks is the most feasible and efficient solution.Additionally, the
relocations will reduce future maintenance needs,providing long-term cost savings and
system reliability.
We request an additional 18 calendar days to complete these necessary relocations and to
accommodate other potential delays, ensuring the overall project schedule is not adversely
impacted.
If you have any questions or need further details, please feel free to contact me.
Sincerely, APPROVED:
:—
Marc A. Ochoa, PE City of Port Arthur
Senior Project Manager
AlICO DESIGN BUILD
CONSTRUCTION MANAGEMENT
GENERAL CONTRACTOR
P. O. Box 3684, Beaumont, Texas 77704 Phone: 409-860-4459 Fax: 409-860-3857
Email:allco@allco.com
May 10, 2024
Attu: Marc Ochoa, PE
Arceneaux Wilson& Cole LLC
3120 Central Mall Drive
Port Arthur, Texas 77642
Transmitted via email to: Marc.Ochoa@awceng.com
Re: Port Acres Drainage Project—City of Port Arthur
Dear Marc:
Please find below for the sanitary sewer relocation at Jade and 65th Street. This relocation is needed
in order to install the box culvert down 65th Street. The pricing includes 2 manholes and 84 LF of
8" SDR 26 PVC pipe, installed across Jade Avenue and down Jade. A breakdown is as follows:
Material $ 11,454.00
Labor 4,800.00
Payroll taxes 2,304.00
Equipment 2,400.00
Trucking 950.00
$ 21,908.00
Overhead & Profit 3,286.00
$ 25,194 .00
If this is acceptable, please issue a change order to our contract.
Sincerely,
Keith .ell
AJJ. CO DESIGN BUILD
CONSTRUCTION MANAGEMENT
GENERAL CONTRACTOR
P. O. Box 3684, Beaumont, Texas 77704 Phone: 409-860-4459 Fax: 409-860-3857
Email: ailco@allco.com
May 21, 2024
Attn: Marc Ochoa, PE
Arceneaux Wilson& Cole LLC
3120 Central Mall Drive
Port Arthur,Texas 77642
Transmitted via email to: Marc.Ochoa@awceng.com
{
Re: Port Acres Drainage Project— City of Port Arthur
Dear Marc:
Please find below,pricing for the sanitary sewer installation on 65th Street. This pricing is as per
Dwg Sheets 76,77, 78, and 79, sent to us on May 10,2024. The pricing includes 3 manholes and
996 LF of 8" SDR 26 Pressure PVC pipe, installed in 65`h Street. Also included is the sewer
service relocation for the residence at the corner of 65th and Jade. We have backfilled the 8"line
completely with cement stabilized sand. A breakdown is as follows:
Material -piping $ 25,264.00
Material—stabilized sand 32,120.00
Labor 19,200.00
Payroll taxes 9,984.00
Equipment 18,720.00
Trucking 11,400.00
$ 116,688.00
Overhead & Profit 17,503.00
$ 134,191 .00
To perform this additional work, 15 calendar days will need to be added to the contract time. If
this is acceptable, please issue a change order to our contract.
Sincerely,
Keith Burrel
EXHIBIT C
CITY OF PORT ARTHUR
Public Works Engineering
DATE: JANUARY 18,2024
PROJECT: PORT ACRES DRAINAGE IMPROVEMENT PROJECT
OWNER: CITY OF PORT ARTHUR
CONTRACTOR: ALLCO,LLC OF BEAUMONT,TEXAS
CHANGE ORDER NO.: 2
THE FOLLOWING CHANGES IN THE PLANS AND/OR SPECIFICATIONS ARE HEREBY MADE:
Adjust the Estimated Quantities to reflect the Actual Quantities used in the completion of the project:
Original
Item Description Unit Unit Price Original Amount Total Quantity New Amount
Quantity
1 Jade Avenue and 65th Street
Relocation of Sanitary Sewer Service $ 25,194.00
2 65th Street
Relocation of Sanitary Sewer Main with Sewer Services $ 134,191.00
TOTAL CHANGE ORDER $ 159,385.00
ORIGINAL CONTRACT AMOUNT $33,154,682.77 NEW CONTRACT $33,314,067.77
AMOUNT
ORIGINAL CONTRACT AMOUNT: $ 34,891,106.81
TOTAL AMOUNT OF CHANGE ORDER NO.1: $ (1,736,424.04)
TOTAL AMOUNT OF CHANGE ORDER NO.2: $ 159,385.00
PERCENT OF CHANGE ORDER NO.1: -4.98%
PERCENT OF CHANGE ORDER NO.2: 0.46%
TOTAL PERCENT OF CHANGE ORDERS NOS.1&2: -4.52%
NEW CONTRACT AMOUNT: $ 33.154.682.77
EIGHTEEN(18)CALENDAR DAYS HAVE BEEN ADDED TO CHANGE ORDER NO.2
PAREPARED BY: APPROVED BY:
M.Jennifer Edwards,BAAS,MPA;CIP Manager John Cannatella,PE,City Engineer
APPROVED BY: APPROVED BY:
Brandon Harrison,ALLCO,LLC. Marc Ochoa,Senior Project Manager,AWC
APPROVED BY: APPROVED BY:
Dr.Hani Tohme,PE,Consultant Clifton Williams,CPPB,Purchasing Manager
APPROVED BY:
Ron Burton,City Manager
S:\Engineering\PUBLIC WORKS\PW-ENGINEERING\C.I.P.PROJECTS\Year 2023\DRAINAGE PROJECTS\Port Acres\Change Orders\Change Order 2\Port Acres CO 2
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