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HomeMy WebLinkAboutPR 23784: CHANGE ORDER NO. 2 FROM ALLCO, LLC, SANITARY SEWER SERVICES AND SEWER MAIN City of °)"t /'f�t ll�� r:. www.PortArthurTx.gov 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, 5 Engiccnng`BUBLIC WORKSIPW-ENGINEERINGC.LP.PROJECTS'Year2II2iDRAFNAGE PROJECTS'Pon AcmEChangc OrdcrECErngc ONcr RPR 2;7$4 Pon Acros CO2 dots 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 S'\Enginccnng\PUBLIC WORKS\PW-ENGINEERING,C.I .PROJECTS1Year 202S\DR.AINAGE PROJECTS\Pon Acres\Change Orders\Change Order 2'.PR 2S7$4 Pon.Acres CO 2.do, 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 A.SANk aux TAWM VMAff 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 *Ix eniuc 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 1