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Home My WebLink AboutPR 23877: PORT ACRES DRAINAGE IMPROVEMENT PROJECT: CHANGE ORDER NO. 3 City of o r t rlfru� www.PortArthurTx.gov INTEROFFICE MEMORANDUM Date: August 16, 2024 To: The Honorable Mayor and City Council Through: Ron Burton, City Manager From: John Cannatella, City Engineer RE: PR No. 23877: Port Acres Drainage Improvement Project: Change Order No. 3 from Allco, LLC, of Beaumont, Texas, for the relocation of the sanitary sewer on 64th Street,the addition of fifteen(15) calendar days, and the addition of 150 LF of water lines. Project No. DR1P03A. 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. 3 with Allco, LLC, (Allco) of Beaumont, Texas, for the relocation of the sanitary sewer on 64th Street,the addition of fifteen(15) calendar days, and the addition of 150 LF of water lines for the amount of$196,037.00. 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 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. Pursuant to Resolution No. 24-302,Change Order No. 2,approved by Port Arthur's City Council,was submitted by Allco for the relocation of the sanitary sewer services and sewer main, and the addition of eighteen (18) calendar days. Change Order No. 2 increased 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 added eighteen (18) calendar days amending the original completion date of June 25, 2025 to the new completion date of July 13, 2025. Change Order No. 3 is being submitted by Allco for the installation of a sanitary sewer main on 64th Street, the addition of fifteen (15) calendar days and the addition of 150 LF of water line relocations for the amount of$196,037.00. Change Order No. 3 proposes to increase the contract amount of 33,314,067.77 by $196,037.00 to the new contract amount of$33,510,104.77. Additionally, Change Order No. 3 proposes to add fifteen (15) calendar days to the original contract completion date of July 13, 2025, changing it to the new contract completion date of July 28, 2025. The cost associated with Change Order No. 3 addresses the elimination of obstructions in the designed drainage system in Port Acres. The original bid allowed for services to pass through the new drainage system due to limited finding. However, further investigation by the contractor revealed a greater number of mains and services in conflict than initially expected. These conflicts could reduce the project's efficiency and increase future maintenance needs. 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. 23877 authorizing the City Manager to accept Change Order No.3 from Allco,LLC,of Beaumont,Texas,for the installation of a sanitary sewer main on 64th Street, the addition of fifteen (15) calendar days and the addition of 150 LF of water line relocations for the amount of$196,037.00. 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. 23877 8/16/2024 mje Page 1 of 4 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE CHANGE ORDER NO. 3 TO THE CONTRACT BETWEEN THE CITY OF PORT ARTHUR AND ALLCO, LLC, OF BEAUMONT, TEXAS, FOR THE PORT ACRES DRAINAGE IMPROVEMENT PROJECT, TO INSTALL SANITARY SEWER MAIN ON 64TH STREET AND RELOCATE WATERLINES, EXTENDING THE PROJECT TIME BY FIFTEEN (15) CALENDAR DAYS, AND INCREASING THE CONTRACT AMOUNT BY $196,037.00 TO A NEW TOTAL 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, 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, PR No. 23877 8/16/2024 mje Page 2 of 4 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, pursuant to Resolution No. 24-304, the City of Port Arthur's City Council approved Change Order No. 2 for the relocation of the sanitary sewer services and sewer main; and, WHEREAS, Change Order No. 2 increased the contract amount by $159,385.00 from $33,154,682.77 to the new contract amount of $33,314,067.77 and added eighteen (18) calendar days amending the original completion date of June 25, 2025 to the new completion date of July 13, 2025; and, WHEREAS, Change Order No. 3 is being submitted by Allco, LLC, of Beaumont, Texas, for the installation of the sanitary sewer main on 64th Street, the addition of fifteen (15) calendar days and the addition of 150 LF of water line relocations for the amount of $196,037.00, see Exhibit A; and, WHEREAS, Change Order No. 3 proposes to increase the contract amount of $33,314,067.77 by $196,037.00 to a new contract amount of $33,510,104.77; and, WHEREAS, Change Order No. 3 proposes to add fifteen (15) calendar days to the original contract completion date of July 13, 2025 changing it to the new contract completion date of July 28, 2025; and, WHEREAS, it was determined after further investigation that there were a significant number of mains that were in conflict and caused obstructions to the designed drainage system in Port Acres, Change Order No. 3 addresses the elimination of these obstructions; and, PR No. 23877 8/16/2024 mje Page 3 of 4 WHEREAS, approval of PR No. 23877 for Change Order No. 3 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. 3 is herein approved and the City Manager is hereby authorized to execute said Change Order No. 3 to the contract between the City of Port Arthur and Allco, LLC, of Beaumont, Texas; and, THAT, Change Order No. 3 increases the contract amount of $33,314,067.77 by $196,037.00 to the new contract amount of $33,510,104.77; and, THAT, Change Order No. 3 adds fifteen (15) calendar days to the original contract completion date of July 13, 2025 changing it to the new contract completion date of July 28, 2025; 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: Noes: PR No. 23877 8/16/2024 mje Page 4 of 4 Thurman Bill Bartle Mayor ATTEST: Sherri Bellard City Secretary APPROVED AS TO FORM: APPROVED FOR ADMINISTRATION: Roxann Pais Cotroneo, Esquire Ron Burton City Attorney City Manager APPROVED AS FOR AVAILABILITY OF FUNDS: 32-/Jei Lyn a (Lyn) Boswell, MA, ICMA-CM Director of Finance John Cannatella, PE City Engineer LOA. Clifton Williams, CPPB Purchasing Manager EXHIBIT A r. CITY OF PORT ARTHUR Public Works Engineering DATE: AUGUST 16,2024 PROJECT: PORT ACRES DRAINAGE IMPROVEMENT PROJECT OWNER: CITY OF PORT ARTHUR CONTRACTOR: ALLCO,LLC OF BEAUMONT,TEXAS CHANGE ORDER NO.: 3 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: Item Description Unit Original Unit Price Original Amount Total Added New Amount Quantity 1 64th Street -Installation of sanitary sewer main LF $ 160,037.00 2 7126-0002-Water Line Relocations LF 20 $ 240.00 $ 4,800.00 150 $ 36,000.00 TOTAL CHANGE ORDER $ 196,037.00 ORIGINAL CONTRACT AMOUNT $33,314,067.77 NEW CONTRACT $33,510,104.77 AMOUNT ORIGINAL CONTRACT AMOUNT:I$ 34,891,106.81 I TOTAL AMOUNT OF CHANGE ORDER NO.1: S (1,736,424.04) TOTAL AMOUNT OF CHANGE ORDER NO.2: $ 159,385.00 TOTAL AMOUNT OF CHANGE ORDER NO.3: $ 196,037.00 PERCENT OF CHANGE ORDER NO.1: -4.98% PERCENT OF CHANGE ORDER NO.2: 0.46% PERCENT OF CHANGE ORDER NO.3: 0.56% TOTAL PERCENT OF CHANGE ORDERS NOS.1,2&3: -3.96% NEW CONTRACT AMOUNT: $ 33,510,104.77 CONTRACT COMPLETION DATE:I July 28,2025 FIFTEEN(15)CALENDAR DAYS HAVE BEEN ADDED TO CHANGE ORDER NO.3 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 3\Port Acres CO 3