HomeMy WebLinkAboutPR 23969: PORT ACRES DRAINAGE IMPROVEMENT PROJECT CHANGE ORDER NO. 5, ALLOCO 455 CALENDAR DAYS, FUNDING IS NOT IMPACTED City of
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INTEROFFICE MEMORANDUM
Date: April 10,2025
To: The Honorable Mayor and City Council
Through: Ron Burton, City Manager
From: Pamela D. Langford, Assistant City Manager-Operations/Director of Developmental
Services
RE: PR No. 23969: Port Acres Drainage Improvement Project—Change Order No. 5: The
addition of four hundred fifty-five (455)calendar days to the project changing the
original contract completion date of August 12,2025 to the new contract completion
date of November 9,2026. Project No. DR1PO3A.
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.5 with Allco,LLC,(Allco)of Beaumont,Texas,for the addition of four hundred
fifty-five (455)calendar days to the project, changing the original contract completion date of August 12,
2025 to the new contract completion date of November 9, 2026. 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
S:\Engineering\PUBLIC WORKS\PW-ENGINEERING\C.I.P.PROJECTS\Year Z023\DRAINAGE PROJECTS\Port Acres\Change Orders\Change Order 5\Agenda Memo Port Acres CO 5.doa
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.
Pursuant to Resolution No. 24-339, Change Order No. 3, approved by Port Arthur's City Council, was
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 also increased 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 added 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.
Pursuant to Resolution No. 24-512, Change Order No. 4, approved by Port Arthur's City Council was
submitted by Allco for the relocation of a water lateral and replacing a fire hydrant, adding corrugated
pipe, reduction in linear footage of RCB, relocating sanitary sewer service, and the addition of a storm
conflict structure,for the amount of$55,790.42,changing the previous contract amount of$33,510,104.77
to the new contract amount of$33,565,895.19. It was necessary to issue a Field Order to perform the work
in order to keep the project safe and on schedule. To that end, an Emergency Letter, dated October 25,
2024, was submitted to the City Manager approving the Field Order with the change order subsequently
going before Council.
Additionally, Change Order No. 4 added fifteen (15) calendar days to accommodate the additional work
performed by the Field Order,changing the previous contract completion date of July 28,2025 to the new
contract completion date of August 12,2025.
Change Order No. 5 is being submitted by Allco,for the addition of four hundred fifty-five(455)calendar
days to the project's originally scheduled reduction of days, utility relocation delays,and weather related
delays that were beyond control.
Under the provisions of the contract Section F—General Conditions,Article 54.Time for Completion and
Liquidated Damages-Item"d"(Pages F 21-22)...
"The Contract Time will be extended in an amount equal to time lost due to delays
beyond the control of the CONTRACTOR if a claim is made therefore as provided and
if approved therefore by Engineer. Such delays shall include acts of neglect by the
OWNER or others performing additional work, or by acts of God or of the public
"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
enemy,fire,floods,epidemics,quarantine restrictions,strikes,labor disputes,sabotage,
or freight embargoes."
The calculation of 455 calendar days was determined using the Days Lost formula in the
contract under Appendix A:Form For Request of Time Extension.
Change Order No. 5 proposes to change the original contract completion date of August 12, 2025 to the
new contract completion date of November 9,2026.
Budget Impact:
Funds are not impacted by this request. Project No. DR I PO3A.
Recommendation:
It is recommended that the City of Port Arthur's City Council approve PR No.23969,authorizing the City
Manager to accept Change Order No. 5 from Allco, LLC, of Beaumont, Texas, for the addition of four
hundred fifty-five (455) calendar days to the project, changing the original contract completion date of
August 12,2025 to the new contract completion date of November 9, 2026. 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. 23969
3/6/2025 mje
Page 1 of 5
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
CHANGE ORDER NO. 5 TO THE CONTRACT BETWEEN THE CITY OF PORT
ARTHUR AND ALLCO, LLC, OF BEAUMONT, TEXAS, FOR THE PORT ACRES
DRAINAGE IMPROVEMENT PROJECT, TO ADD FOUR HUNDRED FIFTY-
FIVE (455) CALENDAR DAYS, CHANGING THE ORIGINAL CONTRACT
COMPLETION DATE OF AUGUST 12, 2025, TO THE NEW CONTRACT
COMPLETION DATE OF NOVEMBER 9, 2026. FUNDING IS NOT
IMPACTED. 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,
S,\L n;veering,P Ubu:..vOkt s\Ph-t NGINEittiN ',.L .YkUECTS\Year 2023\DRAINAGE PROJECTS\Port Aaer\Change Orders\Change Order 5\PR 23969 Pat Acres CO 5.doa
PR No.23969
3/6/2025 mje
Page 2 of 5
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. 24-302, the City of Port Arthur's City Council
approved Change Order No. 2 for the relocation of the sanitary sewer services and sewer main;
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, pursuant to Resolution No. 24-339, Change Order No. 3, approved by Port
Arthur's City Council, was submitted by Allco, LLC, 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; and,
WHEREAS, Change Order No. 3 also increased the contract amount of $33,314,067.77
by $196,037.00 to the new contract amount of $33,510,104.77 and added 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, pursuant to Resolution No. 24-512, Change Order No. 4, approved by Port
Arthur's City Council, was submitted by Allco, LLC, of Beaumont, Texas, for the relocation of a
water lateral and replacing a fire hydrant, adding corrugated pipe, reduction in linear footage of
RCB, relocating a sanitary sewer service, and the addition of a storm conflict structure, for the
amount of $55,790.42 changing the previous contract amount of $33,510,104.77 to the new
contract amount of $33,565,895.19; and,
PR No. 23969
3/6/2025 mje
Page 3 of 5
WHEREAS, a Field Order was issued addressing revisions to the drainage project to keep
the project safe and on schedule; and,
WHEREAS, an Emergency Letter dated October 25, 2024, addressing the Field Order
was prepared, submitted to, and approved by the City Manager with the change order
subsequently going before Council; and,
WHEREAS, the Port Acres Drainage Improvement Project, to date, has encountered
several delays due to the relocation of essential utilities, including water, sewer, gas, and existing
industrial pipelines along with adverse weather conditions that have severely impacted progress,
see Exhibit A; and,
WHEREAS, an extension of time is necessary to address delays to ensure that the
drainage improvements are completed effectively to benefit the residents of Port Acres and the
City of Port Arthur, as a whole; and,
WHEREAS, under the provisions of the contract Section F — General Conditions, Article
54. Time for Completion and Liquidated Damages-Item "d" (Pages F 21-22), extension of time in
an amount equal to time lost due to delays beyond the control of the Contractor is recognized;
and,
WHEREAS, Change Order No. 5, is being submitted by Allco, LLC, of Beaumont, Texas,
to add four hundred fifty-five (455) calendar days to the original contract completion date of
August 12, 2025 changing it to the new contract completion date of November 9, 2026, using
the Days Lost formula under Appendix A: Request for Time Extension, see Exhibit B; and,
WHEREAS, approval of PR No. 23969 for Change Order No. 5 is herein deemed an
appropriate action; now, therefore,
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PR No. 23969
3/6/2025 mje
Page 4 of 5
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. 5 is herein approved and the City Manager is hereby authorized
to execute said Change Order No. 5 to the contract between the City of Port Arthur and Allco,
LLC, of Beaumont, Texas; and,
THAT, Change Order No. 5 adds four hundred fifty-five (455) calendar days to the original
contract completion date of August 12, 2025 changing it to the new contract completion date of
November 9, 2026; 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. 2025,
at a meeting of the City of Port Arthur, Texas by the following vote:
Ayes: Mayor:
Councilmembers:
Noes:
Thurman Bill Bartie
ATTEST: Mayor
Sherri Bellard
City Secretary
PR No. 23969
3/6/2025 mje
Page 5 of 5
APPROVED AS TO FORM: APPROVE OR DMINISTRATION:
Roxann Pais Cotroneo, Esquire Ron Burton,
City Attorney City Ma er
APPROVED AS FOR AVAILABILITY OF
FUNDS:
014-)
Lynda (Lyn) Boswell, MA, ICMA-CM
Director of Finance
John n tella, PE
City En eer
(1114112, r,D
Clifton Williams, CPPB
Purchasing Manager
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EXHIBIT A
elm
MMARCENEAUX WILSON&COLE
engineering I surveying I planning
MEMORANDUM
Date: February 11, 2025
To: City of Port Arthur
From: Marc A. Ochoa, PE / Senior Project Manager
Project: Port Acres Subdivision Drainage Improvements
Subject: Request for Time Extension
Purpose:
This memo is to formally request an extension of 455 calendar days for the Port Acres
Drainage Improvement project.The extension is necessary due to unforeseen delays and
additional work required to complete the project as detailed below.
Original Schedule Reduction:
As previously agreed,the contractor accepted an accelerated schedule with the
understanding that an extension would be granted upon demonstrating substantial
progress.The original schedule was reduced by 180 calendar days before the contract was
awarded. However, multiple unforeseen delays have significantly impacted on the project
timeline, necessitating this request for an extension.
Utility Relocation Delays:
During construction, the contractor has encountered several delays due to the relocation of
essential utilities,including water, sewer, gas,and existing industrial pipelines.These
delays have accounted for an estimated 30 calendar days.
Weather-related Delays:
Additionally, adverse weather conditions have severely hindered progress.To date,the
contractor has been unable to work for a total of 124 calendar days due to weather-related
conditions.
409 724.7888
3120 Central Mall Drive
Port Arthur,TX 77642 Engineering Surveying
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The following table provides a breakdown of the weather-related delays per month from
March 2024 to January 2025:
Month Weather Delay Days
March 2024 0
April2024 22
May 2024 35
June 2024 7
July 2024 20
August 2024 8
September 2024 0
October 2024 8
November 2024 1
December 2024 8
January 2025 15
Estimated Future Delays:
These delays currently account for an additional 11 months to the project. Based on an
observed average of 11 weather-related delay days per month, it is estimated that an
additional 121 calendar days of rain-related delays should be anticipated and accounted for
in the project timeline.
Total Breakdown:
The following table provides a breakdown of the additional days requested:
Category Additional Days
Original Schedule Reduction 180
Utility Relocation Delays 30
Weather Delays to Date 124
Estimated Future Weather Delays 121
Total Additional Days 455
Revised Schedule Completion:
The current contract completion date is August 12, 2025.With the addition of 449 calendar
days due to the outlined delays,the revised completion date would be November 9, 2026.
This extension is necessary to ensure the successful and high-quality completion of the
Atm
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Port Acres Drainage Improvement Project while mitigating the impact of uncontrollable
factors on the construction schedule.
Conclusion:
Given these circumstances,we respectfully request that the City of Port Arthur grant a time
extension to allow for the successful completion of the project without compromising
quality or safety.This extension is necessary to address delays beyond the contractor's
control and to ensure that the drainage improvements are completed effectively to benefit
the residents of Port Acres.The contractor remains committed to accelerating the schedule
whenever possible.
We appreciate your consideration of this request and look forward to your prompt
response. Please do not hesitate to reach out if further information or discussion is
required.
Sincerely,
77. 1eVele2%&--
Marc A. Ochoa, PE
Senior Project Manager
EXHIBIT B
CITY OF PORT ARTHUR
Public Works Engineering
DATE: MARCH 6,2025
PROJECT: PORT ACRES DRAINAGE IMPROVEMENT PROJECT
OWNER: CITY OF PORT ARTHUR
CONTRACTOR: ALLCO,LLC OF BEAUMONT,TEXAS
CHANGE ORDER NO.: 5
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 Quantity Unit Price Original Amount Total Added New Amount
1 ADDITION OF FOUR HUNDRED FIFTY-FIVE(455)CALENDAR DAYS
NO FUNDS ARE IMPACTED TOTAL CHANGE ORDER $ -
PREVIOUS CONTRACT AMOUNT $33,510,104.77 NEW CONTRACT $33,565,895.19
AMOUNT
ORIGINAL CONTRACT AMOUNT: $ 34,891,106.81
TOTAL AMOUNT OF CHANGE ORDER NO.1: S i 2,736,424.04j
TOTAL AMOUNT OF CHANGE ORDER NO.2: $ 159,385.00
TOTAL AMOUNT OF CHANGE ORDER NO.3: $ 196,037.00
TOTAL AMOUNT OF CHANGE ORDER NO.4: $ 55,790.42
PERCENT OF CHANGE ORDER NO.1: -a.98%C
PERCENT OF CHANGE ORDER NO.2: 0.46%
PERCENT OF CHANGE ORDER NO.3: 0.56%
PERCENT OF CHANGE ORDER NO.4: 0.16%
PERCENT OF CHANGE ORDER NO.5: 0.00%
TOTAL PERCENT OF CHANGE ORDERS NOS.1,2,3,4&5: -3.80`
NEW CONTRACT AMOUNT: 33 5.5.- .19
CONTRACT COMPLETION DATE:WI=r 9 2026
FOUR HUNDRED FIFTY-FIVE(455)CAL DAR DAYS HAVE BEEN ADDED TO CHANGE ORDER • •
PAREPARED BY: - I APPROVED BY:
d qi
M.Jennifer dwards,1 ,S,MPA;CIP Manager Jr hn 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
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11,
REQUEST FOR EXTENSION OF TIME DUE TO WEATHER OR SUPPLIES
CITY OF PORT ARTHUR
DATE: , 20
MONTH OF: , 20
CITY of PORT ARTHUR,TEXAS
PUBLIC WORKS DEPARTMENT
P.O.BOX 1089
CITY of PORT ARTHUR,TEXAS 77641-1089
ATTENTION: Engineering Division
Gentlemen:
We request extension of completion time on our Contract due to the days of work lost as
specified(list dates actually lost: do not include days not normally worked such as Saturdays,
Sundays,or holidays):
Dates Lost:
Days Lost( )/ 5 x 7= Calendar Days Requested
Reasons for Request:
Contractor
By:
Approved for extension of calendar days.
Disapproved.
Date: , 20 CITY OF CITY OF PORT ARTHUR,TEXAS
BY:
City Manager
Distribution by City
Original:Public Works Engineering
Cc: Engineer
Contractor
CPA Federally Funded