HomeMy WebLinkAboutPR 24274: PORT ACRES DRAINAGE IMPROVEMENT PROJECT, CHANGE ORDER NO. 6 Orr of •
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www.PortArthurTx.gov
INTEROFFICE MEMORANDUM
Date: April 11, 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. 24274: Port Acres Drainage Improvement Project — Change Order No. 6:
Relocation of a 16" Water Main for the amount of$201,667.00; Stabilize the Edge of
65th Street adjacent to the box installation for the amount of $19,180.00; and the
Removal of Three Pipelines on FM 365 for the amount of$611,159.00. 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. 6 with Allco,LLC,(Allco)of Beaumont,Texas,for the relocation of a 16"
water main for the amount of $201,667.00; stabilize the edge of 65th Street adjacent to the box
installation for the amount of$19,180.00; and the removal of three (3) pipelines on FM 365 for the
amount of$611,159.00. 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.
"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 2023\DRAINAGE PROJECTS\Port Acres\Change Orders\Change Order 6\Agenda Memo Port Acres CO 6.do.
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.
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 64 ' 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.
Pursuant to PR No. 23969, Change Order No. 5 is being submitted for approval 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 according to
"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
contract guidelines in Section F—General Conditions,Article 54.Time for Completion and Liquidated
Damages-Item"d"(Pages F 21-22). Change Order No. 5 also proposes to change the original contract
completion date of August 12, 2025 to the new contract completion date of November 9, 2026.
It was discovered during the course of construction of the project that there was an immediate need to
perform work in order to ensure the successful completion of the work and keep the project on
schedule. A Field Order was issued for the relocation of a 16"water main to the north side of FM 365
and the stabilization of the edge of 65th Street adjacent to a box installation. The Field Order was
accepted, approved and signed by the City Manager with the understanding that it would be presented
at the next Council Meeting for approval of this authorization. This work is included in Change Order
No. 6.
Change Order No. 6 is being submitted by Allco for the relocation of the 16"water main to the north
side of Highway 365 for the amount of$201,667.00. This pricing includes 460 LF of C900 PVC pipe,
two 16" gate valves, one 10" gate valve, associated fittings, and labor. Additionally, Change Order
No. 6 includes stabilization of the edge of 65th Street adjacent to the box installation for the amount
of$19,180.00. This pricing includes 500 LF of stabilized sand 1'-6" Wide by 4'-0" Deep, material,
labor and equipment. Lastly, Change Order No. 6 includes the removal of three pipelines discovered
during construction for the amount of$611,159.00. These pipelines are located on FM 365 between
the Drainage District 7 (DD7) drainage canal and Garnet Avenue. These pipelines were not marked
and there was no signage indicating their existence. Failure to remove them poses a significant
obstacle to the planned drainage improvements for this project. Change Order No. 6 proposes to
increase the contract amount of $33,565,895.19 by $832,006.00 to the new contract amount of
$34,397,901.19.
Budget Impact:
Funds are available in Drainage System Account No.307-21-055-8515-00-10-000 pending approval
of Budget Amendment No. 7329. Project No. DR1P03A.
Recommendation:
It is recommended that the City of Port Arthur's City Council approve PR No. 24274, authorizing the
City Manager to accept Change Order No. 6 from Allco,LLC,of Beaumont, Texas, for the relocation
of a 16" water main for the amount of$201,667.00; stabilize the edge of 65th Street adjacent to the
box installation for the amount of$19,180.00; and the removal of three (3)pipelines on FM 365 for
the amount of$611,159.00 increasing the contract amount of$33,565,895.19 by $832,006.00 to the
new contract amount of$34,397,901.19. 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. 24274
4/11/20255 mje
Page 1 of 6
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
CHANGE ORDER NO. 6 TO THE CONTRACT BETWEEN THE CITY OF PORT
ARTHUR AND ALLCO, LLC, OF BEAUMONT, TEXAS, FOR THE PORT ACRES
DRAINAGE IMPROVEMENT PROJECT, TO RELOCATE A 16"WATER MAIN;
STABILIZE THE EDGE OF 65TH STREET, AND REMOVE THREE PIPELINES
ON FM 365, INCREASING THE CONTRACT BY $832,006.00 TO THE NEW
CONTRACT AMOUNT OF $34,397,901.19. FUNDING IS AVAILABLE IN
THE DRAINAGE SYSTEM ACCOUNT 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,
:..\Users\htran\AppData\Local\Microso' Boa-6a0e33d-dod7-41c9-ba60c37a3731639fd1c1a6a67efde61fa5d7Sb8de27aacba729e02413ea4d47106747ddc2e321c90\PR 24274 Port Acres CO 6.doca
PR No.24274
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Page 2 of 6
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 AlIco, 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. 24274
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Page 3 of 6
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 which warrants an extension of time to ensure drainage improvements are
completed effectively to benefit the residents of Port Acres and the City of Port Arthur, as a
whole; and,
WHEREAS, to that end, pursuant to PR No. 23969, Change Order No. 5, was submitted
previously by Allco, 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, approval is pending; and,
WHEREAS, it was discovered during construction that immediate work needed to be
performed to ensure the successful and safe completion of work, so a Field Order was created
and submitted to the City Manager for approval; and,
WHEREAS, the Field Order was accepted, approved, and signed by the City Manager with
the understanding that the work it covered would be presented at the next Council Meeting under
Change Order No. 6, See Exhibit A; and,
WHEREAS, Change Order No. 6 is being submitted by Allco for the relocation of the 16"
water main to the north side of Highway 365 for the amount of $201,667.00 that includes 460
LF of C900 PVC pipe, two 16" gate valves, one 10" gate valve, associated fittings, and labor, see
Exhibit B; and,
S:\Engineering\PUBLIC WORKS\PW-ENGINEE RING\C.I.P.PROJECTS\Year 2023\DRAINAGE PROJECTS\Port Acres\Change Orders\Change Order 6\PR 24274 Port Acres CO 6.d000
PR No.24274
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Page 4 of 6
WHEREAS, Change Order No. 6 also includes stabilization of the edge of 65th Street
adjacent to the box installation for the amount of $19,180.00 which includes 500 LF of stabilized
sand 1'-6" Wide by 4'-0" Deep, material, labor and equipment, see Exhibit C; and,
WHEREAS, Change Order No. 6 additionally includes the removal of three pipelines
discovered during construction for the amount of $611,159.00 that are located on FM 365
between the Drainage District 7 (DD7) drainage canal and Garnet Avenue and must be removed
as it poses a significant obstacle to the planned drainage improvements for this project, see
Exhibit D; and,
WHEREAS, Change Order No. 6 proposes to increase the contract amount of
$33,565,895.19 by $832,006.00 to the new contract amount of $34,397,901,19; and,
WHEREAS, approval of PR No. 24274 for Change Order No. 6 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. 6 is herein approved and the City Manager is hereby authorized
to execute said Change Order No. 6 to the contract between the City of Port Arthur and Allco,
LLC, of Beaumont, Texas; and,
THAT, Change Order No. 6 is being submitted by Alico for the relocation of the 16"water
main to the north side of Highway 365 for the amount of $201,667.00 that includes 460 LF of
C900 PVC pipe, two 16" gate valves, one 10" gate valve, associated fittings, and labor; and,
THAT, Change Order No. 6 also includes stabilization of the edge of 65th Street adjacent
to the box installation for the amount of $19,180.00 which includes 500 LF of stabilized sand 1'-
6" Wide by 4'-0" Deep, material, labor and equipment; and,
PR No.24274
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Page 5 of 6
THAT, Change Order No. 6 additionally includes the removal of three pipelines discovered
during construction for the amount of $611,159.00, that are located on FM 365 between the
Drainage District 7 (DD7) drainage canal and Garnet Avenue and must be removed as it poses a
significant obstacle to the planned drainage improvements for this project; and,
THAT, Change Order No. 6 proposes to increase the contract amount of $33,565,895.19
by $832,006.00 to the new contract amount of $34,397,901.19; 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
Mayor
ATTEST:
Sherri Bellard
City Secretary
S:\Engineering\PUBLIC WORKS\PW-ENGINEERING\C.I.P.PROJECTS\Year 2023\DRAINAGE PROJECTS\Port Acres\Change Orders\Change Order 6\PR 24274 Port Acres CO 6.docx
PR No.24274
4/11/2025 mje
Page 6 of 6
APPROVED AS TO FORM: APPROVED FOR ADMINISTRATION:
1
Roxann Pais Cotroneo, Esquire Ron :urto ro
City Attorney City Ma -r
APPROVED AS FOR AVAILABILITY OF
FUNDS:
,� '� PO liDeatt --Th,)6)
Lynda (Lyn) Boswell, MA, ICMA-CM
Director of Finance
4)6iim 4 0 Lia-\41:12
John Cannatella, PE ( 00 behalf 0-P)
City Engineer
. LJ
Clifton Williams, CPPB
Purchasing Manager
EXHIBIT A
art Artur
7iru1
vA-w\,,t,1.°C r t t.r
FIELD ORDER
Date: April 10, 2025
To: Ron Burton, City Manager From: Engineering Division
RE: Port Acres Drainage Improvement Project;Project No.DR1P03A—Relocate 16" Water
Main to north side of Highway 365; and Stabilize the edge of 65th Street adjacent to box
installation.
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 the DRRP recovery activities, identified flood and drainage problems within the community
of Port Acres.
Pursuant to Resolution 23-485,the City of Port Arthur entered into an agreement will Allco,LLC(Allco)of
Beaumont, Texas, for the Port Acres Drainage Improvement Project. Arceneaux, Wilson & Cole, LLC
(AWC), who is providing professional engineering services for the project, has submitted a proposal from
Allco for the relocation of a 16" water main to the north side of Highway 365. Additionally, pricing has
been submitted regarding stabilizing the edge of 65th Street adjacent to box installation. Due to the
uncertainty of scope,this task has been priced at $38.36 per linear foot which includes material, labor and
equipment. Both submissions are attached. These revisions, in the form of a Field Order, are in need of
immediate execution in order to ensure the successful completion of the work and keep the project on
schedule.This Field Order increases the project by$201,667.00 for the water main and the completed price
of the stabilization on 65th Street upon its completion.
A change order in the form of a resolution will be sent to the upcoming City Council meeting for the
ratification of this authorization. Funding is available in the Drainage System Account No. 307-21-055-
8515-00-10-000.Project No.DR1PO3A.
I, Ronald Burton, approve the additional costs associated with implementing this Field Order for the Port
Acres Drainage Improvement Project.
Signed:
Ronald Burton, t nager
Attachments—(1)Wate ain;(2)65th Street
-Rem ent her.'se are here to serve the Citizens of Port Artliair"
444 4th Street X Port Arthur,Texas 77641-1089 X 409.983.8182 X FAX 409.983.8294
I r4414,_ P7 P,LI( 114IEc}.,5 P11—,_t,I:.L i ,4(:C !1 i l i, c+t_ I'f' I.4_i ". cr
Attachment 1
DESIGN BUILD ,,
CONSTRUCTION LIANAz nFS
GENERAL CONTRACTI514
111.1.
P.O.Box 3684, Beaumont,Texas 77704 Phone:409-860-4459 Fax:409-860-3857
Email: allco@allco.com
April 1, 2025
Attn: Marc Ochoa,PE
Arceneaux Wilson&Cole LLC
3120 Central Mall Drive
Port Arthur,Texas 77642
Transmitted via email to: Ma►ti.{)chow til__awceng.com
Re: Port Acres Drainage Project—City of Port Arthur
Dear Marc:
Please fmd below, pricing to relocate the 16"water main to the north side of Highway 365. This
pricing includes 460 LF of C900 PVC pipe,two 16"gate valves,one 10"gate valve and associated
fittings. A breakdown is as follows:
Material $ 66,584.00
Labor 39,900.00
Payroll taxes 20,748.00
Equipment 48,131.00
$ 175,363.00
Overhead&Profit 26,304.00
$ 201,667.00
If this is acceptable,please issue a change order to our contract.
Sincerely,
Keith Burrell
Attachment 2
DESIGN BUILD
C NSTRUCTION MA
f GENERAL CONTRACTORlbw
L
P.O. Box 3684, Beaumont, Texas 77704 Phone: 409-860-4459 Fax:409-860-3857
Email: allco@allco.com
April 1, 2025
Attn: Marc Ochoa,PE
Arceneaux Wilson&Cole LLC
3120 Central Mall Drive
Port Arthur,Texas 77642
Transmitted via email to: Marc.Ochoau',awcentu.coni
Re: Port Acres Drainage Project—City of Port Arthur
Dear Marc:
Please find below, pricing to stabilize the edge of 65th Street adjacent to the box installation. We
figured stabilized sand 1'-6" wide by 4'-0" deep. Due to the uncertainty of scope of this
stabilization,we have priced this work by the linear foot.
Our price including material, labor and equipment for this work, is Thirty-Eight Dollars and
Thirty-Six Cents per linear foot($38.36.00/LF).
If this is acceptable, please issue a change order to our contract.
Sincerely,
Keith Burrell
EXHIBIT B
Attachment 1
t _ �+Ali, , 9,0,,,,
—
Lt.."
DESIGN 8U1LD
, CONSTRUCTION MANAGEMENT
....,r-N-------
.__._.__ _
GENERAL CONTRACTOR
P. O. Box 3684. Beaumont,Texas 77704 Phone: 409-860-4459 Fax: 409-860-3857
Email: allco@allco.com
April 1. 2025
Attn: Marc Ochoa, PE
Arceneaux Wilson& Cole LLC
3120 Central Mall Drive
Port Arthur,Texas 77642
Transmitted via email to: Marc.Ochoawawceng.com
Re: Port Acres Drainage Project—City of Port Arthur
Dear Marc:
Please find below, pricing to relocate the 16" water main to the north side of Highway 365. This
pricing includes 460 LF of C900 PVC pipe,two 16"gate valves,one 10"gate valve and associated
fittings. A breakdown is as follows:
Material $ 66,584.00
Labor 39,900.00
Payroll taxes 20,748.00
Equipment 48,131.00
$ 175,363.00
Overhead&Profit 26,304.00
$ 201,667.00
If this is acceptable,please issue a change order to our contract.
Sincerely,
Keith Burrell
EXHIBIT C
ll 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
April 1,2025
Attn: Marc Ochoa,PE
Arceneaux Wilson& Cole LLC
3120 Central Mall Drive
Port Arthur,Texas 77642
Transmitted via email to: Marc.Ochoa(a,,awceng.com
Re: Port Acres Drainage Project—City of Port Arthur
Dear Marc:
Please find below,pricing to stabilize the edge of 65th Street adjacent to the box installation. We
figured stabilized sand 1'-6" wide by 4'-0" deep. Due to the uncertainty of scope of this
stabilization,we hake priced this work by the linear foot.
Our price including material, labor and equipment for this work, is Thirty-Eight Dollars and
Thirty-Six Cents per linear foot ($38.36.00/LF).
If this is acceptable,please issue a change order to our contract.
Sincerely,
Keith Burrell
EXHIBIT D
*Ale cow
VIA"
ARCENEAUX WILSON&COLE
engineering!surveying I planning
MEMORANDUM
Date: March 5, 2025
To: City of Port Arthur
From: Marc A. Ochoa, PE /Senior Project Manager
Project: Port Acres Subdivision Drainage Improvements
Subject: Pipeline Removal along FM 365
Overview:
This memo is to provide information to justify the additional project costs associated with
the removal of three pipelines discovered during the construction of the Port Acres
Drainage Improvement project.The discovery of these pipelines required additional work
beyond the original project scope, resulting in increased labor, equipment usage, and
disposal costs.
Background:
The construction contract with ALLCO, LLC, was based on the assumption that no such
obstructions were present within the project area. During the design phase,AWC
requested utility locations for the project site and there were no markings or signs that
these pipelines existed. However, upon excavation, three pipelines were encountered that
posed a significant obstacle to the planned drainage improvements.
Pipeline Removal Execution:
To ensure the safe and efficient continuation of the project, it was necessary to:
1. Assess and Identify the Pipelines- Determine ownership, content, and potential
hazards.
2. Coordinate with Relevant Authorities-Secure permissions and approvals for removal.
3. Perform Safe Extraction and Disposal- Implement safety measures and specialized
techniques to remove the pipelines without impacting adjacent infrastructure.
4. Mitigate Construction Delays-Adjust project timelines and reallocate resources to
minimize the overall impact on the schedule.
409 724.7888
3120 Central Mall Drive
Port Arthur,TX 77642 Engineering Surveying
awceng.com F-16194 10194049
*Ili awn
wAir
Payment for Pipeline Removal:
The estimated cost for removing an unknown amount of the three pipelines located on FM
365 between DD7's drainage canal and Garnet Avenue is approximately$611,159.00.
Given these circumstances, the additional cost incurred is necessary to maintain project
integrity and ensure compliance with regulatory requirements.ALLCO, LLC, has provided a
detailed cost breakdown,which includes labor, equipment, and material expenses directly
related to pipeline removal. This cost is an unavoidable expenditure required to complete
the project in accordance with safety and engineering standards. Below is the breakdown
of the cost:
4" Pipeline Removal -* $67.69/LF* 3,900 LF (estimated) = $263,991.00
6" Pipeline Removal -* $77.32/LF* 1,900 LF (estimated) = $146,908.00
10" Pipeline Removal -* $105.40/LF* 1,900 LF (estimated) = $200,260.00
Conclusion:
We appreciate your consideration of this request for additional funding. If you require
further clarification or supporting documentation, please do not hesitate to contact me.
Thank you for your time and attention to this matter.
Best Regards,
Marc A. Ochoa, PE
Senior Project Manager
I.( DESIGN BUILD
A
CONSTRUCTION MANAGEMENT
GENERAL CONTRACTOR
P. O. Box 3684, Beaumont, Texas 77704 Phone: 409-860-4459 Fax: 409-860-3857
Email: allco@allco.com
February 19, 2025
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 removal of steel pipelines in the Hwy. 365 right-of-way which
were not shown on the plans. These lines have been tested and found to have an asbestos
coating,so an asbestos abatement contractor will need to be involved in the removal. In
addition,an environmental consultant will be needed for air monitoring during removal. Since
the length of these lines is unknown, our pricing is per linear foot. We have broken down the
pricing to the different sizes,based on what has been found.
10" pipeline
HES Consulting/air monitoring $ 10.24/LF
Sitek/Omni Asbestos Abatement/Disposal $ 48.30/LF
ALLCO Removal/Handling $ 47.00/LF
$ 105.40/LF
6" pipeline
HES Consulting/air monitoring $ 7.02/LF
Sitek/Omni Asbestos Abatement/Disposal $ 36.80/LF
ALLCO Removal/Handling $ 33.50/LF
$ 77.32/LF
February 19, 2025
Mr. Marc Ochoa,PE
Page 2
4" pipeline
HES Consulting/air monitoring $ 6.33/LF
Sitek/Omni Asbestos Abatement/Disposal $ 32.20/LF
ALLCO Removal/Handling $ 29.16/LF
$ 67.69/LF
We are assuming these lines are decommissioned, so this work is not included. I talked with
Drainage District No.7,who had several pipelines decommissioned due their work at the hurricane
levee. We believe these lines are part of that scope of work,however we are still investigating.
If you have any questions,please let me know.
Sincerely,
Keith Burrell