HomeMy WebLinkAboutPR 24304: CHANGE ORDER NO. 1 WITH CONSTRUCTION ZONE OF SOUTHEAST TEXAS CITY of
art rthur
Texas
www.PortArthurTx.gov
DEPARTMENT OF DEVELOPMENT SERVICES
INTEROFFICE MEMORANDUM
Date: March 25, 2025
To: The Honorable Mayor and City Council
Through: Ronald "Ron" Burton, CPM, City Manager
From: Pamela D. Langford, CPM, Assistant City Manager— Operations/Director of
Development Services
RE: P.R. NO. 24304 — A proposed resolution authorizing Change Order No. 1
with Construction Zone of Southeast Texas
Introduction:
To request City Council consideration and approval of Proposed Resolution No. 24304
authorizing the City Manager to execute Change Order No. 1 to the construction contract
with Construction Zone of Southeast Texas for the Animal Services Center Building. This
Change Order increases the contract amount by $426,585.34, resulting in a revised
contract total of$7,791,585.34, and extends the contract time by 214 calendar days.
Background:
On July 20, 2023, Tolunay-Wong Engineers performed Geotechnical Engineering
Construction Materials Testing at the site of the future Animal Services Center to evaluate
the condition of the soil and subsurface materials. The testing was conducted to ensure
compliance with applicable construction standards and to determine the site's overall
suitability for vertical development. As requested by the city, Tolunay-Wong Engineers
has continued to monitor construction activities throughout the duration of the project.
During a routine inspection on March 27, 2025, a Tolunay-Wong representative
determined that the soil in the northeast corner of the construction site was incompetent
at a depth of four feet. To comply with environmental and structural engineering standards
and to support the construction of the visitors' parking lot, this area must be excavated an
additional foot to reach competent material. The excavated area will then need to be
backfilled with stabilizer or select fill material before any concrete can be poured. This
unexpected soil condition has introduced further delays to the construction schedule.
In addition to the geotechnical issue, the contractor encountered several unforeseen site
conditions that significantly impacted the project timeline. Most notably, during initial site
preparation, a large volume of buried concrete pilings—remnants from the former St. Mary
Hospital facility—was discovered. These materials had not been previously identified in
the site evaluation and required considerable excavation and removal. As a result, the
structural engineering team had to revise the civil design plans to incorporate site
stabilization and appropriate backfill to support the future foundation of the Animal
Services Facility. This redesign and remediation effort contributed to measurable
construction delays.
Compounding these issues, progress was also hindered by multiple severe weather
events that created unsafe conditions and restricted access to the site. The following list
details significant weather occurrences that contributed to work stoppages between April
2024 and April 2025:
Documented Inclement Weather Events:
• April 28-29, 2024: Heavy rainfall and coastal flooding with wind gusts up to 40
mph; tides rose 2.5 feet above normal.
• May 2, 2024: Flash flooding caused by 2-6 inches of rainfall; resulted in road
closures and widespread power outages.
• May 13, 2024: Severe thunderstorms with wind speeds exceeding 60 mph, large
hail, and increased flood risk.
• May 16-17, 2024: Regional derecho event with 100 mph winds and multiple
tornadoes impacting Southeast Texas.
• December 26, 2024: Strong storms with gusts up to 60 mph and 1-inch hail;
tornado watch issued.
• December 28, 2024: EF-3 tornado passed just south of Port Arthur, causing
extensive regional damage and reported injuries.
• January 21, 2025: A rare blizzard dropped 4.5 inches of snow—marking the
second-highest snowfall ever recorded for the area.
These extreme weather events created hazardous working conditions, causing site
shutdowns and delaying progress. In addition, March 27, 2025, findings of incompetent
soil in the northeast quadrant of the site require further environmental remediation and
backfill before the construction of the public parking area can proceed. These steps will
involve additional excavation, geotechnical testing, environmental clearance, and material
placement to ensure the long-term stability and safety of the structure.
Throughout the course of construction, City staff and the contractor have provided several
formal updates to the City Council to ensure transparency and accountability. These
efforts were particularly responsive to inquiries made by Councilmember Thomas Kinlaw,
III, who requested additional discussion and presentations to keep the public informed:
• September 17, 2024: A joint presentation by staff and the contractor was delivered
to the City Council providing a status update and summary of initial construction
challenges.
• September 24, 2024: Councilmember Kinlaw requested a follow-up discussion on
the project, where the presence and removal of buried concrete pilings were
identified as a key factor contributing to early delays.
• October 3, 2024: Another update was requested by Councilmember Kinlaw to
further address the construction timeline and weather-related complications.
• December 3, 2024: The contractor presented a detailed update on project
conditions, weather disruptions, and adjustments to the construction sequence.
Additionally, on April 9, 2025, a brief video highlighting visible progress at the Animal
Services Center construction site was distributed via email to all City Councilmembers.
The video served to provide a visual update on current construction activities and reaffirm
the continued advancement of the project despite prior setbacks.
These updates, along with routine monitoring and third-party engineering oversight,
reflect the City's commitment to transparency and effective communication in managing
this critical capital improvement effort.
It is not uncommon for large-scale public construction projects to experience delays
stemming from unforeseen site conditions, permitting complexities, weather disruptions,
or necessary design modifications. In such cases, contract extensions are typically
considered to ensure compliance with engineering standards and to allow for the delivery
of a safe, high-quality final product. The imposition of liquidated damages contractual
penalty for missed deadlines—is generally reserved for cases where the contractor fails
to meet revised completion milestones that have already accounted for justified delays.
Given the substantiated factors contributing to the current delay—including geotechnical
remediation, the removal of legacy materials, and extended weather impacts—it is both
reasonable and appropriate to grant a time extension at this phase of construction rather
than pursue liquidated damages.
As a result of these cumulative delays, the contractor is requesting a 214-calendar-day
extension to allow for the continued and compliant construction of the Animal Services
Center. This request is submitted in conjunction with Change Order No. 1, which reflects
the associated costs of excavation, remediation, and additional site preparation work.
Budget Impact:
The Port Arthur City Council previously approved a total project budget of $9.65 million
for the construction and furnishing of the new Animal Services Center. This funding was
made available through the sale of Certificates of Obligation issued by the City in two
series: $6.65 million from the 2021 Series and an additional $3 million from the 2023
Series.
The original construction contract with Construction Zone of Southeast Texas was
awarded in the amount of $7,365,000.00. The proposed Change Order No. 1 would
authorize an increase of$426,585.34 to that amount, resulting in a revised contract total
of$7,791,585.34.
If approved, this change will leave a remaining project budget of $1,858,414.66, which
will be used to complete the remaining phases of the project. This includes the purchase
and installation of office furniture, specialized equipment, and other apparatus
necessary for the operation and functionality of the Animal Services Center.
Funds are available in Capital Improvement Project/Buildings Account No. 307-21-
049-8512-00-10-000; Project No. BU0008 to support this change order and continue
progress toward the successful completion of the facility.
Recommendation:
Staff recommend that the City Council approve Proposed Resolution No. 24304
authorizing the City Manager to execute Change Order No. 1 with Construction Zone of
Southeast Texas, increasing the total contract amount to $7,791,585.34 and extending
the construction period by 214 days.
P.R. NO. 24304
04/25/2025 PDL
Page 1 of 5
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT ARTHUR,
TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE CHANGE
ORDER NO. 1 TO THE CONTRACT WITH CONSTRUCTION ZONE OF
SOUTHEAST TEXAS FOR THE CONSTRUCTION OF THE ANIMAL
SERVICES CENTER BUILDING, INCREASING THE CONTRACT AMOUNT
BY $426,585.34 TO A NEW TOTAL OF $7,791,585.34, AND EXTENDING
THE CONTRACT TIME BY 214 DAYS; FUNDING AVAILABLE IN CAPITAL
IMPROVEMENT PROJECT/BUILDING ACCOUNT NO. 307-13-041-8512-00-
10-000; B00008 PENDING APPROVAL OF BUDGET AMENDMENT PO
7331.
WHEREAS, on February 27, 2024, the City Council of the City of Port Arthur approved
a contract with Construction Zone of Southeast Texas for the construction of the Animal
Services Center Building; and,
WHEREAS, Tolunay-Wong Engineers conducted a Geotechnical Engineering
Construction Materials Testing on July 20, 2023, and has continued to monitor construction
activities at the site; and,
WHEREAS, on March 27, 2025, Tolunay-Wong Engineers determined that the soil in
the northeast corner of the site was incompetent at a depth of four(4)feet, requiring additional
excavation and backfill with stabilizer or select fill material to meet construction standards for
the visitors' parking lot; and,
WHEREAS, during construction, the contractor encountered several unforeseen
conditions, including the removal of pre-existing concrete footings from previous property use,
as well as delays caused by multiple severe weather events between April 2024 and April
2025, which have impacted construction activities; and,
WHEREAS, the requested Change Order No. 1 will increase the contract amount by
$426,585.34 for a revised contract total of $7,791,585.34, and extend the contract time by
214 calendar days; and,
P.R. NO. 24304
04/25/2025 PDL
Page 2 of 5
WHEREAS, funding for this change order is available in Capital Improvement
Project/Buildings Account No. 307-21-049-8512-00-10-000; Project No. B00008 pending
approval of Budget Amendment PO 7331.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PORT ARTHUR:
Section 1. That the facts and opinions in the preamble are true and correct.
Section 2. That the City Council hereby authorizes the City Manager to execute
Change Order No. 1 to the contract with Construction Zone of Southeast Texas, increasing
the contract amount by $426,585.34 for a revised total of $7,791,585.34 and extending the
contract duration by 214 calendar days.
Section 3. That a copy of the executed Change Order No. 1 shall be filed in the office
of the City Secretary and Development Services Department.
Section 4. That this Resolution shall be effective immediately upon its passage.
READ, ADOPTED, AND APPROVED on this day of April, A.D., 2025, at a
Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote:
AYES:
Mayor:
Councilmembers: ,
Noes:
Thurman Bill Bartie, Mayor
ATTEST:
Sherri Bellard, TRMC, City Secretary
P.R. NO. 24304
04/25/2025 PDL
Page 3 of 5
APPROVED AS TO FORM:
Roxann Pais Cotroneo, City Attorney
APPROVED F.1.i MIN = RATION:
Ronald "Ro Trton, CPM, City Manager
APPROVED AS TO AVAILABILITY OF FUNDS:
1)a'() PO
ve.,; 646.(ieee -76•2) Ow, (f_,,AIL
yn•a Boswell, Finance Director Clifton Williams, CP B,
Purchasing Manager
P.R. NO. 24304
04/25/2025 PDL
Page 4 of 5
Attachment
Change Order#1 R
CZ PURCHASE ORDER
CONSTRUCTIONZONE n
OF SOUTH EAST TEXAS WORK ORDER
231 N Twin City Highway,Nederland,TX 77627 111 CHANGE ORDER
Phone:(409)729-8989,Fax:(409)729-8987
To: City of Port Arthur BACK CHARGE
Owner: City of Port Arthur
Project Name: Animal Services
Contact: Pamela D. Langford-Purchasing Manager Address:
Phone: City/St/Zip:
DATE DATE REQ. TERMS CZ JOB NUMBER COST CODE
4/24/2025
QUANTITY DESCRIPTION UNIT PRICE TOTAL
PCR#
1 VE Items $ (67,564.00)
2 Site Changes $ -
4 In line sanitizer $ 8,275.00
5 Demo concrete $ 11,167.00
6 Added Hydrant $ 16,828.00
7 ASI#01 $ 15,941.00
9 Gear $ 49,350.00
11 R5 ASI#04 spread footings $ 139,058.00
12 General Conditions for PCR#115R $ 93,447.00
13 Unsuitable Soil at Visitors Parking per report from TWE $ 95,011.00
NOTE: If city adds CO#1 R to the contract,and not use out of contingency
use this number
217 Added calendar days April 27,2025,new date November 27,2025
This work order is also subject to the A107 Contract
between Construction Zone and City of Port Arthur
including AIA 201 General Conditions&Construction Zone Sub total $ 361,513.00
Subcontractor Agreement available at www.cziglobal.com/plan.html 15% $ 54,226.95
Bonds&Ins. 3% $ 10,845.39
Total $ 426,585.34
Original Contract Amount $ 7,365,000.00
Net Change by Previous Change Orders $ -
Contract Amount Prior to this Change Order $ 7,365,000.00
This Change Order Amount $ 426,585.34
New Contract Amount including this Change Order $ 7,791,585.34
ACCEPTED BY
CUSTOMER SIGNATURE AUTHORIZED CZ REPRESENTITIVE
Project Manager
TITLE DATE TITLE
P.R. NO. 24304
04/25/2025 PDL
Page 5 of 5
Attachment
OP Tolunay-Wong Engineers,Inc.
TOLUNAY WING 2455 W.Cardinal Drive,Suite
Beaumont,Texas 77705
ENGINEERS Ph:(409)840-4214 Fax:(409)840-4259
REPORT OF
CONSTRUCTION SURVEILLANCE SERVICES
PROJECT: P.O. 307-21-049-8512-00-10-000 PAGE 1 OF 1
New Animal Shelter
City of Port Arthur PROJECT NO.: 24.21.136
CLIENT: City of Port Arthur REPORTNO.: 164436
Attn: Darlene Thomas-Pierre DATEOFSERVICE: 03/27/2025
P. O. Box 1089 REPORTDATE: 03/28/2025
Port Arthur TX 77641
SERVICES: To monitor daily construction activities by the client/contractor.
REPORT OF TESTS
On March 27, 2025, TWE representative Michael Hebert reported to the above project site to
monitor construction activities as requested by our client. On this date, the Contractor
continued excavation for south parking lot.
Today's site visit observed this area concluded existing soil in northeast corner to be
incompetent at depth of four (4) feet, and additional excavation is required to reach compentent
material. Soil was noticably pumping with personnel walking on and the same was witnessed with
contractor's equipment. Confirming with geotechnical report, contractor is clear to excavate an
additional one (1) foot to reach competent material. Original recommendation was to excavate
and install eight (8) inches of stabilized or one (1) foot of select fill below concrete paving
for parking lot area.
Technician: Michael Hebert, Project Manager TOLUNAY-WONG ENGINEERS, INC.
Report Distribution:
(1)City of Port Arthur
(1)John Polk �(1)Tim Meehan 7- — / -'
Michael Hebert
Project Manager
Our letters and reports are for the exclusive use of the client to whom they are addressed and shall not be reproduced except in full without the
1099MH approval of the testing laboratory. The use of our name must receive our written approval. Our letters and reports apply only to the sample
tested and/or inspected,and are not indicative of the quantities of apparently identical or similar products.
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