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INTEROFFICE MEMORANDUM
Date: November 12, 2025
To: The Honorable Mayor and City Council
Through: Ron Burton, City Manager
From: Suhail Kanwar, P.E., M.S., CFM, ENV SP, Director of Public Services/City Engineer
RE: PR No. 24645: Port Acres Drainage Improvement Project — Change Order No. 7:
Reinforced concrete box culvert size change. Project No. DR1P03A. Account No. 307-
21-055-8515-00-10-000.
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. 7 with Allco,LLC,(Allco)of Beaumont,Texas,for the reinforced concrete
box culvert size change for the estimated savings amount of$205,397.16. Project No. DR1P03A.
Account No. 307-21-055-8515-00-10-000.
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.
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 and the addition of
fifteen (15) calendar days to the contract completion date of July 13, 2025, changing it to the new
contract completion date of July 28, 2025. Also, the addition of 150 LF of water line relocations,
which increased the contract by $196,037.00 to the new contract amount of$33,510,104.77.
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 Resolution 25-162, Change Order No. 5, approved by Port Arthur's City Council, was
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 therefor 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
"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
public 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 proposed to change
the contract completion date of August 12, 2025 to the new contract completion date of November 9,
2026.
Pursuant to Resolution 25-163, Change Order No. 6,was 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 included
460 LF of C900 PVC pipe, two 16" gate valves, one 10" gate valve, associated fittings, and labor.
Additionally, Change Order No. 6 included stabilization of the edge of 65th Street adjacent to the box
installation for the amount of$19,180.00. This pricing included 500 LF of stabilized sand 1'-6"Wide
by 4'-0" Deep, material, labor and equipment. Lastly, Change Order No. 6 included 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 posed a significant obstacle to the planned drainage improvements for this project. Change
Order No. 6 increased the contract amount of$33,565,895.19 by $832,006.00 to the new contract
amount of$34,397,901.19.
Change Order No. 7 is being submitted by Allco for the reinforced concrete box culvert size, by
adjusting the remaining quantity of dual 12'x4' to 10'x5' box culverts due to elevation differences
along Hwy.365,resulting in a cost savings of$84.14 per linear foot,with a proposed estimated savings
in the amount of$205,397.16, to a new contract amount of$34,192,504.03.
Budget Impact:
No funding impact to the contract at this time. Project No. DR1P03A. Account No. 307-21-055-
8515-00-10-000.
Recommendation:
It is recommended that the City of Port Arthur's City Council approve PR No. 24645, authorizing the
City Manager to accept Change Order No. 7 from Allco, LLC, of Beaumont,Texas,for the reinforced
concrete box culvert size, by adjusting the remaining quantity of dual 12'x4' to 10'x5' box culverts
due to elevation differences along Hwy. 365, resulting in a cost savings of$84.14 per linear foot.
Proposed estimated savings in the amount of $205,397.16, to a new contract amount of
$34,192,504.03. Project No. DR1P03A. Account No. 307-21-055-8515-00-10-000.
"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. 24645
11/12/2025 RLD
Page 1 of 6
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
CHANGE ORDER NO. 7 TO THE CONTRACT BETWEEN THE CITY OF PORT
ARTHUR AND ALLCO, LLC, OF BEAUMONT, TEXAS, FOR THE PORT ACRES
DRAINAGE IMPROVEMENT PROJECT, FOR THE REINFORCED CONCRETE
BOX CULVERT SIZE CHANGE, WITH ESTIMATED SAVINGS TO THE
CONTRACT OF $205,397.16. PROJECT NO. DR1P03A. ACCOUNT NO. 307-
21-055-8515-00-10-000.
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'\Engineering\PUBLIC WORKS\PW-ENGINEERING\C.I.P.PROJECTS\Year 2023\DRAINAGE PROJECTS\Port Acres\Change Orders\Change Order 7\PR 24645 Port Acres CO 7.docr
PR No.24645
11/12/2025 RLD
Page 2 of 6
WHEREAS, pursuant to Resolution No. 24-032, the 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 and the addition of fifteen (15) calendar days to the contract completion date of
July 13, 2025, changing it to the new contract completion date of July 28, 202. 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,
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,
WHEREAS, the Port Acres Drainage Improvement Project, to date, has encountered
1 several delays which warrants an extension of time to ensure drainage improvements are
PR No. 24645
11/12/2025 RLD
Page 3 of 6
completed effectively to benefit the residents of Port Acres and the City of Port Arthur, as a
whole; and,
WHEREAS, pursuant to Resolution No. 25-162, Change Order No. 5, approved by Port
Arthur's City Council, was submitted by Allco, to add four hundred fifty-five (455) calendar days
to the contract completion date of August 12, 2025 changing it to the new contract completion
date of November 9, 2026; 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; and,
WHEREAS, to that end, pursuant to Resolution No. 25-163, Change Order No. 6, was
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; also including 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 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 that
increase the contract amount of $33,565,895.19 by $832,006.00 to the new contract amount of
$34,397,901.19; and,
S.\Engineering\PUBLIC WORKS\PW-ENGINEERING\C.I P PROJECTS\Year 2023\DRAINAGE PROJECTS\Port Acres\Change Orders\Change Order 7\PR 24645 Port Acres CO 7.docx
4
PR No. 24645
11/12/2025 RLD
Page 4 of 6
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. 7, see Exhibit A; and
WHEREAS, Change Order No. 7 is being submitted by Allco for the reinforced concrete
box culvert size, by adjusting the remaining quantity of dual 12'x4' to 10'x5' box culverts due to
elevation differences along Hwy. 365; resulting in a cost savings of $84.14 per linear foot, see
Exhibit B; and,
WHEREAS, Change Order No. 7 proposes estimated savings in the amount of
$205,397.16, to a new contract amount of $34,192,504.03; and,
WHEREAS, approval of PR No. 24645 for Change Order No. 7 is herein deemed an
appropriate action; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR,
TEXAS:
THAT, the facts and opinions in the preamble are true and correct; and,
THAT, Change Order No. 7 is herein approved and the City Manager is hereby authorized
to execute said Change Order No. 7 to the contract between the City of Port Arthur and Allco,
LLC, of Beaumont, Texas; and,
THAT, Change Order No. 7 is being submitted by Allco for the reinforced concrete box
culvert size, by adjusting the remaining quantity of dual 12'x4' to 10'x5' box culverts due to
elevation differences along Hwy. 365; resulting in a cost savings of $84.14 per linear foot; and,
PR No. 24645
11/12/2025 RLD
Page 5 of 6
THAT, Change Order No. 7 proposes estimated savings of $205,397.16, to a new contract
amount of $34,192,504.03; 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:
Council members:
Noes:
Charlotte M. Moses
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 7\PR 24645 Port Acres CO 7.doce
PR No. 24645
11/12/20255 RLD
Page of
APPROVED AS TO FORM: APPROVED FOR ADMINISTRATION:
411441,t
**Fr
Roxann Pais Cotroneo, Esquire Ron Burton,/ -
City Attorney City Mana
APPROVED AS FOR AVAILABILITY OF
FUNDS:
Lynda y Boswell, MA, IC A-CM
Director of Finance
Suhail Kanwar, PE
Director of Public Services/City Engineer
AtL,
Clifton Williams, CPPB
Purchasing Manager
5:\Engineering\PUBLIC WORKS\PW-ENGINEERING\C.I.P.PROJECTS\Year 2023\DRAINAGE PROJECTS\Port Acres\Change Orders\Change Order 7\PR 24645 Port Acres CO 7.docs
EXHIBIT A
/
CHARLOTTE M.MOSES,MAYOR xnr, ,l RONALD BURTON,CPM
HAROLD L.DOUCET,SR., City of c,n CITY MANAGER
MAYOR PRO TEM
Afe/ SHERRI BELLARD,TRMC
COUNCIL MEMBERS: — CITY SECRETARY
WILLIE BAE LEWIS,JR. rr r t r t h u r "
TIFFANY L.HAMILTON EVERFIELD Text7s ROXANN PAIS COTRONEO
DONEANE BECKCOM CITY ATTORNEY
THOMAS KINLAW,III
DONALD FRANK,SR.
PROJECT FIELD ORDER
Project Name: Port Acres Drainage Field Order No. 1
Improvement Project
Date: October 24, 2025 Engineer: Arceneaux Wilson & Cole
LLC
Contractor: Allco LLC Basis of Change: Field Work Order - Task
Adjustment to Contract Sum: -$205,397.16
Contractor is authorized and directed to proceed with the following:
See attached: Reinforced Concrete Box Culvert Size Change
,, ,'o/Z7/wz-S
Allco LLC Date Suhail Kanwar, PE, City Engineer Date
sV\ /o ),3101, S
Ron Burton, CPM, i anager Date Dr. Hani Tohme, PE, Consultant Date
"Remember,we are here to serve the Citizens of Port Arthur"
444 4th Street X Port Arthur,Texas 77641-1089 X 409.983.8182 X FAX 409.983.8294
EXHIBIT B
.tarsi
ARCENEAUX WILSON&COLE
engineering I surveying I planning
October 24, 2025
ATTN: Suhail Kanwar, PE
City of Port Arthur
PO Box 1089
Port Arthur,TX 77641
RE: REQUEST FOR FIELD AUTHORIZATION - PORT ACRES DRAINGE IMPROVEMENTS
Dear Mr. Kanwar,
Please use this letter as our formal request that the City of Port Arthur consider submitting a field
authorization for necessary adjustments and revisions related to the ongoing drainage project in Port
Acres.These revisions are crucial for ensuring the successful completion of the work while
accommodating unforeseen obstacles and requirements.The items we request to be included in the
upcoming change order are as follows:
Reinforced Concrete Box Culvert Size Change
Adjust remaining quantity of dual 12'x4'to 10'x5'box culverts due to elevation differences along Hwy
365 resulting in a cost savings of$84.14 per linear foot,with an estimated total credit of-$205,397.16.
The previous quantity approved through change order was approximately 1,491 LF,this authorization
will cover the remaining linear footage in the project.
Total estimated cost to be included in next change order: -$205,397.16
We respectfully request written authorization to proceed with these revisions while the change order
undergoes formal review and approval by City Council. Prompt written approval will help avoid project
delays and ensure continued progress in accordance with the established schedule. Please do not hesitate
to contact us if additional documentation or clarification is required.
Sincer ,
.G�
Derek J. Graffagnin , PE
Project Manager
Arceneaux Wilson&Cole LLC
409.724.7888
3120 Central Mall Drive
Port Arthur,TX 77642 Engineering Surveying
awceng.com F-16194 10194049
CITY OF PORT ARTHUR
Public Works Engineering
DATE: MAY 23,2025
PROJECT: PORT ACRES DRAINAGE IMPROVEMENT PROJECT
OWNER: CITY OF PORT ARTHUR
CONTRACTOR: ALLCO,LLC OF BEAUMONT,TEXAS
CHANGE ORDER NO.: 7
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 Reinforced Concrete Box Culvert Size Change
Dual 10'x5'box culverts due to elevation differences LF $ 84.14 $ (205,397.16)
-Adjust remainiing quantity of dual 12'x4'
NO FUNDS ARE IMPACTED TOTAL CHANGE ORDER $ (205,397.16)
NEW CONTRACT
PREVIOUS CONTRACT AMOUNT $33,565,895.19 AMOUNT $34,192,504.03
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
TOTAL AMOUNT OF CHANGE ORDER NO.3: $ 196,037.00
TOTAL AMOUNT OF CHANGE ORDER NO.4: $ 55,790.42
TOTAL AMOUNT OF CHANGE ORDER NO.5: $ -
TOTAL AMOUNT OF CHANGE ORDER NO.6: $ 832,006.00
TOTAL AMOUNT OF CHANGE ORDER NO.7: $ (205,397.16)
PERCENT OF CHANGE ORDER NO.1: -4.98%
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%
PERCENT OF CHANGE ORDER NO.6: 0.00%
PERCENT OF CHANGE ORDER NO.7: 0.00%
TOTAL PERCENT OF CHANGE ORDERS NOS.1,2,3,4,5&6: 0.02%
NEW CONTRACT AMOUNT: $ 34.192.504.03
CONTRACT COMPLETION DATE:I November 9,2026
NO CALENDAR DAYS HAVE BEEN ADDED TO CHANGE ORDER NO.7
PAREPARED BY: APPROVED BY:
,R04.A. �Ga�rr
Roeisha L.Diaz,Engineering Admin. Suhail Kanwar,PE,Director of Public ServicesCity Engineer
APPROVED BY: APPROVED BY:
Brandon Harrison,ALLCO,LLC. Derek Graffagnino,Senior Project Manager,AWC
APPROVED BY: APPROVED BY:
Dr.Hani Tohme,PE,Consultant Clifton Williams,CPPB,Purchasing Manager
APPROVED BY: 41114.111.411tw
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Ron Burt , ity i : r
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