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Home My WebLink AboutPR 24765: CHANGE ORDRER NO. 1, 7TH STREET IMPROVEMENTS PROJECT - STADIUM ROAD TO DUFF DRIVE. City of or/ rf7r www.PortArthurTx.gov INTEROFFICE MEMORANDUM Date: January 30, 2026 To: The Honorable Mayor and City Council Through: Ron Burton, CPM, City Manager From: Suhail Kanwar, P.E.,M.S., CFM, Director of Public Services/City Engineer RE: PR No. 24765: Request for Approval of Change Order No. 1 - 7th Street Improvements Project — Stadium Road to Duff Drive. Project No. ST3047.CON Capital Account No. 307-21-053- 8517-00-10-000. Elite Contractors & Equipment, LTD, of Kirbyville,Texas Introduction: The intent of this memorandum is to request City Council's approval of Change Order No. 1 to the construction agreement with Elite Contractors & Equipment, LTD, of Kirbyville, Texas (Elite Contractors), for the 7th Street Improvements Project—Stadium Road to Duff Drive,for the decreased contract amount of$123,257.00. Background: The City of Port Arthur's Engineering Division,based on historical data,identified streets that were in poor condition and recommended them for Reconstruction,Remediation,and Rehabilitation. The 7th Street Improvements Project: Stadium Road to Duff Drive has been identified as in need of reconstruction. Pursuant to Resolution No. 25-296, City Council awarded the construction contract to Elite Contractors for a contract amount of$2,828,270.00 with an estimated completion date of October 30,2026. The 7th Street Improvement Project discovered that a previously unknown sanitary sewer line conflicts with the proposal storm sewer system and a conflict box is required to protect the sanitary line from the storm water system. 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. 1. Change Order No. 1 is being submitted by Elite Contractors for a conflict box,water line casing,point repair,and removal of bid line item regarding sewer construction that will not be performed from the contract; Sewer line installation—bid item 1B, & post-construction TV inspection—bid item 3B. These changes decrease the contract amount by a total of $123,257.00. "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 S:\Engineering\PUBLIC WORKS\PW-ENGINEERING\C.I.P.PROJECTS\Year 2025\7th ST.Stadium Rd to Duff Dr\Change Orders\Change Order 1\Agenda Memo ELITE_CO 1.docx Budget Impact: Funds are not impacted by this request.Project No. ST3047.CON. Recommendation: It is recommended that the City of Port Arthur's City Council approve PR No. 24765 for Change Order No. 1 to the construction agreement with Elite, for the 7th Street Improvements Project—Stadium Road to Duff Drive, decreasing the original contract of $2,828,270.00 by $123,257.00, for a new contract amount of $2,705,013.00. Project No. ST3047.CON. "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 24765 01/30/2026 RLD Page 1 of 4 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE CHANGE ORDER NO. 1 TO THE CONSTRUCTION CONTRACT WITH ELITE CONTRACTORS & EQUIPMENT, LTD, OF KIRBYVILLE, TEXAS FOR THE 7TH STREET IMPROVEMENTS PROJECT-STADIUM ROAD TO DUFF DRIVE DECREASING THE CONTRACT BY $123,257.00, FOR A NEW CONTRACT AMOUNT OF $2,705,013.00. FUNDING IS NOT IMPACTED. PROJECT NO. ST3047.CON. WHEREAS, a street rehabilitation plan has been developed by the Public Works Engineering Division to address streets that are in immediate need of reconstruction, remediation, and rehabilitation; and, WHEREAS, the Engineering Division has selected the 7th Street Improvements Project — Stadium Road to Duff Drive because it met the criteria; and, WHEREAS, the City of Port Arthur's Purchasing Department publicized its Invitation to Bid for interested parties to bid on the project on April 30, 2025 and May 7, 2025 under Bid No. P25-051; and, WHEREAS, a total of four (4) bids were received and opened on June 4, 2025 from Allco, LLC, of Beaumont, Texas; Brystar Contracting, Inc. of Beaumont, Texas; Eastex Utility Construction, LLC, of Beaumont, Texas; and Elite Contractors & Equipment, LTD, of Kirbyville, Texas; and, WHEREAS, pursuant to Resolution No. 25-296, the City entered into an agreement with Elite Contractors & Equipment, LTD, of Kirbyville, Texas for the 7th Street Improvements Project— Stadium Road to Duff Drive for the amount of $2,828,270.000; and, PR 24765 01/30/2026 RLD Page 2 of 4 WHEREAS, the 7th Street Improvement Project contractors discovered that a previously unknown sanitary sewer line conflicts with the proposal storm sewer system and a conflict box is required to protect the sanitary line from the storm water system. 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. 1, see Exhibit A; and, WHEREAS, Change Order No. 1 is being submitted by Elite Contractors & Equipment, LTD for the Field Authorization approved on January 16, 2026 for the conflict box, water line casing, point repair, and the removal of bid items regarding sewer construction that will not be performed from the contract; Sewer line installation — bid item 1B, & post-construction TV inspection — bid item 3B. These changes decrease the contract amount by $123,257.00, changing the previous contract amount of $2,828,270.00 to the new contract amount of $2,705,013.00, see Exhibit A; and, WHEREAS, approval of PR No. 24765 for Change Order No. 1 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, the City Council herein approves Change Order No. 1 and authorizes the City Manager to execute said Change Order to the contract with Elite Contractors & Equipment, LTD, of Kirbyville, Texas for the Field Authorization approved on January 16, 2026 for the PR 24765 01/30/2026 RLD Page 3 of 4 conflict box, water line casing, point repair, and the removal of bid items regarding sewer construction that will not be performed from the contract; Sewer line installation — bid item 1B, & post-construction TV inspection — bid item 3B. These changes decrease the contract amount by $123,257.00, changing the previous contract amount of $2,828,270.00 to the new contract amount of $2,705,013.00, see Exhibit A; and, THAT, the City Manager is authorized to execute Change Order No. 1 with Elite Contractors & Equipment, LTD, of Kirbyville, Texas, in substantially the same form, attached hereto as Exhibit B; and, THAT, a copy of the Resolution shall be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED this the day of , A.D., 2026, at a of the City Council of the City of Port Arthur, Texas, by the following vote: Ayes: Mayor: Councilmembers: Noes: Charlotte M. Moses Mayor I PR 24765 01/30/2026 RLD Page 4 of 4 ATTEST: Sherri Bellard, TRMC City Secretary APPROVED AS TO FORM: APPROVED FOR ADMINISTRATION - • `001 Roxann; Pais Cotroneo, Esq. Ron City Attorney City Mana•- APPROVED AS TO AVALIABILITY OF FUNDS: f , �< Lynda (Lyn) Boswell, MA, ICMA-CM Finance Director Suhail Kanwar, PE Director of Public Services/City Engineer CAM, Clifton illiams, CPPB Purchasing Manager EXHIBIT A CHARLOTTE M.MOSES,MAYOR RONALD BURTON,CPM HAROLD L.DOUCET,SR., City of CITY MANAGER MAYOR PRO TEM SHERRI BELLARD,TRMC COUNCIL MEMBERS: _� CITY SECRETARY WILLIEBAE LEWIS,JR. or! rthur TIFFANY L.HAMILTON EVERFIELD ROXANN PAIS COTRONEO DONEANE BECKCOM T� `1 CITY ATTORNEY THOMAS KINLAW,III DONALD FRANK,SR. PROJECT FIELD ORDER Project Name: Proposed Improvements to 7th Field Order No. 1 Street Date: January 14, 2026 Engineer: Soutex Surveyors & Engineers Contractor: Elite Contractors & Equipment Basis of Change: Field Work Order - Task Adjustment to Contract Sum: -$123,257.00 Contractor is authorized and directed to proceed with the following: See attached: Conflict box, Three potential casings for a water line conflict, appoint repair on a sanitary Sewer line and rehabilitation of the 8" sewer line. Elite Contractors!uipment .te Suhail Kanwar, PE, City Engineer Date I►' Ji. Ron Burton,!'jre ager Date Dr. Hani Tohme,P 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 TBPE Firm No.F-5755 OUTEX : T: 1 rthur,Texas 77642 SURVEYORS&ENGINEERS --S Office(409) 983.2004 Fax(409)983.2005 January 14, 2026 City of Port Arthur 444 4th Street Port Arthur,Texas 77640 Re: Proposed Improvements to 7th Street—Field Change Order No. 1 Please see the attached letters from Elite Contractors& Equipment. Items include a conflict box- Increase of $18,848, up to three potential casings for a water line conflict- Increase of$11,850 ($3,950 each for non- welded casing), a point repair on a sanitary sewer line- Increase of$10,545.The items for rehabilitation of the 8" sewer line are to be deducted from the contract. Sewer line installation - Decrease of$157,500, post- construction camera (TV) inspection - Decrease of$7,000.00.The contract amount will decrease by a total of $123,257.00,for a new contract amount of$2,705,013.00. Background: • Conflict box—it was discovered during construction that a previously unknown sanitary sewer line conflicts with the proposed storm sewer system and a conflict box is required to protect the sanitary line from the storm water system. • Water line casing—it was discovered during construction that at existing water line conflicts with several proposed storm sewer inlets, and these lines will need additional casing to protect the water lines. (The item for welded casing will be included as a bid item in case any future conflicts are discovered, but it is not anticipated to be used at this time) • Point repair—the sanitary line was inspected via video camera as part of this project. It was determined to be in good condition and rather than replace the entire sewer line only a short length needs to be replaced as a point repair. • Since it was determined that it is not necessary to replace the entire sewer line,the city will remove the bid items regarding sewer construction that will not be performed from the contract; Sewer line installation -bid item 1B, & post-construction TV inspection—bid item 3B. If you have any questions, please contact our office. Respectfully submitted, Jerem, A+ _ - AI RPLS 411, Approved b Approved by:( A pp y: Dr. Hani Tohme Rona d B • City of Port Arthur City -ger „2 41 EXHIBIT B CITY OF PORT ARTHUR Public Works Engineering DATE: January 30,2026 PROJECT: 7TH STREET IMPROVEMENT PROJECT OWNER: CITY OF PORT ARTHUR CONTRACTOR: ELITE CONTRACTORS&EQUIPMENT,LTD CHANGE ORDER NO.: 1 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 Quantity New Amount No. Quantity SCOPE 1 Conflict Box $ 18,848.00 2 Water Line Casing $ 3,950.00 3 $ 11,850.00 3 Point Repair on a Sanitary Sewer Line $ 10,545.00 1B Removal of Sewer Line Installation from Bid Line items $ (157,500.00) 3B Post-Construction TV Inspection $ (7,000.00) No additional Calendar Days added at this time. TOTAL CHANGE ORDER $ (123,257.00) ORIGINAL CONTRACT AMOUNT $ 2,828,270.00 NEW CONTRACT $ 2,705,013.00 AMOUNT ORIGINAL CONTRACT AMOUNT:!$ 2,828,270.00 TOTAL AMOUNT OF CHANGE ORDER NO.1: $ (123,257.00) TOTAL PERCENT CHANGE ORDER No.1: NEW CONTRACT AMOUNT: $ 2,705,013.00 PREPARED BY: APPROVED BY: K 2 Roeisha L Diaz,Engineering Administration Suhail Kanwar,PE,City Engineer APPROVED BY: APPROVED BY: //� ��- / 4/I! 1: ILr/"YA4f� Elite Contractors&Equipment,LTD Clifton Williams,CPPB,Purchasing Manager APPROVED BY: APPROVED BY: ‘1111141P'4•4 •• Vli/Asf Dr.Hani Tohme,PE,Consultant Ron Burton,CP ,�, r S:\Engineering\PUBLIC WORKS\PW-ENGINEERING\C.I.P.PROJECTS\Year 2025\7th ST.Stadium Rd to Duff Dr\Change Orders\Change Order 1\7th Street_CO 1_Elite