HomeMy WebLinkAboutPR 24832 AMEND PLANNING, ACQUISITION AND DESIGN SERVICES CONTRACT WITH FREESE & NICHOLS ii
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INTEROFFICE MEMORANDUM
Date: March 4, 2026
To: The Honorable Mayor and City Council
Through: Ronald Burton, CPM, City Manager
From: Calvin Matthews, P.E., Water Utilities Director
RE: PR 24832—Amend Planning, Acquisition and Design Services Contract with
Freese &Nichols, Inc. of Pearland, Texas
Introduction:
This agenda item is seeking the Council's approval to execute Amendment No. 2 with Freese
and Nichols, Inc. for the Main Wastewater Treatment Plant(WWTP)Improvements Project for
an increased amount of$359,141.35 to the new updated contract amount of$6,813,341.35.
Background:
Per Resolution No. 15-056, on February 17, 2015, Freese &Nichols, Inc. of Pearland, Texas
was awarded a contract for the planning, acquisition and design services for the rehabilitation
of the Main Wastewater Treatment Plant(WWTP) on Procter Street Extension in the amount
of$6,282,200.00.
On March 16, 2021, Resolution No. 21-091, approved Amendment No. 1 for an increased
contract amount of$172,000.00 bringing the total contract amount to $6,454,200.00.
Funding for the contract was obtained through the Texas Water Development Board (TWDB)
Planning, Acquisition, and Design(PAD) services for Main WWTP Loan No. L1000298
which currently has a remaining balance of$359,141.35.
The Utilities Department has found it necessary to recommend Amendment No. 2 to the contract
(Exhibit"A")in order to utilize the remaining funds from Texas Water Development Board(TWDB)
Loan No. L1000298 to provide continued construction phase engineering services for the Main
WWTP Improvements Project. The remaining PAD loan balance of$359,141.35 is available for
reallocation to support construction phase engineering services through June 30, 2026.
Approval of this proposed Amendment No. 2 is necessary to ensure the timely completion of the
project. The original loan for planning,acquisition and design was for$6,995,000.00. This contract
amendment will bring the total engineering cost from $6,454,200.00 to$6,813,341.35.
"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
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Budget Impact:
The total budgetary impact for this amendment is $359,141.35 and is available in Account No.
404-40-000-8516-00-00-000, Project No. TWO001
Recommendation:
It is recommended that City Council approve Proposed Resolution No. 24832 authorizing the
City Manager to amend contract previously approved with Freese &Nichols, Inc. of Pearland,
Texas, in order to use remaining funds from TWDB PAD Loan No. L1000298 to provide
continued construction phase engineering services for the Main WWTP Improvements Project
as described/outlined above.
"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. 24832
3/4/26 cm
Page 1 of 3
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE AMENDMENT NO. 2 TO THE CONTRACT
BETWEEN THE CITY OF PORT ARTHUR AND FREESE &
NICHOLS, INC. OF PEARLAND, TEXAS FOR THE
PLANNING, ACQUISITION AND DESIGN OF THE MAIN
WASTEWATER TREATMENT PLANT, INCREASING THE
CONTRACT AMOUNT BY$359,141.35,FOR A NEW TOTAL
CONTRACT AMOUNT OF $6,813,341.35; FUNDING IS
AVAILABLE IN ACCOUNT NO. 404-40-000-8516-00-00-000,
PROJECT NO. TW0001.
WHEREAS, the Texas Water Development Board (TWDB) approved a Planning,
Acquisition,and Design(PAD) services for the Main WWTP Loan No. L1000298 for$6,995,000;
and,
WHEREAS, per Resolution No. 15-056, on February 17th, 2015, Freese & Nichols, Inc.
was awarded a contract for the planning, acquisition and design services of the Main Wastewater
Treatment Plant (WWTP) on Procter Street Extension in the amount of $6,282,200.00 funded
through the TWDB PAD Loan No. L1000298; and,
WHEREAS,on March 16,2021, Resolution No. 21-091, approved Amendment No. 1 for
an increased contract amount of$172,000.00 to a new total contract amount of$6,454,200.00;
and,
WHEREAS,the TWDB PAD Loan No. L1000298 has an unused balance of$359,141.35
that can be reallocated towards construction engineering(Exhibit"B"); and,
WHEREAS, the Utilities Department has found it in the best interest of the citizens to
recommend Amendment No. 2 (Exhibit "A") to the original contract to use the remaining
$359,141.35 funds to provide continued construction phase engineering services for the Main
WWTP Improvements Project bringing the total new contract amount to $6,813,341.35.
PR No. 24832
3/4/26 cm
Page 2 of 3
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR,TEXAS:
THAT,the facts and recitals in the preamble are true and correct; and,
THAT, the City Manager of the City of Port Arthur is hereby authorized and directed to
execute Amendment No. 2 to the contract with Freese & Nichols, Inc. of Pearland, Texas, to
include the use of remaining funds in the TWDB PAD loan, increasing the contract by
$359,141.35, to a new total contract amount of$6,813,341.35; and,
THAT, funding is provided for in Account No. 404-000-8516-00-00-000, Project No.
TW0001; and,
THAT, a copy of the caption of this Resolution shall be spread upon the Minutes of the
Meeting of the City Council.
READ, ADOPTED, AND APPROVED this day of , 2026
at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote:
AYES: Mayor
Councilmembers:
NOES:
CITY OF PORT ARTHUR,TEXAS:
Charlotte M.Moses
Mayor
ATTEST:
Sherri Bellard
City Secretary
PR No. 24832
3/4/26 cm
Page 3 of 3
APPROVED AS TO FORM:
Roxann Pais Cotroneo
City Attorney
APPROVED FOR ADMINISTRATION:
0126
Ronald r on,` M
City Manager
Suhail Kanwar, P.E.
Director of Public Services
Ca yin Matthews, P.E.
Water Utilities Director
APPROVED AS TO T VAILABILITY
OF FUNDS:
Lynn(Lyn) Bos e 1, MA ICMA-CM
Finance Director
>4 Cv-A,
Clifton E. Williams Jr., CPPB
Purchasing Manager
Exhibit "A"
(Amendment)
FREESE PROFESSIONAL SERVICES AGREEMENT
?NICHOLS AMENDMENT#2
City of Port Arthur FNI Project No.: PTR15234
444 4th Street Port Arthur Project No.: R15056
Port Arthur,TX 77640 Date: 3/4/2026
Project Name: Planning, Acquisition, and Design of Port Athur Main WWTP
Description of Services: As noted in Attachment A
Deliverables: As noted in Attachment A
Schedule: As noted in Attachment A
Compensation Type: Lump Sum Fee
Current Contract Amount: $6,454,200
Amount of this Amendment: $359,141.35
Revised Total Amount Authorized: $6,813,341.35
The services described above shall proceed as amended upon execution of this Amendment. All other
provisions, terms, and conditions of the Professional Services Agreement which are not expressly amended
shall remain in full force and effect.
CITY OF PORT ARTHUR FREESE AND NICHOLS, INC.
By: By:
Name: Name: Murali Erat, PE
Title: Title: Vice President
Date: Date: 03/04/2026
Professional Services Agreement Amendment Page 1 of 1
Rev 07/22
CONSTRUCTION PHASE SERVICES OF
THE PORT ARTHUR MAIN WWTP FREESE Innovative approaches
rill a oNICHOLS Practical results
Outstanding service
11200 Broadway Street,Suite 2320 • Pearland,Texas 77584 • 832-456-4700 • FAX 832-456-4701 www.reese.corn
SCOPE OF SERVICES AND RESPONSIBILITIES OF CITY
Project Understanding:
The City of Port Arthur(City) obtained Loan No. L1000298 through the Texas Water Development Board
(TWDB) for the planning, acquisition, and design (PAD) phases of the Main Wastewater Treatment Plant
(WWTP) Project in the amount of $6,995,000. The City and Freese and Nichols, Inc. (FNI) previously
executed a professional services agreement for these services in February 2015. The total contract
amount for these services was $6,454,200. FNI has completed all tasks and deliverables under this
agreement and prepared the construction documents for the Main WWTP Improvements Project.
Construction of the Main WWTP improvements is currently underway. Upon completion of the design
phase, a portion of the PAD loan (Loan No. L1000298) remains unexpended. Based on the most recent
outlay report,the unused balance of the PAD loan is$359,141.35.
The City secured a separate Loan No. L1001023 and Grant No. LF1001024 from TWDB for construction of
the Main WWTP Improvements Project in the amount of$60,560,000, including$2,100,000 allocated for
construction engineering services. FNI is providing construction phase engineering services under a
separate agreement with the City with a contract amount of$2,100,000, which has been fully expended
and has reached the end of its authorized term.
The City intends to use the remaining funds of$359,141.35 in the PAD loan to supplement construction
phase engineering services. TWDB advised that the remaining funds from the PAD loan cannot be
transferred to the construction phase loan. Accordingly,this amendment is proposed to the FNI contract
associated with the PAD Loan to use the remaining funds for construction phase engineering.
The remaining balance of $359,141.35 in the PAD loan is sufficient to support construction phase
1 engineering through June 30, 2026. This amendment allows the City to continue receiving necessary
construction phase engineering support through June 30,2026 while maintaining compliance with TWDB
funding requirements and continuity of professional services for the Main WWTP Improvements Project.
The current anticipated final completion date for the Project is October 28, 2027, and construction phase
engineering services required beyond June 2026 will be addressed under a subsequent contract
amendment.
Scope Amendment Summary: The contract amendment scope includes the following tasks required to
provide Construction Phase Services through June 30,2026:
• General and project management.
• General representation.
• Field inspection.
• Materials testing.
ARTICLE I
BASIC SERVICES: FNI shall render the following professional services in connection with the development
of the Project:
1 A. GENERAL AND PROJECT MANAGEMENT: FNI will provide general administrative and project
management services necessary to support continued construction phase engineering during the
amendment period, including coordination with the City, Contractor, and TWDB; progress monitoring
and scheduling coordination;routine correspondence,documentation,and invoicing;preparation and
4
I
Attachment A: Contract Amendment Scope of Services—Additional Construction Phase Services of Port
Arthur Main WWTP I March 2026
Page 2 of 4
submittal of monthly TWDB Outlay Reports;coordination with TWDB staff to support loan compliance;
and budget tracking and reporting to support management of the remaining loan funds.
B. GENERAL REPRESENTATION: FNI will continue to provide construction phase general representation
services to support ongoing construction activities during the amendment period.These services are
intended to supplement the existing construction phase engineering contract and include the
following:
1. Participate in up to nine (9) monthly construction progress meetings with the City and
Contractor and perform up to nine (9) site visits,typically conducted in conjunction with the
monthly progress meetings,to observe construction progress and general conformance with
the Contract Documents.
2. Review and processing of up to nine (9) contractor pay applications, including evaluation of
supporting documentation and recommendation of payment to the City.
3. Review and response to up to twenty(20) Requests for Information (RFIs).
4. Review of up to fifty-five (55) submittals, including shop drawings and product data,with up
to two (2) review cycles per submittal.
5. Review and processing of up to eighteen (18) contract modification items, including change
orders,field orders, or proposal requests.
6. Maintenance of project documentation and tracking of submittals, RFIs, and contract
modifications using FNI's document management system.
Construction phase general representation services under this amendment are anticipated to
extend through June 2026 and are limited to the available funding under Loan No. L1000298.
Startup and commissioning services, including planning, coordination,and field support, are not
included in this amendment. Substantial completion and final completion walkthroughs, punch list
development, and project closeout support are also not included.These services will be required to
complete the Main WWTP Improvements Project and are anticipated to be provided under a
subsequent contract amendment.
1111
C. FIELD INSPECTION: Furnish the services of one(1) Resident Project Representative(RPR)through
June 30, 2026.Total hours assumed for Construction Inspection services are based on one(1) RPR
for 20 hours per week.
D. MATERIALS TESTING: Retain and monitor the services of a subconsultant to provide Construction
Materials Testing for the purposes of City quality assurance during construction.An allowance of
$30,000 is assumed for the amendment period through June 30, 2026. Materials testing beyond this
allowance is an Additional Service.
ARTICLE II
ADDITIONAL SERVICES: Any services performed by FNI that are not included in the Basic Services
described above are Additional Services.
Attachment A: Contract Amendment Scope of Services—Additional Construction Phase Services of Port
Arthur Main WWTP I March 2026
Page 3 of 4
ARTICLE III
TIME OF COMPLETION: FNI is authorized to commence work upon execution of this Amendment and
agrees to perform the services in accordance with the Basic Services identified herein. The services
authorized under this Amendment are limited to the period through June 30, 2026. The current
anticipated final completion date for the Project is October 28, 2027. Construction phase engineering
services required beyond June 30,2026 to support the remaining duration of construction are anticipated
to be addressed under a subsequent contract amendment.
ARTICLE IV
RESPONSIBILITIES OF CITY: City shall perform the following in a timely manner so as not to delay the
services of FNI:
A. Revisions to drawings, specifications or other documents when such revisions are 1) not consistent
with approvals or instructions previously given by City or 2) due to other causes not solely within the
control of FNI.
B. Investigations involving consideration of operation, maintenance and overhead expenses, and the
preparation of rate schedules, earnings and expense statements, feasibility studies, appraisals,
evaluations, assessment schedules, and material audits or inventories required for certification of
force account construction performed by City.
C. Preparing applications and supporting documents for government grants,loans,or planning advances
and providing data for detailed applications.
D. Preparing data and reports for assistance to City in preparation for hearings before regulatory
agencies, courts, arbitration panels or any mediator, giving testimony, personally or by deposition,
and preparations therefore before any regulatory agency, court,arbitration panel or mediator.
E. Assisting City in preparing for,or appearing at litigation,mediation,arbitration,dispute review boards,
or other legal and/or administrative proceedings in the defense or prosecution of claims disputes with
Contractor(s).
F. Performing investigations, studies and analyses of substitutions of equipment and/or materials or
deviations from the drawings and specifications.
G. Assisting City in the defense or prosecution of litigation in connection with or in addition to those
services contemplated by this Agreement. Such services, if any, shall be furnished by FNI on a fee
basis negotiated by the respective parties outside of and in addition to this Agreement.
111 H. Providing environmental support services including the design and implementation of ecological
baseline studies, environmental monitoring, impact assessment and analyses, permitting assistance,
and other assistance required to address environmental issues.
I. Performing investigations, studies, and analysis of work proposed by construction contractors to
correct defective work.
J. Visits to the site more than the number of trips included in Basic Services for periodic site visits,
coordination meetings,or contract completion activities.
K. Any services required because of default of the contractor(s) or the failure, for any reason, of the
contractor(s)to complete the work within the contract time.
L. Providing services after the completion of the construction phase not specifically listed in Basic or
Special Services.
M. Providing services on an accelerated time schedule. The scope of this service includes cost for
overtime wages of employees and consultants, inefficiencies in work sequence and plotting or
reproduction costs directly attributable to an accelerated time schedule directed by the City.
Attachment A: Contract Amendment Scope of Services—Additional Construction Phase Services of Port
Arthur Main WWTP I March 2026
Page 4 of 4
N. Providing services made necessary because of unforeseen, concealed, or differing site conditions or
due to the presence of hazardous substances in any form.
O. Providing services to review or evaluate construction contractor(s) claim(s), provided said claims are
supported by causes not within the control of FNI.
P. Preparing statements for invoicing or other documentation for billing other than for the standard
invoice for services attached to this professional services agreement.
Q. Provide follow-up professional services during Contractor's warranty period.
R. Reviewing construction submittals and RFIs in excess of the number of reviews included in Basic
Services.
S. Providing services for processing contract modifications in excess of the number included in Basic
Services.
T. Materials testing in excess of the amount included in Special Services.
ARTICLE VI
DESIGNATED REPRESENTATIVES: FNI and City designate the following representatives:
City's Designated Representative—Calvin Matthews, P.E.
Director of Water Utilities
calvin.matthews@portarthurtx.gov
(409) 983-8226
City's Accounting Representative—Lynda "Lyn" Boswell, M.A., ICMA-CM
Director of Finance
Lynda.Boswell@portarthurtx.gov
(409)983-8186
FNI's Designated Representative—Matthew Cartwright, P.E.
Project Manager
matt.cartwright@freese.com
(832) 602-4547
FNI's Accounting Representative—Kristina Isaac
Operations Analyst
Kristina.lsaac@freese.com
(713) 600-6860
Exhibit "B"
(Texas Water Development Board)
CHARLOTTE MOSES,MAYOR RON BURTON
HAROLD DOUCET SR.,MAYOR PRO TEM City of ,`G CITY MANAGER
COUNCIL MEMBERS: I_,/ SHERRI BELLARD,TRMC
WILLIE LEWIS,JRC �- -- CITY SECRETARY
TIFFANY L.HAMILTON EVERFIELD 411 ort rth u r
DONEANE BECKCOM Texas ROXANN COTRONEO
THOMAS J.KINLAW III CITY ATTORNEY
DONALD FRANK,SR
August 15,2025
Cody Cockayne, P.E.
Project Engineer
Texas Water Development Board
1700 N. Congress Ave
Austin,TX 78711
Re: TWDB Project ID 73688;Loan No.: L1000298
Port Arthur Main WWTP Improvements Project
Request for Budget Re-distribution
Dear Mr.Cockayne,
The City of Port Arthur obtained Loan No. L1000298 through the Texas Water Development Board (TWDB) Clean
Water State Revolving Fund (CWSRF) program for the Planning, Acquisition, and Design of the Main Wastewater
Treatment Plant (WWTP) Improvements Project, totaling $6,995,000. Based on the latest outlay report (OL#27), the
project has an unused loan balance of$361,054.38. Table l summarizes the current budget status.
Table 1: Loan No.L1000298—Current Budget Distribution
il Budget Category Current Budget Total Requested To Date Balance
Loan No. L1000298 (As of OL#27)
Planning $1,743,185.00 $1,743,184.72 $0.28
Design $4,235,015.00 $4,235,015.00 $0.00
Administration $208,000.00 $0.00 $208,000.00
Bond Counsel $28,500.00 $28,500.00 $0.00
Financial Advisor $37,487.50 $37,487.50 $0.00
Fiscal/Legal $14,500.00 $6,995.00 $7,505.00
Issuance Cost $25,000.00 $3,197.20 $21,802.80
Loan Origination Fee $127,057.00 $127,057.00 $0.00
Contingency $54,018.03 $0.00 $54,018.03
Environmental $130,237.47 $130,237.47 $0.00
Geotechnical $85,000.00 $85,000.00 $0.00
Permits $217,000.00 $162,387.15 $54,612.85
4 Surveying $75,000.00 $74,884.58 $115.42
Water Conservation Plan $15,000.00 $0.00 $15,000.00
Total Loan Amount: $6,995,000.00 $6,633,945.62 $361,054.38
Separately,the City also secured Loan L1001023 and Grant LF1001024 for the construction phase of the Main WWTP
Improvements Project,totaling$60,560,000, which includes $2,100,000 allocated for construction engineering. Freese
P.O.BOX 1089•PORT ARTHUR,TEXAS 77641-1089 •(409)983-8100• WWW.portarthurtx.gov
II
and Nichols, Inc. (FM)is providing construction engineering services for this phase. Due to unforeseen site conditions,
the construction schedule has extended from 1,580 to 1,835 calendar days,increasing the need for additional construction
engineering support.
To address this extended effort, the City requests approval to reallocate the remaining $361,054.38 from Loan No.
L1000298 to a new budget category, "Construction Engineering,"within the same loan. This reallocation will directly
support the ongoing construction phase of the same project. Table 2 shows the proposed revised budget.
Table 2—Proposed Budget Distribution
Budget Category Total Requested To
Loan#L1000298 Current Budget Proposed Budget Date New Balance
(As of OL#27)
Planning $1,743,185.00 $1,743,185.00 $1,743,185.00 $0.00
Design $4,235,015.00 $4,235,015.00 $4,235,015.00 $0.00
Administration $208,000.00 $0.00 $0.00 $0.00
N Bond Counsel $28,500.00 $28,500.00 $28,500.00 $0.00
Financial Advisor $37,487.50 $37,487.50 $37,487.50 $0.00
Fiscal/Legal $14,500.00 $6,995.00 $6,995.00 $0.00
Issuance Cost $25,000.00 $3,197.20 $3,197.20 $0.00
Loan Origination Fee $127,057.00 $127,057.00 $127,057.00 $0.00
Contingency $54,018.03 $0.00 $0.00 $0.00
Environmental $130,237.47 $130,237.47 $130,237.47 $0.00
Geotechnical $85,000.00 $85,000.00 $85,000.00 $0.00
Permits $217,000.00 $162.387.15 $162,387.15 $0.00
Surveying $75,000.00 $74,884.58 $74,884.58 $0.00
Water Conservation Plan $15,000.00 $0.00 $0.00 $0.00
Construction Engineering $0.00 $361,054.10 $0.00 $361,054.10
Total Loan Amount: $6,995,000.00 $6,995,000.00 $6,633,945.90 $361,054.10
We respectfully request TWDB's approval of this budget redistribution. Please let us know if you require any
additional documentation or clarification. We appreciate your consideration and look forward to your response.
Sincerely,
(y://tV:aeril_______
Calvin Matthews
Director of Water Utilities
City of Port Arthur
(409)983-8226
calvin.mathews@portarthurtx.gov
Cc: Murali Erat(Freese and Nichols, Inc.)
Jess Liao(City of Port Arthur)
P.O.BOX 1089-PORT ARTHUR,TEXAS 77641-1089 •(409)983-8100• www.portarthurtx.gov