HomeMy WebLinkAboutPR 24917: A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE CHANGE ORDER NO. 8 TO THE CONTRACT BETWEEN THE CITY OF PORT ARTHUR AND ALLCO, LLC, OF BEAUMONT, TEXAS, FOR THE PORT ACRES DRAINAGE IMPROVEMENT PROJECT City of
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INTEROFFICE MEMORANDUM
Date: April 28, 2026
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. 24917: Port Acres Drainage Improvement Project — Change Order No. 8: To
extend contract time by 240 calendar days and additional work. Project No. DR1 P03A.
Account No. 307-21-055-8515-00-10-000.
Introduction:
The intent of this Agenda Item is to seek the Port Arthur City Council's approval for the City Manager
to execute Change Order No. 8 with Allco, LLC, (Allco) of Beaumont, Texas, to extend the contract
time by 240 calendar days and additional work items associated with drainage revisions, for the
estimated savings amount of$717,007.14. 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
"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 OWNER or others performing additional work, or by acts of God or of the
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.
Pursuant to Resolution 25-523, Change Order No. 7 was 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, that resulted in a cost savings of$84.14 per linear foot,
with proposed estimated savings in the amount of $205,397.16, to a new contract amount of
$34,192,504.03.
Change Order No. 8 is being submitted by Allco to extend the contract time by 240 calendar days due
to engineering redesign and additional work items associated with drainage revisions,with a proposed
estimated savings in the amount of$717,007.14,to a new contract amount of$33,475,496.89.
Budget Impact:
Proposed estimated savings in the amount of $717,007.14, to a new contract amount of
$33,475,496.89. 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. 24917, authorizing the
City Manager to accept Change Order No. 8 from Allco, LLC, of Beaumont, Texas, to extend the
contract time by 240 calendar days due to engineering redesign and additional work items associated
with drainage revisions, with a proposed estimated savings in the amount of$717,007.14, to a new
contract amount of$33,475,496.89. 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. 24917
04/28/2026 RLD
Page 1 of 6
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
CHANGE ORDER NO. 8 TO THE CONTRACT BETWEEN THE CITY OF PORT
ARTHUR AND ALLCO,LLC,OF BEAUMONT,TEXAS,FOR THE PORT ACRES
DRAINAGE IMPROVEMENT PROJECT,TO EXTEND THE CONTRACT TIME
AN ADDITIONAL 240 CALEDAR DAYS AND ADDITIONAL WORK ITEMS
ASSOCIATED WITH DRAINAGE REVISIONS, WITH ESTIMATED SAVINGS
TO THE CONTRACT OF $717,007.14. 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,
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,
PR No. 24645
11/12/2025 RLD
Page 2 of 6
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 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,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,
PR No. 24917
04/28/2026 RLD
Page 3 of 6
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,
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; and,
WHEREAS,pursuant to Resolution No. 25-523, Change Order No. 7 was 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,
estimated savings in the amount of$205,397.16, to a new contract amount of$34,192,504.03; and,
PR No.24645
11/12/2025 RLD
Page 4 of 6
WHEREAS, Change Order No. 8 is being submitted by Allco to extend the contract time for an
additional 240 calendar days due to engineering redesign and additional work items associated with
drainage revisions, see Exhibit A; and,
WHEREAS, Change Order No. 8 proposes estimated savings in the amount of$717,007.14, to a
new contract amount of$33,475,496.89; and,
WHEREAS, approval of PR No. 24917 for Change Order No. ,8 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. 8 is herein approved and the City Manager is hereby authorized to
execute said Change Order No. 8 to the contract between the City of Port Arthur and Allco, LLC, of
Beaumont, Texas; and,
THAT, Change Order No. 8 is being submitted by Allco to extend the contract time for an
additional 240 calendar days due to engineering redesign and additional work items associated with
drainage revisions; and,
THAT, Change Order No. 8 proposes estimated savings of$717,007.14,to a new contract amount
of$33,475,496.89; 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. 2026, at a
meeting of the City of Port Arthur, Texas by the following vote:
Ayes: Mayor:
Councilmembers:
PR No.24917
04/28/2026 RLD
Page 5 of 6
Noes:
Charlotte M. Moses
Mayor
ATTEST:
Sherri Bellard
City Secretary
PR No.24645
11/12/2025 RLD
Page 6 of 6
APPROVED AS TO FORM:
Roxann Pais Cotroneo, Esq.
City Attorney
APPROVED FOR ADMINISTRATION:
dik 1
ipor-
Ron Burton, CP
City Manag-
. GL 14 t /C i4V
Suhail Kanwar, PE, MS, CFM
Director of Public Services/City Engineer
APPROVED AS TO AVAILABILITY OF FUNDS:
Lynd (Lyn) Boswel , MA, ICMA-CM
Finance Director
LALAil
Clifton Wi hams, CPPB
Purchasing Manager
EXHIBIT A
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MI ARCENEAUX WILSON&COLE
engineering I surveying I planning
CHANGE ORDER NO. 8
DATE: April 24. 2026 JOB NO. CPA-946
NAME OF PROJECT: PORT ACRES DRAINAGE IMPROVEMENT PROJECT
OWNER: CITY of PORT ARTHUR
CONTRACTOR: ALLCO, LLC
The following changes are hereby made to the CONTRACT DOCUMENTS:
1. Add the following Items to the Contract and Scope of Work:
a) Extend contract time by 240 calendar days due to engineering redesign and additional work
items associated with drainage revisions from this change order.
2. Adjust Quantity in the following Bid Items:
Add the following Bid Items:
i. Bid Item No.77 RCB Size Change from 12x4 to 10x5 $ (125,441.32)
1491 LF x-$84.14/LF
ii. Bid Item No. 78 Special Junction Box Near RV Park $ 62,621.00
1 LS x$62,621.00
iii. Bid Item No. 79 Outfall Adjustment $ 52,504.00
1 LS x$52,504.00
iv. Bid Item No.80 Additional Cost for Hwy 365 Waterline Reroute $ 48,759.00
1 LS x$48,759.00
v. Bid Item No.81 Haul/Dispose of Excavated Material near RV Park $ 45,816.00
1 LS x $45,816.00
vi. Bid Item No.82 Water Line Conflict near DD7 Outfall $ 27,793.00
1 LS x $27,793.00
' = CHANGE ORDER NO. 8
AW April 24, 2026
`� Job No. CPA-946
CiINC
1MM ARCENEAUX WILSON&COLE
engineering I surveying I planning
vii. Bid Item No. 83 Add Cement Slurry(5%) $ 493,557.00
21,459 SY x$23.00/SY
viii. Bid Item No.84 Waterline Relocation (66th St.) $ 170,111.00
1 LS x $170,111.00
ix. Bid Item No.85 Sanitary Sewer Line Relocation (66th St.) $ 175,749.00
1 LS x $175,749.00
x. Bid Item No.86 8" Commercial Driveways $_ 228,600.00
1,016 SY x$225.00/SY
xi. Bid Item No. 87 Add 8'x3' RCB $ 1,315,200.24
918 LF x$1,432.68/EA
xii. Bid Item No. 88 Add 7'x3' RCB $ 3,685,689.36
3,054 LF x $1,206.84/LF
xiii. Bid Item No. 89 Add 6'x3' RCB $ 731,597.64
708 LF x$1,033.33/LF
xiv. Bid Item No.90 Add 5'x3' RCB $ 838,502.40
960 LF x$873.44/LF
xv. Bid Item No.91 Add Conflict Box $ 357,408.00
8 EA x$44,676.00/EA
xvi. Bid Item No.92 Add Storm Manhole Box $ 481,525.00
11 EA x $43,775.00/EA
xvii. Bid Item No.93 Add Hwy 365/Jade Structure $ 365,310.00
1 EA x $365,310.00/EA
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'" CHANGE ORDER NO. 8
April 24, 2026
III) Job No. CPA-946
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engineering I surveying I planning
xviii. Bid Item No.94 Add Jade/66th Structure $ 297,761.00
1 EA x $297,761.00/EA
xix. Bid Item No.95 Add WL Relocation Jade Box $ 97,425.00
1 LS x$97,425.00/LS
xx. Bid Item No.96 Add 16"Water Valve at Jade $ 16,474.49
1LS x $16,474.49/LS
b. Adjust the following Bid Items:
i. Bid Item No.6 remove Asphalt base $ -18,138.00
3,032 SY x$6.00/SY
ii. Bid Item No.12 Concrete Box Culvert(4'X2') $ -362,610.56
-533 LF x $680.32/LF
iii. Bid Item No.13 Concrete Box Culvert(4'X3') $ -620,618.88
-854 LF x$726.72/LF
iv. Bid Item No.16 Concrete Box Culvert (6'X3') $ -1,215,157.79
-1,309 LF x$928.31/LF
v. Bid Item No.18 Concrete Box Culvert(8'X3') $ -5,566,576.92
-4,722 LF x$1,178.86/LF
vi. Bid Item No.20 Concrete Box Culvert(9'X4') $ -856,668.00
-600 LF x $1,427.78/LF
vii. Bid Item No.23 HP Storm (18") (TY S) $ 288,864.00
+1,632 LF x$177.00/LF
viii. Bid Item No.24 HP Storm (24") (TY S) $ 173,485.00
785 LF x $221.00/LF
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AIM CHANGE ORDER NO. 8
.1 April 24, 2026
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'`. Job No. CPA-946
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engineering I surveying I planning
ix. Bid Item No.25 HP Storm (30") (TY S) $ -140,219.00
-499 LF x $281.00/LF
x. Bid Item No.26 HP Storm (36") (TY S) $ 21,525.00
+75 LF x$287.00/LF
xi. Bid Item No.30 Grate Inlet On RCB $ -159,500.00
-29 EA x$5,500.00/EA
xii. Bid Item No.32 Grate Inlet $ 78,000.00
+13 EA x $6,000.00/EA
xiii. Bid Item No.56 Crushed Concrete (6") $ -721,029.60
-22,254 SY x $32.40/SY
xiv. Bid Item No.57 Lime Treatment (Subgrade) (8") $ -509,400.00
-28,300 SY x $18.00/SY
xv. Bid Item No.74 Remove 4" Pipelines along Hwy 365 $ -134,026.20
-1,980 LF x$67.69/LF
xvi. Bid Item No.75 Remove 6" Pipelines along Hwy 365 $ -146,908.00
-1,900 LF x$77.32/LF
xvii. Bid Item No.76 Remove 10" Pipelines along Hwy 365 $ -194,990.00
-1,850 LF x$105.40/LF
SUBTOTAL $ -717,007.14
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'" CHANGE ORDER NO. 8
AMA April 24, 2026
'`. Job No. CPA-946
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CHANGE TO CONTRACT PRICE:
ORIGINAL CONTRACT PRICE: $34,891,106.81
CURRENT CONTRACT PRICE adjusted by previous CHANGE ORDER(S): $34,192,504.03
The CONTRACT PRICE due to this CHANGE ORDER will be [increased] [decreased]
by: $717,007.14 Dollars
The new CONTRACT PRICE, including this CHANGE ORDER, will be $ 33,475,496.89
CHANGE TO CONTRACT TIME:
ORIGINAL CONTRACT TIME: 485 Calendar Days
CURRENT CONTRACT TIME adjusted by previous CHANGE ORDER: 988 Calendar Days
CURRENT DATE OF COMPLETION: November 10, 2026
CONTRACT TIME due to this CHANGE ORDER will be increased by 240 Days
The New DATE OF COMPLETION: July 8, 2027
No other Terms and Conditions of the Contract are changed as a result of this Change Order.
Contractor's acceptance of Change Order relieves OWNER of any liability for additional costs
incurred by Contractor in his performance of the work covered by the Change Order.
RECOMMENDED BY ENGINEER: ACCEPTED BY:
ARCENEAUX WILSON & COLE LLC [CONTRACTOR,OFFICER OR OWNER]
ALLCO, LLC
ACCEPTED BY:
? iCe4.4.f
CITY of PORT ARTHUR q _ 2 `Or --Zd 24
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