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HomeMy WebLinkAboutPR 24973: CHANGE ORDER NO. 1 TO THE HIGHWAY 365 SEWER FORCE MAIN REPLACEMENT PROJECT City of nr1 r11tu�_ www.Po rtA rt h u rTx.gov INTEROFFICE MEMORANDUM Date: May 26, 2026 To: The Honorable Mayor and City Council Through: Ronald Burton, CPM, City Manager From: Calvin Matthews, P.E., Water Utilities Director RE: PR No. 24973 —Change Order No. 1 Highway 365 Sewer Force Main Replacement Project(Project No. WS0012-CON) Introduction: This agenda item is to seek the City Council's authorization for the City Manager to execute Change Order No. 1 for the Highway 365 Sewer Force Main Replacement Project (Project No. WS0012-CON)with Allco, LLC of Beaumont, Texas extending the time of the contract by 108 days to a new contract time of 473 days. Background: Resolution No. 22-280 approved Schaumburg & Polk, Inc. (SPI) of Port Arthur, Texas as the engineer for design and construction management. Resolution No.25-050 approved the contract with Allco, LLC of Beaumont, Texas for the Hwy 365 Sewer Force Main Replacement Project as part of Texas Commission on Environmental Quality (TCEQ) Supplemental Environmental Project requirement. On July 15, 2025, Resolution No. 25-310 approved the acceptance of a Utility Easement from Labelle Properties, LTD. Afterwards there were several encroachment agreements that needed to be negotiated with pipeline companies. Only after hydro excavation to verify location of pipelines was it discovered that the force main installation required encroachment agreements that needed to be granted between the City, the Contractor, and the pipeline companies. Also, there was a Temporary Workspace Easement that needed to be negotiated with landowner Angel Mid Jeff County, J.V. Since negotiating agreements was taking longer than expected, construction was delayed, and a result a suspension of contract time as of November 21, 2025 was requested by Allco, LLC. On February 24, 2026, Resolution No. 26-068 authorized a Temporary Workspace Easement with Angel Mid Jeff County,J.V. that was needed to continue with the sewer force main replacement work on Hwy 365. Furthermore, on March 24, 2026, Resolution No. 26-114 approved the encroachment agreement with Cameron Highway Oil Pipeline Company,LLC(Genesis Pipeline Company). While this easement and agreement have allowed construction to resume, there are still more agreements with other pipeline companies that will need to be granted for further construction. "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 Cllyof — ("4\ nrt rtlttr www.Po rtA rt h u rTx.gov SPI engineer,along with City Staff,is recommending Change Order No.1 to the Hwy 365 Sewer Force Main Replacement Project extending the time by 108 days to a new contract time of 473 days due to the delays caused by the necessary encroachment agreements and easements. Budget Impact: There is no budgetary impact for Change Order No. 1 Recommendation: It is recommended that the City Council approve Proposed Resolution No. 24973, authorizing the City Manager to approve Change Order No. 1 for the Hwy 365 Sewer Force Main JLLC of Beaumont, Replacement Project with Allco, Texas, as described/outlined above. P "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 P.R. No. 24973 5/26/2026 cm Page 1 of 3 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE CHANGE ORDER NO. 1 TO THE HIGHWAY 365 SEWER FORCE MAIN REPLACEMENT PROJECT (PROJECT NO. WS0012-CON) WITH ALLCO, LLC. OF BEAUMONT, TEXAS, EXTENDING THE CONTRACT TIME BY 108 DAYS TO THE NEW TOTAL CONTRACT TIME OF 473 DAY; PROVIDING THAT CHANGE ORDER NO. 1 HAS NO BUDGETARY IMPACT. WHEREAS,per Resolution No.22-280,City Council approved Schaumburg&Polk,Inc. (SPI)as the engineer for design and construction management services for the Highway 365 Sewer Force Main Replacement Project; and, WHEREAS, per Resolution No. 25-050, City Council approved the contract with Allco, LLC (Contractor) of Beaumont, Texas for the Highway 365 Sewer Force Main Replacement Project, with a projected budgetary impact of$2,709,931.50, with funding from 405- 40- 000- 8516- 00- 00- 000, Project No. WS0012-CON; and, WHEREAS,on July 15,2025,Resolution No.25-310 approved the acceptance of a Utility Easement from Labelle Properties, LTD that was required for the force main installation; and, WHEREAS, afterwards, there were more encroachment agreements and easements that needed to be negotiated with pipeline companies and landowners; and, WHEREAS, only after hydro excavation to verify location of pipelines was it discovered that the force main installation required encroachment agreements that needed to be granted between the City,the Contractor, and the pipeline companies; and, WHEREAS, since negotiating agreements was taking longer than expected, construction was delayed,and as a result a suspension of contract time as of November 21,2025 was requested by Allco, LLC; and, WHEREAS, on February 24, 2026, Resolution No. 26-068 authorized a Temporary Workspace Easement with landowner Angel Mid Jeff County, J.V.; and, P.R. No. 24973 5/26/2026 cm Page 2 of 3 WHEREAS, on March 24, 2026, Resolution No. 26-114 approved the encroachment agreement with Cameron Highway Oil Pipeline Company, LLC (Genesis Company); and, WHEREAS, SPI engineer along with City Staff is proposing Change Order No. 1 (EXHIBIT "A"), extending the contract time by 108 days to the new total contract time of 473 days due to the delays caused by the necessary encroachment agreements and easements. 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 hereby approves Change Order No. 1 (EXHIBIT"A")extending the contract time by 108 days to the new total contract time of 473 days due to the delays caused by the encroachment agreements and easement approvals; and, THAT,there is no budgetary impact for Change Order No. 1; and, THAT, a copy of the caption of this Resolution be spread upon the Minutes 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: Charlotte M. Moses Mayor ATTEST: Christie Whitley Ned City Secretary P.R. No. 24973 5/26/2026 cm Page 3 of 3 APPROVED AS TO FORM: Roxann Pais Cotroneo City Attorney APPROVED FOR ADMINISTRATION: il��► Ronald Burton, CP► r City Manager KA.4.13Ar6r Suhail Kanwar, P.E. Director of Public Services Calvin Matthews, P. . Water Utilities Director APPROVED AS TO THE AVAILABILITY OF FUNDS: L nd )� nda Boswell, MA C 0 Y Finance Director t/tA) Clifton E. Williams Jr. CPPB Purchasing Manager EXHIBIT A (Change Order No. 1) APPROVAL OF CONTRACT CHANGE CHANGE ORDER No.One(1) DATE: May 19,2026 PROJECT: City of Port Athur Highway 365 Force Main Improvements P25-050 OWNER: City of Port Athur,Texas 444 4'h Street Port Arthur,Texas 77640 CONTRACTOR: Allco,LLC P.O.Box 3684 Beaumont,Texas 77704 TO THE OWNER: Approval of the following contract change is requested. Reason for Change: -To extend the proposed bore under the Spur 93/UPRR/LNVA crossing to avoid existing utility lines along Sassine Avenue. -To adjust the contract time due to the suspension of the contract time from November 21,2025 to March 9,2026 due to time required to secure encroachment agreements with pipeline companies that the force main has to cross. ORIGINAL CONTRACT AMOUNT: $ 2,709,931.50 THIS CHANGE ORDER 2 16"PVC Force Main-Furnish all labor,equipment,and material to install 16"C900 PVC DR 18 Sanitary Sewer Force Main;ADD 15 LF @$221.25/LF 3,318.75 4 20"HDPE Force Main-Furnish all labor,equipment,and materials to install 20"HDPE DR11 Sanitary Sewer Force $ (2,565.00) Main,all depths by Directional Boring;DELETE 15 LF @$171.00/LF 5 Spur 93/UPRR/LNVA Crossing-Furnish all labor,equipment,and materials to install a 24"x 1/2"steel casing by JACK AND BORE complete in place;ADD 15 LF @$1,131.50/LF 16,972.50 27 Miscellaneous Improvements-Allowance to furnish all labor,materials,and equipment necessary to perform all $ (17,726.25) miscellaneous improvements,as directed by the Owner;DELETE$17,726.25 for Work Directive Change No.One TOTAL AMOUNT OF THIS CHANGE ORDER: $ 0.00 TOTAL REVISED CONTRACT AMOUNT INCLUDING THIS CHANGE ORDER: $ 2,709,931.50 CONTRACT TIME Original Contract Time: 365 calendar days Additional time for November 21,2025 to March 9,2026 suspension of contract time 108 calendar days Revised Contract Time per this Change Order No.1 473 calendar days CONDITION OF CHANGE: "Contractor acknowledges and agrees that the adjustments in contract price and contract time stipulated in this Change Order represents full compensation for all increases and decreases in the cost of,and the time required to perform the entire work under the Contract arising directly or Indirectly from this Change Order and all previous Change Orders. Acceptance of this waiver constitutes an agreement between Owner and Contractor that the Change Order represents an all inclusive,mutually agreed upon adjustment to the Contract,and that Contractor will waive all rights to file a claim on this Change Order after it is properly executed." Recommended by: Approved by: Accepted by: au rg I Inc. City of Port Arthur Allco,LL Engineer (, Owner Contractor Date: S/2p/202 . Date: Date: Page 1 of 1 AIICO Build Construction Management General Contactor Emm Corporate Office—P.O.Box 3684,Beaumont,TX 77704 Phone 409.860.4459 Fax 409.860.3857 Central Texas—P.O.Box 11807,College Station,TX 77842 Phone 979.260.1000 Fax 979-450-7310 Houston Office—5065 Westheimer,Ste.1150,Houston,TX 77056 Phone 713.222.1331 Fax 713.936.4858 January 16, 2026 Schaumburg& Polk 8865 College Street Beaumont, TX 77707 ATTN: Jeff Beaver, P.E. RE: City of Port Arthur— Hwy. 365 Force Main Dear Mr. Beaver; Please let this letter serve as notice, of our request for a suspension of contract time as of November 21, 2025, on the above referenced project. This suspension is due to lack of encroachment agreements with several pipeline companies. Once these agreements are concluded, we will send another notification to restart the contract time. Please contact me if you have any questions or comments. Sincerely, ALLCO LLC Keith Burrell Cc: Allco File Design Build 111.1 Construction Management General Contactor Corporate Office—P.O.Box 3684,Beaumont,TX 77704 Phone 409.860.4459 Fax 409.860.3857 Central Texas—P.O.Box 11807,College Station,TX 77842 Phone 979.260.1000 Fax 979-450-7310 Houston Office—5065 Westheimer,Ste.1150,Houston,TX 77056 Phone 713.222.1331 Fax 713.936.4858 March 16, 2026 Schaumburg& Polk 8865 College Street Beaumont, TX 77707 ATTN: Jeff Beaver, P.E. RE: City of Port Arthur— Hwy. 365 Force Main Dear Mr. Beaver; Please let this letter serve as notice of resumption of construction activities, on March 9, 2026. The suspension is for a total of 108 calendar days. While all encroachment agreements are not completely resolved, we believe the remaining issues will be in a timely manner. Please contact me if you have any questions or comments. Sincerely, ALLCO LLC e Ectvrett Keith Burrell Cc: Allco File 4 I I Work Directive Change No. One Date of Issuance: August 8,2025 Effective Date: August 8,2025 Protect. Owner: Owners Contract No.: Highway 365 Force Main and Lift Station City of Port Arthur,Texas 25.050 Improvements Contractor: Date of Contract: Allco,L.L,C. February 10,2025 Purpose for Work Change Directive: To extend the proposed bore under the Spur 93/UPRR/LNVA crossing an additional 15 linear feet to avoid existing utility lines along Sassine Ave. You are directed to proceed promptly with the following change(s): Item No. Description Bid item 2 16"PVC Force Main-Furnish all labor,equipment,and material to Install 16"C900 PVC DR 18 Sanitary Sewer Force Main;ADD 15 LF©$221.251LF=$3.318.75 Bid Item 4 Force Furnish equipment, materials to Install 20" Sanitary Sewrr Force all depths by Directional Boring;DELETE15 F®$171.00/L $2565.00 Bid Item 5 Spur 93/UPRR I LNVA Crossing-Furnish all labor,equipment,and materials to install a 24"x 1/2"steel casing by JACK AND BORE complete In place;ADD 15 LF®$1,131.50/LF=$16.972.50 Bid Item 27 Miscellaneous Improvements-Allowance to furnish all labor,materials,and equipment necessary to perform all miscellaneous Improvements,as directed by the Owner Initial Allowance=$50,000.00 less$17,726.25 for WOO No.One=$32.273.75 Remaining Allowance Attachments(list documents supporting change): Change In Contract Price and Contract Times: Contract Price$ 0.00 (iaereaee/deorOae9) Contract Time 0 (laaN /deofaaaa) days If the change involves an Increase,the estimated amounts are not to be exceeded without further authorization. . lip d for Approval by S aumburg a Polk.Inc.(Enyneer): Date w4.1411i����r'i. e/ii'/202$ ro: Mir(Owner)•' Date Accepted for Ail •. A.C.(C•.. -' Date EJCDC No.C-940(2002 Edition)-MODIFIED Page 1 of t Prepared by the Engineers'Joint Contract Documents Committee and endorsed by the Associated General Contractors of America and the Construction Specifications Institute.