HomeMy WebLinkAboutPR 25015: EXECUTE AMENDMENT NO. 2 TO THE CONTRACT BETWEEN THE CITY OF PORT ARTHUR AND FREESE & NICHOLS, INC. FOR THE CONSTRUCTION PHASE SERVICES OF THE MAIN WASTEWATER TREATMENT PLANT Gity of
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INTEROFFICE MEMORANDUM
Date: June 22, 2026
To: The Honorable Mayor and City Council
Through: Ronald Burton, CPM, City Manager
From: Calvin Matthews, P.E., Water Utilities Director
RE: PR 25015 —Amend Construction Engineering 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$899,392.00 to the new updated contract amount of$2,999,392.00.
Background:
On April 12, 2022, the City Council approved Resolution No. 22-170, awarding Freese &
Nichols, Inc. a contract in the amount of $2,100,000.00 to provide construction phase
engineering services for the Main Wastewater Treatment Plant Improvements Project.
On October 22, 2024, the City Council approved Resolution No. 24-415, authorizing
Amendment No. 1, which modified project staffing levels without increasing the contract
amount.
Since the commencement of construction, the project schedule has been extended by a
cumulative 390 calendar days through change orders previously approved by the City Council
pursuant to Resolutions Nos. 22-586, 25-140, 25-355, and 25-548. Those change orders
authorized modifications necessary to accommodate evolving project needs, including staffing
adjustments, additional construction work,revisions to quantities and materials, and other field-
driven changes required to facilitate the successful completion of this complex infrastructure
project. Accordingly,the project's anticipated completion date has been extended to October 28,
2027.
Because construction-phase engineering services are required throughout the construction
period, the extended project schedule has significantly increased the level of professional
services needed to complete the project. These services include construction administration,
engineering review of contractor submittals, responses to requests for information, field
observations, coordination among project stakeholders, review of change order documentation,
"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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testing oversight, regulatory coordination, project documentation, and final project closeout.
Analysis:
The Main Wastewater Treatment Plant Improvements Project is one of the City's largest
infrastructure investments, with a current construction value of approximately $70.87 million.
The proposed amendment does not expand the project's scope of work; rather, it provides the
engineering services necessary to support the project through its revised completion date.
The requested increase of$899,392.00 is directly attributable to the approximately 13-month
extension of the construction schedule and the continued need for professional engineering
oversight during that period. Without this amendment, the City would lack the engineering
support necessary to administer the construction contract, review contractor work, evaluate
technical issues, process project documentation, and ensure that the completed facility meets
applicable engineering standards,regulatory requirements, and contract specifications.
Following approval of Amendment No. 2, the total engineering services contract will be
$2,999,392.00,representing approximately 4.23% of the project's current construction value of
$70,866,440.82. Likewise, the proposed increase of $899,392.00 represents approximately
1.27% of the total construction contract. Given the size, technical complexity, and extended
duration of this major wastewater infrastructure project, these costs are reasonable and
proportionate to the professional services required to ensure successful project delivery.
Approval of this amendment will provide continuity of engineering oversight through project
completion, reduce construction risk, facilitate timely resolution of technical issues, and help
protect the City's substantial investment in critical wastewater infrastructure.
Budget Impact:
The proposed amendment increases the contract by $899,392.00, bringing the total contract
amount to $2,999,392.00.
Funding is available in Account No. 405-40-000-8516-00-00-000, Project No. WSOO23.
Recommendation:
It is recommended that the City Council approve Proposed Resolution No. 25015 authorizing
the City Manager to amend the contract previously approved with Freese & Nichols, Inc. of
Pearland, Texas, 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. 25015
6/22/26 cm-tnr
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
CONSTRUCTION PHASE SERVICES OF THE MAIN
WASTEWATER TREATMENT PLANT, INCREASING THE
CONTRACT AMOUNT BY$899,392.00, FOR A NEW TOTAL
CONTRACT AMOUNT OF $2,999,392.00; FUNDING IS
AVAILABLE IN ACCOUNT NO. 405-40-000-8516-00-00-000,
PROJECT NO. WS0023.
WHEREAS, pursuant to Resolution No. 22-170, adopted on April 12, 2022, the City
Council awarded a professional engineering services contract to Freese & Nichols, Inc. (FNI) of
Pearland, Texas, in the amount of $2,100,000.00 to provide construction phase engineering
services for the Main Wastewater Treatment Plant Improvements Project located on the Procter
Street Extension; and
WHEREAS, pursuant to Resolution No. 24-415, adopted on October 22, 2024, the City
Council approved Amendment No. 1 to the contract,which modified project staffing levels without
increasing the contract amount; and
WHEREAS, the Main Wastewater Treatment Plant Improvements Project is one of the
City's largest and most significant public infrastructure investments, with a current construction
contract value of$70,866,440.82, and is essential to maintaining the City's wastewater treatment
capacity, regulatory compliance, and long-term utility infrastructure; and
WHEREAS, since execution of the original engineering services agreement, the
construction schedule has been extended by an aggregate of 390 calendar days through Change
Orders approved by Resolutions Nos. 22-586, 25-140, 25-355, and 25-548, resulting in a revised
substantial completion date of October 28, 2027; and
WHEREAS, the substantial extension of the construction schedule has increased the
duration of construction administration, field observation, engineering review, coordination with
the contractor, evaluation of submittals and requests for information, testing oversight, project
documentation, design modification, TWDB outlay pay submittal, ARPA grant management, and
other professional services required to successfully complete a project of this magnitude; and
WHEREAS, Amendment No. 2 will provide the additional professional engineering
services necessary to support the project through final completion by extending Freese&Nichols,
PR No. 25015
6/22/26 cm-tnr
Inc.'s construction phase services through October 31,2027,and will increase the contract amount
by $899,392.00, for a new total contract amount of$2,999,392.00; and
WHEREAS,the Utilities Department has determined that the proposed amendment is fair,
reasonable, and necessary because the additional compensation is directly attributable to the
extended construction duration and continued professional engineering services required for a
project exceeding $70 million in construction value and represents an appropriate and
proportionate investment to ensure proper oversight,quality assurance,regulatory compliance,and
successful project delivery.
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,
increasing the contract by $899,392.00, to a new total contract amount of$2,999,392, attached
hereto as Exhibit"A"; and,
THAT, funding is provided for in Account No. 405-40-000-8516-00-00-000. Project No.
WS0023; 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:
Christe Ned, City Secretary
PR No. 25015
6/22/26 cm
Page 3 of 3
APPROVED AS TO FORM:
Roxann Pais Cotroneo
City Attorney
APPROVED FOR ADMINISTRATION:
irgr
Ronald B on, CPM
City ► .nager
Suhail Kanwar, P.E.
Director of Public Services
alvin Ma ews, P.E.
Water Utilities Director
APPROVED AS TO THE AVAILABILITY
OF FUNDS:
y (Lyn Boswell, MA ICMA- M
Finance Director
Clifton E. Williams Jr., CPPB
Purchasing Manager
Exhibit "A"
(Amendment No. 2)
FREESE PROFESSIONAL SERVICES AGREEMENT
NICHOLS AMENDMENT#02
City of Port Arthur FNI Project: PRT22379
444 4th Street Client Contract: PR22416
Port Arthur,Texas 77640 Date: 06/30/2026
Project Name: Port Arthur Main WWTP Construction Engineering Services
Description of Services: Continue Construction Management and Inspection Services,
Submittal and RFI Reviews, PLC factory and field testing
Schedule: All services are anticipated to extend through October 31st, 2027
Compensation Type: Not to Exceed Fee
Current Contract Amount: $2,100,000.00
Amount of this Amendment: $899,392.00
Revised Total Amount Authorized: $2,999,392.00
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: Matthew R. Cartwright
Title: Title: Vice President and Principal
Date: Date: 6/25/26
Professional Services Agreement Amendment Page 1 of 1
Rev 07/22
CONSTRUCTION PHASE SERVICES OF
THE PORT ARTHUR MAIN WWTP
IMPROVEMENTS PROJECT FREESE
I aNICHOLS
11200 Broadway Street,Suite 2320 • Pearland,Texas 77584 • 832-456-4700 • FAX 832-456-4701
SCOPE OF SERVICES AND RESPONSIBILITIES OF CLIENT
Project Understanding:
The City of Port Arthur (City) obtained Loan No. L1001023 and Grant No. LF1001024 through the Texas
Water Development Board (TWDB) Clean Water State Revolving Fund (CWSRF) program for construction
of the Main Wastewater Treatment Plant (WWTP) Improvements Project. The total funding amount is
$60,560,000,which includes$2,100,000 allocated for construction phase engineering services.
The City and Freese and Nichols, Inc. (FNI) previously executed a professional services agreement under
Resolution No. 22-170 for construction phase engineering services in the amount of $2,100,000. This
agreement covered construction phase services for 51 months with 24 months of Inspection Services.
At the end of the Inspection Services period, Amendment No. 1 to the agreement was approved as per
Resolution No. 24-415 as a zero-cost change with staffing level modifications resulting in construction
phase services through September 30, 2025.
Construction of the Main WWTP improvements has been extended by a total of 390 days due to change
orders, approved as per Resolution No's. 22-586, 25-140, 25-355, and 25-548, with an anticipated
construction completion date of October 28, 2027. Although FNI's original construction phase services
agreement under Resolution No. 22-170 and Resolution No. 24-415 covered services through September
30, 2025, FNI continued providing construction phase services from October 1, 2025 through June 30,
2026 through a separate amendment (Resolution No. 26-137) to its design phase services agreement
under Resolution No. 15-056.
The purpose of this amendment is to extend FNI's construction phase services under Resolution No. 22-
170 through October 28, 2027,for the remainder of the construction period.
Scope Amendment Summary: The contract amendment scope includes the following tasks required to
provide Construction Phase Services through October28, 2027:
• General and project management.
• General and project representation.
• Construction management and inspection services.
• Storm drainage redesign.
ARTICLE I
BASIC SERVICES: FNI shall render the following professional services in connection with the development
of the Project:
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
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:
Attachment A: Amendment Scope of Services—Additional Construction Phase Services of Port Arthur
Main WWTP Improvements I June 2026 I Resolution No. 22-170
Page 2 of 4
1. Participate in up to sixteen (16) monthly construction progress meetings with the City and
Contractor and perform up to sixteen (16) 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 sixteen (16) contractor pay applications, including evaluation
of supporting documentation and recommendation of payment to the City.
3. Review and response to up to eight (8) Requests for Information (RFIs).
4. Review of up to twelve (12)submittals, including shop drawings and product data,with up to
two(2) review cycles per submittal.
5. Review and processing of up to six (6) contract modification items, including change orders,
field orders, or proposal requests.
6. Factory and field acceptance testing for four(4) plant PLCs, including up to 4 trips to the Port
Arthur Main Wastewater Treatment Plant with overnight stays for two (2)days.
7. Substantial and final completion walkthroughs with associated punch lists.
8. Record drawings and project close-out activities.
9. 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 project completion coinciding with the Contractor's current anticipated completion
date of October 28, 2027.
C. CONSTRUCTION MANAGEMENT AND INSPECTION (CM&I)SERVICES: Furnish the services of one (1)
Resident Project Representative(RPR),and one(1) Construction Manager(CM)through October 28,
2027.Total hours assumed for RPR services are based on one (1) RPR for 15 hours per week during
this period,and total hours assumed for CM services are based on one (1)CM for 10 hours per
week.
D. STORM DRAINAGE REDESIGN:The original contract drawings included a portion of the Main WWTP
site draining to an existing onsite pond.At the beginning of construction,the Contractor requested
that the existing pond be filled to provide additional laydown area, and the City approved this
request.As a result, minor modifications to the site grading and storm drainage design are required.
AWC, as a subconsultant to FNI, will perform the additional analysis and prepare the necessary
recommendations and drawing revisions to address the approved change. FNI assumes that
revisions to the contract drawings will be handled by Field Order and incorporated into a
subsequent change proposal from the Contractor.
ARTICLE II
ADDITIONAL SERVICES: Any services performed by FNI that are not included in the Basic Services
described above are Additional Services.
Attachment A: Amendment Scope of Services—Additional Construction Phase Services of Port Arthur
Main WWTP Improvements I June 2026 I Resolution No. 22-170
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 through October 28, 2027. The current anticipated final
completion date for the Project is October 28, 2027. Continued construction past the anticipated
completion date may require a subsequent contract amendment.
ARTICLE IV
RESPONSIBILITIES OF CLIENT: City shall perform the following in a timely manner so as not to delay the
services of FNI:
A. City recognizes and expects that change orders may be required to be issued during construction.
The responsibility for the costs of change orders will be determined on the basis of applicable
contractual obligations and professional liability standards.
B. Designate in writing a person to act as City's representative with respect to the services to be
rendered under this Agreement. Such person shall have contract authority to transmit
instructions, receive information, interpret and define City's policies and decisions with respect
to FNI's services for the Project.
C. Provide all criteria and full information as to City's requirements for the Project, including design
objectives and constraints, space, capacity and performance requirements, flexibility and
expandability, and any budgetary limitations; and furnish copies of all design and construction
standards which City will require to be included in the drawings and specifications.
D. Assist FNI by placing at FNI's disposal all available information pertinent to the Project including
previous reports and any other data relative to design or construction of the Project.
E. Arrange for access to and make all provisions for FNI to enter upon public and private property as
required for FNI to perform services under this Agreement.
F. Examine all studies, reports, sketches, drawings, specifications, proposals and other documents
presented by FNI,obtain advice of an attorney, insurance counselor and other consultants as City
deems appropriate for such examination and render in writing decisions pertaining thereto within
a reasonable time so as not to delay, or cause rework in,the services of FNI.
G. Furnish approvals and permits from all governmental authorities having jurisdiction over the
Project and such approvals and consents from others as may be necessary for completion of the
Project.
H. City shall make or arrange to have made all subsurface investigations, including but not limited to
borings, test pits, soil resistivity surveys, and other subsurface explorations. City shall also make
or arrange to have made the interpretations of data and reports resulting from such
investigations. All costs associated with such investigations shall be paid by The City.
Provide such accounting, independent cost estimating and insurance counseling services as may
be required for the Project,such legal services as City may require or FNI may reasonably request
with regard to legal issues pertaining to the Project including any that may be raised by
Contractor(s), such auditing service as City may require to ascertain how or for what purpose any
Attachment A:Amendment Scope of Services—Additional Construction Phase Services of Port Arthur
Main WWTP Improvements I June 2026 I Resolution No. 22-170
Page 4 of 4
Contractor has used the moneys paid under the construction contract, and such inspection
services as City may require to ascertain that Contractor(s) are complying with any law, rule,
regulation,ordinance, code or order applicable to their furnishing and performing the work.
J. If City designates a person to serve in the capacity of Resident Project Representative who is not
FNI or FNI's agent or employee, the duties, responsibilities and limitations of authority of such
Resident Project Representative(s)will be set forth in an Attachment attached to and made a part
of this Agreement before the Construction Phase of the Project begins. Said attachment shall also
set forth appropriate modifications of the Construction Phase General Representation services as
defined in Attachment SC, Article I, D, together with such adjustment of compensation as
appropriate.
K. Attend the construction progress and other job-related meetings and substantial completion
inspections and final payment inspections.
L. Give prompt written notice to FNI whenever City observes or otherwise becomes aware of any
development that affects the scope or timing of FNI's services,or any defect or nonconformance
of the work of any Contractor.
M. Furnish, or direct FNI to provide, Additional Services as stipulated in Attachment SC, Article III of
this Agreement or other services as required.
N. Bear all costs incident to compliance with the requirements of this Article IV.
ARTICLE V
DESIGNATED REPRESENTATIVES: FNI and Client designate the following representatives:
Client's Designated Representative—Calvin Matthews, P.E.
Director of Water Utilities
calvin.matthews@portarthurtx.gov
(409) 983-8226
Client'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