HomeMy WebLinkAbout(2) SERVICE ZONEINTEROFFICE MEMORANDUM
TO:
FROM:
SUBJECT:
DATE:
STEVE FITZGIBBONS, CITY MANAGER ,% ~
PAUL BROWN, PLANNING DEPARTMEN~~'
PROGRESS ON SERVICE ZONE CONSTRUCTION
28 MARCH 2002
The Service Zone building construction project is continuing apace and remains on schedule
for completion in mid-June, according to infotrnation provided by Jefferson County
Engineer Jose Pastrana.
The final portion of slab was poured duting the week of March 25 and erection of the steel
framework has begun. A tentative agreement was reached during the same week concerning
water, sewer and fire hydrant tap fees. Mr. Pastrana said he agreed to authorize payment of
the $8,950 city tap fees by the county to keep the project moving forward.
Mr. Pastrana expressed disappointment that the city did not automatically waive the tap fees
as part of the cooperative effort involved in the Service Zone incentive program. Assistant
Director of Water Utilities Kelly Eldridge said the dep',tt m:ent did not have the authority to
waive tap fees, but could with City Council approval. Mr. Pastrana said his concern centered
around potential cost over runs for the project which could push the final expenses greater
than the combined $3 million the Port Arthur EDC and the county agreed to spend on the
construction. He said that the contract with Service Zone allows the company to back out
of the deal if it becomes responsible for paying costs exceeding the $3 million promised by
the EDC and the county. The project is tutoring dangerously close to the budgeted amounts
and could use some buffer protection against potential cost overruns, he said.
Mr. Eldridge said the water department lacked the authority to waive such fees without
authorization.
Those costs are:
Fireplug -- $1,500
Fire line tap -- $5,000 (including specific valves for the automatic sprinkler system
2-inch domestic water tap - 2,000
6-inch commercial sewer line tap, $450
Without going into details, Mr. Pastrana admitted that several unexpected problems have
revealed some quirks in the design-build professional contract awarded to a company chosen
by Service Zone for several of its projects elsewhere.
"The design-build project doesn't allow for the nomaal city approval process," Mr. Pastrana
said. Normally, he added, a project would be completely designed before construction
begins. In this situation, some design elements have not been completed until long after
construction has begun. He said this process allows the building to be completed in about
twice as fast as under normal conditions.
Mr. Eldeidge explained that the resulting difficulties have proven to be more than "quirks."
For instance, since the site plans were not submitted for the city's approval, construction had
already begun before the city learned that the building crosses a sewer easement line, thereby
placing the building within several feet of a 4,000-foot sewer line.
"A design-build project doesn't allow viohtion of city ordinances. They wanted us m move
the sewer line, which would take about a year. If they'd showed us their plans before they
started building, we could have easily warned them to move it about I0 feet," Mr. Eldridge
said, adding that the city had already footed about a 5,000 bill for early errors at the
construction. Namely, several water main breaks and a manhole that was destroyed.
"That's why you have a plarming review process - to avoid things exactly like that," Mr.
Eldddge said.
Mr. Pastrana said he expected county officials to approach the City about waiving the water
and sewer tap fees.