11-12 - 645 Johnson Woods Drive Channel Bank Stablization - Gary NashItem Nos. 11 & 12
Memorandum
TO: Mayor & City Council
FROM: Grayson Path, City Manager
SUBJECT: 645 Johnson Woods Drive Channel Bank Stabilization (Gary Nash)
Contractor Contract Approval
DATE: February 8 2021
BACKGROUND:
On July 27, 2020, the City Council approved an agreement with Gary and Rebecca Nash to
partner together in funding the installation of new gabion-style retaining walls in the drainage
way behind their property. The City had performed a sanitary sewer and erosion protection
project in this area, but at the time it was agreed that the Nash's sackrete wall would remain in
place. The sackrete wall subsequently failed. The Nash's and City came to an agreement to
partner together to fund the replacement of this wall. The estimated cost of the project at the
time was $51,175.00. Bids were received on October 1, 2020 and the lowest bid came back
higher than expected, bringing the total project cost estimate to $68,260.00. The City Council
then met on November 9, 2020 and agreed to Amendment #1 to increase the City's cap total
contribution from $25,000.00 to $33,000.00 which helped share the increase in cost for the
project. A contract with Bernal Commercial Construction, Inc. was approved by the City
Council on December 14, 2020.
STATUS OF ISSUE:
A pre -construction meeting was held on site between Hayter Engineering, City Staff and Bernal
Commercial Construction, Inc. While on site performing field measurements, the contractor
discovered that an error occurred during bidding of this project resulting in an incorrect bid
quantity. The plans clearly show the new wall replacing the failed sackrete wall and to
subsequently connect with the existing stable sackrete wall to the south. But when quantities
were verified out in the field by the contractor, we learned that the bid quantities were 8 linear
feet of gabion baskets short. In addition, the contractor has stated that we have an additional 1
vertical foot of gabion basket that is unnecessary. The bid itself is not at risk as these are
quantity errors, the contractor simply needs to order a few more gabion baskets. However, the
net change in the contract cost with Bernal Commercial Construction is $3,333.33.
The City had signed an agreement with Gary and Rebecca Nash stating that all additional costs
beyond the City's $33,000.00 cap would be borne by the Nashs. However, the City Manager and
Hayter Engineering have agreed that this error should not be charged to the Nashs as this was
understood to be in the plans, but bid documents did not reflect it. The City Manager and Hayter
Engineering have agreed to split the cost. This would have been a construction expense the City
would have paid with Mr. Nash had it been correct in the bid, so the City Manager has no
concerns with splitting the cost with Hayter Engineering.
Before the City Council tonight are two agenda items:
1. Change Order 41 between the City and Bernal Commercial Construction in the amount of
$3,333.33.
2. Amendment #2 between the City and Gary and Rebecca Nash increasing the City's cap
contribution from $33,000.00 to $34,666.67, an increase of $1,666.67 which is one half
the Change Order 41. Hayter Engineering is submitting payment to the City for the other
one half portion of Change Order #1. There is no other amendment to the agreement
with the Nashs.
BUDGET:
The City's total contribution would increase by $1,666.67 from $33,000.00 to $34,666.67.
OPTIONS:
1. Accept the proposed Change Order #1 with Bernal Commercial Construction in the
amount of $3,333.33 as well as the Amendment #2 with Gary and Rebecca Nash to
increase the City's contribution cap to $34,666.67.
2. Accept one agreement but not the other.
3. Request additional information and/or edits to either item.
4. Reject both agreements.
RECOMMENDATION:
1. Accept the proposed Change Order #1 with Bernal Commercial Construction in the
amount of $3,333.33 as well as the Amendment #2 with Gary and Rebecca Nash to
increase the City's contribution cap to $34,666.67.
STATE OF TEXAS
COUNTY OF LAMAR
AGREEMENT
AMENDMENT #2
KNOW ALL MEN BY THESE PRESENTS:
THIS AGREEMENT AMENDMENT is entered into this 8" day of February, 2021, by and between
GARY NASH AND REBECCA NASH, hereinafter collectively referred to as "NASH", and the CITY OF PARIS,
TEXAS, hereinafter referred to as "CITY".
WHEREAS, on the 22nd day of July, 2020, NASH and CITY entered in to an agreement for the
public purpose to replace NASH's sackrete wall with a gabion wall; and
WHEREAS, on the 9th day of November, 2020, NASH and CITY entered in to Amendment #1 to
increase the CITY contribution from $25,000.00 to $33,000.00 due to an increase in initial estimated
project cost to actual cost as determined by bidding; and
WHEREAS, the contractor has discovered that an error in bid quantities occurred resulting in the
need for Change Order #1 between the City and the Contractor to increase the construction costs by
$3,333.33; and
WHEREAS, the CITY and its Engineering Firm, Hayter Engineering, have agreed that this increase
in cost should be split in half between the CITY and the Engineering Firm; and
WHEREAS, the CITY is willing to contribute additional funds to help offset this higher than
expected expense;
WHEREFORE, NASH and the CITY hereby agree to amend the Agreement to increase the CITY's
contribution from THIRTY-THREE THOUSAND AND NO/100 DOLLARS ($33,000.00) by an additional ONE
THOUSAND SIX HUNDRED AND SIXTY-SIX AND 67/100 DOLLARS ($1,666.67) to a total contribution of
THIRTY-FOUR THOUSAND SIX HUNDRED AND SIXTY-SIX AND 67/100 DOLLARS ($34,666.67) with all other
terms and conditions of the Agreement to remain as is. All references in the Agreement of "$33,000.00"
as established in Amendment #1 are hereby edited to say "$34,666.67."
Executed in duplicates, each of which is deemed to be original and as of the day and date first
written in this Agreement Amendment.
This Agreement Amendment will be effective February 8, 2021.
IGNATURE PAGE TO FOLLOWS------------------------------------------------
NASH CITY OF PARIS, TEXAS
Gary Nash By: City Manager
Rebecca Nash
ATTEST: ATTEST: