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14 - Belford Building Demolition Project - Change Order No. 2Item No. 14 TO: Mayor, Mayor Pro Tem & City Council Grayson Path, City Manager Robert Vine, Deputy City Manager Doug Harris, Assistant City Manager FROM: Todd Mittge, P.E., City Engineer SUBJECT: CONSTRUCTION CHANGE ORDER PROPOSAL FOR BELFORD BUILDING DEMOLITION: KEEPING EXISTING NORTH WALL DATE: February 12, 2024 BACKGROUND: The Belford Building, located at 260 South Main Street, has been in a state of dilapidation with portions having collapsed, and needed to be demolished, it was therefore deemed a public safety hazard. The City of Paris has an existing and valid demolition order, from the Buildings and Standards Commission, against the Belford Building. All appeals of this order were exhausted. In addition, the 6th District Court has applied a Judgement Lien for Civil Penalties, which are continuing to accrue. Through communications with the owner, there have been no known plans by the owner to act on this issue. On September 26, 2022, the City Council approved a Professional Service Agreement with Jason Hart Engineering, PLLC, to design the demolition of the Belford Building, to be followed by open bidding to select a contractor to perform the work. On January 9, 2023, the City Council approved Amendment #1 to this Agreement to include asbestos related services. On January 23, 2023, the City Council approved Amendments #2 and #3 to this Agreement to include the South Main Acquisitions, LLC (SMA) building to the immediate north at 230 South Main Street, as well as an agreement with SMA for the demolition of this building. A series of discussions and negotiations were held between the City and SMA through August 2023, as a result, both parties agreed upon allowing the City of Paris to purchase and plan for demolition of the building from SMA. Per terms of the agreement between the City and SMA, the brick wall on the north side of the property is to remain in place for historical purposes. The height of this wall to be salvaged would be approximately 8 feet. On November 13, 2023, the City Council approved award of the bid to Lloyd D. Nabors Demolition, LLC, and work began on Friday, December 1, 2023. On December 11, 2023, Change Order No. 1 was approved for $13,500.00 to salvage the antique chains and stars which held up the awning in front of the Belford building, along South Main. During the course of demolition, opportunities for reduction in the original scope of work, hence a reduction in the contract fees, have arisen. Staff recommends we amend the contract with Lloyd D. Nabors Demolition, LLC via Change Order No. 2. In the original contract the north wall of the neighboring property was to be demolished and rebuilt by the contractor at a cost of $94,500.00. During the demolition project it was determined this wall could be retained. Retention of the north wall resulted in reduction of the scope of work and fees, with only minimal work necessary to properly, and safely, keep the wall in place. The reduction in contract fees in Change Order No. 2 amounts to $86,850.00, reducing the final demolition contract amount to $514,650.00. STATUS OF ISSUE: Lloyd D. Nabors Demolition, LLC base bid was $493,500.00, with an additional cost of $94,500.00 to retain the north wall per terms of the agreement with SMA, for a total of $588,000.00 for the project. Lloyd D. Nabors Demolition, LLC included in their submittal an add -alternate of $13,500.00 for salvage of the stars and chains; this is reflected in Change Order No. 1, presented to, and approved, by City Council at the December 11, 2023 meeting. Approval of Change Order No. 1 resulted in a total contract amount of $601,500.00. Being most of the scope of work for retention of the north wall became unnecessary resulted in an overall decrease of $86,850.00 in the total contract amount, 14.4 % lower than the current contract amount of $601,500.00. Change Order No. 2 reflects the reduction of fees associated with the reduced scope of work for a contract amount of $514,650.00. BUDGET: The contract amount of $514,650.00 paid from the American Rescue Plan Act (ARPA) funding; this amount reflects both Change Order No. 1 and Change Order No. 2. OPTIONS: 1. Authorize the City Manager to sign Change Order No. 2 with Lloyd D. Nabors Demolition, LLC. 2. Request additional information and/or deny authorization of Change Order No. 2 with Lloyd D. Nabors Demolition, LLC. RECOMMENDATION: 1. Authorize the City Manager to sign Change Order No. 2 with Lloyd D. Nabors Demolition, LLC. CHANGE ORDER No. 2 Prosect .Belford.. Building Demolition _ Date of Issuance: ,February„12 2024 Contract For: Demolition of 4 story Belford Building of 260 S Main Street and adiacent 1-stos building, ...... ,.� ...__..... OWNER: City of ParisContract Date. November 13 2023 S „ Texas 75460 Address: _135 Southeast 1 , treet Paris CONTRACTOR: µLloyd D „Nabors Demolition LLC Engmeer,_Jaso.0 Hart Engineering PLLC �. Engineer's Project No. ,2251 You are directed to make the following changes in the Contract Documents. Each Change Order shall be specific and final as to prices with no reservation or other provisions allowing for future additional money or time as a result of the particular changes identified and fully compensated in the Change Order. Description: Credit for not rebuild nq the north wall of 1 stogy. building, Additional effort to save north wall of 1 -story building Credit for 478 cubic Wards of dirt not trlaced alongLbottom of north„wall µof 1, -story building, Labor_ap_ e�u��ment to cut alonr�tor� of north wall of 1-gorybuddinct Credit _ ment wallmand,floor slab,.@1ona-east basement wall Credit for leavingthe sidewalk alanmg the_east aroTaPrtd line.,_,., for not saw-cuttin east base, Purpose of Change Order: Adyust,Pro�ect cost based.on items listed in the Description above, „ , , , , Attachments: CHANGE IN CONTRACT PRICE: CHANGE IN CONTRACT TIME: l Original Contract Price Original Contract Time: $ _588,000.00.... .. . . ...... ........................... .. .............. N/A (Dais or DatoRan ep ..o... �.m Net price change from previous Chamnge Order(s) Net change from previous Change Orders: Extras to date $ 13 500,00 .. . -.... m� .... _. Credits to date $ .e. 0 . ....- ...__. --�. (Days) Net $ 0 _ —n ........ ....... ......... ......... -- ..._._._ ......... Contract Price prior to this Change Order: Contract Time prior to this Change Order: $..601.5.Q9.�.00.. _........�__.....__..._ N/A .... (Days or Date Rahel ®1055 Net Increase (Decrease) of this Change Order: Net Increase (Decrease) of this Change Order: $..(86,850.0.0) .. 0 r,Da s ------ -- — ---- Contra-ct- Price with all approved Chang—e Orders: 'Contract Time with all approved Change Orders: $ 514,650.00,N/A Cumulative Contract Increase (Decrease),,,, .......% (Days or Date Range) ._. . .... .... .. ...,,,_ �...... Original Funds Available For Change Orders--:- Remaining Funds Available For Change Orders: $.....N/A-__-__-----_.- ,. Additional Funding, If Necessary: pees p $ N/A Signature of the CONTRACTOR indicates that he/she has read this Change Order from and any referenced attachments and that he/she is in agreement herewith, including any adjustment in the Contract Price or Contract Time. Recommended: Approved: Approved: (Engineer) (OWNER) (CONTRACTOR) Date: February 7 2024 Date:Date: June 21, 2023 ITEM A-7 CHANGE ORDER Belford Building Demolition CHANGE ORDER INSTRUC71ONS 'ENERAL INFORMA71ON his document was developed to provide a uniform format for handling contract changes that affect �ontract Price or Contract Time. Changes that have been initiated by a Work Directive Change must be icorporated into a subsequent Change Order if they affect Price or Time. ,hanger that affect Contract Price or Contract Time should be promptly covered by a Change Order. The ractice of accumulat=ing change order times to reduce the administrative burden may lead to nnecessary disputes. or supplemental instructions and minor changes not involving a change in the Contract Price or Contract ime, a Field Order may be used, OMPLETING THE CHANGE ORDER FORM ngineer initiates the form. including a description of the changes involved and attachments based upon ocuments and proposals submitted by CONTRACTOR. or requests from OWNER or both. Engineer has completed and signed the form ail copies should be sent to CONTRACTOR for eal. After approval by CONTRACTOR, all copies should be sent to OWNER for approval. Engineer make distribution of executed copies after approval by OWNER, a change only applies to price or to time, cross out the part of the tabulation that does not apply. June 21, 2023 ITEM A-7 CHANGE ORDER Belford Building Demolition 2