TIC 2017-05-23 Item 2C - Agreement - 42nd Avenue South Phase III (Southcenter Boulevard to South 160th Street) with King County Water District #125

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City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Transportation and Infrastructure Committee FROM: Bob Giberson, Public Works Director - f BY: Cyndy Knighton, Senior Program Manager CC: Mayor Ekberg DATE: May 19, 2017 SUBJECT: 42nd Avenue S Phase III (Southcenter Blvd to S 160th St) Project No. 99410303 Interlocal Agreement with King County Water District #125 ISSUE Approve an Interlocal Agreement (ILA) with King County Water District #125 (KCWD #125) for reimbursement of costs for sewer relocation work to be constructed by Active Construction, Inc. for the 42nd Avenue S Phase III project. BACKGROUND In February 2012, CH2M Hill began design work on a project that combined the 42nd Ave S Phase III (Southcenter Blvd to S 160th St) roadway improvements and the Gilliam Creek culvert replacement project. The project included significant coordination with outside utility providers. KCWD #125 has designed water main relocations to accommodate the City's project and the project was bid with a separate schedule for the KCWD #125 work. ANALYSIS The 42nd Avenue S project has been awarded to Active Construction, Inc. and bid schedule E includes all the work designed by KCWD #125 for the required water main relocation. The attached ILA provides the necessary mechanism for Tukwila to complete the construction of the KCWD #125 work and get reimbursed for the costs. The ILA includes reimbursement to Tukwila for the actual construction work as well as a percentage of the construction cost (8 %) to offset construction management (CM) costs. The typical 8 -10% of CM costs is not used because Tukwila is not responsible for inspection of the water installation as KCWD #125 is providing staffing for inspections. FINANCIAL IMPACT Ultimately there is no financial impact to Tukwila for the ILA. The contractor will be paid using Tukwila funds, but the water main relocation costs are fully reimbursed to the City. Actual costs, once known, are what will be charged to KCWD #125 and not the estimated costs included in the agreement language. The anticipated maximum reimbursement to Tukwila is $289,841.33, which includes a 20% contingency. There are provisions for more should it become necessary, although KCWD #125 approval would be required. RECOMMENDATION Council is being asked to approve the Interlocal Agreement with King County Water District #125 for the 42nd Ave S Phase III Project and consider this item on the Consent Agenda at the June 5, 2017 Regular Meeting. Attachment: Interlocal Agreement between City of Tukwila and King County Water District #125 w:fpw eng\projects�a- rw & rs projects \42nd ave s phase iii (99410303 94 -rs03) \construction\ #.200 - correspondence \005 - utility & interlocal coordination \info memo - ila with kcwd sm.docx 25