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City
<br />Tukwila
<br />Public Works Deportment - Bob Giberson, Director
<br />INFORMATIONAL MEMORANDUM
<br />TO: Transportation and Infrastructure
<br />FROM: Robin Tischmak, Acting Public Works Director
<br />CC: Mayor Ekberg
<br />DATE: November 9, 2017
<br />SUBJECT: Interurban Avenue South — S 143rd St to Fort Dent Way
<br />Project Number 90310402
<br />Contract 14-067, Change Order No. 9
<br />Allan Ekberg, Mayor
<br />ISSUE
<br />Approve the final settlement and Change Order No. 9 for the Interurban Ave S Project with Walsh Construction.
<br />BACKGROUND
<br />Change Order No. 9 settles the additional compensation request and subsequent mediation effort between the City and Walsh
<br />Construction commenced on June 16, 2017, and all other disclosed or undisclosed disputes on the construction contract. Change
<br />Order No. 9 also increases the contract time by 141.5 calendar days and will allow the Interurban Ave S Project to be closed out.
<br />DISCUSSION
<br />Walsh Construction has asserted that, during construction, the project encountered unexpected impacts to the Contractor's work.
<br />The Contractor has itemized requests for additional compensation that include: 1) unpaid bid items, 2) extra work orders, 3) gravel
<br />borrow, 4) sub -contractor costs for Pearson Drilling and ADP Electric and 5) additional costs for inefficiencies and overhead. The
<br />City responded to these requests for additional compensation and disputed the Contractor's analysis of cost impacts.
<br />On June 16, 2017, the City and Walsh Construction entered mediation to resolve the disputed contract compensation amounts.
<br />Several additional settlement conferences were held throughout the summer to negotiate and discuss specific merits of the
<br />Contractor's request. Item by item negotiations were set aside in favor of a global settlement discussion.
<br />The City Attorney, PW staff, and our construction management consultant met with the Contractor's authorized representatives and
<br />discussed the settlement terms to formally close out the project. The discussed settlement terms included that the City shall
<br />increase the current contract time by 141.5 calendar days, making the total Contract time 1,067.5 calendar days. As a result of the
<br />contract time increase, the City shall rescind the assessed liquidated damage of $358,364.32, which were assessed, but never
<br />collected by the City from the Contractor. On top of the liquidated damage reimbursement, the City shall also pay the Contractor a
<br />total of $1,425,000.00, in addition to other amounts already paid, to arrive at a final settlement amount for the Interurban Ave S
<br />Project.
<br />FISCAL IMPACT
<br />The total contract amount was $7,836,662.16. With the remaining contract balance of $343,740.85, Change Order No. 9 is for
<br />$1,081,259.15 for a total balance owing of $1,425,000 to Walsh Construction. The Transportation Improvement Board has
<br />approved an additional $750,000 in grant funds. We are over the 2017 CIP budgeted amount by $950,000, but with the additional
<br />$750,000 TIB funds and $35,000 in traffic impact fees for signal improvements, the City overage is $165,000. The total final
<br />contract amount is now $8,917,921.31.
<br />RECOMMENDATION
<br />Council is being asked to approve Walsh Construction's Contract No. 14-067's final settlement Change Order No. 9 for
<br />$1,081,259.15 with a contract time extension of 141.5 calendar days and consider this item at the November 27, 2017 Committee
<br />of the Whole and the December 4, 2017 Regular Meeting.
<br />Attachments: Change Order No. 9
<br />Interurban Ave S Project CIP Overview
<br />W:\PW Eng\PROJECTS\A- RW & RS Projects\Interurban Ave S (90310402)\Info Memo for CO #9, Final CA 110717 gl.docx
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