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Home My WebLink AboutCOW 2008-02-11 Item 4E - Agreement - Change Order for Southcenter Boulevard Water Main Replacement with RL Alia Company for $73,000 COUNCIL AGENDA SY TOPSIS 4,J-7 S' Initials ITEM No. O f i2 ii 3 I rl/eetinzz Date Prepared by j Mayor's riiew Council review cti wry 02/11/08 I BG, I" 1 02/19/08 1 BG`{rnii") It 1 '9 U I ITEM INFORMATION CAS NUMBER: 08-021 GRIGINAL AGENDA DATE: FEBRUARY 11, 2008 AGENDA ITEM TITLE Southcenter Blvd Water Main Replacement Project Approval of Budget and Change Order No. 2 for $73,000. CATEGORY Discussion Motion Resolution Ordinance I 1 BidArvard Public Hearing L] Other Mtg Date 02/11/08 Mtg Date 02/19/08 Mtg Date Mt Date Alts Date Mtg Date Mtg Date: !SPONSOR Council Major n _Adra Svcs DCD L Finance El Fire Legal P&R Police PIY/ SPONSOR'S This project replaced the water main from Grady Way to Tukwila Pkwy and required SUMMARY crossing the Southcenter Blvd bridge. Crossing the bridge produced an increase in extra labor, materials, equipment and contract time. Due to the overruns, a change order for $73,000.00 is being presented which caused a $49,035.00 budget shortfall. Additional water funds will be available from the water fund's ending fund balance and savings from the Interurban Water Reuse project. REVIE \OWED BY n COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. n Planning Comm. DATE: 02/04/07 RECOMMENDATIONS: SPONSOR /ADMIN. Authorize Mayor to sign Change Order No. 2. COMMITTEE Unanimous approval, forward to COW. COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED 980,000.00 $930,965.00 $49,035.00 Fund Source: 401.02 Water Fund Comments. MTG. DATE RECORD OF COUNCIL ACTION I 02/11/08 02/19/08 MTG. DATE ATTACHMENTS 02/11/08 Information Memo dated February 6, 2008 (revised after UC) Closeout Budget Analysis 2008 CIP page 81 Utilities Committee Meeting Minutes from February 4, 2008 02/19/08 INFORMATION MEMO TO: Mayor Haggerton FROM: Public Works Director DATE: February 6, 2008 SUBJECT: Southcenter Boulevard Water Main Replacement Project Project No. 98 -WT05, Contract No. 07 -054 Change Order No. 2 Final Settlement Budget Shortfall ISSUE Approval of Change Order No. 2 brings total final project cost over budget. BACKGROUND R.L. Alia Company overran the contract time by approximately 100 days and was initially assessed liquidated damages of over 100,000. Subsequently, R.L. Alia filed a protest and provided additional documentation and details demonstrating that, in a lawsuit, they may be able to show that the plans were not clear enough to allow the bidder to plan for all the intricacies required to install the new water main across the Southcenter Boulevard Bridge through existing knockouts and penetrations without significant extra labor, matenals, equipment and contract time. Subsequently, the final settlement Change Order was negotiated in the amount of $73,000 to compensate R.L. Alia Company for all additional direct labor, equipment and material costs. The final total for the construction contract is estimated to be $871,200. Due to the overruns in time, the base contract of $89,615 for construction management (CM) was increased with Amendment 1 by $12,414 and Amendment 2 is pending at $6,771, for a CM total of $108,800. The attached closeout budget analysis shows that the expenditures exceed the budget amounts by $49,035. ANALYSIS This final settlement Change Order is a fair and equitable complete compensation. Furthermore, this settlement minimizes the risk of a protracted battle with a contractor and eliminates potential litigation costs. An upcoming agenda item for an interlocal agreement with King County Metro includes savings of up to $110,000 for the City of Tukwila. King County will pay for the design and construction if Tukwila agrees to pay for bidding and construction management. See page 81 of the 2008 CIP for proposed savings. RECOMMENDATION Authorize the Mayor to sign Change Order No 2 for $73,000 and approve using ending water fund balance due to savings in the Interurban Water Reuse project to pay for project budget shortfall. Attachments: Closeout Budget Analysis 2008 CIP page 81 P \PROJECTS\A- WT Projects\98wt05 Southcenter BlvaInfo Memo COR2 2 -06 -08 l;C budget paper gl.doc Southcenter Blvd Water Main Replacement Project 98 -WTO5 Closeout Budget Analysis Construction Award Construction Bid Award $764,864 Construction 10% Contingency $76,486 Const. Mgmt Award $89,615 Total Award $930,965 Construction Expenditures R.L. Alia base contract ($703,000 plus tax) $774,200 R.L. Alia C.O. #1 (conduits for Time Warner anc $24,000 R.L. Alia C.O. #2 (final settlement) $73,000 Total Construction $871,200 Construction Management Expenditures Anchor Environmental base agreement $89,615 Anchor Environmental Supplement No. 1 $12,414 Anchor Environmental Supplement No. 2 $6,771 Total Const Mgmt $108,800 Total Expenditures $980,000 BUDGET SHORTFALL (49,035) P' \PROJECTSW- WT Projects \98wt05 Southcenter Blvd \Closeout Budget J CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2008 to 2013 PROJECT: Interurban Water Reuse LINE ITEM: 401.02.594.34. .21 PROJECT NO. 92 -WTO6 DESCRIPTION: Develop water reuse along the Interurban corridor with Class A treated wastewater from the Eastside Reclamation Facility for irrigation, sewer flushing, sweeping, dust control, and other non potable uses. JUSTIFICATION: Using reclaimed water is an element of the Gity's Water Conservation Plan as well as the Cascade Water Transmission and Supply Plan. STATUS: King County Department of Natural Resources (KCDNR) and the City are currently completing the assessment of crossing the river through an old 6° line in order to serve Baker Commodities. MAINT. IMPACT: Future maintenance and operation of the new meters, tracking and preventing cross connections. COMMENT: KC Dept of Natural Resources maintains and operates a distribution pipe from the Eastside (Renton) Reclamation Facility to the golf course. FINANCIAL Through Estimated (in $000's) 2006 2007 2008 2009 2010 2011 2012 2013 BEYOND TOTAL EXPENSES Design 15 5 20 x Land (R/W) 0 Const. Mgmt. 17 17 Construction 13 110 123 I. TOTAL EXPENSES 13 15 132 0 0 0 0 0 0 160 I FUND SOURCES Awarded Grant 0 Proposed Grant 0 Mitigation Actual 0 Mitigation Expected 0 Utility Revenue 13 15 132 0 0 0 0 0 0 160 TOTAL SOURCES 13 15 132 0 0 0 0 0 0 160 i f F- Pro ject Location fi 1t-- ,I; ��sost� N j] 4 f� 5 114 9 n 4,! u L i.,..... lb 4 Iwo ''"I r ►�r� "IGIS 01111 TUkwI. 1 3,s4 1 81 Utilities Committee Minutes February 4. 2008 Paae 2 The City will enter into an agreement with Tellink LTD in the amount of $16,000, to conduct a needs analysis, system audit, network infrastructure assessment and equipment identification for the a new citywide telephone system. The funds will be taken from the 303 Fund. Council approval for the contract is not required since the contract is less than $25,000. INFORMATION ONLY. D. Southcenter Boulevard Water Main Change Order No. 2 Budvet Shortfall Staff is seeking full Council approval to utilize the ending Water Fund budget to pay for a project overrun in the Southcenter Boulevard Water Main Replacement Project. Two reasons were identified for the over budget amount: 1. the design of the project was not communicated in the best possible clear and definitive terms from the City to the contractor; and 2 inflation due to rising materials costs. A''''' The project contractor, R.L. Alia, overran the stated contract time by approximately 100 days. They could possibly prove that the extended time was due to reason number one as stated above In response to assessed liquidated damages by the City and contractor expression of a potential lawsuit, staff negotiated a settlement with the contractor rather than induce a lawsuit. The negotiation was to pay the contractor for direct expenditures for labor and material as related to unclear terms of the project design. The contractor's original claim started much higher than negotiated. The project exceeded the budgeted amount by $45,000 The over budget amount will be taken from the ending Water Fund balance. The Water Fund balance will experience a cost saving of approximately $110,000 as a result of an interlocal agreement with King County Metro in the Interurban Water Reuse project. UNANIMOUS APPROVAL. FORWARD TO FEBRUARY 11 COW FOR DISCUSSSION. E. Recvclin2 Program Grant Funds Staff is seeking full Council approval for the Mayor to sign and enter into interlocal agreements with the King County Solid Waste Division and the Washington Department of Ecology for grant funding during 2008 -2009 for the Tukwila Recycling Assistance Program. The City is able to maintain and run the Tukwila Recycling Assistance Program through this grant funding which cycles every two years. Monies are received through the Waste Reduction/Recycling Grant (administered by King County) and the Coordinated Prevention Grant (administered by Washington Department of Ecology). The Tukwila Recycling Assistance Recycling Program began in the 1990's and is not supported by the City's General Fund or subscriber based fees; the program is based solely on grant funding. The Program includes residential as well as business based recycling opportunities and other special collection events UNANIMOUS APPROVAL. FORWARD TO FEBRUARY 11 COW FOR DISCUSSION. III. MISCELLANEOUS Meeting adjourned at 5.56 p.m. Next meeting: Wednesday, February 19, 2008 5:00 p.m. Conference Room No. 1. 1 Committee Chair Approval Mb Ties b• KAM. Reviewed by BG. 8