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Reg 2007-08-20 Item 5B - Final Acceptance - Allentown Phase II and Foster Point Water & Sewer Imrpovement by RL Alia Company
COUNCIL AGENDA SYNOPSIS `+�yS rnitialr ITEM NO. O F 112 Q; e a k �S s Meeting Date I Prepared by I M 'or't retnery Cfirrn t1 review .tl/ 8/20/07 1 BG- (AR) 1 ``t 1 1 1 ‘s,, 79o8 5 b 1 ITEM INFORMATION CAS NUMBER 07-096 I ORIGINAL AGENDA DATE: AUGUST 20, 2007 AGENDA ITEM TITLE Accept as complete Allentown Phase II and Foster Point Water Sewer Improvement Project and release retainage. CATEGORY Discussion El Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date Mtg Date 08/20/07 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date: SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P&R Police PTV SPONSOR'S The contract with R.L. Alia Company is complete for the Allentown Phase II and Foster SUMMARY Point Water Sewer Improvement Project. This project provided new water, sewer and surface water drainage improvements. Construction began May 15, 2006 and physical completion was reached on July 6, 2007. There were seventy -six change orders with substantial overruns. The primary overruns were eighty -eight additional water services and forty-five additional sanitary sewer stubs. The total contract amount was $7,932,210.54. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 08/08/07 RECOMMENDATIONS: SPONSOR /ADMIN. Accept contract as complete and authorize release of retainage. CoMMirrrEE Unanimous approval; forward to Regular Consent Agenda. COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $7,932,210.54 $8,919,000.00 Fund Source: 401 Water, 402 Sewer 412 Surface Water (pages 81, 113, 142, 2007 CIP) Comments: Budgeted amount includes construction and construction management. MTG. DATE RECORD OF COUNCIL ACTION 08/20/07 MTG. DATE ATTACHMENTS 08/20/07 Information Memo dated July 25, 2007 Notice of Completion of Public Works Contract 06 -043 Change Order Log Letters to Residents Utilities Committee Meeting Minutes from August 8, 2007 INFORMATION MEMO To: Mayor Mullet From: Public Works Director Date: July 25, 2007 Subject: Allentown Phase IUFoster Point Water and Sewer Improvements Project No. O1 -SW02 Project Completion and Acceptance ISSUE Accept construction contract as complete and authorize release of retainage in the amount of $369,718.37. BACKGROUND The Notice to Proceed for Contract No. 06 -043 with R.L Alia Company of Renton, Washington, was issued on May 15, 2006. This project constructed new water and sewer mains in the Allentown Phase II and Foster Point neighborhoods. This contract was completed on July 6, 2007. There were seventy -six change orders in the amount of $330,746.95 and $524,620.72 in net unit price overruns, see attached change order log. Although this project was primarily lump sum, there were several unit bid prices that were substantially overrun. The primary unit price item overruns were eighty -eight additional water services at $3,000 each and forty-five additional sanitary sewer stubs at $5,000 each. Closeout paperwork has been completed and verified, and the project is now ready for fmal acceptance. The contract cost is summarized as follows: Contract Award Amount $6,539,000.00 Additions (Change Orders and overruns) 855,367.67 Subtotal 7,394,367.67 Sales Tax* 537,842.87 Total Amount Paid (incl. retainage) 7,932,210.54 Sales tax at 8.8% and 8.9% after April 1, 2007 (except no tax on roadway items). ANALYSIS The bid award was $6,539,000 plus tax ($443,432) plus 10% contingency ($653,900), for a total of $7,636,332. The budgeted amount for construction is $7,834,000 and $1,085,000 for construction management. Construction management expenditures will be approximately $400,000 under budget and overall the project has finished under budget. RECOMMENDATION It is recommended that this contract be forwarded to the Tukwila City Council on the consent agenda for formal acceptance and authorize release of the retainage, subject to the standard claim and lien release procedures. attachments: Notice of Completion of Public Works Contract Change Order and Overrun Summary P:\ PROJECTS \A SW Projects \Olsw02 Atown II Foster Pt \CONSTRUCTIONNInfo Memo AFP Closeoutdoc State of Washington z- Department ofRevenue RE VENUE Olympia Box 47474 ympia WA 98504 -7474 Contractor's Registration No. (UBI No.) 600 149 378 Date 6/25/07 NOTICE OF COMPLETION OF PUBLIC WORKS CONTRACT From: Name Address of Public Agency 1 Department lise Only City of Tukwila Assigned To 6200 Southcenter Boulevard Tukwila, WA 98188 Date Assigned Notice is hereby given relative to the completion of contract or project described below Description of Contract Contract Number Allentown/Foster Point Water Sewer Improvements 06 043 Contractor's Name Telephone Number R.L. Alia Company 425 226 8100 Contractor's Address 107 Williams Avenue S, Renton, WA 98055 Date Work Commenced Date Work Completed Date Work Accepted 5/15/06 7/6/07 Surety or Bonding Company Hartford Fire Insurance Company Agent's Address Parker Smith Feek Inc. 2233 112th Ave NE Bellevue WA 98004 Contract Amount 6,539,000.00 Additions 855,367.67 Liquidated Damages 0.00 Reductions 0.00 Sub -Total 7,394,367.67 Amount Disbursed 7,932,210.54 Amount of Sales Tax Paid at 8.9 537,842.87 Amount Retained 0.00 (lf various rates apply, please send a breakdown.) TOTAL 7,932,210.54 TOTAL 7,932,210.54 4 x Disbursing=Officer= '-i Comments: Retainage Bond was provided by R.L. Alia through Bank of America. Signature Type or Print Name Diane Jaber Finance Approva e l t< Phone Number (206) 433 -1871 J The Disbursing Officer must complete and mail THREE copies of this notice to the Department of Revenue, PO Box 47474, Olympia, WA 98504 -7474, immediately after acceptance of the work done under this contract. NO PAYMENT SHALL BE MADE FROM RETAINED FUNDS until receipt of Department's certificate, and then only in accordance with said certificate. To inquire about the availability of this document in an alternate format for the visually impaired, please call (360) 753 -3217. Teletype (TTY) users please call (800) 451 -7985. You may also access tax information on our Internet home page at http: /dor.wa.gov. REV 31 0020e (6 -27 -01) a {'3 1 1 0 0 N O 1 q N co, N U• 0 ALLENTOWN FOSTER POINT WATER AND SEWER IMPROVEMENTS m1i p N c^- N r co O Q ,0 9 r P- O° y F! p N ess i f 9 s G ie o •°n v? m .0 o a c a .s' ��l t \C'i 1 K O 1 1.- r r N G o p l a rn M N a t G N N r V O rt a. V N 1 G '9 N O is o o P rn m �Yti m 0 o C U 4 N G V O e 3 u+ O 1 i m 4O c m m N m V L T3 4 N m 3 O U y Q N Q P. 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O yaa A O 4 0 9- G 0 i s m N G -2 O G C N G a, `Q O 3 f6 8 0)° a U a G O m a s Z. o 3 y .3. m g E 2 44 r 4 -0 y Y c d a, m t .6 E N a' m cn -g m o m Z m N g o o i .5.. 0 „o, o---. c c o m d N o 2 C 4 :).-3 c c d H e L' 3 0 tf, cc y s -c d y a T G -g A n 4 °d u- y a. o c U m c :123 o d s v o -c w m I o 3 4 v a o a m G 4 3 in o a t N G.. O E o G d y t w 0 6. -O 0. C c„> Q U 1 '3 N N S Y G d p i V m 0) 3 .05 C O 7 y o O C O N A p .a 0 0) 1 C }'U N O O O cV N v Y cl- O E d 0 N O i '.O a u 4 U N 'a C m D O ti V U m G d e( 0 m 4 �O a s O N 6 V d 1 O O P'0) 'O D m ca O 0 a- P d O O O o0 m p, 0 G a° a o 'ia �a c d E o 4 c m u" d m yy c a a c u m ••v o c 4 m o 4.1- m D m O -0 Z.. "a 1 h 1 c 0 O. p A d d j O W m 1 i d N V G N O Y 1 G 0.s G m° 3 q E N m x F. O X m O N° 3 N a u°, 1 0, te a, m e t 3 a 2, a. o -s- 2. 0)' o m m 3 c a Y u, m r u- N d II- .d C 7 .3 G G 0 -a m 0) G 0 y .52 m d G b O G 4 N O N .0 O 'G m n 4 O d N -...4. G G G N° m O C O G G V T6 O m 4 N N O 3 (n O C d ,S M N `a m¢? m J g 0 E 7 D (n -0' O O m G d m N N o m° N` g 'd m o G a G u O m -o p 0. p m G W o s B c a d 3 R C_ G O w f n O m O O 3 0 4 0 O 6 N d 3 0. N C b `O m 4 r m O p A C J p Q c.+ O O O, Q U- r O O y O 4 O O 4 V. O J 1.- co a 0 O Q i to 9 O P to m m O L '6 U O INFORMATION MEMO To: Mayor Mullet From: Public Works Directorl Date: August 1, 2007 Subject: Allentown Phase II and Foster Point Water Sewer Improvements Project No. O1 -SW02 Notices to Residents ISSUE Approve information notices that will be mailed to the Allentown Phase II and Foster Point neighborhoods. BACKGROUND The City of Tukwila has completed the water, sanitary sewer, and surface water improvements in the Allentown Phase II and Foster Point neighborhoods. Notices will be mailed out to the residents informing them of the fees. ANALYSIS Listed below are the attached notices that will be mailed after the Ordinance has been approved by City Council: 1) August Letter to Residents 2) September Letter to Residents 3) Flyer 4) HUD Income Guidelines 5) King County Housing Repair Programs Brochure 6) King County Sewage Treatment Capacity Charge Brochure Financial assistance is available for the City's sewer connection fee that starts at $15,000. The City has set a low income level at 60% of the median income of the HUD Income Guidelines. The side sewer connection has assistance available through the King County Housing Repair Program and their low income level is at 80% of the median income of the HUD Income Guidelines. RECOMMENDATION Information Only. attachments: see list above. (p:proje s \O1sw02\memo080107sm Notice to Residents) DRAFT A gu 007 Subject: Allentown Phase II Foster Point Sewer Construction Completion Dear Resident: The sewer pipes have been installed, tested and accepted by Tukwila City Council and are now ready for the side sewer connections to occur. Homes existing on September 1, 2007 will be required to connect to the sewer system under the following three circumstances: 1. Septic or health problems identified by King County Health Department; or 2. The home changes ownership; or 3. Remodeling occurs adding a bathroom or bedroom King County will be recording the City's Sewer Ordinance on all parcels in this sewer connection area identifying the requirement to connect to the sewer system. Your property has been identified as being in this sewer connection area and you must connect if any of the above conditions should occur. Council finalized City Ordinance No with the following dates and amounts on August 20, 2007. Houses in the City's Allentown Phase II and Foster Point Sewer System Project will be subject to a sewer connection charge of $15,000.00. This amount is available until December 3L 2008 in order to encourage early connections. After December 31, 2008, the cost increases to $15,600.00 and will increase 4% or $600.00 annually until 2017. The City is offering 5 10 and 15 -year payment plan options for the sewer connection charge. The monthly payment plan can be started now or at any time prior to actually connecting to the sewer system. There is an option to pay off the balance early without penalty. The cost of the payment plan will be determined by the current sewer connection amount when starting the plan. If the house is sold before payments are completed, the balance must be paid off at the time of sale. For any questions about the payment plan, please contact Gail Labanara in the Tukwila Public Works Department at 206 -431 -3660. In addition to the sewer connection charge, all homeowner's connecting to the sanitary sewer system will pay a King County (Metro) sewer treatment capacity charge. King County will bill the homeowner directly after the sewer connection is completed and the side sewer permit has been approved. At this time, the 2007 sewer treatment capacity charge is $42.00 per month for 15 years. The sewer treatment capacity charge is billed semi annually and all billings can be prepaid at a discounted amount. The King County sewer treatment capacity charge will increase to $46.25 per month in 2008. Questions on the sewer treatment capacity charge can be directed to King County at (206) 296 -1450. P:IPROJF,CtS\A- SW Projects\0lsw02 Atown II Foster Pt\Letter to Residents Aug 2007.doc Residents Page Two August 21;2007 Septic system abandonment and connection from the house to the property line sewer stub (which requires a City side sewer permit) are the responsibilities of the homeowner. Financial assistance may be available through King County Housing Repair Program (206- 296 -7640) to help low income people afford the side sewer connection costs. Assistance is a no- interest loan supported by a lien on the property. The lien must be paid off prior to or when the house is sold. The City has also initiated a similar program through the City's Finance Department to help low income property owners afford the sewer connection charge. Please see the enclosed HUD income guidelines for the eligible amounts. The City Council has defined eligible low income homeowners as making 60% of the median income or below. The sanitary side sewer permit cost is approximately $500.00 and is to be submitted in person to the permit center at 6300 Southcenter Boulevard, Suite 100. Questions relating to permits or connections can be directed to Mike Cusick in the Public Works Department at 206 -431 -2441. Sincerely, Jim Morrow, P.E. Public Works Director Enclosures P:\PROJECTSW- SW Projects \01sw02 Atown II Foster Pt Lette! to Residents Aug 2007.doc DRAFT Member xx, 2007 IMPORTANT NOTICE Sewers are now in place and ready for connection. This letter explains what you need to know as a resident. Dear Resident: I am writing to let you know that the new Allentown Phase II and Foster Point sewers have been installed, tested, and accepted by City Council, and are now ready for side sewer connections. This fact affects you as a property owner. Let me answer some questions you may have. 1. Do I have to connect to the sewer? The answer is either "yes, you must connect now" or "no, you may remain on septic at this time Because your property is in the sewer connection area designated by the City's Sewer Ordinance, you MUST connect now if you meet any one of these three conditions: (1) Your property changes ownership; (2) You remodel and add a bathroom or bedroom; or (3) A septic or health problem is identified by the King County Health Department. If you do not meet one of these three conditions, you may remain on your septic system at this time. 2. How much will it cost to connect to the sewer system? The sewer connection fee (starting at $15,000.00) must be either on a payment plan with the City or paid in full. Connecting to the sewer "side sewer connection" as it is called involves two charges. (1) The side sewer connection cost. This includes running a pipe from the house to the sewer line stub, which varies in length for each property. We can only give an approximate average cost range of $5,000.00 since every property is different. Again, this will also vary if you hire a contractor, or if you do some of the labor yourself. (2) After sewer connection, a King County (Metro) sewer treatment capacity charge. For 2007, the sewer treatment capacity charge is $42.00 per month for 15 years. The sewer treatment capacity charge is billed semi annually (every six months) and all billings can be prepaid at a discounted amount. The King County sewer treatment capacity charge will increase to $46.25 per month in 2008. Questions on the sewer treatment capacity charge can be directed to King County at (206) 296 -1450 (see enclosed pamphlet). City of Tukwila's current 2007 monthly sewer rate for residential homes is $36.75 per month. I:\pubworks\PROJECTS\A- SW Projects 01 sw02 Atown II Foster Pt\Letterto Residents Sept 2007.doc Resident Page 2 Septe ber_XX -2007 3. Is there any assistance for low income households? Financial assistance may be available through the King County Housing Repair Program to help low- income people afford the side sewer connection costs. Assistance is through a no- interest loan supported by a lien on the property. The lien must be paid off prior to or when the property is sold. Please see the enclosed HUD income guidelines for the eligible amounts. 4. What are the steps when I am ready to connect to the sewer system? The first step is to fill out a utility permit and submit it with a site plan to the Public Works Department for review. The sewer peiiiit fee is based on the cost of the side sewer construction. After approval of the permit, connecting to the sewer line can then begin. After the City's utility inspector has tested the sewer line and the connection has been approved, you will then be able to abandon and fill the septic tank. Questions about the permit or connections can be directed to Mike Cusick in the Public Works Department at (206) 431 -2441. We know the new sewer system will bring benefits to the area increased property values, improved sanitation, the elimination of possible soil pollution, and cleaner, safer ground water. We also recognize that connecting to the sewer system involves a substantial sum of money. We are committed to doing as much as possible to ease the financial burden and keep you informed. Should you have any questions or want more information, please call the Public Works Department at (206) 433 -0179. We are eager to assist you. Sincerely, Jim Morrow, P.E. Director of Public Works I: 1pubwoda\PROJECIS\A- SW Projear \Olsw02 Atowr 11 Foster Pt\Le ter to Residents Sept 2007.doc Sewer Fees August 2007 Allentown Phase II and Foster Point Neighborhoods Hookup to the new sewer system is only required if: Your septic system fails, or Remodel, adding a bedroom or bathroom, or Home ownership changes New construction Estimate of charges for sewer connection include: 1. Connection Charge 15,000.00 2. Side Sewer Connection (the line from your house to the street) Estimate 4,500.00 3. City of Tukwila Permit Fee Estimate 500.00 4. King County's Sewer Treatment Capacity Charge (2007) 5.195.65 Approximate Total S 25.195.65 Again, you will not have to pay any of these charges until you connect to the sewer system. We know the new sewer system will bring benefits to the area improved sanitation, cleaner, safer ground water, and increased property values. We also recognize that connecting to the sewer system involves a substantial sum of money. We are committed to doing as much as possible to ease the financial burden and keep you informed. Payment plans of 5, 10 or 15 years will be available to all households for the Connection Charge. The 15 -year payment plan on the $15,000 connection fee at 4.0% interest would be $111.00 a month. King County also offers a 15 -year payment plan on the Sewer Treatment Capacity Charge. Assistance may also be available for low income households. 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O Q O .'3 O ›,.0 G p OA J, of GQ U O to 0.0 S f3 O O CA v, s, u 4- 4 0 ti G. a) cCI E O O k O k O v p x 0 o0 4.) m N in N g s_ N t rNi O et 0 9 o d 4.) c� at r2 Q v 0 4 y F 1 4.) O Q cv a 0 G L ,n p X p E 'C3 c cn v r rr .Q cn cn n V) fit W H "C7 E S. w 0 CZ V „ALA, o_ City of Tukwila i e6) fo Utilities Committee isos UTILITIES COMMITTEE Meeting Minutes August 8, 2007- 5:00 p.m. Wednesday Meeting due to National Night Out activities on Tuesday PRESENT Councilmembers: Joan Hernandez, Chair; Jim Haggerton and Joe Dune Staff: Jim Morrow, Bob Giberson, Mike Cusick, Pat Brodin and Gail Labanara CALL TO ORDER: Committee Chair Hernandez called the meeting to order at 5:05 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Allentown Phase II/Foster Point Contract Closeout and Acceptance The construction of new water and sewer mains in the Allentown Phase II/Foster Point is complete. Staff is requesting Council approval for formal project acceptance and authorization to release retainage. J Despite seventy -six change orders and price overruns, the overall project will finish under budget; although actual construction ran over, construction management was well under budget. Sewer stubs were based on a 6500 square lot size. UNANIMOUS APPROVAL. FORWARD TO AUGUST 20 REGULAR COUNCIL MEETING CONSENT AGENDA. B. Allentown Phase HfFoster Point Water and Sewer Connection Fees Staff reported that water and sanitary sewer connection fees can now be set since the water and sewer main construction is complete in Allentown Phase II/Foster Point and total construction costs are known. A draft ordinance has been submitted to the Committee for review. The ordinance establishes the fees for sanitary sewer and water connections. The sewer connection fee will begin at $15,000 (due to a sewer connection fee cap set by the Council in 2006) and the water fees will begin at $8,247.12 per connection, each of these fees will increase by 4% flat fee (uncompounded) per year until the year 2017. Residents can connect at any time during the ten year period at the respective fees listed in the ordinance. Several payment plan options have been established for the sanitary sewer connection fees. However, the water connection fee will require payment in full since the fee is only applicable to new home construction. Fee amounts have been determined by dividing the total construction amount by the number of possible connections (250). Although the actual cost per sanitary sewer connection is $19,668.92, the City will subsidize $4,668.92 per connection due to the $15,000 cap set by Council. UNANIMOUS APPROVAL. FORWARD TO AUGUST 13 COW. C. Allentown Phase II/Foster Point Draft Sewer Availability Notices For informational purposes only, staff has provided draft notices which will be sent to Allentown Phase II/Foster Point residents regarding connection fees. The first of these notices will be sent after Council approves the water and sewer connection fee ordinance. INFORMATION ONLY.