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HomeMy WebLinkAboutReg 2011-04-04 Item 7 - Agreement - Change Order for Tukwila Urban Center Access (Klickitat) with Atkinson Construction for $493,000 COUNCIL AGENDA SYNOPSIS vJ 1L`A ,7 ;-•=4;, Irei, s y Initials ITEM NO. g Meeting Date Prepared by Mayor s review Council review 1 04/04/11 1 BG 1 Pik? -4 90 1 I 1 I 1 ITEM INFORMATION CAS NUMB' R: 11-042 'STAFF SPONSOR: BOB GIBERSON I ORIGINAL AGENDA DATE: 04/04/11 AGI ND,\ ITEM TITLE Southcenter Access Project Change Order authorizing project acceleration and early road opening. C.\'I'kGORY N Discussion Motion 1 1 Resolution Ordinance 1 1 Bid Award 1 PublicHearing Other Aitg Date 04/04/11 Mtg Date 4/4/11 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date 1SP Council n Mayor HR 1 DCD Finance Fire 1 1 IT 1 1 P &R Police PW SPONSOR'S Consider for approval a construction contract change order directing the contractor to SuM \I:\RY accelerate up to 43 days compensable for approximately $11,000 per day up to a maximum of $493,000. Council is being asked to authorize the Mayor to sign this change order to accelerate the construction contract. RICV11 BY COW Mtg. CA &P Cmte n F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. n Planning Comm. DATE: 04/04/11 COMMITTEE CHAIR: JOAN HERNANDEZ RECOMMENDATIONS: SPONSOR /ADMIN. Public Works COMMITTEE Forward to Regular Council COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $493,000 $493,000 Fund Source: LID NO, 33 Comments: MTG. DATE RECORD OF COUNCIL ACTION 04/04/11 I MTG. DATE ATTACHMENTS 04/04/11 Informational Memorandum Dated March 30, 2011 Funding Spreadsheet LID #33 Map (9/8/09 Preliminary Assessment Roll) Proposed LID Increase Spreadsheet 59 60 *N H ILA W J z City of Tukwila Jim Haggerton, Mayor 190- INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Transportation Committee FROM: Public Works Director DATE: April 1, 2011 SUBJECT: Tukwila Urban Center Access (Klickitat) Project Project No. 98410419, Contract No. 10 -120 Project Acceleration Change Order ISSUE Discuss approval of a change order to compensate the contractor to accelerate the project by an additional 43 calendar days. BACKGROUND The contract with Atkinson Construction for the Tukwila Urban Center Access Project was executed in January of 2011. The contract includes incentives and disincentives to ensure that the construction is completed before the holiday season. The disincentive allows the City to withhold $25,000 per day from the Contractor's final payment for each day the road is not opened after November 16, 2011. The incentive requires the City to pay $25,000 per day to the Contractor for each day the road is opened before November 1, 2011 up to a maximum of $250,000. (This cost is already included in the project budget.) The Contractor's proposed project baseline schedule was approved on March 11, 2011. This schedule has an early completion date of October 13, 2011 (October 13 is counted as a work day in the current schedule with the roadway expected to open after work is complete on that day). The schedule assumes a work week of five days per week and eight hours per day. The Contractor did not propose to use weekends, nights, or longer shifts to accomplish the construction work. DISCUSSION Throughout the public outreach process, staff has entertained questions and concerns about the length of the closure and whether there was a way to get the southern 1 -5 off -ramp open earlier. However, the construction sequence requires that this ramp be one of the last pieces of the job to be constructed. In short, this is because the entire wall between this ramp and the adjacent lanes must be constructed first. Then a concrete cap is placed on top of that wall and this cap is essentially a moment slab that supports the concrete barrier that is constructed between the ramp and the adjacent lanes. This concrete cap extends underneath the asphalt for the southern 1 -5 off -ramp. The ramp cannot be opened until the wall, the cap, the barrier, and the asphalt are all complete. After several discussions with the Contractor, there is an opportunity for the City to pay for acceleration beyond the incentive provided in the contract. The Contractor has reviewed his schedule and the contingencies that ensure that the construction is completed by his proposed date of October 13 The Contractor's analysis indicates that if he works longer days and adds Saturdays, and potentially Sundays to his schedule, (barring any unforeseen changes or weather delays) he could reopen the entire road by September 1, 2011 (early morning). The added cost to work the additional overtime cost has been estimated to be $11,000 per day. W:12011 Info MemoslUrban Access MayorMEM CO #03 03 26 11.doc 61 INFORMATIONAL MEMO Page 2 There is also a one -time cost for the Contractor to revise his project schedule and make necessary changes to accomplish the new schedule at an estimated cost of $20,000. The Contractor would begin incurring both of these expenses immediately upon approval of this change order. There is no guarantee that the contract would be complete ahead of schedule, however, the Contractor would only be reimbursed the $11,000 per day of early completion prior to the current scheduled opening day of October 13, 2011. Therefore, this is a strong incentive for an early completion. If the City were to cause delay to the Contractor by making changes or due to unforeseen conditions, the City would have to compensate the Contractor for the $11,000 per day acceleration cost. The maximum cost for this change order would be $493,000.00 (or $11,000 per day for 43 days, plus the $20,000 scheduling cost). Construction management costs are not expected to change because the contract was executed prior to the construction contract and that contract anticipated a few months of night shift work. These hours will be applied to the longer days and the Saturdays in this change order proposal. This minor increase to the LID has been brought to the attention of as many of the businesses in the Southcenter area as possible. The cost for this acceleration proposal would add $493,000 to the project cost which would work out to a cost per property of between $0.02 and $0.04 per square foot of land depending on the property's type and location. As an example, for a 100,000 square foot lot (about 2.5 acres) this would range from $1,000 to $2,000 (or $67 to $133 per year). The funding for this acceleration proposal would come from the Local Improvement District (LID. Because the construction bids came in lower than predicted, the Preliminary Assessment Roll has capacity to absorb some of the additional cost for the proposed acceleration. The increase to the Preliminary Assessment Roll (which would be less than the project cost) would be approximately $247,000 or between $0.01 and $0.02 per square foot of land. As an example, for a 100,000 square foot lot (about 2.5 acres) the increase in assessment as compared to the Preliminary Assessment Roll would range from $1,000 to $2,000 per year. The attached spreadsheet shows some examples of the assessment increase. Many businesses have expressed significant concern over the impact this project may have, especially during this difficult economic period. Staff has reviewed this acceleration proposal and recommends approval of this change order. RECOMMENDATION Council is being asked to consider this change order and any input received from affected business and property owners. Based on that input, Council is being asked to authorize the Mayor to execute this change order to accelerate the construction of this project in the amount of $493,000.00 and forward this item to the April 4, 2011 Regular Meeting (same night) for consideration. Attachments: Funding Spreadsheet LID #33 Map (9/8/09 Preliminary Assessment Roll) Proposed LID Increase Spreadsheet C:ltemp\XPgrpwise\Urban Access MayorMEM CO #03 03 26 11.doc.docx 62 Southcenter Access Project Funding Spreadsheet Contracts Funding Atkinson Construction Contract 10,880,180.00 Federal Grant 3,213,065.00 20% Contingency 2,176,036.00 TIB Grant 3,398,716.00 Incentive Pay Open by 10/13/11 250,000.00 6,611,781.00 Acceleration Change Order 493,000.00 13,799,216.00 City Balance (32,000.00) CH2M Hill Construction Mgmt 2,024,137.02 HNTB Sup #11 PE 107,764.00 HNTB Sup #12 Const Mgmt 171,062.00 LID 10,747,300.65 City Construct Mgmt 389,885.00 2,692,848.02 DRB Dispute Review Board (DRB) 20,000.00 2 New Intersection Signals 64,327.00 PSE Relocation 231,000.00 Qwest 19,690.63 335,017.63 LID Expenses 500,000.00 Total Contract Costs 17,327,081.65 Funding 17,327,081.65 NOTE: Does not include preliminary engineering, right -of -way and environmental. C: \temp\XPgrpwise \Funding Spreadsheet 63 64 1 t v e 0° Gam A a ci" sv r F ,r 1 LTUJI I N\ j,...,,..,) .1. I j t:- r 1 -1 '1.,i'-..;2117,M 4, -1.: DM ro tt A. 44' /A— I: M. 1-..- r si r "I e l-ry- s IP 1 \\6, i r,..0 s 3 Mme`.' I A, W ∎/i :161 w Not to Scale k y I (7 t LID Parcels 9117/09 (using Parcels 1108) 1�� e cr��"`°�" o a t ASSESSME 1 ='i 1j 4. Boot t F 1` Qool y 1. 'i Q 7:7 p'I C,7°� a te/ a o os m 7. /I/ v t a f 1 :'h i i a h ,A LID #33 f, Preliminary Assessment Roll it\'''' GAS September 8, 2009 Tukwi a i! /I For Planning Purposes Only 65 66 Southcenter Access Proiect Preliminary Assessment Roll Proposed Acceleration Sept. 2009 Apr. 2011 LID estimate: $10,500,000 LID estimate: $10,747,000 Estimated Assessment Increase 1 ZONE /SF Assessment /Example Lot /SF Assessment /Example Lot TOTAL Monthly Annual Green $0.73/SF $73,000 $0.75/SF $75,000 $2,000 $11 $133 Olive $0.61/SF $61,000 $0.62/SF $62,000 $1,000 $6 $67 Brown $0.24 /SF !$24,000 $0.25/SF $25,000 $1,000 $6 $67 Lt Blue $0.12/SF 1$12,000 $0.13/SF $13,000 $1,000 $6 $67 Pink $0.02 /SF l$2,000 $0.03 /SF $3,000 $1,000 $6 $67 I Example Lot 100,000 SF (about 2.5 Acres) SF Square Foot LID Local Improvement District LID assessments will be sent monthly for 15 years C: \temp\XPGrpWise \LID comparison acceleration v. formation.xls 67 68