HomeMy WebLinkAboutUtilities 2008-02-04 Item 3D - Change Order #2 - Southcenter Boulevard Water Main with RL Alia Company
INFORlVL;\TION MEMO
TO:
FROM:
DATE:
SUBJECT:
Mayor Haggerton n
Public Works Directo~
January 29, 2008 O~
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 [mal 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, materials,
equipment and contract time.
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.
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 attached closeout budget analysis shows that the expenditures exceed the budget amounts
by $45,000.
. 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
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
2007 CIP pages 78 and 79
2008 CIP page 81
P:\PROJECTSIA- WI Proj<cts\98o.10S Southcenter Blvd\Info Memo C0#2 1-23-08 - UC budget paper.doe
CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2007 to 2012
PROJECT: Southcenter Blvd Water Main Replacement
LINE ITEM: 401.02.594.34. .09 PROJECT NO. 98 -WTO5
DESCRIPTION: Design and construct 1,900 LF of new 10" ductile iron pipe from Grady Way to Tukwila Parkway.
JUSTIFICATION: Aging cast iron system has suffered frequent and spectacular failures.
STATUS: Survey and in -house design began in 2004, advertise bids in late 2006 with construction in 2007.
MAINT. IMPACT: A new pipe will significantly reduce impact on crews from the risk of cataclysmic events.
COMMENT:
FINANCIAL Through Estimated
(in $000's) 2005 2006 2007 2008 2009 2010 2011 2012 BEYOND TOTAL
EXPENSES
Design 30 15 45
Land (13./W) 0
Const. Mgmt. 50 50
Construction 490 490
TOTAL EXPENSES 30 15 540 0 0 0 0 0 0 585
FUND SOURCES
Awarded Grant
Proposed Grant
Mitigation Actual
Mitigation Expected
Utility Revenue..... 30. 15 540. 0 0 0 0
TOTAL SOURCES 30 15 540 0 0 0
PnoJeot Location
78
0
0
0
0
0 585
0 0 0 585
PROJECT:
DESCRIPTION:
JUSTIFICATION:
STATUS:
MAINT. IMPACT:
COMMENT:
FINANCIAL
(in $000's)
EXPENSES
Design
Land (R/W)
Const. Mgmt.
Construction
TOTAL EXPENSES
FUND SOURCES
Awarded Grant
Proposed Grant
Mitigation Actual
Mitigation Expected
Utility Revenue
TOTAL SOURCES
CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2008 to 2013
Interurban Water Reuse
LINE ITEM: 401.02.594.3.. .21 PROJECT NO. 92-WTO6
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.
Using reclaimed water is an element of the City's Water Conservation Plan as well as the Cascade Water
Transmission and Supply Plan.
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.
Future maintenance and operation of the new meters, tracking and preventing cross connections.
KC Dept of Natural Resources maintains and operates a distribution pipe from the Eastside (Renton)
Reclamation Facility to the golf course.
Through Estimated
2006 2007 2008 2009 2010 2011 2012 2013 BEYOND TOTAL
17
13 110
13 15 132
20
0
17
123
0 0 0 0 0 0 160
15 5
0
0
0
0
13 15 132 0 0 0 0 0 0 160
13 15 132 0 0 0 0 0 0 160
Project Location
81
A