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Home My WebLink AboutReg 2016-06-06 Item 5A - Final Acceptance - East Marginal Way South Storm Pipe Replacement with James W Fowler Company for $2,552,955.83 (Includes $425,870.34 Final Settlement Change Orders #7-#13)COUNCIL AGENDA SYNOPSIS Meetin.;Date Pre ared b , Mayor's review tit review 05/23/16 BG 1 i id Resolution Mtg Date Ordinance Mtg Date 06/06/16 BG Other Mtg Date CATEGORY a Discussion MtsDate SPONSOR Council LI Mayor LI HR 0 DCD Finance El Fire IT 111 P&R 0 Police ■ PIV SPONSOR'S The contract with James W Fowler is complete for the East Marginal Way S Storm Pipe SUMMARY Replacement Project. This project repaired the failing storm drainage system along E Marginal Way S. Due to excavation issues for buried rocks and conflicts with 3rd Party Utilities, the final settlement with Fowler is over contingency by $425,870.34. Council is being asked to accept the settlement and finalize the contract with James W Fowler in the amount of $2,552,955.83. Reimbursement from 3rd Party Utilities will be sought. REVIEWED BY • COW Mtg. E1 CA&P Cmte F&S Cmte Transportation Cmte Cmte Arts Comm. E Parks Comm. E Planning Comm. COMMITTEE CHAIR: KATHY HOUGARDY 0 Utilities DATE: 05/10/16 RECOMMENDATIONS: SPONSOR/ADMIN. COMMErTEE Public Works Unanimous Approval; Forward to Committee of the Whole ITEM INFORMATION ITEM No. 5.A. CAS NUMBER: STAFF SPONSOR: BOB GIBERSON ORIGINAL AGENDA DATE: 05/23/16 AGENDA ITEM TITLE East Marginal Way S Storm Pipe Replacement Final Settlement with Project Completion and Acceptance 05/23/16 Z Motion Alts Date 06/06/16 Resolution Mtg Date Ordinance Mtg Date Ell Bid Award Mtg Date E Public Hearing Mtg Date Other Mtg Date CATEGORY a Discussion MtsDate SPONSOR Council LI Mayor LI HR 0 DCD Finance El Fire IT 111 P&R 0 Police ■ PIV SPONSOR'S The contract with James W Fowler is complete for the East Marginal Way S Storm Pipe SUMMARY Replacement Project. This project repaired the failing storm drainage system along E Marginal Way S. Due to excavation issues for buried rocks and conflicts with 3rd Party Utilities, the final settlement with Fowler is over contingency by $425,870.34. Council is being asked to accept the settlement and finalize the contract with James W Fowler in the amount of $2,552,955.83. Reimbursement from 3rd Party Utilities will be sought. REVIEWED BY • COW Mtg. E1 CA&P Cmte F&S Cmte Transportation Cmte Cmte Arts Comm. E Parks Comm. E Planning Comm. COMMITTEE CHAIR: KATHY HOUGARDY 0 Utilities DATE: 05/10/16 RECOMMENDATIONS: SPONSOR/ADMIN. COMMErTEE Public Works Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $2,552,955.83 $2,264,660.53 $425,870.34 Fund Source: 412 SURFACE WATER FUND (PG 89, 2015 CIP) Comments: Proposed reimbursement from 3rd Party Utilities is $326,000,00. MTG. DATE RECORD OF COUNCIL ACTION 05/23/16 06/06/16 MTG. DATE ATTACHMENTS 05/23/16 Informational Memorandum dated 05/06/16 State of WA Depart of Revenue Notice of Completion 14-078 Project Photos Minutes from the Utilities Committee meeting of 05/10/16 06/06/16 9 10 City of Tukwila Public Works Department - Bob Giberson, Director INFORMATIONAL MEMORANDUM TO: Utilities Committee FROM: Bob Giberson, Public Works Director CC: Mayor Ekberg DATE: May 6, 2016 SUBJECT: East Marginal Way S Storm Pipe Replacement Project Project No. 91241206, Contract No. 14 -078 Settlement and Final Project Closeout and Acceptance Allan Ekberg, Mayor ISSUE Approve the proposed final settlement change order, subsequent final acceptance and closeout of the East Marginal Way S Storm Replacement Project. BACKGROUND Contract No. 14 -078 with James W Fowler Co was awarded by Council on June 2, 2014 for work that included the repair of a failing storm drainage system along East Marginal Way S between S 130th St and the Green River. The project is funded with Surface Water Enterprise funds and included a project contingency of 10 %. At both the February 10, 2015 Utilities Committee and Council, the issue of unforeseen conditions was brought forward, which gave budget approval for extended construction management services on the project. This was needed because of unforeseen circumstances including buried rocks and trees, as well as utility conflicts with several third party utilities. The buried rocks and trees were found to be spaced randomly throughout the excavation, requiring additional staff and equipment hours. Despite significant upfront work during design to locate and map utilities, several third party utilities were discovered to be overlapping our designed storm drain trench. While the extra cost to remove rocks and trees must be borne by the City, staff believes that there is an obligation for the third party partners to reimburse the City for the impacts and extra work caused by their utility conflicts. Negotiations with the third parties are underway and ongoing. DISCUSSION The extra work to overcome the underground obstructions was tracked during construction and initially reimbursed using existing bid items for force account (time and materials). When it became obvious that the original bid items estimated dollar amounts were not adequate to cover all of the conflicts encountered, and the contractor and the City could not agree on the total compensation required for this work, we continued to track the impacts while the final payment was placed in dispute. Once construction was complete we gathered most of the relevant documents from the contractor, calculated the project's remaining undisputed obligations and finalized them into Change Order Nos. 7 through 12, which together essentially used up the project contingency of 10 %. w: \pw eng \projects\a- dr projects\emws emergency storm pipe repair 11 -19 -12 (91241206) \final payment\emw storm final payment and budget uc revised 5.4.16 gl.doc 11 Informational Memo May 6, 2016 Page 2 The final negotiations over remaining disputed items continued for several months and were not concluded until early 2016. The final settlement Change Order No. 13 has been signed by the contractor and represents full and final payment for all outstanding obligations and includes a release of claims. In order to process the final Change Order and payment, we need to encumber additional funds, described below. Once approval of this proposed settlement has been obtained, we will seek reimbursement from the third party utilities for impacts to our project caused by their facilities. FISCAL IMPACT The numbers below show the original contract amount with JW Fowler with 10% contingency. Council approved dedicating $137,575.04 of the contingency for the extension of the construction management contract with KPG, Inc. on February 17, 2015. With all of the Change Orders processed, the contingency is deficient by $423,230.97 (without sales tax on some items). We have already received reimbursement from Frontier Communication, which reduces the amount needed to settle the remaining disputes with JW Fowler. Staff is requesting Council approval of the final settlement Change Order, additional budget authority in the amount of $425,870.34 to cover the settlement, the subsequent final payment and proceed with the closeout of the project. The Surface Water Management (SWM) ending fund balance has sufficient funds to cover this amount. The SWM fund is in good shape in 2015 and 2016 and reserves are more than adequate. Further, we are actively negotiating full reimbursement from all necessary third party utility project partners and these reimbursement funds will bring the project budget to within $100,000 of the original contingency amount. The original contingency at the time of bid award was set at 10% or $205,878.23; with the addition of the $100,000, the actual project contingency came in at 15 %. An important lesson learned from this project is the need to be more realistic about our contingency needs on similar efforts, which should probably be in the range of 15% to 20% with the amount of unknown circumstances. The expected fiscal impact to the contract is as follows: Original Contract — JW Fowler w/ contingency Minus KPG Construction Management Claim settlement Change orders Final Contract Amount: Proposed Reimbursement 3rd Party Utilities $ 2,264,660.53 (137, 575.04) 425,870.34 $ 2.552,955.83 ($ 326,000.00) Total project overrun $ 100,000.00 RECOMMENDATION Council is being asked to approve the project settlement amount of $425,870.34 to cover the final payment and accept Contract No. 14 -078 with James W Fowler for $2,552,955.83 the East Marginal Way S Storm Pipe Replacement Project, subject to the standard claim and lien release procedures. This acceptance is also with the expectation that the City will be reimbursed $326,000 by third party utilities, reducing the financial impact to the City to $100,000. Council is asked to consider this item at the May 23, 2016 Committee of the Whole and subsequent June 6, 2016 Regular Meeting. ATTACHMENTS Photos of Project Notice of Completion No. 14 -078 w: \pw eng \projects \a - dr projects \emws emergency storm pipe repair 11 -19 -12 (91241206) \final payment \emw storm final payment and budget uc revised 5.4.16 gl.doc 12 Date: ❑ Original ❑ Revised # NOTICE OF COMPLETION OF PUBLIC WORKS CONTRACT Contractor's UBI Number: 601241487 Name & Mailing Address of Public Agency City of Tukwila 6200 Southcenter Blvd Tukwila WA 98188 UBI Number: 179 -00 -208 Department Use Only Assigned to: Date Assigned: Notice is hereby given relative to the completion of contract or project described below Project Name East Marginal Way S Storm Pipe Replacement 91241206 Contract Number 14 -078 Job Order Contracting ❑ Yes E No Description of Work Done /Include Jobsite Address(es) Construction of approximately 1,750 LF of 42 -inch storm drainage improvements within the right -of -way for East Marginal Way South in Tukwila. Federally funded transportation project? P Yes LYJ No (if yes, provide Contract Bond Statement below) Contractor's Name James W Fowler Co. E -mail Address johnf @jwfowler.com Affidavit ID* 578315 Contractor Address 12775 Westview Dr Dallas OR 97338 Te 503 ephone # - 623 -5373 If Retainage is not withheld, please select one of the following and List Surety's Name & Bond Number. Retainage Bond ❑ Contract/Payment bond (valid for federally funded transportation projects) Name: Liberty Mutual Insurance Company (Bond Number: 023028584 Date Contract Awarded 6/3/14 Date Work Commenced 7/18/14 Date Work Completed 3/10/15 Date Work Accepted Were Subcontracters used on this project? If so, please complete Addendum A. [Yes ❑ No Affidavit ID* - No L &I release will be granted until all affidavits are listed. Contract Amount Additions (+ ) Reductions (- ) Sub -Total Sales Tax Rate 9.5 (If various rates apply, please send a breakdown) Sales Tax Amount $ 2,051,720.00 $ 757,577.38 $ 266,043.21 $ 2,543,254.17 Liquidated Damages $ Amount Disbursed $ 2,552,955.83 Amount Retained $ $ 9,701.66 TOTAL $ 2.552.955 83 NOTE: These two totals must be equal TOTAL $ 2,552,955.83 Comments:' Note: The Disbursing Officer must submit this completed notice immediately after acceptance of the work done under this contract. NO PAYMENT SHALL BE MADE FROM RETAINED FUNDS until receipt of all release certificates. Submitting Form: Please submit the completed form by email to all three agencies below. Contact Name: Email Address: Diane Jaber dianejaber@tukwilawa.gov Department of Revenue Public Works Section (ir (360)704 -5650 PWC @dor.wa.gov 0 Washington State reparmient of Labor & Industries Contract Release (855) 545 -8163, option # 4 ContractRelease @LN I. WA.GOV REV 31 0020e (10/26/15) F215- 038 -000 10 -2014 Title: Fiscal Specialist Phone Number: 206- 433 -1871 Employment Security Department Registration, Inquiry, Standards & Coordination Unit (360) 902-9450 publicworks @esd.wa.gov 13 Addendum A: Please List all Subcontractors and Sub -tiers Below This addendum can be submitted in other formats. Provide known affidavits at this time. No L &I release will be granted until all affidavits are listed. Subcontractor's Name: UBI Number: (Required) Affidavit ID* Advanced Government Svcs, Inc. 602304323 571043 Apply A Line, Inc 600553941 580594 Best Parking Lot Cleaning, Inc 601901928 571761 Bravo Environmental NW, Inc 602946216 573960 C &P Fencing 603210811 577154 Cadman Inc 176000099 596769 Corliss Resources, Inc 602237779 584132 De Watering Services 602648434 547195 Glacier Northwest 601301145 585237 Ground Up Road Construction, Inc 602790246 543439 Hot Mix Pavers, Inc 600310693 576104 JMR Trucking, Inc 602101301 580548 K &D Services, Inc 600606705 574995 National Concrete Cutting, Inc 600195813 570913 Penhall Company 601258537 573072 PLS, Inc 601979933 572987 Silverstreak, Inc 600432781 571004 Speer Taps, Inc 600491975 562749 Statewide Rent -A- Fence, Inc 600348533 574473 Transportation Systems, Inc 602726209 571313 Twist, Inc 602561383 548741 Tyee Concrete Construction, Inc 602123519 584838 Ventilation Power Cleaning, Inc 578089188 573787 For tax assistance or to request this document in an alternate format, please call 1- 800 - 647 -7706. Teletype (TTY) users may use the Washington Relay Service by calling 711. REV43,I 0020e Addendum (10/26/15) F215- 038 -000 10 -2014 1 9 IEast Marginal Way South 5 St:M'al Pipe Replacement Figure 1 - Bedrock encountered in storm drain trench Figure 2 — Bedrock being hauled out 1 [;•t Marginal Way South 5 Storm Pipe Replacement Figure 3 — Bedrock being loaded for haul 2 16 Figure 4 — Unanticipated logs in storm drain trench East Marginal Way South S Storm Pipe Replacement ' ^ rva. 4141,4411 4"" Figure 5 — Multiple logs being reading for haul off site Figure 6 — Unexpected concrete encased telecom ducts in storm trench 3 17 18 Utilities Committee Minutes May 10, 2016 C. Project Completion: East Marginal Way South Storm Pipe Replacement Project Staff is seeking Council approval of the final settlement change order, project completion and closeout of the East Marginal Way South Storm Replacement Project with the James W. Fowler Co. in the total amount of $2,552,955.83. This project repaired a failing storm drainage system along East Marginal Way South between South 130th Street and the Green River. During the course of the project, numerous unforeseen conditions arose including buried rocks, trees, and utility conflicts, requiring additional staff and equipment hours. City staff is negotiating with the third party utilities to obtain reimbursement for their conflicts. Staff is requesting approval of the final settlement Change Order to include additional budget authority in the amount of $425,870.34 to cover the settlement and closeout. The Surface Water Management fund can cover this amount. Reimbursement from the third party utilities is being negotiated for up to $326,000, leaving the total project overrun at $100,000, representing 15% contingency. The original contract approved by Council included 10% contingency. Staff intends to be more realistic about contingency estimates on similar efforts in the future. Committee members asked clarifying questions especially with regard to the timing of the utility conflict reimbursements. UNANIMOUS APPROVAL. FORWARD TO MAY 23, 2016 COMMITTEE OF THE WHOLE. III. MISCELLANEOUS Meeting adjourned at 6:42 p.m. Next meeting: Tuesday, May 24, 2016 Committee Chair Approval Minutes by LH, Reviewed by GL 19