HomeMy WebLinkAboutCOW 2017-11-27 Item 4H - Agreement - Interurban Avenue South Final Settlement Change Order #9 with Walsh Construction for $1,081,259.15COUNCIL AGENDA SYNOPSIS
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Motion
Date 12/04/17
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• Bid
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❑ Public Hearing
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❑ Other
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ITEM INFORMATION
ITEM No.
4.H.
119
STAFF SPONSOR: ROBIN TISCHMAK
ORIGINAL AGENDA DATE: 11/27/17
AGENDA ITEM TITLE Interurban Ave S
Walsh Construction's
Final Settlement
Change
Order No. 9
CATEGORY ►1 Discussion
11/27/17
►1
Motion
Date 12/04/17
❑ Resolution
Mtg Date
• Ordinance
• Bid
Award
❑ Public Hearing
Mtg Date
❑ Other
Mtg Date
.Mtg Date
Mtg
Mtg Date
Mtg Date
SPONSOR ❑ Council ❑ Mayor ❑ HR ❑ DCD ❑ Finance ❑ Fire ❑ IT ❑ P&R ❑ Police ®PIF
SPONSOR'S Walsh Construction's Contract No. 14-067 provided construction for the Interurban Ave
SUMMARY South Project. Final Change Order No. 9 settles the additional compensation request after
mediation that began on 6/16/17 and continued throughout the summer. The final
settlement is $1,425,000 with the State Transportation Improvement Board approving an
additional $750,000 in grant funds. Council is being asked to approve Walsh Construction's
Change Order No. 9 for $1,081,259.15.
REVIEWED BY
• COW Mtg.
❑ CA&P Cmte
Cmte ❑ Arts Comm.
❑ F&S Cmte
® Transportation Cmte
Comm. ❑ Planning Comm.
CHAIR: DE'SEAN QUINN (ACTING)
❑ Utilities
DATE: 11/14/17
• Parks
COMMITTEE
RECOMMENDATIONS:
SPONSOR/ADMIN.
COMMIT"FEE
Public Works Department
Unanimous Approval; Forward to Committee of the Whole
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$8,917,921.31 $11,984,000.00 $165,000.00
Fund Source: 104 ARTERIAL FUND (PAGE 16, 2017 CIP)
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
11/27/17
12/04/17
MTG. DATE
ATTACHMENTS
11/27/17
Informational Memorandum dated 11/09/17, revised after 11/14 TIC meeting
Walsh Construction's Final Settlement Change Order No. 9 to Contract No. 14-067
Interurban Ave S Project CIP Overview
Minutes from the Transportation & Infrastructure Committee meeting of 11/14/17
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120
City of Tukwila
Public Works Department - Bob Giberson, Director
INFORMATIONAL MEMORANDUM
TO: Transportation and Infrastructure
FROM: Robin Tischmak, Acting Public Works Director
CC: Mayor Ekberg
DATE: November 9, 2017 (revised after 11/14/17 TIC)
SUBJECT: Interurban Avenue South — S 143rd St to Fort Dent Way
Project Number 90310402
Contract 14-067, Change Order No. 9
Allan Ekberg, Mayor
ISSUE
Approve the final settlement and Change Order No. 9 for the Interurban Ave S Project with Walsh Construction.
BACKGROUND
Change Order No. 9 settles the additional compensation request and subsequent mediation effort between the City and Walsh
Construction commenced on June 16, 2017, and all other disclosed or undisclosed disputes on the construction contract. Change
Order No. 9 also increases the contract time by 141.5 calendar days and will allow the Interurban Ave S Project to be closed out.
DISCUSSION
Walsh Construction has asserted that, during construction, the project encountered unexpected impacts to the Contractor's work.
The Contractor has itemized requests for additional compensation that include: 1) unpaid bid items, 2) extra work orders, 3) gravel
borrow, 4) sub -contractor costs for Pearson Drilling and ADP Electric and 5) additional costs for inefficiencies and overhead. The
City responded to these requests for additional compensation and disputed the Contractor's analysis of cost impacts.
On June 16, 2017, the City and Walsh Construction entered mediation to resolve the disputed contract compensation amounts.
Several additional settlement conferences were held throughout the summer to negotiate and discuss specific merits of the
Contractor's request. Item by item negotiations were set aside in favor of a global settlement discussion.
The City Attorney, PW staff, and our construction management consultant met with the Contractor's authorized representatives and
discussed the settlement terms to formally close out the project. The discussed settlement terms included that the City shall
increase the current contract time by 141.5 calendar days, making the total Contract time 1,067.5 calendar days. As a result of the
contract time increase, the City shall rescind the assessed liquidated damage of $358,364.32, which were assessed, but never
collected by the City from the Contractor. On top of the liquidated damage reimbursement, the City shall also pay the Contractor a
total of $1,425,000.00, in addition to other amounts already paid, to arrive at a final settlement amount for the Interurban Ave S
Project.
FISCAL IMPACT
The total contract amount was $7,836,662.16. With the remaining contract balance of $343,740.85, Change Order No. 9 is for
$1,081,259.15 for a total balance owing of $1,425,000 to Walsh Construction. The Transportation Improvement Board has
approved an additional $750,000 in grant funds. We are over the 2017 CIP budgeted amount by $950,000, but with the additional
$750,000 TIB funds and $35,000 in traffic impact fees for signal improvements, the City overage is $165,000. The total final contract
amount is now $8,917,921.31. The $165,000.00 is available from the 2017 Overlay & Repair Project that was under budget.
RECOMMENDATION
Council is being asked to approve Walsh Construction's Contract No. 14-067's final settlement Change Order No. 9 for
$1,081,259.15 with a contract time extension of 141.5 calendar days and consider this item at the November 27, 2017 Committee
of the Whole and the December 4, 2017 Regular Meeting.
Attachments: Change Order No. 9
Interurban Ave S Project CIP Overview
W:\PW Eng\PROJECTSIA- RW & RS Projects\Interurban Ave S (90310402)\Info Memo for CO #9, Final CA 110717 gl,docx
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CITY OF TUKWILA
CONTRACT CHANGE ORDER NO. 9
Sheet 1 of 1
DATE: November 6, 2017 BUDGET NO.: 104.98.595.300.65.00
PROJECT NO.: 90310402 CONTRACT NO.: 14-067
PROJECT NAME: Interurban Ave South
TO: Walsh Construction
You are hereby directed to make the herein described changes to the plans and specifications or do the following described work not
included in the plans and specifications on this contract:
NOTE: This change order is not effective until approved by the "Owner" and a notice to proceed is issued.
Conditions:
A. The following change, and work affected thereby, are subject to all contract stipulations and covenants;
B. The rights of the "Owner" are not prejudiced;
C. All claims against the "Owner which are incidental to or as a consequence of this change are waived; and
D. The Contractor must submit all Field Overhead and Home Office Overhead Rates for approval in advance of all change
orders.
CHANGE: See Attached Exhibit "A"
We the undersigned Contractor, have given careful consideration to the change proposed and hereby agree, if this proposal is
approved, that we will provide all equipment, furnish all materials, except as may otherwise be noted above, and perform all services
necessary for the work above specified, and will accept as full payment therefore the prices shown above and below.
ACCEPTED: Date Contractor
By Title
Original Contract (with tax) $ 7,597,833.39 APPROVED BY THE CITY OF TUKWILA
Previous Change Orders $ 238,828.77 Date
This Change Order (without tax) $ 1,081,259.15 By
Mayor
REV. CONTRACT AMOUNT $ 8,917,921.31
Original Contract Time: 450 Calendar Days
Additional Contract Time for this Change Order: 141.5 Days
Updated Contract Time: 1,067.5 Calendar Days
City Engineer
ORIGINAL: City Clerk (1 of 2) cc: Finance Department (w/encumbrance)
Contractor (2 of 2) Project Management File
PW Project Finance File
EXHIBIT "A"
CHANGE:
This Change Order settles the Contractor's request for additional compensation and is meant to
settle all dispute, both disclosed and undisclosed, on the Contract. This Change Order also
increases the Contract time by 141.5 calendar days, and will allow this Project to be closed out.
Change Order Details:
The Contractor, Walsh Construction, has asserted that, during construction, the project
encountered unexpected impacts to the Contractor's work that resulted in significant additional
expense to the Contractor. The Contractor has itemized requests for additional compensation
that include: 1) unpaid bid items, 2) extra work orders, 3) gravel borrow, 4) sub -contractor costs
for Pearson Drilling and ADP Electric and 5) additional costs for inefficiencies and overhead.
The City responded to these requests for additional compensation and disputed the Contractor's
analysis of cost impacts.
On June 16, 2017, the City and Walsh Construction entered mediation to resolve the disputed
contract compensation amounts. Several additional settlement conferences were held to negotiate
and discuss specific merits of the Contractor's request. Item by item negotiations were set aside
in favor of a global settlement discussion.
The City's project representatives met with the Contractor's authorized representatives, and
discussed the settlement terms to formally close out this project. The discussed settlement terms
are as follow:
Included in this Change Order #9, the City shall increase from the current Contract time
by 141.5 calendar days, making the total Contract time at 1,418 calendar days. As a
result of the Contract time increase, the City shall rescind the assessed liquidated damage
of $358,364.32, which was assessed, but never collected by the City from the Contractor.
On top of the liquidated damage reimbursement, the City shall also pay the Contractor
$1,425,000.00 as a final settlement amount for all outstanding compensation claims.
Once this Change Order #9 is executed, the final payment will be issued, and the Release of
Claims form will be completed by the Contractor. Thereafter, the construction project can be
closed out by the City Council.
Page 1 of 1
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CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2017 to 2022
PROJECT: Interurban Ave S (S 143 St - Fort Dent Way) Project No. 90310402
DESCRIPTION: Design and construct sidewalks, pavement restoration, drainage, and lighting.
JUSTIFICATION: Pedestrian traffic is forced to walk in traveled way, lighting is substandard, drainage is poor and
pavement failure is accelerating.
STATUS: Completed final design in 2013. Construction awarded on 5/5/14 and construction completed in 2016.
MAINT. IMPACT: Reduce annual pavement repairs and increase pedestrian safety.
COMMENT:
Federal Hwy STP Grant of $389,000 for design. State TIB grant of $5m, Federal STP grant of $2.145m,
and developer mitigation of $260,000. City Bond for $3.465m in 2014/15.
FINANCIAL Through Estimated
(in $000's) 2005-11 2012 2013 2014 2015 2016 2017 TOTAL
BUDGET Diff
EXPENSES
Design
464
2
369
87
74
996
996
Land (R/W)
209
209
209
Const. Mgmt.
760
1,395
577
71
2,803
2,455
(348)
Construction
1,494
4,868
1,139
1,425
8,926
8,324
(602)
TOTAL EXPENSES
464
2
578
2,341
6,337
1,716
1,496
12,934
11,984
(950)
FUND SOURCES
Awarded TIB Grant
296
2,847
779
966
4,888
4,138
750
Awarded STP Grant
389
1,571
552
2,512
2,512
Mitigation/Traffic Impact
99
85
184
149
35
Bond
3,558
3,558
3,558
City Oper. Revenue
75
2
578
375
(705)
937
530
1,792
1,627
165
TOTAL SOURCES
464
2
578
2,341
6,337
1,716
1,496
12,934
11,984
950
W:IPW EngIPROJECTSIA- RW 8 RS ProjectsVntentrban Ave S (90310402)IGrants 8 Bondllnterurban Final CIP sheet 110617
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Transportation & Infrastructure Committee Minutes November 14, 2017
stormwater modeling and extend the contract expiration date to April 30, 2019. UNANIMOUS
APPROVAL. FORWARD TO NOVEMBER 20, 2017 REGULAR CONSENT AGENDA.
E. Grant Acceptance: Non -Transportation Commute Trip Reduction Pilot Program
Staff is seeking Council approval of a grant award with WSDOT in the amount of $107,000 to
implement a pilot program to reduce regional congestion and improve air quality in Tukwila and
South King County. The funding opportunity was designed to pilot the expansion of Transportation
Demand Management (TDM) programs beyond traditional Commute Trip Reduction (CTR) affected
sites into new markets. King County Metro and the Port of Seattle are providingthe required $25,000
local match. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 20, 2017 REGULAR CONSENT
AGENDA.
F. Tukwila International Boulevard Retrofit Implementation
Staff updated the Committee on implementation of the community's vision for the Tukwila
International Boulevard (TIB) neighborhood and the Congress for New Urbanism (CNU's)
recommended action on a rechannelization design. The CNU report suggested that the City change
the street design to reduce through -lanes to two from four, allowing on -street parking and bicycle
lanes and adding crosswalks. The City contracted with Fehr& Peers to study the impacts associated
with the lane removal and potential mitigation. The study found that at least 50% of existing traffic
is pass through and unrelated to local business or residences. Traffic diversion will occur on
adjacent streets in the order of 42nd Avenue South, Military Road South, 1-5, Des Moines Memorial
Drive South, and 51' Avenue South/Macadam Road. By 2030, traffic would increase by 20% under
the road diet scenario. The study also found that typical traffic calming measures on side streets
would not be effective in preventing the traffic diversion, but intersection diverters or short one-
way segments could help. KPG, Inc. prepared three preliminary design options and cost estimates
that all include removal of the two lanes plus parking and a bicycle lane. Alternative 1 would add
bulb -outs at mid -block pedestrian crossings at a cost of $1,130,000, Alternative 2 would only
restripe at a cost of $250-400,000, and Alternative 3 would add crosswalks and bulb -outs at
intersections at a cost of $1,270,000. Staff recommends implementing Alternative 2 because it is a
low-cost option to help staff evaluate traffic impacts prior to further investment. The Committee
discussed the study's findings. Councilmember Robertson suggested diverting traffic further south
down by South 130th Street in order to avoid a traffic increase on 42nd Ave S. Councilmember Quinn
suggested painting zones and increasing Police speed enforcement, like in Bellevue. He stressed
the importance of protecting the residential streets. The Committee did not arrive at a
recommendation but requested staff return in 2018 at the Committee level to continue discussing
the options. NO RECOMMENDATION. RETURN TO COMMITTEE.
Final Construction Settlement: Interurban Avenue South
Staff is seeking Council approval of a final settlement and Change Order No. 9 with Walsh
Construction in the amount of $1,081,259.15 for the Interurban Avenue South Project. Walsh has
asserted that the project encountered unexpected impacts and has sought additional
compensation, which the City disputed. The parties have been in mediation since June 2017 and
this settlement represents the agreed upon terms. Funding for this settlement is aided by an
additional $750,000 from the State Transportation Improvement Board and $35,000 in traffic
impact fees. With a final contract amount of $8,917,921.31, the City's overage is $165,000. The
Committee requested that staff amend the informational memo to clearly show where the $165,000
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Transportation & Infrastructure Committee Minutes November 14, 2017
will come from. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 27, 2017 COMMITTEE OF THE
WHOLE.
III. MISCELLANEOUS
Valley View Sewer District Open House
Valley View Sewer District is holding an open house on Sunday, November 19, 2017 from 3:00 - 4:30 p.m.
regarding The Loop New Sewer Construction Project. City staff and Councilmember Hougardy plan to
attend.
The Transportation Committee Meeting adjourned at 6:25 p.m.
Committee Chair Approval
Minutes by LH, reviewed by GL
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