HomeMy WebLinkAboutTIS 2022-08-15 Item 1D - Contract Amendment #1 - Macadam Road South Water Upgrade and Sidewalk Improvements with Laser Underground & Earthworks
INFORMATIONAL MEMORANDUM
TO: Transportation and Infrastructure Services Committee
FROM: Hari Ponnekanti, Public Works Director/City Engineer
BY: Adib Altallal, Utilities Engineer
CC: Mayor Allan Ekberg
DATE: August 12, 2022
SUBJECT: Macadam Rd S Water Upgrade & Sidewalk Improvements Project
Project No. 90440105
Construction Contract 22-015, Amendment 1
ISSUE
Approve Amendment No. 1 to Contract No. 22-015 with Laser Underground & Earthworks, Inc. for construction of the
Macadam Rd S Water Upgrade and Sidewalk Improvements Project.
BACKGROUND
On January 24, 2022, Council approved the contract with Laser Underground & Earthworks, Inc to complete construction for
the Macadam Rd S Water Upgrade and Sidewalk Improvements Project. The project implemented water, street, and sidewalk
upgrades simultaneously, reducing construction time along Macadam Road South and providing a multitude of benefits to
residents. Benefits of the project included 1) upsizing and looping the water main to provide cleaner and better tasting water;
2) repaving and filling portholes to improve safety, create a smoother ride, and extend the life of the street; 3) creating a
seamless sidewalk network and upgrading crosswalks to create a safe and ADA accessible connection from Southcenter
Boulevard to S 144th street; and 4) increased the number of fire hydrants along Macadam Road South to improve fire flow for
potential emergencies. One resident has already reached out and said, “I'm a resident on Macadam Road S. and have been
loving the sidewalk improvements happening south of 144th down to Southcenter.”
DISCUSSION
Project construction costs incurred in July have resulted in a shortfall up to $300,000. The following items contributed to the
overruns:
Flagging (Safety)
The project bid included costs for two flaggers, which was anticipated to total approximately 1,000 hours for the duration of the
project. Due to the heavier-than-expected traffic flow from apartment driveways along Macadam Rd, additional flaggers were
dispatched for safety reasons during July, resulting in an additional 2,025 hours and extra costs of $162,000.
Alternate Schedule
Construction projects always include a base bid, and can include an alternative schedule, which is extra work that the City can
elect to do on top of a base bid. Typically, both items are awarded together during the bid award phase. For this project, the
Project Manager thought the contractor’s original cost estimate of $1,984,474.81 included both the base bid and alternative
schedule, however, it only included the base bid costs. As a result, the base bid and alternative schedule scope language was
included in the contract without the additional budget needed for the alternative schedule. This mistake was not identified until
mid-July, when then the alternative schedule work took place. At that time, staff became aware of the potential overruns, but
didn’t know the extent of the situation until early August, when the pay estimate was received. Since the funds for the alternate
schedule were never requested from or authorized by Council, the entire schedule is currently treated as an overrun of
$67,166.15 in the project budget.
Out of Scope Work
The last main component that resulted in overruns was due to out of scope work completed by the contractor. The portion of
Macadam Road between S 152nd Street and Southcenter Boulevard, under the Alternate Schedule mentioned above, included
grinding and paving only the east side of Macadam Road (northbound lane). During the grinding process, which took place in
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mid-July, the subcontractor misunderstood of the limits and grinded the full width of Macadam all the way to Southcenter
Boulevard. At that point, not paving the portion of grinded road was not a feasible option.
The total cost was approximately $90,000 for the extra grinding and paving that was done out of scope. After a few rounds of
negotiation with the contractor, a potential resolution was reached; in which, the contractor will pay for the entire cost of the
grinding, and the cost of paving will be split approximately evenly between the contractor and the City, the City’s portion of pay
will be $43,792.00 and benefit by newly paved road for a price well below market value.
FINANCIAL IMPACT
The construction associated with the Macadam Water Upgrade is funded through the Macadam Water Upgrade CIP, including
savings from design and construction management. The construction bid award also included costs for the sidewalk
improvements which were funded by a Transportation Improvement Board grant and general funds from the Macadam Rd
Complete Streets project. An additional $300,000 is needed to pay for the project overruns which can be funded from the
water enterprise fund.
Cost Estimate Fund Source 2021-2023 Construction Budget
Macadam Road CIP $ 1,800,000.00
Original Contract $1,984,474.81 TIB Grant 320,000.00
Contingency – 10% 198,447.49 General Fund 80,000.00
Overruns 300,000.00 Water Fund (for overruns) 300,000.00
Total $2,482,922.30 $ 2,500,000.00
RECOMMENDATION
Council is being asked to approve Amendment No. 1 to Contract 22-015 with Laser Underground & Earthworks, Inc. in the
amount of $300,000.00 for the Macadam Rd S Water Upgrade and Sidewalk Improvements Project and consider this item on
the Consent Agenda at the August 22, 2022 Special Meeting.
Attachments: Project Photos
2021 CIP, Pages 5 & 61
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Project Photos
Macadam Road S./Southcenter Blvd. intersection before construction
Macadam Road S./Southcenter Blvd. intersection after construction
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Macadam Road S. sidewalks during construction
Macadam Road S. looking south after construction Macadam Road S. looking north after construction
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CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2023 to 2028
PROJECT:Macadam Rd South Complete Street Project No.91710302
DESCRIPTION:
JUSTIFICATION:
STATUS:
MAINT. IMPACT:
COMMENT:
FINANCIAL Through Estimated
(in $000's)2021 2022 2023 2024 2025 2026 2027 2028 BEYOND TOTAL
EXPENSES
Design 400 400
Land (R/W)100 100
Const . Mgmt.400 400
Construction 2,700 2,700
TOTAL EXPENSES 0 0 0 500 3,100 0 0 0 0 3,600
FUND SOURCES
Awarded Grant 0
Proposed Grant 450 2,800 3,250
Mitigation Actual 0
Mitigation Expected 0
City Oper. Revenue 0 0 0 50 300 0 0 0 0 350
TOTAL SOURCES 0 0 0 500 3,100 0 0 0 0 3,600
WSDOT Pedestrian/Bicycle grant submitted in April 2018, but unsuccessful. Match will be the Water
Improvements. Apply for same grant in 2020 for design and 2022 for construction.
Construction of a complete street design for Macadam Rd South between South 144th St and S 150th St.
The project will require roadway widening and re-channelization to add 5-foot bike lanes and 5-foot sidewalks
on both sides of the roadway, and includes illumination, curb, and storm drainage.
Enhance safety for students walking to Foster High School and Showalter Middle School and encourages
transportation choices for the neighborhood.
New sidewalk and pavement will need to be maintained.
2021 - 2026 Capital Improvement Program 5 126
CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2021 to 2026
PROJECT:Macadam Rd S Water Upgrade Project No.90440105
DESCRIPTION:
JUSTIFICATION:
STATUS:
MAINT. IMPACT:
COMMENT:
FINANCIAL Through Estimated
(in $000's)2019 2020 2021 2022 2023 2024 2025 2026 BEYOND TOTAL
EXPENSES
Design 68 100 50 50 268
Land (R/W)0
Const. Mgmt.250 50 300 600
Construction 300 300 950 1,550
TOTAL EXPENSES 68 0 650 400 1,300 0 0 0 0 2,418
FUND SOURCES
Awarded Grant 0
Proposed Grant 0
Mitigation Actual 0
Mitigation Expected 0
Utility Revenue 68 0 650 400 1,300 0 0 0 0 2,418
TOTAL SOURCES 68 0 650 400 1,300 0 0 0 0 2,418
Pedestrian/Bicycle Program grant for sidewalks unsuccessful in 2018, with water funds used as a match.
Project now scheduled for 2021/2022.
Improve fire flow water quality to the north side of Tukwila Hill.
Design and construct 4,300 LF of 10" waterline in Macadam Rd S from S 144th St to Southcenter Blvd.
The new waterline will eliminate maintenance time for flushing the dead end line while increasing service
reliability.
2021 - 2026 Capital Improvement Program 61 127