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THIRD CORRECTED COPY              PORT OF SEATTLE
MEMORANDUM

COMNHSSION AGENDA              Item No.      5b
ACTION ITEM
Date of Meeting    April 23, 2013

DATE:   May 20, 2013

TO:     Tay Yoshitani, Chief Executive Ofcer

FROM:  Ralph Graves, Managing Director, Capital Development Division

Janice Zahn, Assistant Engineering Director

SUBJECT: Change Order No. 085 for the Offsite Roadway Improvements and SR-99 Bridge
Seismic Upgrade Contract MC-0316568, CIP 100266 as part of the Consolidated
Rental Car Facility (CRCF) Program

Amount of This Request:  $492,000

Source of Funds:       Project Construction Contingency

Est. State and Local Taxes: $0.00           Est. Jobs Created:  None

ACTION REQUESTED:
Request Commission authorization for the Chief Executive Ofcer to issue Change Order
Number 085 for Contract MC-0316568, Offsite Roadway Improvements and SR-99 Bridge
Seismic Upgrade (ORI) project, to extend the contract completion date 153 days from May 24,
2012, to October 24, 2012, for concurrent delays and for the amount of $492,000 to settle all
open claims by the contractor on matters related to this project. The existing construction
contingency will be used to pay for this change order. No additional funds are requested.

SYNOPSIS:

This project renovated and improved municipal, Port and Washington State Department of
Transportation (WSDOT) roadways in the vicinity of the new Rental Car Facility (RCF),
including SR-518, International Boulevard (SR-9 9), S. 160th Street, Host Road and the North
Airport Expressway (NAE).

During the course of construction, the Port added the fabrication and installation of roadway
signs to the contract that the contractor completed on October 24, 2012. At the same time, the
contractor was completing base contract work, thus the time extension is concurrent and non-
compensable. The change order fixed amount of $492,000 provides nal compensation in
settlement of all open issues on the project, including the contractor's claim against the Port for
loss of productivity, and disputed costs associated with schedule impacts and the hauling and
disposal of unsuitable/contaminated materials. It is based on analysis of the claims as well as

COMMISSION AGENDA
Tay Yoshitani, Chief Executive Ofcer
May 20, 2013
Page 2 of4

independently performed assessments of Port-caused impacts and potential additional
cost
related to further dispute resolution
processes.

The source of funds for this change order is the existing
contract construction contingency,
requiring no additional funds.

The claims resulted from varying site conditions including the
discovery of contaminated and
unsuitable soils, and inadequate as-built documentation for utilities and
roadway conditions.
Schedule delays and other direct and indirect
expenses related to these impacts have been paid
for by previously issued change orders. However, in addition
to the loss ofproductivity, the
contractor is still protesting the extent of schedule impacts and nal
costs associated with hauling
and disposing of unsuitable and contaminated soils.

BACKGROUND:
The current contract completion date is May 24, 2012. The Contractor
achieved Substantial
Completion on October 24, 2012. The completion of the project
was delayed due to added scope
and the contractor's inability to complete pickup work and
punchlist activities. An analysis of
the project's last ve construction bulletins and associated
requests for information, as cited by
the contractor as open issues preventing them from completing the work
on time, revealed that
there was concurrent delay through August 9, 2012, resulting in
a non-compensable 77-day delay
to the project completion date.

In addition, this change order for $492,000 settles all
open issues on the project for which the
contractor is currently requesting $772,416 calculated
as follow:


Loss of Productivi                        $692,028.00     $445,058.00

Schedule Im acts                        $37,160.00         $0.00

Unsuitable/Contaminated Soils                $43,228.00         $0.00
Removal

Total            $772,416.00     $445,058.00

After the Port presented its nal
case on each matter, including the assessed entitlement for loss
of productivity at $445,058, the contractor agreed
to accept the Port's offer of $492,000 to settle
the remaining issues.

COMMISSION AGENDA
Tay Yoshitani, Chief Executive Ofcer
May 20, 2013
Page 3 of 4

CHANGE ORDER DESCRIPTION:

The following information relates to the pending change order
scope and cost:

Change Order No. 085
This compensation settles all costs and time extensions related to the Port's impact to
Midmountain Contractors Inc. on the Consolidated Rental Car Facility Offsite Roadway
Improvements and SR99 Bridge Seismic Upgrade project.

This change order constitutes full, complete and equitable settlement of all claims, past, present
and future, by the contractor pursuant to the contract and prosecution of the work. Midmountain
Contractors Inc. shall be compensated in the amount of $492,000 for these impacts.

PROJECT JUSTIFICATION:

Due to complications with the varying site and unforeseen conditions and
numerous design
changes, Midmountain Contractors Inc.'s work was delayed, causing the company to incur
additional time and costs for loss of productivity and dissolution of supervision. The proposed
change order value is the result of a settlement between Midmountain Contractors Inc. and the
Port based on analysis of the claims as well as independently performed assessments of Port-
caused impacts and potential additional cost related to further dispute resolution
processes.

FINANCIAL ANALYSIS:

The mds to pay for this change order are part of the $18,775,000 authorization previously
approved for the CRCF Program's Offsite Roadway Improvements and SR-99 Bridge Seismic
Upgrade. No additional project funds are being requested as a result of this change order.

CONTRACT INFORMATION:

The following information relates to the contract and competitive award:

Contract award date:                             May 28, 2010
Original period of performance:     May 28, 2010 through March 28, 2012
Previous contract extensions:                            57 Days
Contract extension this change order:                     153 Days
Current Contract Completion Date:                October 24, 2012
W
Original contract amount:                         $7,627,485.00
Previous Change Orders Executed:                  $2,525,438.17
Current contract amount                        $10,151,923.l7
This request, Change Order No. 85                    $492,000.00
Revised contract amount:                        $10,643,923. 17

COMMISSION AGENDA
Tay Yoshitani, Chief Executive Ofcer
May 20, 2013
Page 4 of 4

OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST:

None.

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS:

0  February 22, 2011, the Commission authorized the issuance of Change Order Number
008 for the not-to-exceed amount of $970,000 to haul and dispose of additional
contaminated and geotechnically unsuitable soil.