4d memo T46

PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4d 
ACTION ITEM 
Date of Meeting    November 10, 2015 
DATE:    October 22, 2015 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Ralph Graves, Senior Director, Capital Development 
Janice Zahn, Assistant Director of Engineering, Construction Services 
SUBJECT:  Change Order No. 009 for the Terminal 46 Stormwater Improvements Project, 
MC-031777 - Terminal 46 (T-46) Development Program CIP #C102554 

Amount of This Request:            $0   Source of      General Fund 
Funds:
Est. Total Project Cost:        $20,000,000 to 
$35,000,000 
(Current Program
Authorization
$12,500,000) 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to issue Change Order 09 for
the Terminal 46 Stormwater Improvements project, contract MC-0317777, to add $172,381.19 
and 73 calendar days to the contract, resulting in a revised contract amount of $2,381,124.79 and
duration of 340 days. No additional funds are requested. 
SYNOPSIS 
On February 4, 2014, the Port Commission approved authorization to purchase materials,
advertise for construction bids, execute construction contracts, and fund the construction phase
of the stormwater improvements portion of the Terminal 46 Development Program. On April 28,
2014, a major construction contract with Icon Materials was executed for the T-46 Stormwater
Improvements project, MC-0317777.
On January 6, 2015, Change Order 04 was issued as a discretionary change for a not-to-exceed
amount of $250,000.00 to repair/replace a failed storm drainage outfall pipe. Schedule delay
impacts were not included since the site conditions and productivity could not be accurately
determined prior to the start of this changed work. 
As part of reconciling this now completed work, we request authorization to issue Change Order
09 to extend the contract duration by 73 calendar days for the schedule delay impacts. Change
Order 09 also increases the contract amount by $172,381.19 to account for additional validated
Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 24, 2015 
Page 2 of 4 
work required for the repair work. Current program authorization has sufficient funds required
to support this additional cost. 
BACKGROUND 
Total Terminals, Inc. (TTI) is the current tenant at T-46. The 13th Amendment to the TTI lease
for T-46 committed the Port to certain capital improvements to the terminal.  The Commission
previously authorized  permitting, design, and project management funding  for  T-46  lease
improvements for an estimated cost of $6,000,000 as part of the estimated $20,000,000 to
$35,000,000 lease amendment commitments at T-46. In order to comply with the Washington
Department of Ecology industrial stormwater permit, installation of a storm water treatment 
system became a priority. On April 28, 2014, a major construction contract was executed with
Icon Materials for the T-46 Stormwater Improvements project, which entailed the installation of
three of the four necessary stormwater treatment systems for Terminal 46. 
During the installation of these stormwater treatment systems, it was determined that a section of
the stormwater outfall pipe to Elliott Bay should be repaired/replaced. In order to minimize the
total cost of this repair work, minimize the impact to the tenant, and to ensure that the new water
quality treatment system performed as intended, the Port proceeded with a change order for this 
additional repair work. 
Change Order 04 was issued for an amount not to exceed $250,000.00, and the number of added
days would be determined upon completion of the work. The cost included both lump sum
negotiated components (mobilization, dewatering, pumping) and work that is tracked daily by
the Port and signed off on force account sheets. The final actual cost and time impacts would be
determined as part of the final reconciliation of Change Order 04. 
Upon commencement of the subsurface repair work, the contractor's production rates decreased 
as excavation work became very difficult due to interference with existing utilities that resulted
in difficult working conditions. Due to the difficult working conditions, the final actual cost of
the repair work and the duration/time increased from the original estimated amounts. 
At the completion of this change order work, the contractor submitted their actual costs totaling
$520,069.22, of which the Port has validated a total undisputed amount of $422,381.19. This
results in a reconciliation amount, under Change Order 09, for an additional $172,381.19. The
Port evaluated the change order work duration and determined that the contractor is entitled to 73
additional calendar days. Change Order 09 does not include Icon's disputed costs of $97,688.03
or any days related to the corrective work caused by Icon's equipment failure. The Port does not
pay for contractor-caused defective or corrective work and will address these disputes as part of
the Port's dispute resolution process.
CHANGE ORDER NO. 09 DESCRIPTION 
The following information relates to the pending change order scope and cost:

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 24, 2015 
Page 3 of 4 
Scope of Work 
This Change Order extends the contract duration by 73 calendar days and increase the contract
amount by $172,381.19 as required to reconcile previously issued discretionary Change Order 04
for an outfall repair at Terminal 46. 
Justification 
Additional time is being granted after an analysis of the project critical path for the Port caused
delay impacts. 
Additional cost is required to compensate the contractor for the actual cost of performing the
work, due to the unanticipated complexity of work encountered upon commencement of
subsurface work. 
CONTRACT INFORMATION 
The following information relates to the contract and competitive award: 
Contract execution date:                           April 28, 2014 
Original period of performance:         April 28, 2014  January 20, 2015 
Previous contract extensions:                                 0 
Current Contract Completion Date:                 January 20, 2015 
Contract extension this change order:                       73 Days 
Revised Contractor Completion Date:                  April 3, 2015 
FINANCIAL INFORMATION 
Original contract amount:                         $1,949,480.00 
Previous Change Orders Executed:                    $259,263.60 
Current contract amount                          $2,208,743.60 
This request, Change Order No. 09                    $172,381.19 
Subtotal Construction Costs                       $2,381,124.79 
Anticipated sales tax @ 9.6%                        $228,587.98 
Revised Contract Amount                        $2,609,712.77 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
May 12, 2015 - Commission approved authorization for the Chief Executive Officer to
execute an amendment to agreement (P-00317562) with KPFF Consulting Engineers
for professional design services on the Terminal 46 Lease Improvements Project to
increase the agreement by $2,000,000 to a total amount not to exceed $4,000,000. No
funding is requested to amend this agreement as funds have been previously authorized
in the Terminal 46 Lease Amendment program budget.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 24, 2015 
Page 4 of 4 
February 4, 2014 - Commission approved authorization for the Chief Executive Officer
to direct staff to purchase materials, advertise  for construction bids, execute
construction contracts, and fund the construction phase of the stormwater
improvements portion of the Terminal 46 Development Program in the amount of
$6,500,000, bringing the total amount currently authorized for the program to
$12,500,000. 
April 9, 2013  Commission approved permitting, design, and project management
funding for improvements committed as part of the lease amendment at Terminal 46. 
December 11, 2012  Commission approved execution of the 13th Amendment to the
lease for Terminal 46 with Total Terminals, Inc.

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