ITEM NO.     7a_Supp
DATE OF
MEETING   June 23, 2009

Rental Car Facility Program Briefing
Policy and Staff Briefing for
Port of Seattle Commissioners
June 23, 2009

Briefing Overview
Current Status of Rental Car Facility (RCF) Program
Review of Upcoming Commission Request
Lift Suspension of RCF Program to Restart Full Program
Scope/Activities & Remobilize Construction
RCF Program Budget Authorization
Commission Notification of Conforming Design Development
Change Orders
Change Orders: Conforming & Suspension/Restart
One-Time Change Order Policy Adjustment
Next Steps
Future Commission Actions


2

Current Status of RCF Program
Design
Bus Maintenance Facility Project (BMF)
Currently 90% designed
Incorporating design of CNG Fueling Facility into 90% in 9 months
Construction estimated to start August 2010
Off-Site Roadway Improvements Project (ORI)
Currently 90% design
Advance Utility relocations will be complete this Summer
Request Commission Authorization for the acquisition of property to
support construction
Construction estimated to start April 2010

3

Current Status of RCF Program
Main Terminal Improvements Project (MTI)
Project on hold
Define project after lifting of suspension
Design starts this fall
Construction estimated to start in 2011
Bus Purchase Project
Staff currently preparing final procurement documents
Begin procurement solicitation this fall
Buses estimated for delivery in late 2011


4

Current Status of RCF Program
Construction
RCF Project
Commission suspended construction on December 15, 2008
Limited site stabilization construction activities were approved to
prepare the site for up to a one year suspension
Staff & Contractor have been revising the construction schedule and
compiling costs/data in preparation of a project restart
Contractor is developing a plan to remobilize and begin critical path
construction by mid to late July based on a lifting of the suspension
at the end of June.


5

Upcoming Commission Request
Commission request scheduled for June 30, 2009:
Approval to lift the suspension & restart the entire RCF Program
Authorization of additional RCF Program Budget
Approval to execute Change Orders for Suspension/Restart
Commission notification of Conforming Design Development
Allowance Change Orders
Approval for one-time Change Order Policy adjustment for the RCF
GC/CM construction contract



6

RCF Program Budget Authorization
Budget
Cost and schedule impacts of the suspension dependent upon the
specific lifting of suspension date
Requires negotiation and execution of suspension/restart change
orders
Staff has estimated a total RCF program budget of $419,306,000
assuming a lifting of suspension by June 30, 2009
The suspension and additional scope costs are estimated to be
$32 million
This amount exceeds the remaining unallocated contingency within
the original program budget authorized in May 2008
It requires a program budget increase of $6,973,300
Schedule
As a result of the suspension the opening date for the RCF has
extended from May 2011 to second quarter 2012
7

RCF Program Budget Authorization
Current
Approved    Budget    Revised    Current
Project           2009 Budget    Change     Budget    Authorization
Rental Car Facility (RCF)          $322,958,700   $27,813,300  $350,772,000  $322,946,000
Bus Maintenance Facility (BMF)      $21,072,000   $7,210,000   $28,282,000   $3,446,830
Off-Site Roadway Imp. (ORI)        $18,083,000   $1,459,000   $19,542,000   $2,977,100
Main Terminal Imp. (MTI)           $3,023,000     $360,000    $3,383,000    $583.,746
Consolidated Busing Operation      $17,327,000         $0   $17,327,000         $0
Program Sub-Total             $382,463,700  $36,842,300  $419,306,000  $329,953,676
Unallocated Contingency          $29,869,000  ($29,869,000)         $0         $0
Program Total                $412,332,700   $6,973,300  $419,306,000  $329,953,676



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RCF Program Budget Authorization
Estimated                         Estimated Additional Scope
Suspension/Restart Costs:                Costs:
Direct Costs              $18,600,000      Direct Costs                $1,400,000
Soft Costs                $7,200,000      Soft Costs                 $6,700,000
Total Suspension Costs     $25,800,000     Total Other Costs          $8,100,000


Suspension Costs                  $25,800,000
Other Costs                       $8,100,000
Program Contingency               ($1,900,000)
Total Program Cost Increase          $32,000,000


9

RCF Program Budget Authorization
With a successful bond sale, staff will be requesting the following in
order to complete the RCF program:
$591,670 in additional design funds to complete the design of the
BMF and ORI projects
$27,826,000 in additional construction funds to restart and complete
the RCF project




10

RCF GC/CM Construction Contract
The GC/CM contract with Turner was negotiated based upon the 90%
Construction Documents with several allowances
Maximum Allowable Construction Cost        $161,717,850
(MACC)
Risk Reserve                         $5,775,121
MACC Contingency (2%)                $3,334,160
Total MACC                     $170,829,131
Negotiated Support Services (Reimbursables)     $15,145,816
GC/CM Fee (7.4%)                   $13,724,446
100% Conforming Design Development        $8,371,329
Allowance
Anticipated Scope Allowance                $5,944,063
General Conditions/Additional Insurance        $11,484,914
Total Construction Contract (TCC)         $224,837,739
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Change Orders  Conforming Design
Development
100% Conforming Design Development Allowance within TCC
All sub-packages have been bid except for ornamental metals
Zero cost change orders to contractually conform the changes
between 90% design documents and final bid document are
required
Allowance established within TCC               8.37 mil
Approved usage                        $186 k
Cost proposals under review                  $2.18 mil
Uncommitted amount                     $6 mil

Usage from anticipated scope allowance will be similarly approved with
zero cost change orders

12

Change Orders - Suspension/Restart
Turner and staff have estimated the suspension/restart costs based on
preliminary information from subcontractors
Staff will be requesting the authority to execute a number of
suspension/restart change orders for a not to exceed value of
$16,800,000 and a time extension of up to 260 calendar days
Turner is working on a revised construction schedule that will be
submitted to the Port by end of July showing new completion dates
All suspension/restart contractor cost proposals to be submitted to the
Port by end of July based on revised schedule
Negotiated and final costs will be executed into change orders over the
next several months
Staff and Turner will be looking for selected acceleration as appropriate
to reduce time extension and associated cost impact
The anticipated schedule and cost impacts are included in the Total
Program Cost Increase.
13

One - Time Change Order Policy
Adjustment
Resolution 3605 requires Commission approval for change orders that
exceed $200,000 in value or when the cumulative total of all change
orders exceed 10% of the original contract price
The suspension/restart change orders for the Turner contract represent
approximately 8% of the original contract price
Given the magnitude of this change, staff is requesting that for only the
Turner contract the limit of 10% be increased to 18% in order to avoid
an inordinate amount of Commission and staff procedural processing
time



14

Next Steps - Construction
A significant amount of work must be completed to restart the RCF
Staff and Turner will work closely to immediately remobilize and restart
construction
Turner re-staffs their project team
Staff to finalize the negotiation and execute suspension/restart
change orders
Prioritize critical subcontractors to expedite re-mobilization and
begin construction
An auditing firm will be used to support the change order effort
The Disputes Resolution Board is providing support in the change
order effort
Staff may issue unilateral change orders when costs cannot be
resolved in a timely way

15

Next Steps - Construction
With a June 30, 2009 lifting of
suspension we expect up to
190 construction workers
working on-site by the end of
July 2009






16

Future Commission Actions
Assuming lifting of the suspension of the RCF Program on June 30,
2009, future Commission actions are:
July 2009: Approval to purchase property to support the
construction of the RCF & ORI projects
September 2009: Approval to procure the bus fleet for the Bus
Purchase project
October 2009: Approval to advertise for bid the ORI project,
execute utility agreements, and authorize construction funds
January 2010: Approval to execute the Concession Agreement with
the Rental Car Industry
February 2010: Approval to advertise for bid the BMF project,
execute utility agreements, and authorize construction funds
September 2010: Approval to advertise for bid the MTI project and
authorize construction funds
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