SOUND TRANSIT STAFF REPORT MOTION NO. M Contract Amendment for Construction Management Services

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1 SOUND TRANSIT STAFF REPORT MOTION NO. M Cntract Amendment fr Cnstructin Management Services Meeting: Date: Type f Actin: Staff Cntact: Phne: Finance Cmmittee Bard 8/3/06 8/10/06 Discussin/Pssible Actin t Recmmend Bard Apprval Actin Ahmad Fazel, Link Directr Je Gildner, Link Deputy Directr (206) (206) Cntract/Agreement Type: Requested Actin: Cmpetitive Prcurement Execute New Cntract/Agreement Sle Surce Amend Existing Cntract/Agreement Agreement with Other Jurisdictin(s) Budget Amendment Real Estate Prperty Acquisitin PROJECT NAME Central Link Light Rail Initial Segment PROPOSED ACTION Authrizes the Chief Executive Officer t execute a cntract amendment with Carter & Burgess t prvide cnstructin management services fr Link Light Rail Segment C735, Rainier Valley cnstructin in the amunt f $4,293,570, fr a new ttal authrized cntract amunt nt t exceed $12,944,305; and t exercise an ptin t extend the term f the cntract t December 31, KEY FEATURES f PROPOSED ACTION The cntract scpe includes: prviding resident engineering, ffice engineering, inspectin (civil, structural, electrical, track, mechanical, utilities), change rder administratin, safety inspectin, management, and diversity supprt. The additinal cntract authrity request is primarily a result f tw main influences t the cnstructin management cntract added effrt and extended cnstructin perid. This cntract amendment is necessary t prvide additinal funding fr: Scheduling supprt. This cnfiguratin imprves the integratin f schedule management and analysis with verall cnstructin management. Extending the duratin f the full time safety inspectr prviding supprt t Link s cverage during staffing changes within the rganizatin and t address special cnstructin issues n the prject. Special inspectins required t satisfy permit requirements f the City f Seattle s Department f Planning and Develpment fr retaining walls n private prperty.

2 Additinal field engineering supprt t expedite reslutin f field questins and facilitate crdinatin f wrk. An assistant resident engineer t help manage the significant amunt f cntract dcumentatin. This psitin als supprts field peratins, as required. Additinal ffice engineering staff t help manage the large vlume f change requests received frm the cnstructin cntractr. Additinal administrative staff t address the increased amunt f prject dcumentatin. Additinal field inspectrs based n quality cntrl issues experienced t date and based n the cntractrs wrk plan thrugh the cmpletin f the prject. Time: The cntractr s current schedule, as f July 18, 2006, frecasts cmpletin in Octber The cnstructin management cntract expires n December 31, This prpsal exercises ne f three ptins t extend the cntract by ne year t December 31, The prpsed budget will supprt cnstructin management services thrugh the current cnstructin cmpletin. Funding is prpsed t be carried as a shrtage in the 2006 budget and addressed in the Prpsed 2007 Budget. BUDGET IMPACT SUMMARY Current Prject Phase: Cnstructin Prjected Cmpletin Date: 2009 Actin Outside f Adpted Budget: Cmments n Checked Items This Prject This Phase Actin exceeds the current adpted budget fr the Cnstructin Services phase; hwever, is within the prpsed 2007 budget fr this phase. This Task Budget Amendment Required Key Financial Indicatrs: Cmments n Checked Items Cntingency Funds Required Funding required frm ther parties (ther than what is in financial plan) Nt checked = actin is assumed in current Bard-adpted budget. N budget actin r adjustment t financial plan required. BUDGET and FINANCIAL PLAN DISCUSSION The prpsed actin wuld authrize executin f a cntract amendment with Carter & Burgess t prvide cnstructin management services fr Rainier Valley C735 Cnstructin in the amunt f $4,293,570 fr a ttal authrized cntract amunt nt t exceed $12,944,305. This amunt includes $384,533 f wrk t be reimbursed by third parties under betterment agreements (Mtin N. M ). Apprval f the prpsed actin wuld increase Sund Transit s ttal cst bligatin t $12,559,771. Mtin N. M Page 2 f 5 Staff Reprt

3 The ttal adpted capital budget fr the Initial Segment is $2.07 billin. Within the cnstructin services phase f that budget, the current apprved budget fr C735 cnstructin management services is $8,266,202. T date, cmmitments fr this budget line item are $8,264,124. Shuld the prpsed actin be apprved, the cmmitments fr C735 cnstructin management services wuld increase t $12,557,694, resulting in a shrtfall f $4,291,492 fr this budget line item. Of this amunt, $2,417,199 wuld be ffset by remaining surplus budget in the cnstructin services phase. The prpsed 2007 budget fr the Initial Segment includes funding fr the remaining $1,876,371 budget shrtfall. This actin des nt change the lifetime budget f the Initial Segment. The cntract with Carter & Burgess includes wrk that is part f the Central Link Initial Segment, as well as additinal wrk t be reimbursed by the City f Seattle and private utilities, as authrized by prir bard mtins. Csts related t this additinal wrk are nt charged within the Link Initial Segment, but are tracked separately t facilitate prject accuntability and reimbursement. T date, a ttal f $366,611 has been cmmitted under this cntract fr betterment wrk, and increase f $2,077. Sund Transit s share f the ttal wrk is decreased by this amunt, and wuld be $12,557,694 shuld the prpsed actin be apprved. Sund Transit s share f the prpsed actin is cvered by the prpsed 2007 capital budget fr the Initial Segment, and is affrdable within the agency s current lng-term financial plan and subarea financial capacity. The prpsed actin will have n new revenue impact n Sund Transit. BUDGET TABLE Actin Item: Carter & Burgess (Amend agreement t prvide cnstructin management services fr Rainier Valley segment (C735) f the Central Link Initial Segment) (Year f Expenditure $000) Initial Segment Adpted 2006 Budget Cmmitted T Date This Actin Ttal Cmmitted & Actin Uncmmited (Shrtfall) (A) (B) (C) (D) (E) 1 Agency Administratin 216, , ,058 98,722 2 Preliminary Engineering 34,000 33,357 33, Final Design 145, , , Right f Way 223, , ,363 30,153 5 Cnstructin 1,170,439 1,061,081 1,061, ,358 6 Cnstructin Services 86,875 84,458 4,294 88,751 (1,876) 7 Third Party Agreements 59,560 59,030 59, Vehicles 133, , ,799 1,508 9 Ttal Current Budget 2,070,000 1,826,440 4,294 1,830, ,267 Cnstructin Phase Detail 10 Cntract C735 CM Services 8,266 8,264 4,294 12,558 (4,291) 11 Other CM Services 76,517 76,193 76, Cnstr unallcated cntingency 2, , Ttal Phase 86,875 84,458 4,294 88,751 (1,876) Cntract Amunt Bard Apprvals t Date Current Apprved Cntract Value Prpsed Actin Prpsed Ttal fr Bard Apprval Prpsed Cntract Value (F) (G) (H) (I) (J) 14 Cntract Amunt 7,864 8,651 4,294 12,158 12, Cntingency Ttal Cntract 8,651 8,651 4,294 12,944 12, Percent Cntingency 10% 0% 0% 6% 0% 18 Betterments (Credits) Ttal ST Share 8,266 8,264 4,294 12,560 12,558 Budget Shrtfall $ Ptential Resurces Surce Task Level (K) (L) (M) 20 Cntract C735 CM Services 4,291 2,091 Cnstructin phase unallcated cntingency Mtin N. M Page 3 f 5 Staff Reprt

4 M/W/DBE SMALL BUSINESS PARTICIPATION The M/W/DBE and Small Business gal fr this cntract was 30%. Fr this cntract amendment, Carter & Burgess has cmmitted that M/W/DBEs will perfrm 31.2% f the cntract. The adjusted perfrmance plan including this request is 30%. Utilizatin Breakdwn Table Subcnsultant Business Type % f Wrk Kristen Betty and Assciates, Inc. W/DBE 10.7% Lin and Assciates, Inc. M/DBE 8.0% Pacific Cmmunicatin Cnsultant, Inc. M/W/DBE 1.8% R.C.T Engineering, Inc. M/DBE 8.1% RseWater Engineering W/DBE 2.6% Ttal 31.2% EEO Cmmitment Wmen and minrities cmpse 50% and 8%, respectively, f Carter & Burgess s wrk frce. PROJECT DESCRIPTION and BACKGROUND fr PROPOSED ACTION In Nvember 2001, the Bard selected the Central Link Light Rail Initial Segment t be cnstructed frm dwntwn Seattle t Suth 154 th Street in Tukwila. Cnstructin alng MLK Jr. Way Suth includes 4.5 miles f at-grade light rail guideway and the Clumbia City (Edmunds), Othell, and Rainier Beach (Hendersn) Statins. In December 2003, Sund Transit identified RCI-Herzg as the mst respnsive, respnsible bidder fr the C735 - Rainier Valley Cnstructin prcurement. RCI-Herzg s prpsed baseline schedule prjected cmpletin f the wrk in January In January 2004, Sund Transit issued a Ntice t Prceed (NTP) t the Carter & Burgess cntract fr cnstructin management services fr the C735 - Rainier Valley Cnstructin prject. Services include prviding resident engineering, ffice engineering, inspectin (civil, structural, electrical, track, mechanical, and utilities), change rder administratin, safety inspectin, management, and diversity. The cntract perid ends December 31, 2006, with three ne-year ptins. In February 2004, Sund Transit issued NTP1 fr precnstructin wrk t RCI-Herzg, with a cntractual cmpletin date f April Cnstructin management services are prvided by Carter & Burgess. In July 2004, Sund Transit issued NTP2 fr the remaining wrk t RCI-Herzg. Sn after NTP2 was issued, additinal staff was mbilized as a result f many factrs, including the need t enhance the quality assurance inspectins and manage increased cntract dcumentatin. In July 2006, RCI-Herzg submitted a revised baseline schedule prjecting wrk t be cmpleted in Octber 2007 with the current cnstructin cmpletin f 48%. Sund Transit has nt changed the cntractual cmpletin date frm April 2007 and the respnsibilities fr the delay are nt yet reslved. Mtin N. M Page 4 f 5 Staff Reprt

5 Prir Bard/Cmmittee Actins n this Prject Mtin/ Reslutin Number and Date M /12/04 M /13/03 M /25/03 R /29/01 Summary f Actin Authrizing the Chief Executive Officer t execute a cntract with RCI-Herzg, A Jint Venture fr the Rainier Valley light rail cnstructin in the amunt f $128,302,911 with a 12% cntingency in the amunt f $15,396,349 fr a ttal authrized cntact amunt nt t exceed $143,699,260 Executing a cntract with Carter & Burgess t prvide cnstructin management services alng Martin Luther King Jr. Way Suth in the amunt f $7,864,305 plus a 10% cntingency f $786,430 fr a ttal amunt nt t exceed $8,650,735, fr a fur-year term with the ptin f tw additinal ne-year extensins. Executing a Memrandum f Agreement with the City f Seattle specifying the cst, terms and cnditins fr undergrunding utilities in the Rainier Valley alng Martin Luther King Jr. Way Suth in an amunt nt t exceed $15,576,000, this includes $2,097,000 in reimbursements frm private utilities. Selected the initial segment f the Central Link Light Rail Prject t be cnstructed and perated by CONSEQUENCES f DELAY Current authrized funds are frecasted t be exhausted by September A delay beynd this date will impact Link s ability t prvide cnstructin management services fr the C735 cntract. PUBLIC INVOLVEMENT Nt applicable t this actin. ENVIRONMENTAL COMPLIANCE JI 7/13/06 LEGAL REVIEW JW 7/27/06 Mtin N. M Page 5 f 5 Staff Reprt

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