PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA
Item No.
5b
Date of Meeting
2/22/11
DATE: February 4, 2011
TO: Tay Yoshitani, Chief Executive Officer
FROM: Ralph Graves, Managing Director, Capital Development Division
SUBJECT: Change Order No. 10 for the Consolidated Rental Car Facility (CRCF) Offsite
Roadway Improvements (ORI) and SR 99 Bridge Seismic Upgrade Project
Contract MC-0316568
AMOUNT OF THIS REQUEST: $970,000.00
SOURCE OF FUNDS: Unallocated Program Contingency. No additional funds required.
ACTION REQUESTED:
Requesting authorization for the Chief Executive Officer to issue Change Order Number 10 for
the CRCF ORI and SR-99 Bridge Seismic Upgrade for the Not-to-Exceed amount of
$970,000.00 and for staff to transfer this amount from Unallocated Program Contingency to the
Project Construction Contingency. No additional funds are required to implement this change
order.
SYNOPSIS:
This project is renovating and improving municipal, Port and Washington State Department of
Transportation (WSDOT) roadways in the vicinity of the new CRCF including SR-518,
International Boulevard (SR-99), S. 160
th
Street, Host Road and the Northern Airport
Expressway (NAE). During performance of the work, the Contractor has identified additional
contaminated and geotechnically unsuitable soil, the excavation and removal of which is
estimated in the amount of $970,000.00.
This change order requires the transfer of up to this amount from Unallocated Program
Contingency to the ORI project construction contingency. No additional funds are required or
being requested. After transferring the $970,000.00 out of Unallocated Program Contingency,
the balance in the contingency will reduce from $10,040,269.00 to $9,070,269.00.
Port staff continues to interface with WSDOT personnel to determine if there is any potential to
utilize this soil or portions of it on the project and to investigate other alternatives to off-site soil
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
February 4, 2011
Page 2 of 4
disposal in an effort to mitigate further costs and in keeping with the Port’s commitment to
sustainability of resources.
BACKGROUND:
This project is renovating and improving roadways in the vicinity of the new CRCF including
SR-518, International Boulevard (SR-99), S. 160
th
Street, Host Road and the NAE as traffic
mitigation for the CRCF. The WSDOT areas of work include:
Installation of a new ramp at the NAE including retaining walls, ramp access, traffic
signals and metering near the intersections of Host Road and S. 160
th
Street
SR-99 bridge seismic improvements and roadway widening including asphalt, curbs,
gutters including some underground utility work
Realignment of the SR-518 Exit to SR-99/International Boulevard (B-Line Work)
The installation of the new NAE ramp is nearly complete. The SR-99 bridge seismic upgrade
work is currently underway for widening the roadway along International Boulevard (SR-99) at
the exit off of SR-518. To date, footing excavations associated with seismic work uncovered
533 tons of unsuitable soils. Another 1,230 tons is anticipated for the remaining bridge
seismic/expansion work currently underway. In addition, preliminary clearing activities at the
south side of the SR-518 Exit Realignment (B-Line) work indicate that the 9,000 tons of soil to
be removed and disposed of are contaminated. Further, indications are that the 5,250 tons of
removal and disposal at the north side of the B-line work may be contaminated. At this time,
winter weather conditions prevent fully testing the area to determine the extent of contamination.
Since a gas station once operated in the area, the project team is moving ahead with an
assumption of 100% contamination.
The project was bid with an allowance of $150,000.00 under Unit Bid item #44 - Unsuitable
Soils- Washington State Department of Transportation (WSDOT) property for removing and
disposing of contaminated soils anticipated at the SR-518 exit realignment (B-line). To date,
excavation work associated with the other WSDOT property has expended 73% of Unit Bid Item
#44. A change order is required to allow the contractor to properly dispose of the additional
contaminated soils discovered by the Contractor in performing preliminary site work on the
project. Because the final magnitude of the change will not be known until all of the excavation
is completed, this change order will be issued for a Not-to-Exceed amount of $970,000.00 which
covers work associated with SR-99 Bridge Seismic Upgrade and road widening and the SR-518
exit realignment (B-Line) work.
This change order will allow the project schedule to proceed with excavation activities underway
now and the next large operation (SR-518 realignment) to begin in April 2011. Given the
magnitude of the estimated cost to properly dispose of the additional contaminated or unsuitable
soils, funding will exceed the current project contingency. This requires the transfer of sufficient
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
February 4, 2011
Page 3 of 4
funds not to exceed $970,000.00 from Unallocated Program Contingency into the ORI project
budget. These funds are included in previously approved authorizations of $419,306,000.00 for
the CRCF Program requiring no additional funds authorized as a result of this change order.
CHANGE ORDER DESCRIPTION AND JUSTIFICATION:
The following information relates to the pending change order scope and cost:
Change Order No. 10
Scope of work: Provides contractual mechanism to compensate the contractor for
contaminated soil removal and disposal in excess of the $150,000 allowance in the
contract under Bid Item #44. Amount is based on estimates established on confirmed and
anticipated contaminated soil conditions encountered at WSDOT excavation work areas
plus a 10% contingency. The contractor shall proceed for a total amount NOT TO
EXCEED $970,000.00. The estimate is as follows:
CO 10: SR 518 Realignment – Contaminated $ 495,000.00
CO 10: SR 518 Realignment – Anticipated $ 288,800.00
CO 10: Bridge Seismic Upgrade/Realignment – Anticipated $ 96,900.00
Contingency $ 89,300.00
Total Not-To-Exceed $ 970,000.00
Justification: The contract provided a lump sum allowance of $150,000 in the Bid for
WSDOT contaminated soil removal force account work (BI #44). Initially, the $150,000
was anticipated for unsuitable soil excavations at the B-line area that once contained a
gas station. The removal of unsuitable soils encountered at other WSDOT locations as
described above expended 73% of this bid item to date. This change addresses the
payment for removal and disposal of contaminated or geotechnically unsuitable soil.
Consequences of not proceeding: The Port has attempted to work with various groups
within the organization to reincorporate as much of the soil as possible on Port property;
however to date, no space has been identified to stockpile these additional contaminated
soils. Without space to stockpile these soils, excavations would have to be stopped and
the project would be delayed until other stockpile areas could be found resulting in time
and cost escalation to the project.
FINANCIAL ANALYSIS:
The funds to pay for this change order are part of the $419,306,000.00 authorization previously
approved for the CRCF Program. No additional project funds are being requested as a result of
this change order. The Program’s unallocated contingency will be transferred to the ORIs’
construction contingency.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
February 4, 2011
Page 4 of 4
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: 0 Days
Contract extension this change order: 0 Days
Current Contract Completion Date: March 28, 2012
Original contract amount: $7,627,485.00
Previous Change Orders Executed: $14,318.00
Current contract amount $7,641,803.00
This request, Change Order No. 10 $970,000.00
Revised contract amount: $8,611,803.00
