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City of Missoula, Montana Item to be Referred to City Council Committee Committee: Public Works Committee Item: West Reserve Phase 3 – Sewer and Water Project Update Date: June 19, 2009 Prepared by: Gregg Wood Initiated by: Kevin Slovarp Action Required: Approve and authorize the Mayor to sign Amendment Number 7 to HDR, Inc.’s existing Engineering Services Agreement for project close out and contractor’s claim resolution on the West Reserve Phase 3 – sewer and water project. Recommended Motion: The committee recommends the City Council approve and authorize the Mayor to sign Amendment Number 7 to HDR, Inc.’s Engineering Services Agreement contract for the West Reserve Phase 3 project in an amount not to exceed $429,047.32$ to close out the project. Timeline: Referral to committee: June 19, 2009 Committee discussion: June 24, 2009 Council Action: July 6, 2009 Background and Alternatives Explored: The City Council approved the award of the construction contract with Embe Contracting, Inc. on August 20, 2007 in the amount of $3,744,648.73. The contract for installation of sewer and water mains and road reconstruction on Grove Street and S. 3rd Street was substantially completed on November 21, 2008. HDR Engineering currently has a consulting service agreement for the design and construction administration in the amount of $324,096.90 for this project. A forthcoming amendment (Amendment Number 7) was presented as an informational item on June 18, 2008 and April 15, 2009. The April 15, 2009 informational item indicated that at the time HDR Engineering was $82,800 over their amended contract amount. $53,500 in liquidated damages were anticipated to offset some of the additional consulting cost and the unfunded balance of consulting services, as of April 15, 2009, was $30,300. That balance was attributed to 35 days of additional services for days added to the contractor’s schedule, over and above those associated with the liquidated damages and for preparing a detailed, initial response to the contractor’s claim. Since April 15, 2009 the consultant has accumulated additional costs to assist the City with our response to claims and mediation procedures with the construction contractor on the project. The consultant’s cost to date is $427,882.32. They have projected a cost to finish of $1,165 for a total not to exceed cost of $429,047.32 (Amendment 7 - $104,950.42). This cost has been offset by $52,500 in total liquidated damages assessed to the construction contractor. Financial Implications: Simple breakdown of the cost is as follows: $52,500 – Liquidated Damages $18,500 – 37 days of Contractors time extension $33,950 – Claims resolution Attachments: Contract Amendment