Meeting_Body
REGULAR BOARD MEETING
DECEMBER 1, 2016
Subject/Action
SUBJECT: I-405 SEPULVEDA PASS IMPROVEMENTS PROJECT
ACTION: AUTHORIZATION FOR FINAL LIFE-OF-PROJECT INCREASE
Heading
RECOMMENDATION
Title
CONSIDER:
A. APPROVING a Life-of-Project (LOP) budget increase by $297.8M, from $1,308.4M to $1,606.2M for Project 405523, I-405 Sepulveda Pass Widening Project (Project); and
B. AMENDING the Fiscal Year 2017 budget from $23.3M to $321.1M, an increase of $297.8M for Project 405523; and
C. APPROVING an extension of Stantec Consulting, Inc. (Stantec) Contract Work Order 2 (CWO 2) under Contract MC069 period of performance from December 31, 2016 to December 31, 2017 to complete close-out activities on the Project. This is a schedule extension only and has no impact on the budget.
Issue
ISSUE
In order to achieve final close-out of the Project, Metro staff is requesting an increase in the LOP by $297.8M in accordance with the Board-approved Contract Modification.
Discussion
DISCUSSION
On April 23, 2009, the Board awarded Contract C0822 for the design and construction of the I-405 Sepulveda Pass Widening Project to Kiewit Infrastructure West, Co. ("Kiewit") and established an original LOP budget of $1,034M for the Project. Substantial Completion and Punchlist Completion occurred on September 18, 2015 and December 14, 2015, respectively.
During the course of the Project, numerous disputes arose between Metro and Kiewit. On May 15, 2015, Metro and Kiewit signed an Alternative Dispute Resolution Contract Modification ("Arbitration Agreement"), which amended the Contract to provide for binding arbitration as the means to resolve the disputes between the parties. The Arbitration Agreement divided the disputes into two categories: Hearing 1, which consisted of Kiewit's claims for direct costs; and Hearing 2, which consisted of Kiewit's claims based on delay and disruption. The Hearing 2 disputes are also collectively referred to as "Claim 86."
To faci...
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