2022/08/31 Council Agenda Packet

`EVERETT City Council Agenda Item Cover Sheet Project title: Settlement Agreement for Grand Avenue Park Bridge Construction Dispute Council Bill # interoffice use Agenda dates requested: August 31, 2022 Briefing Proposed action Consent Action X Ordinance Public hearing Yes X No Budget amendment: Yes X No PowerPoint presentation: Yes X No Attachments: Settlement Agreement Department(s) involved: Public Works, Legal Contact person: Ryan Sass Phone number: 425-257- 8942 Email: rsass@everettwa.gov Initialed by: Department head Administration Council President I oration! Project: Grand Avenue Park Bridge Partner/Supplier: Interwest Construction, Inc. Grand Avenue Park to WMVD & 16th Preceding action: Final Acceptance and Certificate of Completion (November 2021) Fund: 336-Water and Sewer Systems Improvement Fund Fiscal summary statement: Original Contract Amount: Change Orders Total: Settlement Agreement (this action): Total: Project summary statement: $ 13,789,438.50 $ 1,225,816.70 $ 860,000.00 $ 15,875,255.20 The general contractor on the Grand Avenue Park Bridge project was Interwest Construction, Inc. (ICI). The bridge has been completed for over a year. During construction, ICI claimed that the bridge steel fabrication design was inadequate. ICI claimed that it was entitled to compensation. On April 2, 2021, ICI filed its formal claim against the City, which was for $5,825,618. Earlier this year, ICI assigned its claim to its subcontractor, Thompson Metal Fabrication, (TMF). TMF was the subcontractor that fabricated the steel bridge structure. After negotiations, TMF has agreed to release all claims (its own and ICI's) for a payment of $860,000 from the City. Recommendation (exact action requested of Council): Authorize the Mayor to Sign the Release and Settlement Agreement with Thompson Metal Fabrication in substantially the form provided.