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Public Works City of Eugene 858 Pearl Street Eugene, Oregon 97401 (541)682-5262 - (541)682-6826 Fax MEMO R:ANDUM Date: May 29, 2003 To: Mayor Toney and City Council i From: Kurt Corey, (541) ti82-5612 a . Public Works Director . . Subject: Supplemental Budget #3 Ferry Street Bridge Project Final Claim Settlement The FY03 Supplemental Budget #3 includes an item to provide final payment for the Ferry Street Bridge project. This memo is intended to provide some additional information and explanation for the particular item. Construction of the Ferry Street Bridge preservation and enhancement project began in Tune 1997 and was completed by late 2000. The original contract with Mowat Construction Company was for $20.3 million, .and various change orders during the life of the project increased the total cost of construction to $22.8 million. In August. 2000, Mowat filed a claim requesting payment of an additional $8.8 million. • i During the past two years, the City of Eugene and the Oregon Department of Transportation , (ODOT) have evaluated the claim and have had many discussions with Mowat. A large portion of the claim rel ted o a su settled 1 ear a t bcontractor s work was ast reducin the rem in' a m claim Y g g to approximately $ti.5 million. Further evaluation and. negotiations led to an agreement to settle this claim for $1.9 million in the form of a final contract change order. Adding interest due the contractor, as required under state law, brought the total to $2,019,026.4.1. The Ferry Street Bridge project was the largest and most complex transportation project ever undertaken by the City of Eugene. The city partnered in this project with ODOT and with OBEC Consulting Engineers, who prepared the final construction plans and monitored the contractor's work throughout the project duration. As was anticipated, there were numerous contract change • orders over the three-year period to respond to changing conditions, alternative methods of doing . the work, complications due to utility relocations, and so forth. As a proportion of the original construction bid, the final settlement.change order represents roughly 10 per cent of additional cost. The need for supplemental budget approval is based on the large ~dollaz amount and the unique financing that was used for this project. The original- project budget was approximately $30 million, including the estimated construction costs plus significant amounts for right-of-way acquisition, design engineering, and- contract administration. _ The budget was comprised of federal earmazk funds, Lane County road funds, and City of Eugene capital project funding. Over the life of the project these funding sources were proportionately drawn down and subsequently exhausted with no funding remaining to Page 1 of 2 _ _ _ _