AGENDA ITEM 9B ACTION ITEM TO: CHAIRMAN MILDE AND THE VRE OPERATIONS BOARD FROM: DALE ZEHNER DATE: SEPTEMBER 17, 2010 RE: AUTHORIZATION TO AMEND THE BROAD RUN MAINTENANCE FACILITY CONSTRUCTION CONTRACT _____________________________________________________________________ RECOMMENDATION: The VRE Operations Board is being asked to authorize the Chief Executive Officer to amend the contract with Costello Construction for the Broad Run Service and Inspection Building project in the amount of $85,385, for a total contract value not to exceed $4,644,885. BACKGROUND: In June of 2004, the Operations Board approved a plan to shift VRE fleet maintenance to the outlying yards. As part of this initiative, construction projects to expand capacity and facilities at both yards were commenced. The Operations Board approved a construction contract with Costello Construction in February 2009 in an amount not to exceed $4,559,500. Several unforeseen conditions were encountered during construction that required additional effort to complete the work beyond the original authorized amount. These conditions included delays due to heavy snow this winter, electrical charges imposed by Dominion Power for new electrical service, rock and unsuitable soils encountered during excavation, and extensive permitting requirements due to specialized utilities. Construction of the service and inspection building was completed in July. However, several outstanding change orders related to the items listed above were still under negotiation, but have now been completed. This action will provide authorization to execute these change orders. FISCAL IMPACT: Funding is included in the VRE CIP as part of the Broad Run Maintenance Facilities project. Funding is available from a FY 2009 federal grant. The local match is provided using state and local funds. TO: FROM: DATE: RE: CHAIRMAN MILDE AND THE VRE OPERATIONS BOARD DALE ZEHNER SEPTEMBER 17, 2010 AUTHORIZATION TO AMEND THE BROAD RUN MAINTENANCE FACILITY CONSTRUCTION CONTRACT RESOLUTION 9b-09-2010 OF THE VIRGINIA RAILWAY EXPRESS OPERATIONS BOARD WHEREAS, in June of 2004, the Operations Board approved a plan to shift VRE fleet maintenance to the outlying yards; and, WHEREAS, in February of 2009, the Operations Board approved construction of the Broad Run service and inspection building; and, WHEREAS, several unforeseen conditions were encountered during construction that required additional effort to complete the work beyond the original authorized contract amount of $4,559,500. NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board authorizes the Chief Executive Officer to amend the contract with Costello Construction for the Broad Run Service and Inspection Building project in the amount of $85,385, for a total contract value not to exceed $4,644,885.