2015-04-28 Water Board Minutes - Laserfiche WebLink

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The State of Hawaii Department of Transportation (HDOT), and Goodfellow Bros., Inc., (Goodfellow), propose to enter into a Tri -Party agreement with the Department of Water Supply (DWS), as a cooperative effort to re -design the waterline installation affected by the re -alignment of the highway. Goodfellow had originally proposed a change order cost of $195,865.00 for the re -design of the waterline by their design -build team. DWS did not agree to those costs; through this Tri -Party agreement, DWS would be responsible for providing the design to Goodfellow for $54,804.00, for inclusion in the final construction plans. The Manager -Chief Engineer recommended that the Water Board approve the QUEEN KA`AHUMANU HIGHWAY PHASE 2 REVISED TRI -PARTY AGREEMENT, and that either the Chairperson or Vice -Chairperson be authorized to execute the document subject to review as to form and legality by Corporation Counsel. MOTION: Ms. Lee Loy moved to approve; seconded by Ms. Iokepa-Moses. The Manager -Chief Engineer said that DWS has worked very closely with State Highways Division and the contractor to come up with terms that are agreeable to all parties. This Agreement is for the re -design of the waterline, which was necessitated by the realignment of the highway. Ms. Garson noted that the Board had approved the Tri -Party Agreement once before, but when it was circulated to the State, the Attorney -General (AG) changed it. Among the changes the AG made was to the three-part indemnification, whereby each party would be responsible for their own actions. The AG removed the indemnification of the State, so they are not part of the indemnification. Ms. Garson said that the AG also removed a provision whereby, if the project does not go forward within two years, DWS would get all its money back. This provision was in one of the drafts, but it is not in the final version. Mr. Inaba confirmed that that provision had been removed. The contractor did not want to be a part of that, and they wanted that portion removed, saying it was not fair to include them. Ms. Garson said the Agreement that is on the table now is the same version as the one that the Board got in their packets; this version is a little different from the one that the Board approved previously. Ms. Lee Loy asked if this Agreement was for the all of the pipes sitting by the side of the road in Kona. Mr. Uyeda said this is only for the design, i.e., for half of it. This is only for the design; it has nothing to do with construction, he said. That is why the dollar amount is not high, compared with what construction would cost. Mr. Balog asked whether, after the re -design, there might be an additional cost tacked on to do the construction. The Manager -Chief Engineer said that unforeseen changes in the field might come up, but for now the funds allotted should take care of what will be appropriate for the realignment. Mr. Inaba clarified that this project is a design/build; once DWS comes up with its approved design, the contractor will look to see if there will be any additional costs. However, DWS anticipates that any additional costs should be minimal, because the highway is actually getting narrower, so the tie-ins are going to be a bit shorter. There should be some cost savings, although Page 9 of 15 Water Board Minutes 4-28-15 js