PORT ANGELES — It opened 22 months ago, but the final price tag for The Gateway transit center remains unknown.
The reason: Clallam Transit and Primo Construction have yet to settle a dispute over how much the Sequim company should be compensated for a change order prompted by a large crack in the facility’s foundation.
Attorneys representing Primo and Clallam Transit will meet with a mediator May 26 to attempt to reach an agreement.
Primo is seeking $179,976. Clallam Transit says it should be less.
“We have dramatic differences in what that value should be,” said transit General Manager Terry Weed, referring to the claim.
Transit has claim, too
Additionally, the countywide transit agency, which owns The Gateway, plans to file its own claim against another contractor once Primo’s claim is settled, Weed said.
Clallam Transit believes that contractor, Krei Architecture, is responsible for the design flaw that lead to the crack and that it owes the agency about $500,000 in related costs, he said.
The change-order cost is part of that $500,000.
Steve Aisaka, Krei risk management director, said he had no comment.
Primo staff couldn’t be reached for comment.
The Gateway — a joint venture between Clallam Transit and the city of Port Angeles located along Front Street, Lincoln Street and Railroad Avenue — opened in June 2009. It includes a transit lane, plaza and two parking garages.
Crack caused delay
Completion of the facility was delayed seven months while a large crack discovered the beneath the plaza was fixed.
The project had a budget of $14.7 million as it neared its completion — with $8.1 million in federal and state grants, $500,000 from Clallam Transit and $6.1 million from the city.
The last tally of the project’s cost was $15.4 million, with the city covering the additional cost, said city Finance Director Yvonne Ziomkowski.
That tally was made in October 2009, the last time the city received an invoice from Clallam Transit on the project, she said.
Since then, Clallam Transit has spent $6,835 on attorney fees related to the claim and resolving a lawsuit over property condemned for the project.
The city is required to cover any cost overruns for the project, according to an agreement between the project partners.
Weed said the city will be billed for the additional expenses.
Grant will help
But Glenn Cutler, city public works director, said it’s possible the city won’t have to spend another dime.
The Federal Transit Administration has awarded the project another $550,000 grant, he said.
However, when the project will receive the grant has not been determined.
“I think there’s a potential for some of the project to be paid money back,” Cutler said.
Craig Miller, Clallam Transit’s attorney, said the Primo claim will head to arbitration if no agreement on the change-order cost can be reached this month.
The arbitrator’s decision would be final, he said.
Weed said it’s unclear how much longer it will take for the claims to be resolved.
“Our attorney says that’s the way the system works,” he said.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
