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SUBJECT/TITLE:Change Order No. 20 for the World Cup Legacy Square Phase 1
Project for Tax Reconciliation
RECOMMENDED ACTION: Refer to Finance Committee
DEPARTMENT: Community & Economic Development
STAFF CONTACT: Emma Conley
EXT.: 425-757-6807
Funding for Change Order No. 20 to CAG-25-044 in the amount of $155,303.29 is available in the
Municipal Facilities Capital Improvement Fund (316 Fund), and sufficient funds were previously
allocated within the project’s capital improvement budget (316.332097.020.594.76.63.000) to cover
the full amount of this change order. This change order will not impact the Municipal Facilities
Capital Improvement Fund (316 Fund) as it will only rectify the final contract amount.
Construction of the World Cup Legacy Square Phase 1 Project began in June 2025. This project
includes earthwork, utility installations, asphalt paving, lighting, park signage, concrete flatwork, site
furnishings, landscape planting, and irrigation improvements. During construction, the project team
determined there were several discrepancies in the project's revised contract amount and
expenditures. This change order reflects missing or increase tax throughout the project and
reconciles all tax discrepancies revising the project's “not-to-exceed” contract amount. This change
order would affect the overall contract amount reflected in EDEN only. All monthly payments to the
Contractor already included necessary tax and result in no change.
Discrepancy #1 - Original contractor bid documents reflected a low bid of $1,501,501.00 that did not
include an additional $154,654.60 for Washington State Sales Tax (WSST) as specified on the bid
form. Following award of the contract and processing of the contract checklist, WSST failed to be
included in the contract sum when entered into the city financing program, EDEN. This resulted in a
tax discrepancy of $154,654.60.
Discrepancy #2 - Change orders #1 - #12 for this contract were completed and paid with the incorrect
WSST rate of 10.1%. Change orders #1 - #12 should have been paid with the correct WSST rate of
10.3%. This resulted in a tax discrepancy of $224.29.
Discrepancy #3 - A new WSST rate of 10.5% went into effect 1/1/2026. Approximately $212,200.00 of
work was completed after this tax rate change and was not accounted for in the original contract or
City Council Regular Meeting
FISCAL IMPACT SUMMARY:
SUMMARY OF ACTION
2
original contract sales tax. This resulted in a tax discrepancy of $424.40.
Funding for Change Order No. 20 to CAG-25-044 in the amount of $155,303.29 is available in the Municipal Facilities Capital
Improvement Fund (316 Fund), and sufficient funds were previously allocated within the project’s capital improvement
budget (316.332097.020.594.76.63.000) to cover the full amount of this change order. This change order will not impact the
Municipal Facilities Capital Improvement Fund (316 Fund) as it will only rectify the final contract amount.
STAFF RECOMMENDATION
3/12/2026
CONTRACT:CAG-25-044
CONTRACTOR:Active Construction Inc.
CHANGE ORDER:20
SUMMARY OF PROPOSED CHANGE:
DESCRIPTION:
Item
No.
1 1 $ 154,654.60
2 1 $ 224.29
3 1 $ 424.40
Total this Change Order: $ 155,303.29
ORIGINAL CONTRACT CURRENT CONTRACT NET CHANGE REVISED CONTRACT
AMOUNT AMOUNT THIS ORDER TOTAL AFTER CHANGE
Additional Calendar Days:
None.
SIGNATURES:
Project Engineer:Date
Emma Conley, Project Manager
Approved By:Date:
Justin Johnson, Development Engineering Director
Approved By:Date:
Gina Estep, CED Adminstrator
Approved By:Date
Cheryl Beyer, Senior Assistant City Attorney
Attest:Date:
Jason Seth, City Clerk
CITY OF RENTON
Community and Economic Development
CONTRACT CHANGE ORDER AGREEMENT
Cost reflects missing or increase tax throughout the project. Item #1, the original contract amount only reflected the base bid amount
and did not include WSST. Item #2, cost reflects correcting the tax amount for Change Orders #1 - #12 which were previously
processed and approved with the incorrect sales tax applied. Item #3, cost reflects the tax rate increasethat went into effect on
1/1/2026 from 10.3% to 10.5% on all work that has or will be completed in 2026.
Qty. Description Amount
The payment specified and agreed to in this change order includes every claim by the contractor for any extra payment
with respect to the work described in this change order. The work covered by this change order must be performed under
the same terms and conditions as that included in the original agreement. All of the other terms of the original agreement
remain in effect.
Adding missing sales tax from orignal contract amount
Correcting the sales tax amount from CO #1 to CO #12
Adding sales tax based on tax rate change effective on 1/1/2026
$ 1,501,501.00 $ 1,720,548.27 $ 155,303.29 $ 1,875,851.56
EXHIBIT #A