Salinas Rail Project Packages 2 & 3 - HDR Engineering Contract Amendment #2:

1. APPROVE and AUTHORIZE the Executive Director to execute contract amendment #2 with HDR Engineering Inc., subject to approval by Agency Counsel, in an amount not to exceed $284,938, for a total not-to-exceed contract amount of $3,939,610, to complete the design work for Package 2, Salinas layover facility and Package 3, Gilroy track connections;
2. AUTHORIZE the use of reserves or state funds budgeted to this project that may become available;
3. AUTHORIZE the Executive Director to take such other further actions as may be necessary to fulfill the intent of the contract, including approvals of future modifications or amendments that do not significantly alter the scope of work, or change the approved contract term or amount; and
4. APPROVE sole source finding.

The Salinas Rail Extension Kick Start Project, package 2 (Salinas layover facility) and package 3 (Gilroy track connections) are at 75% design. HDR Engineering, Inc. was originally hired for this work in April 2020 after a formal Request for Proposals process. The contract now needs to be amended to add funding to the contract for the following unforeseen activities: 1) additional work on 10th Street and Luchessa Avenue in Gilroy, as required by the California Public Utilities Commission (CPUC) per a site meeting on August 24; 2) geotechnical investigations beyond what was anticipated in the scope of work; 3) additional level of effort on the 90% plans in Gilroy and Salinas per coordination with multiple partner agencies; and 4) additional traffic analysis on 10th Street per the CPUC. Staff recommends a sole source finding for this proposed amendment #2 based on the related nature of the tasks and efficiencies involved.

This increase of $284,938, added to the amendment 1 funding increase of $467,457, represents a 24% increase from the original 2020 contract budget of $3,187,215. The budget for the contract, as amended, would have a not-to-exceed amount of $3,939,610, funded through Traffic Congestion Relief Program funding allocated to this project and Agency reserves, until new state project funding becomes available.

The Salinas Rail Extension Kick Start Project Packages 2 and 3 are currently at 75% design. HDR Engineering is updating the designs based on feedback from Caltrans, Caltrain, the City of Salinas, the City of Gilroy, the Santa Clara Valley Transportation Authority (VTA, who owns the Gilroy train station), Union Pacific Railroad (UPRR), and the California Public Utilities Commission (CPUC).

Design review meetings with Caltrain, Caltrans, Amtrak, VTA, UPRR and the Cities of Gilroy and Salinas, and an on-site diagnostic with the CPUC and UPRR have been held over the last several months. Those meetings have brought to light several issues that were not contemplated in the original contract's scope of work.

Design changes were identified by the CPUC during the diagnostic review include the following:

1. 10th Street - signing and striping, pre-signal on westbound approach to crossing, full pedestrian improvements at all four quadrants, median islands, street lighting, and other relevant improvements;
2. Luchessa Avenue - pavement rehabilitation, signing and striping, median islands, street lighting, and other improvements; and
3. Additional traffic analysis on 10th Street.

The CPUC also identified other improvements that fall to the City of Gilroy to repair existing deficiencies. 

Other improvements included in this amendment due to coordination with other entities include:

1. Geotechnical investigations - additional effort due to challenges and delays in getting access for this work in Gilroy and Salinas.
2. The City of Gilroy requested a sidewalk on 10th Street.
3. Caltrans requested consideration of a platform 24 inches above top of rail in Salinas.
4. VTA requested assistance in coordination on a proposed transit-oriented development in Gilroy.
5. Caltrain requested revisions to the buildings in Salinas and Gilroy.
6. The City of Salinas requested multiple presentations and revisions to the platform furnishings in Salinas.
7. Amtrak requested coordination on platform improvements in Salinas.

This amendment removes the optional item of overflow parking in Salinas, per direction from City staff that parking constructed in Package 1 is sufficient for all needs at the station. Amendment 2 redirects the $197,031 approved in Amendment 1 for that optional task to the new activities identified in the revised scope of work for Amendment 2.

Staff believes it is most appropriate to do a contract amendment with HDR to add funding to this contract and recommends a sole source finding. Attached are the contract amendment #2, revised scope of work (Exhibit A-2), and the revised budget (Exhibit B-2).