APPROVE contract amendment #3 with HDR Engineering, Inc., for the final design of the Salinas Rail Extension Kick Start Project, to approve a budget amendment to allow for the shifting of budgeted funds between tasks, without increasing the approved not-to-exceed amount, subject to approval by Agency counsel.

The Salinas Rail Extension project is in the final design phase. TAMC hired HDR Engineering, Inc., in 2014, following a competitive Request for Proposals process, for the final design of the Salinas Rail Extension Kick Start project. The contract did not originally include funding to do the plans, specifications, and estimates (PS&E) for the demolition of structures at the station because it was erroneously assumed that such work would be done by the demolition contractor. This work is required prior to going out to bid for demolition work. There are sufficient funds in the contract under the task of "Caltrans Project Report", a task which is no longer needed, to cover the $43,433 for the demolition PS&E work.

The total approved not-to-exceed contract amount is $2,511,997. This amendment #3 would add a new task of structure demolition PS&E for Package 1, using funds already under contract for a task no longer needed (Caltrans Project Report), in the amount of $43,443.

The Salinas Rail Kick-Start Project design is well underway and other activities are being pursued simultaneously (including property acquisition, utility relocation design, and hazardous materials testing). The project has been divided into three packages as follows:

1. Package 1: Lincoln Avenue Extension, circulation improvements and parking at the Salinas train station;
2. Package 2: Salinas layover facility and track improvements; and
3. Package 3: Santa Clara County station improvements (primarily at Gilroy).

Demolition of structures on parcels acquired by the Agency for this project is the next step. Prior to going out to bid for demolition, the Agency is contracting for hazardous materials testing (contract anticipated for September Board meeting). HDR proposes to develop the PS&E bid documents for the demolition Request for Proposals. The existing contract budget includes optional tasks for completing a Project Report for Caltrans on Highway 183 (Market Street), in the case that Caltrans were to require that document. Fortunately, the team has developed an agreement with Caltrans to do a simpler encroachment permit for the work within Caltrans right-of-way, so this task is no longer required. Therefore, staff recommends using the funds dedicated to that task for the PS&E in preparation for going out to bid for demolition contractors for Package 1.

Attached is the draft contract amendment, including scope of work and budget.