APPROVE contract amendment #4 with HDR Engineering, Inc., for the final design of the Salinas Rail Extension Kick Start Project, to approve a contract amendment to allow for the reallocation of funds between contract tasks, without increasing the approved not-to-exceed amount.

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 time and funds needed to negotiate the utility relocations and the number of changes to final designs have been greater than anticipated due to several factors. These costs can be offset by other activities that are less than anticipated. 

Under this amendment, the total approved not-to-exceed contract amount will remain $2,511,997.  The utility work task has exceeded its specified allocation by $42,000 and the final design task has exceeded its specified allocation by $89,724. There are sufficient funds within the current contract budget to cover this cost increase of $131,724. This amendment will reallocate funds from unnecessary contract tasks (Caltrans Project Report, Right of Way Cost Estimates) and reducing others (Coordination with Union Pacific Railroad) and make other minor adjustments to the per-task budget.

The Salinas Rail Kick-Start Project design is well underway and other activities are being pursued simultaneously. 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).

Packages 2 and 3 are on hold at 75% design (completed in early 2016), pending review and feedback from UP. Package 1 has been the focus of work. Utility Coordination (task 4) and Final Plan (task 7) have exceeded their estimated budget allocations due to multiple changes to the utility relocation plans and final design plans for Package 1. Meanwhile, other tasks are no longer needed (Caltrans Project Report, Right of Way Cost Estimates), and the amount previously allocated for Coordination with UP (task 5) is higher than expected to be needed. The UP Coordination included funding for designing the improvements to the Coast Main line track that are expected to be done by UP staff. Therefore, staff recommends shifting funds dedicated to those tasks to instead complete task 4, Utility Coordination, and task 7, Final Plans (package 1), and make other minor adjustments to the allocated budget by task.

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