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Agenda Item # 14

BOARD MEMORANDUM

RECOMMENDATION:

Authorize the General Manager to amend the contract with URS Corporation for final design and design support during construction of the I-880/Coleman Avenue Interchange Project, increasing the approved contract by $800,000 for a new total contract value not to exceed $8,539,322.

BACKGROUND:

The I-880/Coleman Avenue Interchange Project has been identified as a high priority, regionally important project by VTA, the City of San Jose and the State of California. The Valley Transportation Plan 2020 (VTP 2020) identifies the project as a Tier 1 priority.  The Master Plan for San Jose International Airport identifies the project as a critical ground access route for the airport.  The Traffic Congestion Relief Plan (TCRP) sponsored by Governor Davis recognized the regional importance of the I-880/Coleman Avenue Interchange and has included $5 million for the project.

At its December 19, 2000 meeting, the San Jose City Council authorized $5 million in local funds for the I-880/Coleman Avenue Interchange Project and approved a cooperative agreement with VTA, which established VTA as the project manager for the Project.  On March 10, 2003, the San Jose City Council authorized an additional $4 million to fund advanced utility relocation for the project.  On June 19, 2003, the Board of Directors authorized the General Manager to execute an agreement with the City of San Jose providing $1.4 million to fund a reclaimed water line and sewer line extension to be included in the project. 

On May 3, 2001, the VTA Board of Directors authorized the General Manager to execute a contract with URS for preliminary engineering and final design services in the amount of $4,677,755.  Thereafter, the Board authorized the General Manager on June 20, 2002 to amend the contract by $2,268,390 for a total contract value not to exceed $6,946,145.  On April 2, 2003, the Board authorized the General Manager to amend the contract by $800,000 for a total contract value not to exceed $7,739,322. 

On May 21, 2003, the California Transportation Commission approved $65 million in GARVEE bond financing for construction, construction administration, inspection and design support during construction services for this project. 

DISCUSSION:

Key elements that comprise the $800,000 contract amendment are:

• Additional design for complex drainage and tunnel pumping systems, utility design coordination,  staged construction plans, traffic handling plans and hazardous materials testing to eliminate waste removal costs ($300,000)
• Design for a reclaimed water line and sewer line extension to be funded by City of San Jose ($175,000)
• Development of additional conceptual aesthetic design elements ($50,000)
• Design Support During Construction ($275,000)

Following evaluation by VTA and negotiation with representatives of URS, VTA staff recommends accepting the terms of the proposed contract amendment.  Final design will be completed on a cost plus fixed fee basis with a 9.9% fee, and design support during construction will be completed on a time and materials basis.  The revised contract budget represents over 74,000 hours of service provided by the consultant team in order to obtain environmental approval and complete the design for the $74.6 million project. 

It is anticipated that there will be one additional contract amendment to address several unresolved design issues to be included as an addendum to the project bid package.   The issues include design revisions to accommodate pedestrian access during construction, incorporation of aesthetic enhancements into project plans, irrigation design for additional tree planting during civil construction and signal system interconnect plans. 

ALTERNATIVES:

There are no practical alternatives to this recommendation.  Staff evaluated the potential to utilize VTA employees for this work.  However, this project requires a large, coordinated, multi-disciplined highway and structural design team that is not available within VTA.  The alternative would be to hire and develop the necessary design staff which would be subject to extreme fluctuations in work load due to the cyclical nature of highway project funding and development.  Therefore, it continues to be VTAs practice to employ outside engineering design firms for work of this type, size and duration.  VTA staff, however, remains responsible for managing the overall project, overseeing preparation of environmental documents and clearance, managing contracts, cost accounting, community outreach and legal review of all projects.      

FISCAL IMPACT:

All costs associated with this recommended contract amendment will be provided through GARVEE bond financing and City of San Jose funding.

SMALL BUSINESS ENTERPRISE (SBE) PARTICIPATION:

Based on the identifiable subcontracting opportunities, a SBE goal of 19% has been established for this contract.  Contractor met the goal and has committed to 19% SBE participation on the remainder of the contract.

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