Title
Adopt City Council Resolution Approving Professional Services Agreement with SHN Consulting Engineers & Geologists, Inc. to Provide Construction Management Services for the Chestnut Street Corridor Project (Project No. 2015-04) and Authorizing City Manager to Execute Same (Amount Not to Exceed $120,500) Account No 413-4950-0731; and Amending the FY 2016/17 Budget to Appropriate $120,500 from 250-7999-0799 for Construction Management and Inspection Services (Budget Amendment No. 2017-02; Amount Not to Exceed $120,500; Transfer from Fund 250 to Fund 413)
Summary
On September 1, 2016, bids were opened for the Chestnut Street Corridor project to build a multi-use path on the north side of Chestnut Street from Franklin Street to Dana Street. A single bid, in the amount of $2,009,148.30 for the base bid plus alternates bid, was received from Granite Construction. This was nearly $1,000,000 over the engineer’s estimate of $1,010,052.00. Consequently, all bids have been rejected. The project will be re-bid in late September to give more potential bidders additional time to meet Disadvantaged Business Enterprise (DBE) goals for the project.
Given the complex requirements and documentation for this project, SHN will provide valuable assistance to staff through the re-bidding process and construction management and inspection services for the project. The SHN contract will be funded with Street Sales Tax funds to avoid the extensive consultant hiring process required by Caltrans. The use of Street Sales Tax funds to supplement the grant funds available for this project is appropriate as the tax revenues are available for all street and alley projects including associated curbs, gutters, sidewalks and bike lanes. When the construction contract is awarded (anticipated in November), an additional budget amendment will likely be necessary to appropriate additional Street Sales Tax funds to the project.