Title
Approval of Bid Award and Resolutions Required for the Fones Road Improvement Project
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
• Move to award the construction contract for the Fones Road Improvement Project to Pivetta Brothers Construction, Inc. in the amount of $13,469,491.12.
• Move to approve a Resolution authorizing a supplement to the existing consultant services agreement with KPG PSOMAS, Inc. in the amount of $2,685,896.00.
• Move to approve a Resolution authorizing a Schedule 74 Undergrounding Construction Project agreement with PSE that obligates the City to $828,730.38 of shared costs.
• Move to approve a resolution authorizing the City Manager to execute all documents necessary to obligate additional grant funding from the Federal Highway Administration.
Report
Issue:
Whether to award the construction contract and approve resolutions authorizing the City Manager to execute agreements and other documents necessary to construct the Fones Road Improvement Project.
Staff Contact:
Jim Rioux, Project Manager, Public Works Engineering, 360.753.8484
Presenter(s):
Jim Rioux, Project Manager, Public Works Engineering, 360.753.8484
Background and Analysis:
The Project
Fones Road is a critical corridor directly serving commercial, industrial, and residential properties in east Olympia. The condition of the street is poor. Sidewalks are scarce and neither contiguous nor accessible to people with disabilities. There are no bicycle facilities, and the only marked crosswalk on the half-mile corridor between Pacific and 18th Avenues is at the Karen Fraser Woodland Trail. The trail crossing also needs safety improvements.
The project design includes, among many features, paths on both sides of the street with dedicated space for pedestrians and bicyclists that will be separated from the travel lanes. These will be the first separated bicycle lanes in our region. The planned access control, roundabout, decreased operating speed, and raised trail crossing will make Fones Road safer and more accessible for everyone who uses it, whether walking, bicycling, or driving.
Approximately 5,000 people live within a half-mile, or a ten-minute walk, of Fones Road. Those who live on the east side of it are in a Census Tract that has been designated as a “Historically Disadvantaged Community" by the US Department of Transportation. 2020 Census data also indicates that this is a more racially diverse part of the community than other parts. Investing in this community reflects the City’s commitment to improving equity. Those who drive will benefit from the increased safety and improved vehicle flow on the corridor, and those who do not will find it much easier to get around.
Additionally, Fones Road is an important employment center, particularly for people working in the retail and industrial sectors. In 2021, the City and Crown Beverage Packaging, located at the north end of Fones Road, earned the Economic Development Award from the Washington Economic Development Association for business retention. Improving truck access and circulation to this employer and others along the corridor is a key strategy for business retention.
When the project is done, those who live or work along Fones Road will be able to comfortably walk or bike to, among other places:
• Transit stops on Pacific or 18th Avenues
• Shopping or employment destinations at the north end of the corridor
• The regional trails network
• Homes, including a large mobile home park, along the south end of the corridor
Bid Award
On July 11, 2024, the City opened bids for this project. The low bidder was Pivetta Brothers Construction, Inc. with a bid of $13,469,491.12. This bid was approximately 16% below the Engineer’s Estimate.
Construction Management Services
In 2019, the City completed a Pre-design Transportation Analysis Report that included a conceptual design for improvements of Fones Road. KPG, P.S. was selected through a competitive request for qualifications process to provide design services.
On April 14, 2020, City Council passed a resolution authorizing the City Manager to execute all documents necessary to retain the services of KPG P.S. for project design. KPG P.S. subsequently changed their name to KPG PSOMAS, Inc. That resolution included the following language.
“…this work will complete the design of the Fones Road Improvements Project and provide engineering support during construction.”
Public Works has developed the scope of work contained in the attached consultant agreement to supplement City staff sufficiently to ensure successful delivery of this complex, multi-year project. The additional work will add $2,685,896.00 to the agreement.
Schedule 74 Agreement
Puget Sound Energy (PSE) owns and operates electrical distribution facilities along the Fones Road corridor. Section 2.070 of the Olympia Municipal Code requires undergrounding of overhead power and communication utilities.
The City and PSE are required to complete underground conversions of electrical distribution systems in accordance with the requirements of Schedule 74 of PSE’s Electric Tarriff G (Schedule 74). Schedule 74 was adopted by the state Utilities and Transportation Commission in 2002 following a collaborative stakeholder process that included City representation.
Staff has worked collaboratively with PSE to advance the designs of both projects and develop the project specific terms of the attached Schedule 74 Underground Conversion Project Construction Agreement.
Under Schedule 74, certain costs are shared between the City and PSE. This agreement will obligate the city to an estimated $828,730.38 of shared costs.
Local Agency Agreement Supplement
Funding for construction of this project is supplemented by four separate grants from the Federal Highway Administration (FHWA) as well as a fifth grant from the Washington State Transportation Improvement Board (TIB).
A summary of the current grants for project construction is provided below.
|
Grant Agency |
Program |
Amount |
|
FHWA |
Surface Transportation Program (STP) |
$2,040,118.00 |
|
FHWA |
Congestion Mitigation and Air Quality (CMAQ) |
$463,875.00 |
|
FHWA |
Transportation Alternatives (TA) |
$383,775.00 |
|
FHWA |
Carbon Reduction Program (CRP |
$210,404.00 |
|
TIB |
Urban Arterial Program (UAP) |
$2,000,000.00 |
|
|
TOTAL |
$5,098,172.00 |
Annually, FHWA redistributes funds from projects that are delayed to active projects with funding needs. Working with the Thurston Regional Planning Council, City staff communicated the funding needs of this project. The City was recently notified that WSDOT is advancing a request for an additional $5,225,419.00 in federal grant funds for the City’s Fones Road Improvements project.
If FHWA approves that request, the City will be required to quickly update and execute a number of documents in order to receive the additional funds. The required documents are attached.
Climate Analysis:
This overall project will affect the City of Olympia’s Climate Mitigation Strategies as described below.
Strategy T1: Set land use policies that support increase urban density and efficient transportation networks and reduce urban sprawl.
This project will make it easier for people living & working on Fones Road to access transit and walk or bike to destinations along the corridor, including the shopping center at the north end of it. The project will also make it easier for people to walk or bike to or from the regional trails network. The frontage improvements may stimulate new infill development, which would increase density.
Strategy T2: Increase efficiency of the transportation system.
Adding a roundabout at the south driveway of Home Depot will increase the efficiency of how the intersection operates, plus it will slow traffic while maintaining its flow. Adding pedestrian and bicycle facilities between 18th Avenue and the trail crossing will make it easier for people to walk, bike, and get to transit on 18th Avenue and Pacific Avenue.
Strategy T4: Increase the use of public transit.
All of Fones Road is within a ten-minute walk of the transit lines on Pacific Avenue or 18th Avenue. Having a safe, off-street place to walk will make it easier for people to get to and from those bus stops.
Strategy T5: Increase use of active forms of travel (such as bicycling, walking).
The new separated shared-use paths between the Woodland Trail crossing and 18th Avenue, plus the new configuration of the trail crossing, will make it safer and more inviting to walk or bike. So, too, will the decreased operating speed on Fones Road.
Strategy W1: Increase the efficiency of municipal water and wastewater infrastructure.
The water utility will rebuild the water main under the street, which will ensure its continued operation into the future. Improving stormwater and wastewater facilities along this street contributes to the City’s infrastructure needs.
Equity Analysis:
The people who live and work along Fones Road will have a safer, more accessible, and complete street that will provide safe places to walk and bike, including to the bus stops on Pacific Avenue & 18th Avenue. The access management and new trail crossing will decrease the probability of traffic collisions resulting in serious or fatal injuries. The new lighting and landscaping will make Fones a safer, more attractive, and welcoming street. There is a higher percentage of BIPOC living adjacent to Fones Road, and they will benefit from having a safer, more complete street. Additionally, there is a large mobile home park along this street, which is likely a reservoir of low-cost housing for people with low or limited incomes.
Making Fones Road a more attractive place could result in rent increases. It may also be a more attractive place to redevelop, which could lead to economic displacement, either of residents or businesses. National trends indicate that mobile home parks are especially vulnerable to these trends.
The big box stores and industrial uses on this corridor employ many people, and we are unable to gather reliable data about their demographics. However, retail employees are generally in a low-paid sector and making it easier for them to get to work without having to drive could help lift the cost burden of vehicle ownership for some.
This project will help rebalance several historic inequities. It will add walking paths and the first separated bike lanes in our region in a Census Tract that has been identified as Transportation Disadvantaged by the US Dept. of Transportation. Adding a roundabout, crosswalks, and lowering the operating speed will make the street safer for everyone who uses it, and it will maintain the vehicle flow that keeps our regional economy flowing.
Neighborhood/Community Interests (if known):
Completion of this project will have the following impacts on the community:
• The Fones Road Corridor will meet current and future vehicle capacity needs.
• Pedestrian and bicycle facilities will transform this corridor into a multi-modal facility, providing a safe transportation choice for people that walk, ride bicycles, or drive.
Financial Impact:
The project is identified is the Capital Facilities Plan. A summary of the estimated project costs and funding is provided in the table below.
|
Estimated Project Costs |
|
Engineering (Project Management, Consultants, Inspection, Publications and Advertising) |
$8,220,092.00 |
|
ROW Acquisition |
$1,449,510.00 |
|
Construction Contract |
$13,469,491.12 |
|
Award Contingency |
$1,346,949.11 |
|
Total |
$24,486,042.23 |
|
Project Funding |
|
Surface Transportation Program (STP) - Design |
$1,176,803.00 |
|
Surface Transportation Program (STP) - Construction |
$2,040,118.00 |
|
Congestion Mitigation and Air Quality (CMAQ) |
$463,875.00 |
|
Transportation Alternatives (TA) |
$383,775.00 |
|
Carbon Reduction Program (CRP) |
$210,404.00 |
|
Urban Arterial Program (UAP) |
$2,000,000.00 |
|
Transportation Capital Funds |
$14,720,346.84 |
|
Drinking Water Capital Funds |
$3,236,000.00 |
|
Wastewater Capital Funds |
$254,720.39 |
|
Total |
$24,486,042.23 |
Options:
1. Approve the following items and authorize the City Manager to execute all documents necessary to complete the project.
• Award the construction contract for the Fones Road Improvement Project to Pivetta Brothers Construction, Inc. in the amount of $13,469,491.12, and
• Approve a resolution authorizing the City Manager to approve a supplement to the existing consultant services agreement with KPG PSOMAS, Inc. in the amount of $2,685,896.00, and
• Approve a resolution authorizing the City Manager to approve a Schedule 74 Undergrounding Construction Project Agreement with PSE that obligates the City to $828,730.38 of shared costs, and
• Approve a resolution authorizing the City Manager to execute all documents necessary to obligate additional grant funding from the Federal Highway Administration.
The project will proceed as planned.
2. Reject all bids and readvertise the project. This could significantly delay the project, increase project costs, and jeopardize grant funding.
3. Direct staff to renegotiate any or all agreements. This could significantly delay the project, increase project costs, and jeopardize grant funding.
Attachments:
Summary of Bids
Resolution - Consultant Services Agreement Supplement
Consultant Services Agreement Supplement
Resolution - PSE Construction Agreement
PSE Construction Agreement
Resolution - Local Agency Agreement Supplement
Local Agency Supplement
Revised Local Agency Agreement
Revised Project Prospectus
Vicinity Map