Legislation Details

File #: 26-0451    Version: 1
Type: resolution Status: Passed
File created: 6/8/2026 In control: City Council
Agenda date: 6/16/2026 Final action: 6/16/2026
Title: Approval of a Resolution Authorizing an Amendment to the Construction Support Services Agreement with PSOMAS Inc. for the Fones Road Improvement Project
Attachments: 1. Resolution, 2. Amendment, 3. Vicinity Map

Title

Approval of a Resolution Authorizing an Amendment to the Construction Support Services Agreement with PSOMAS Inc. for the Fones Road Improvement Project

 

Recommended Action

Committee Recommendation:

Not referred to a committee.

 

City Manager Recommendation:

Move to approve a Resolution authorizing an amendment to the Construction Support Services Agreement with PSOMAS Inc. for the Fones Road Improvement Project.

 

Report

Issue:

Whether to approve a Resolution authorizing an amendment to the Construction Support Services Agreement with PSOMAS Inc. for the Fones Road Improvement Project

 

Staff Contact:

Jim Rioux, Project Manager, Public Works Engineering, (360) 753-8484.

 

Presenter(s):

None - Consent Calendar Item.

 

Background and Analysis:

 

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 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.”

 

On August 13, 2024, City Council passed a resolution authorizing the City Manager to execute all documents necessary to retain the service of PSOMAS, Inc. to provide constructions support services. The additional work added $2,685,896.00 to the agreement.

 

The project experienced significant unanticipated work to respond to requests for additional compensation from our contractor, Pivetta Brothers Construction, Inc., primarily related to an excessive number of conflicts with private utilities. PSOMAS, Inc. now requires additional funds to complete the project.

 

PSOMAS, Inc. has submitted a request for an additional $279,235.00 to complete the project, primarily due to the extra engineering support mitigating utility conflicts.

 

 

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 and 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 Fones Road corridor improvements will benefit people who live and work along the corridor by creating a safer, more accessible, and more complete street. The project adds new walking and biking facilities, improves access to transit stops on Pacific Avenue and 18th Avenue, and introduces access management and a new trail crossing that are expected to reduce the likelihood of severe or fatal collisions. New lighting and landscaping will further enhance safety and make the corridor more welcoming. The surrounding area includes a higher proportion of BIPOC residents, who stand to benefit from improved transportation safety and access, as well as a nearby mobile home park that provides a source of lower-cost housing for residents with low or limited incomes.

 

At the same time, the project may introduce burdens related to increased attractiveness and investment in the corridor. Improvements could contribute to rising rents and increased redevelopment pressure, which may lead to economic displacement of both residents and businesses. Mobile home parks are particularly vulnerable to these types of market pressures based on national trends.

 

Demographic context helps shape these conclusions, even though detailed workforce data for corridor employers is limited. The area includes large retail and industrial employers, and workers in these sectors are often in lower-wage occupations. Improved walking, biking, and transit access may reduce transportation costs for some workers by decreasing reliance on private vehicles.

 

Overall, the project helps address long-standing disparities by improving safety and multimodal access in a census tract identified as transportation disadvantaged by the U.S. Department of Transportation. The addition of separated bike lanes, pedestrian facilities, a roundabout, crosswalk improvements, and reduced operating speeds improves safety outcomes for all users while maintaining vehicle capacity that supports regional economic activity.

 

Neighborhood/Community Interests (if known):

None known associated with this recommended action.

 

Financial Impact:

There is sufficient funding in the project budget to pay for the additional consultant costs.  In addition to grants, Transportation, Wastewater and Drinking Water capital funds are included in the project budget.  The contract amendment with PSOMAS, Inc., is in the amount of $279,235.00, for construction support services for the Fones Road Improvement Project.  

 

Options:

1.                     Move to approve a Resolution authorizing an amendment to the Construction Support Services Agreement with PSOMAS Inc. for the Fones Road Improvement Project.

2.                     Do not approve the Resolution and direct staff to renegotiate the amendment with PSOMAS, Inc. This would likely require reduction of consultant support and reallocation of City Engineering labor to complete the project. The resultant inefficiencies from staff reassignment in the middle of construction would likely result in a higher total project cost.

3.                     Take other action.

 

Attachments:

Resolution

Amendment

Vicinity Map