Council approves nearly $2 million construction management amendment for Pines grade separation project

The Spokane Valley City Council on May 20 approved a contract amendment with HDR for construction management services on the Pines Grade Separation project, authorizing the city manager to finalize and execute an amendment not to exceed $1,999,376.13 for the amendment ($2,346,515.36 total contract).

Public Works Director Robert Blagan and Engineering Manager Erica Amston summarized that the amendment adds inspection and construction management for the main roadway bid package; the city expects construction to begin in August. Amston said the work in the amendment is consistent with construction management services described at the April 8 council meeting.

Councilmember Merkel pressed staff on procurement timing, subcontractor overhead rates and the contractor fee rate, noting some subcontractors have large overhead percentages. Amston said the request for qualifications was advertised in February 2024 with submittals due March 1, 2024, and that negotiations and project schedule developments extended the timeline. She said overhead rates were established or advised by WSDOT for federally funded work and that HDR's originally requested fee was negotiated down to 28 percent based on project size, complexity, subconsultants and overall risk.

Merkel also questioned why community outreach (to be performed by subcontractor Big Sky) was bundled under the construction management contract rather than procured separately. Amston and other staff said tying outreach to the construction schedule and having the construction manager manage that outreach is a common practice and allows coordination of communications with construction sequencing.

Merkel said she would vote against the amendment, citing concerns about solicitation documentation and subcontractor overhead and fee rates. The motion passed; council recorded one opposed vote.