SUBJECT/RECOMMENDATION:
Title
Award a construction contract to David Nelson Construction Company, of Palm Harbor, Florida for invitation to bid (ITB) 22-0017-EN Osceola Corridor Improvements in the amount of $10,436,461 and authorize the appropriate officials to execute same.
Body
SUMMARY:
Pursuant to City Council's approval of the design services agreement with Cumbey & Fair, Inc., construction documents were completed for infrastructure and public realm improvements along Osceola Avenue, from Court Street to Drew Street.
Invitation to Bid (ITB) 22-0017-EN was advertised on July 29, 2026, with bids opened on September 21, 2026. The city received three bids, with David Nelson Construction Company (Nelson Construction), submitting the lowest responsive and responsible bid in the amount of $10,436,461.
The potable water, wastewater collection, and stormwater systems along Osceola Avenue are aging beyond their useful life and require replacement. The project will replace these systems, including construction of a new reclaimed water main, followed by roadway reconstruction and public realm improvements. These improvements will modernize critical infrastructure to support ongoing development along the corridor while enhancing the public realm.
During the initial project development phase, Cumbey & Fair utilized the Florida Department of Transportation's (FDOT) Long Range Estimate methodology to develop the preliminary construction cost estimate and establish the anticipated project budget. This methodology uses conceptual project features, anticipated quantities, and historical unit costs to develop construction estimates before detailed engineering is completed.
As design progressed, the Engineer's Opinion of Probable Construction Cost was refined using the developed construction plans, detailed quantities, and updated unit prices. The final engineer's estimate was approximately $10.2 million. Nelson Construction’s bid of $10,436,461 is approximately 2% above the engineer's estimate, demonstrating close alignment between the final construction estimate and competitive bid pricing.
Nelson Construction is prequalified by the City of Clearwater for roadway construction, underground utilities, stormwater improvements, and urban streetscape projects. The contractor has demonstrated experience with comparable public infrastructure projects, including work for Pinellas County, the Pinellas Suncoast Transit Authority, and the City of Largo.
Due to the extent of underground utility reconstruction and coordination required with ongoing downtown developments, construction will be performed in phases to maintain access to adjacent properties and businesses while accommodating pedestrian and vehicular circulation.
Construction is anticipated to begin in January 2027, following issuance of the Notice to Proceed. The construction contract provides 365 calendar days to achieve substantial completion, anticipated in January 2028.
Post-design construction support services are currently being negotiated with Cumbey & Fair, Inc., the project's Engineer of Record, at an anticipated time and materials cost not to exceed $350,000. These services will include engineering assistance during construction, shop drawing reviews, responses to contractor requests for information, field support, and project closeout assistance. The associated Supplemental Work Order will be presented for City Council approval at a future date.
Street lighting improvements along the corridor will be provided through a separate agreement with Duke Energy, at an anticipated cost of approximately $250,000. The associated agreement will be presented for City Council approval at a future date.
Approval of this construction contract will allow the City to proceed with the replacement of critical utility infrastructure and implementation of the planned corridor improvements.
The total project budget for the Osceola Corridor Improvements is $15,371,172. The project, including the above noted pending costs for construction, Duke lighting, and construction administration services, has a total cost of approximately $13.07M or $2.3M under budget.
The allocated funding in the Capital Improvement Program Budget is detailed below:
General Fund Revenue: $1,956,307.27
Stormwater Fund Revenue: $2,373,624.00
Water & Sewer Fund Revenue: $10,550,172.12
Infrastructure Sales Tax/Penny for Pinellas: $491,068.54
APPROPRIATION CODE AND AMOUNT:
3157541-563700-C2408 General Fund $1,520,604.90
3197319-563800-C2408 Storm $1,065,784.60
3217321-563800-C2408 Water/Sewer/Reclaimed $525,282.53
3277327-563800-C2408 W&S Utility R&R $7,324,789.25
Funding for this work order is available in capital improvement project C2408, Osceola Corridor Improvements. Funds for this project are provided by revenues from the General Fund, Penny for Pinellas, Stormwater Utility Enterprise Fund, and Water & Sewer Utility Enterprise Fund.
STRATEGIC PRIORITY:
This item supports Objective 1.2, maintaining public infrastructure, within High Performing Government, and Objective 4.4, developing an accessible and active transportation network that enhances pedestrian safety.
