Title
Department of Transportation recommending the Board take the following actions pertaining to the Pony Express Trail Bicycle, Pedestrian and ADA Improvements Project, Capital Improvement Program Number 36109010:
1) Authorize an increase in the estimated total project cost from $2,840,692 to $4,064,285;
2) Authorize the Department of Transportation to utilize $523,593 in Shingle Springs Band of Miwok Indians Intergovernmental Agreement (Tribe) Funds for the funding shortfall and complete the construction;
3) Reject the bid submitted by B & M Builders, Inc.’s as non-responsive;
4) Award only the Base Bid of the Construction Contract to Doug Veerkamp General Engineering, Inc., the lowest responsive, responsible bidder;
5) Approve and authorize the Chair to sign the Construction Contract, subject to review and approval by County Counsel and Risk Management; and
6) Authorize the Director of Transportation to sign an Escrow Agreement, if requested by the Contractor and in accordance with Public Contract Code Section 22300, for the purpose of holding Contract retention funds.
(District V)
FUNDING: Active Transportation Program (ATP) (35%), Transportation Development Act (TDA) (7%), Congestion Mitigation and Air Quality Program (CMAQ) (13%), Regional Surface Transportation Program (RSTP) Federal Funds - Caltrans Local Assistance (32%), and Road Fund (<1%), Shingle Spring Band of Miwok Indians Intergovernmental Agreement (Tribe) Funds (13%).
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DISCUSSION / BACKGROUND
The Pony Express Trail Bicycle, Pedestrian, and ADA Improvements Project (Project) will construct bicycle and pedestrian improvements to Pony Express Trail from Sanders Drive to Sly Park Road in the community of Pollock Pines, CA. Specific improvements include approximately 1.7 miles of Class II bike lanes on both sides of Pony Express Trail; 4,600 linear feet of new and reconstructed or improved asphalt pedestrian path on the south side of Pony Express Trail; Americans with Disabilities Act (ADA) improvements; improved crosswalks and signage with rapid flashing beacons; and, drainage improvements along Pony Express Trail within the Project limits.
A California Environmental Quality Act (CEQA) Notice of Exemption was filed on August 8, 2019 and a National Environmental Policy Act (NEPA) Categorical Exclusion was approved on October 29, 2019 for the Project. No environmental permits are needed for this Project.
All needed right of way has been secured for the Project.
The Contract Documents include all required federal provisions and incorporate the current Caltrans Disadvantaged Business Enterprise (DBE) requirements. The DBE goal is 15%.
Authorization for construction funding (E-76) has been received for this Project.
Increase to total project cost:
The low bid received for this Project was $2,945,688, which is more than the CIP direct construction budget of $2,016,664, creating a shortfall of $929,024. After increasing the contingency budget to $294,569 (10% of the total bid) and keeping the current construction management CIP budget of $303,336, the Project has a total funding shortfall of $1,223,593. The El Dorado County Transportation Commission (EDCTC) has provided and additional $500,000 of RSTP Caltrans Local Assistance funding and $200,000 of TDA funding leaving a shortfall of $523,593. Increasing the construction phase budget by $1,223,593 will increase the total project cost from $2,840,692 to $4,064,285.
Transportation requests to utilize $523,593 in Shingle Springs Band of Miwok Indians Intergovernmental Agreement (Tribe) Funds for the funding shortfall to complete the Project. It is currently projected that there will be approximately $3,000,000 available in Tribe Funds and these funds have been used as matching funds for grant-funded projects in the past. This amount is available after factoring in all projects currently scheduled to use Tribe funds, including the Diamond Springs Parkway Phase 1B (Legistar Item #23-1379).
Award and Sign Construction Contract with Lowest Responsive, Responsible Bidder:
On Tuesday, August 22, 2023 at 2:00 p.m., Department of Transportation (Transportation) opened bids for the Project. This Project was advertised with a Base Bid and Bid Alternate A. The low bidder was determined from the total of the Base Bid plus Bid Alternate A. Four (4) bids were received ranging from $2,350,128 to $3,071,400 (Total of Base Bid + Bid Alternate A). Doug Veerkamp General Engineering, Inc. submitted a bid of $2,945,688 (Base Bid) + $125,712 (Bid Alternate A) = $3,071,400 (Total Bid). Due to funding constraints, only Base Bid can be awarded.
All Bidders are required to comply with Disadvantaged Business Enterprise (DBE) requirements and must submit a DBE Commitment, and if they did not meet the goal, a Good Faith Effort. B&M Builders, Inc. (B&M) submitted an incomplete DBE Commitment form showing their DBE commitment as 1% for the Project. The DBE Goal for the Project is 15%, which required B&M to also submit a DBE Good Faith Effort. B&M failed to submit a Good Faith Effort. DBE requirements must be met in order for a bid to be responsive. By failing to submit DBE components, B&M’s bid is non-responsive.
Transportation issued the All-Bidders Letter on Thursday, September 21, 2023, notifying the bidders of the recommendation to the Board for the following:
1) Reject the bid submitted by B&M as non-responsive for the reason stated above; and
2) Award only the Base Bid of the Contract to the 2nd lowest, responsive, responsible bidder, Doug Veerkamp General Engineering, Inc. (Contractor).
This initiated the bid protest period. The bid protest period ended with no protests filed.
Authorize the Director of Transportation (Director) to Sign Escrow Agreement:
Pursuant to Section 9-1.16F(1), "Retentions" of the Contract Documents, Transportation will retain five percent (5%) of the value of work done from each contractor payment (excluding mobilization payments) as security for the fulfillment of the Contract. Alternatively, Public Contract Code (PCC) Section 22300 provides that the Contractor may request that payment of retentions held be made directly to an escrow agent. The Contractor will receive the interest earned on the investment.
In accordance with these provisions, the Contractor may request in writing that the County make payment of retention funds directly into an escrow account, which would necessitate an escrow agreement. To help expedite this process, if requested by the Contractor, Transportation requests that the Board authorize the Director to execute the Escrow Agreement. Upon satisfactory completion of portions of the Contract and upon written notification from the Director, the Contractor will receive incremental releases from the Escrow Agent paid into the account and any interest earned thereon. A portion of the retention and interest will be retained in the escrow account until thirty-five (35) days after the recordation of the Notice of Acceptance of the Contract at which time, upon written notification, these funds will be released to the Contractor.
Contract Change Orders (CCOs):
In any contract there is a need to be able to make changes and the CCO process facilitates the ability to make necessary changes when needed within a contract.
Contingency CCOs:
With construction contracts, there is an expectation that unanticipated changes will be encountered once construction begins. To prepare for this, a 10% contingency budget is set aside. PCC Section 20142 and Resolution 102-2012 authorize the Director to execute individual CCOs, the maximum value of $159,784, which is based on the original contract amount. This authority is also for a cumulative total of contingency CCOs not to exceed 10% of the original Contract value.
ALTERNATIVES
1) The Board could choose not to award the Contract and direct Transportation to re-advertise for construction bids.
2) The Board could choose to cancel the Project.
PRIOR BOARD ACTION
The Project was approved for advertisement by the Board on July 18, 2023 (Item 31, Legistar 23-1256).
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel and Risk Management
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The total estimated combined cost for Project construction is estimated at $4,064,285. Portions of the funding for this Project are included in Transportation’s 2023 CIP, which the Board approved on June 6, 2023 (Legistar 23-0851, Item 56). When the updated costs are factored into the current 2023 CIP budget for the Project, the combination of funds will be ATP (35%), TDA (7%), CMAQ (13%), RSTP - Caltrans Local Assistance (32%), Road Fund (<1%), and Tribe Funds (13%).
For FY 2023-24, there is approximately $3,000,000 available in Tribe Fund reserves to be able to authorize the funding shortfall amount of $523,593. This amount is not scheduled to be used for any current or future projects. Updates to the expenditures and revenues will be included in a future budget transfer in March 2024 when Transportation brings the 2024 CIP workshop to the Board.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Upon approval by County Counsel and Risk Management, Transportation will forward two (2) originals of the Construction Contract #7451, together with the required bonds and insurance, and the approved Contract Routing Sheet to the Clerk for the Chair's signature.
2) The Clerk will forward one (1) fully executed Construction Contract to Transportation, attention of Jen Rimoldi, Office Engineer Group, for further processing.
STRATEGIC PLAN COMPONENT
Infrastructure
CONTACT
Rafael Martinez, Director
Department of Transportation