Title
Department of Transportation recommending the Board:
1) Approve and authorize the Chair to sign the Notice of Acceptance with MKD Construction, Inc. for the Meyers Stream Environment Zone/ Erosion Control Project, Capital Improvement Program 36107007, Contract 7377; and
2) Approve and authorize the Clerk of the Board to release the Payment and Performance Bonds to the Surety upon notification from the Department of Transportation, after the one-year guarantee period.
(District 5)
FUNDING: United States Forest Service (45% - Federal), California Tahoe Conservancy (21% - State), State Water Resource Control Board (11% - State), and Tahoe Regional Planning Agency (12% - Local), and South Tahoe Public Utility District (11% - Local).
Body
DISCUSSION / BACKGROUND
The contract for the Meyers Stream Environment Zone/ Erosion Control Project (Project) was approved by the Board on July 25, 2023 (Legistar file 23-1334). Construction started on September 11, 2023, and all contract items were completed on October 18, 2024. The Project is part of an ongoing effort to retrofit County rights-of-way within the Lake Tahoe Basin with drainage improvements that will reduce the amount of sediment that reaches Lake Tahoe. Recordation of the Notice of Acceptance (NOA) will start legal time frames for guarantees, a lien period, and return of retention monies. Recordation of the NOA will also start the one-year time frame for releasing the Payment and Performance Bonds to the Surety.
Direct Construction Cost Summary:
Original Bid Price (Schedule A) $1,627,346.00
Original Bid Price (Schedule B) $ 550,431.00
Contract Item Cost $2,175,000.00
Contract Change Order Cost $ 7,790.00
Total Direct Construction Cost $2,182,790.00
Direct Construction Budget $2,395,555.00
Major Contract Change Orders (CCO) on the Project dealt with the following:
• Water meter and emergency service install; and,
• Removal of underground conduit; and,
• Additional asphalt concrete paving.
The final costs listed are estimates. Transportation will be closing out the Project with the Contractor and finalizing costs over the coming weeks. Any significant deviations from the estimates above that exceed Transportation’s allocated authority will be brought back for the Board for review and approval in a subsequent agenda item.
ALTERNATIVES
The Board could choose not to approve the NOA. Transportation staff would make modifications as directed by the Board and return for Board approval of the NOA. This would delay the release of the Payment and Performance Bonds and extend the Contractor’s warranty period.
PRIOR BOARD ACTION
See Discussion/Background section above.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION
Approve as recommended.
FINANCIAL IMPACT
There is no change to Net County Cost associated with this item. The Project is included in the 2023 CIP approved by the Board on June 6, 2023, (Legistar file 23-0851) and funded by Federal, State and local grant funds. The anticipated direct construction cost is less than the direct construction budget established by the Board.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) The Clerk of the Board will obtain the Chair's signature on one (1) original copy of the NOA.
2) The Clerk of the Board will send the executed original of the NOA to the Recorder/Clerk’s Office for recordation within ten (10) days and forward a copy of the recorded NOA to Transportation, Headington Engineering, Attention: John Kahling.
3) One (1) year after the recordation of the NOA, Transportation will verify that all warranty work, if any, has been satisfactorily completed and will notify the Clerk of the Board in writing to release the Payment and Performance Bonds.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Rafael Martinez, Director
Department of Transportation