Title
Department of Transportation recommending the Board take the following actions pertaining to the Contract 9299 for the 2025 DOT Maintenance Pavement Rehabilitation Projects on Larsen Drive, Barkley Road, Mount Aukum Road, Somerset Loop, Salmon Falls Road, Kekin Street, Wailaki Street, Nahane Drive, Henderson Street, Egret Way, Beaver Bre, East River Park Drive, W River Park Drive, Panorama Drive, and Gillette Drive:
1) Award the Construction Contract to, Doug Veerkamp General Engineering, Inc., the lowest responsive, responsible bidder;
2) Approve and authorize the Chair to sign the Construction Contract in the amount of $3,753,516, subject to review and approval by County Counsel and Risk Management; and
3) 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.
FUNDING: Road Repair and Rehabilitation Act 2017 (SB1-RMRA) (100%). (No Federal Funds)
Body
DISCUSSION / BACKGROUND
The purpose of the 2025 DOT Maintenance Pavement Rehabilitation Projects (Project) is to repair various roadway sections on Larsen Drive, Barkley Road, Mount Aukum Road, Somerset Loop, Salmon Falls Road, Kekin Street, Wailaki Street, Nahane Drive, Henderson Street, Egret Way, Beaver Bre, East River Park Drive, W River Park Drive, Panorama Drive, and Gillette Drive in the respective communities of South Lake Tahoe, Camino, Placerville, Somerset, and El Dorado Hills areas of El Dorado County by removing the failing asphalt section and replacing with hot mix asphalt.
Contract working hours will be between the hours of 7:00 am and 7:00 pm Monday through Friday, unless otherwise authorized. Reversing controls will be used during the Project.
All work will be performed within existing County right of way, and no additional right of way is needed. A California Environmental Quality Act Notice of Exemption was filed on January 27, 2025.
The Project was approved for advertisement by the Board on February 25, 2025 (Legistar file 25-0243).
Award and Sign Construction Contract with Lowest Responsive, Responsible Bidder:
On Thursday, March 20, 2025 at 2:00 p.m., the Department of Transportation (Transportation), opened bids for the 2025 DOT Road Maintenance Pavement Rehabilitation Projects (Project). Seven (7) bids were received ranging from $3,753,516.44 to $4,627,000.00
Doug Veerkamp General Engineering, Inc. (Veerkamp) submitted the lowest bid at $3,753,516.44. Transportation issued an All Bidders Letter after the bid opening on March 20, 2025 notifying the bidders of the recommendation to the Board for award of the contract to Veerkamp and initiating the bid protest period. No bid protests were received. Veerkamp's total bid for the project is $3,753,516.44.
Authorize the Director of Transportation (Director) to Sign Escrow Agreement:
Pursuant to Article 7, "Measurement and Payment" of the Agreement, 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. The budget for contingencies on this Contract is $375,351,64. PCC Section 20142 and Resolution 102-2012 authorize the Director to execute individual CCOs, the maximum value of $210,000 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 entire Project.
PRIOR BOARD ACTION
February 25, 2025, Legistar file 25-0243, Board approved the advertisement of bid.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel and Risk Management
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The lowest bid for the construction phase of the Project is $4,128,868.08, which includes a bid of $3,753,516.44 and contingency of $375,351.64. Transportation has included the funding in Fiscal Year 2024-25 and Fiscal Year 2025-26 budgets.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Upon approval by County Counsel and Risk Management, Department of Transportation will forward two (2) originals of the Construction Contract #9299, 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 Department of Transportation, attention of Ashley Johnson, for further processing.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Rafael Martinez, Director
Department of Transportation