Title
Department of Transportation recommending the Board take the following actions pertaining to the Newtown Road at South Fork of Weber Creek - Bridge Replacement Project, Capital Improvement Program project number 36105030, Contract 5379:
1) Award the Construction Contract to Doug Veerkamp General Engineering, Inc. who is the lowest responsive, responsible bidder;
2) Approve and authorize the Chair to sign the Construction Contract, subject to review and approval by County Counsel and Risk Management;
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; and
4) Approve $190,295 of Regional Surface Transportation Program Advance funds to be approved and added to the Newtown Road at South Fork of Weber Creek - Bridge Replacement Project.
(District 3)
FUNDING: Regional Surface Transportation Program Advance (5%) (State Funds), Highway Bridge Program (88%) (Federal Funds), Tribe (7%) (Local Funds).
Body
DISCUSSION / BACKGROUND
The Newtown Road at South Fork of Weber Creek - Bridge Replacement Project (Project) will replace the South Fork Weber Creek (Bridge No. 25C0033, PM 4.4). Project improvements include widening improvements with horizontal and vertical realignment of Newtown Road at each bridge approach side, safety railing, and improvements to roadway drainage and retaining walls.
This project is federally funded; therefore, compliance with California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) is required. A CEQA Notice of Determination was recorded on December 19, 2018. A NEPA Categorical Exemption/Categorical Exclusion was approved on July 30, 2019, with a re-validation approved on June 25, 2024.
All environmental permits and right of way have been acquired for this Project.
The Contract Documents include all required federal provisions and incorporate the current Caltrans Disadvantaged Business Enterprise (DBE) requirements. The DBE goal is 20%.
Authorization for construction funding has been received for this Project. The Project was approved for advertisement by the Board on September 24, 2024 (Legistar file 24-1549).
Award and Sign Construction Contract with Lowest Responsive, Responsible Bidder:
On Monday, November 4, 2024 at 2:00 p.m., Department of Transportation (Transportation) opened bids for the Project. Four (4) bids were received ranging from $4,478,497.00 to $5,727,335.00.
Transportation issued the All Bidders Letter on Wednesday, November 6, 2024, notifying the bidders of the recommendation to the Board for award of the Contract to Doug Veerkamp General Engineering, Inc. (Contractor) and initiating the bid protest period. The bid protest period ended on Thursday, November 7, 2024 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.
Supplemental CCOs
Certain types of work are necessary to complete the Project, which cannot be estimated accurately because they require a variable effort to complete. These items are referred to as supplemental items and are identified in the Contract Documents as CCO work to be performed and paid for on a time and material basis using California Department of Transportation (Caltrans) standard force account billing procedures. The work is authorized by issuance of a CCO, which also encumbers the funds anticipated for each of the planned supplemental items of work and is billed against as the work progresses. The amount of each CCO is based on an evaluation by Transportation staff of the Project components, area, and time frame. Supplemental items in this contract include costs associated with the incentive to reopen the road earlier than the deadline of June 15, 2025, additional construction management, environmental, and mitigation costs. Total supplemental funds set aside for the project is $100,000. Because this work is anticipated and budgeted for separately, supplemental CCOs are not included in the 10% cap normally associated with contingency CCOs.
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 $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 Project.
PRIOR BOARD ACTION
On September 24, 2024 (Legistar file 24-1549) the Board approved advertisement for the Project.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel and Risk Management
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The total estimated cost for Project construction is $5,698,122.00, which includes construction items of work, supplemental items of work, construction management, environmental monitoring, inspection, materials testing, and contingencies.
Bids received for this Project have come in higher than what was anticipated. Leaving a Project shortfall of $887,224. The majority of this shortfall, $696,929, will be covered by Caltrans HBP. The HBP funds will be programmed by Caltrans once the Project has been awarded by the County. Due to construction costs coming in higher than anticipated and budgeted, staff is asking to have $190,295 of Regional Surface Transportation Program Advance funds approved and allocated for this Project.
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 #5379, 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 Jen Rimoldi, Office Engineer, for further processing.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Rafael Martinez, Director
Department of Transportation