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Department of Transportation, Maintenance and Operations Division, recommending the Board take the following actions pertaining to Contract 8465 for the 2025 Zone of Benefit Road Maintenance Projects in the Road and Drainage Zones of Benefits (Zones); Deerfield Estates Zone 98605, Eastwood Park 5 Zone 98601, Black Oak Estates 6 Zone 98604, Black Oak Estates Zone 98603, Travois Zone 98610, Hollow Oak Zone 98606, Creekside Greens Units 2 & 3 Zone 98607, Highland View Unit 3A Zone 98609, and West Valley Village Zone 98612:
1) Award the Construction Contract to, American Pavement Systems, Inc., who was the lowest responsive, responsible bidder;
2) Approve and authorize the Chair to sign the Construction Contract in the amount of $697,757.71, 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.
(Districts 1, 2, and 4)
FUNDING: Zone of Benefit Special Taxes (100%).
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DISCUSSION / BACKGROUND
The purpose of the 2025 ZOB Road Maintenance Surface Treatment Projects (Project) is to provide surface treatments to roadways within the following Road and Drainage Zones of Benefit (Zone): Deerfield Estates Zone 98605, Eastwood Park 5 Zone 98601, Black Oak Estates 6 Zone 98604, Black Oak Estates Zone 98603, Travois Zone 98610, Hollow Oak Zone 98606, Creekside Greens 2 & 3 Zone 98607, Highland View 3A Zone 98609, and West Valley Village Zone 98612, in the respective communities of Placerville, Cameron Park, Rescue, and El Dorado Hills areas of El Dorado County by applying Type I micro-surface treatment to promote pavement preservation and continuity of regular road maintenance schedules.
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 the identified Zones of Benefits. A CEQA Notice of Exemption was submitted on February 13, 2024, and updated on April 3, 2025.
The Project was approved for advertisement by the Board on May 13, 2025 (Legistar file 25-0662).
Award and Sign Construction Contract with Lowest Responsive, Responsible Bidder:
On Wednesday June 4, 2025, at 2:00 p.m., the Department of Transportation (Transportation), opened bids for the 2025 Zone of Benefit Road Maintenance Projects (Project). Four (4) bids were received ranging from $697,757.71 to $931,415.73.
Transportation issued an All Bidders Letter after the bid opening on June 10, 2025 notifying the bidders of the recommendation to the Board for award of the contract to American Pavement Systems, Inc., (Contractor) and initiating the bid protest period. No bid protests were received.
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 $69,776. PCC Section 20142 and Resolution 102-2012 authorize the Director to execute individual CCOs, the maximum value of $47,388 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
May 13, 2025, Legistar file 25-0662, Board approved the advertisement of bid
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
Risk Management
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The total estimated cost for Project construction is $872,198, which includes construction items of work, supplemental items of work, construction management, environmental monitoring, inspection, materials testing, and contingencies. Each identified Zone of Benefit included in the project has appropriated funding in the recommended Fiscal Year 25/26 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 #8465, 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 Zones of Benefit, for further processing.
STRATEGIC PLAN COMPONENT
Priority: N/A
Action Item: N/A
CONTACT
Rafael Martinez, Director
Department of Transportation