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Community Development Services, Department of Transportation, recommending the Board consider the following pertaining to the White Meadow and Peavine Ridge Road Storm Damage Repair Project, CIP 78711:
1) Reject the one bid received at the July 20, 2018 bid opening;
2) Authorize an increase to the 2018 CIP in the amount of $7,412.00 for Construction Management - Staff and $106,023.00 for Direct Construction Costs for a total construction phase increase of $113,435.00;
3) Re-Approve and re-adopt the previously advertised Plans and Contract Documents; and
4) Authorize re-advertisement for construction bids.
FUNDING: Local and State discretionary funding initially (100%), with Transportation staff working with the Federal Emergency Management Agency and California Office of Emergency Services to obtain reimbursement. (Local/State/Federal)
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DEPARTMENT RECOMMENDATION
Community Development Services, Department of Transportation, recommending the Board consider the following pertaining to the White Meadow and Peavine Ridge Road Storm Damage Repair Project, CIP No. 78711:
1) Reject all bids received at the July 20, 2018 bid opening;
2) Authorize an increase to the 2018 CIP in the amount of $7,412.00 for Construction Management - Staff and $106,023.00 for Direct Construction Costs for a total of $113,435.00;
3) Re-Approve and re-adopt the previously advertised Plans and Contract Documents; and
4) Authorize re-advertisement for construction bids (the total estimated cost for the Project’s construction phase is $753,435.00).
DISCUSSION / BACKGROUND
The Community Development Services, Department of Transportation (Transportation) received sealed bids for the White Meadow and Peavine Ridge Road Storm Damage Repair Project (Project) on Friday, July 20, 2018 at 2:00 p.m. Transportation received one bid from MKD Construction, Inc. for $894,458.00. The Engineer’s Estimate for this Project was $518,618.00. The bid received was substantially higher than the Engineer’s Estimate for the Project. Transportation spoke with the California Office of Emergency Services (CalOES) and learned that in order for the Project to be considered for reimbursement from the Federal Emergency Management Agency (FEMA) with only a single bidder, Transportation would have to perform an analysis of the low bid to verify that it was reasonable. Unfortunately, the bid submitted by MKD Construction contained prices that were so high that Transportation could not demonstrate that they were reasonable. Therefore, Transportation recommends rejecting all bids and re-advertising the Project.
In conformance with Public Contract Code section 22038, Transportation has re-evaluated the cost estimate for this Project and has determined the amounts shown in the 2018 CIP need to be increased as follows:
• Increase the Construction Management - Staff amount by $7,412 for a total of $59,412
• Increase the Direct Construction Costs by $106,023 for a total of $663,023
This Project is necessary to repair damage to White Meadow Road and Peavine Ridge caused by the storms of 2017. The Project has two site locations within mountainous terrain. Site I is located along Peavine Ridge Road approximately 200 feet south of the intersection of White Meadow Road and Peavine Ridge Road (approximately four and one half miles northwest of the intersection of Ice House Road and White Meadow Road). Site II is located along White Meadow Road approximately 0.8 miles northwest of the intersection of Ice House Road and White Meadow Road. The Project consists of roadway, drainage and slope improvements to repair damages from intense rainfall including: roadway excavation, ditch excavation, roadway embankment, class 2 AB, HMA (Type A), rock slope protection, 18” CMP culvert, underdrains, shoulder backing, rolled erosion control product (netting), fiber rolls and hydroseeding. Both roadways will have a minimum of one lane open with reversing controls for the duration of this Project.
Due to the potential for federal funding, both CEQA and NEPA compliance are required. The CEQA Notice of Exemption was filed on May 18, 2017. FEMA has neither provided a Record of Environmental Consideration (REC) nor issued an email stating NEPA Categorical Exclusion is authorized. However, FEMA has advised that waiting for the written NEPA clearance is not required due to time constraints. FEMA has advised to make sure that permits and permit requirements are received and complied with as needed. No environmental permits were required for this Project as determined by the County’s environmental consultant.
All required right of way for the Project has been acquired.
The Contract Documents include all required federal provisions and incorporate the current California Department of Transportation's Disadvantaged Business Enterprise (DBE) requirements. The DBE goal is 9%.
ALTERNATIVES
1) Accept the bid submitted by MKD Construction, Inc. and award the construction contract to MKD Construction. This will put the County at risk of not being reimbursed by CalOES and FEMA.
2) Do not approve the Contract Documents. Transportation will make any changes requested by the Board and return at a later date.
3) Do not authorize advertisement for construction bids. Transportation will make any changes requested by the Board and return at a later date.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel and Risk Management have reviewed and approved the Plans and Contract Documents.
CAO RECOMMENDATION
It is recommended that the Board approve this item.
FINANCIAL IMPACT
The estimated cost of the Project’s construction phase is $753,435, which includes construction items of work, construction management, inspection, materials testing, and contingencies.
There is no change to Net County Cost associated with this item. The Board will not obligate the County with the current requested action. The obligation will result from the subsequent action of awarding the bid.
CLERK OF THE BOARD FOLLOW UP ACTIONS
None
TRANSPORTATION FOLLOW UP ACTIONS
Transportation will advertise the Project for bid proposals and return to the Board with recommendations for award at a later date.
STRATEGIC PLAN COMPONENT
Infrastructure
CONTACT
Rafael Martinez, Director
Community Development Services, Department of Transportation