RESOURCE MANAGEMENT AGENCY – H. MAVROGENES

Approve Contract Change Orders No. 1, 2, 3, 4, 5, 6, 7, 8 for County Service Areas #11-#5-#8-#35-#9 Road Maintenance Project PWB-1903 with VSS International, Inc.; authorize the RMA Director to execute Contract Change Orders 1, 2, 3, 4, 5, 6, 7, 8, with VSS International, Inc.; and, so long as the requirements set forth in Graydon v. Pasadena Redevelopment Agency (1980) 104 C.A.3d 631 are met, authorize the RMA Director to issue change orders in an amount of not to exceed $6,657.47 for these change orders (in addition to the original change order authority of $38,310.00 for a total change order authority of $44,967.47).  (Contract Contingency).

SBC FILE NUMBER: CSA'S

The plans and specifications for these projects were adopted by the Board and authorized for bids on March 19, 2019.  Bids were due May 9, 2019 and three bids were received. The Engineer’s Estimate for each location as follows: CSA #11 - $35,380, CSA #5 - $86,980, CSA #8 - $49,290, CSA #35 - $37,360, and CSA #9 - $427,670 for a total estimate of $601,300.  Due to packaging these locations into one bid construction contract reduced the amount of mobilization costs and lower unit bid prices thus cultivating receiving the lowest responsible bid received from VSS International, Inc. in the amount of $516,200.00. The remaining bids received were from Northwest Paving, Inc. in the amount of $524,689.00 with a final accounting error amount of $522,689.00, and Graham Contractors, Inc. in the amount of $534,166.00.  A Contract Change Order will be processed after award to deduct CSA #8 Bid Schedule in the amount of $77,803.75 (15% of the Bid Total) due to insufficient funding for this CSA. Construction is to begin in June and to last two months. The contract change order to deduct the CSA #8 Bid Schedule has been changed since this Board of Supervisors Action.

On June 11, 2019, the Board of Supervisors accepted all bids for the County Service Areas #11, #5, #8, #35 and #9 Road Maintenance Project, PWB-1903; found VSS International, Inc. as the lowest responsive bidder; awarded the contract to VSS International, Inc. in the amount of  $516,200.00; approved contract and authorized  the Deputy CAO to execute the contract upon receipt of all contract documents required in the Invitation for Bids; and authorized the Deputy CAO to issue change orders in and amount of not to exceed $51,620.00 (10% of Contract Amount).

On Wednesday, July 17^th at 9 AM, a Pre-Construction Meeting was conducted with the CSA #35 Union Heights Representatives.  Upon further field review within the CSA #35 Union Heights Gated Area, it was determined that additional corrective work would be necessary to proceed with roadway maintenance.  The Union Heights Representatives requested to review and obtain a cost estimate for additional roadway maintenance outside the Gated Area and within the CSA #35 boundary limits. After further field review with the construction contractor representative of the roadways within the other CSAs, it was determined due to continued deterioration of the roadways that additional roadway maintenance work would be necessary to continue the project. 

Also, a meeting was conducted with the CSA #8 Representatives, a Supervisor of the Board, County Administrators, County Administrative Support Staff, County Counsels, and RMA Public Works Engineering Representative with concurrence of the Sheriff Department, Fire Department, and a signed petition of the residents within CSA #8 that the installation of Speed Humps are recommended for the Public Health and Safety of the residents. The CSA #8 Bonnie View Drive Revised Plan to include the installation of the Speed Humps with the required signing has been provided as an attachment to this report.

CSA #8 Bonnie View Fund Balance is $29,891.00; Award Bid Schedule Amount is $77,803.75; CCO No. 1 CSA #8 to install the Speed Humps with required signing and additional pavement edge repair is $30,585.00 for total amount of $108,388.75.  CSA #11, #5, #8, #35 and #9 Road Maintenance PWB-1903 Revised Plan Sheet C-3 has been attached for reference. Additional funding will be required to approve this change order.

CSA #9 Ridgemark Fund Balance is $601,388; Award Bid Schedule Amount is $264,498.00; CCO No. 2 to remove base and surfacing, place aggregate base and 3” asphalt road surface due to additional pavement failures at certain locations in the amount of $41,400.00; CCO No. 3 to remove and replace 2” asphalt road surface at certain street locations in the amount of $17,367.50; CCO No. 4 to remove thermoplastic markings to be able to apply asphalt surfacing for adhesion, these markings were thought to be painted (the original bid does include to place traffic markings) on in the amount of $4,618.40 for a total amount of $327,883.90.

CSA #5 Hillcrest/El Toro Fund Balance is $167,086; Award Bid Schedule Amount is $98,174.75; CCO No. 5 to remove thermoplastic markings to be able to apply asphalt surfacing for adhesion, these markings were thought to be painted (the original bid does include to place traffic markings) in the amount of $8,008.60 for a total amount of $106,183.35.

CSA #11 Simmons/Barnes Lane Fund Balance is $58,567; Award Bid Schedule Amount is $50,863.75; CCO No. 6 to place asphalt fill instead of crack treatment for an additional amount of $340.00 for a total amount of $51,203.75.

CSA #35 Union Heights Fund Balance is $53,524; Award Bid Schedule Amount is $24,859.75; CCO No. 7 for additional work within the gates in the amount of $18,508.21 for a total amount of $43,367.96.

CSA #35 Union Heights CCO No. 8 for additional work outside the gates and within the CSA boundaries in the amount of $12,321.70 and exceeds the CSA #35 Fund Balance. Additional funding will be required to approve this change order.

The CCOs total amount of $133,149.41 (25.8% of the Awarded Contract Amount) and the awarded contract amount of $516,200.00 for a total contract amount including these contract change orders is $649,349.41

CSA CCO Summary Table

*Revised bid schedule amount including additional work inside the gates

**Revised bid schedule amount including additional work inside and outside the gates

***CCO total amount

Here, in this case, latent defects in the roadway (pavement failures) that were not apparent and could not have been detected at the time the original contract was put out to bid were discovered after the contract was awarded.  The additional work (digouts) must be done first and the roadways repaired before the original work can commence. 

Due to packaging these locations originally into a single bid with one construction contract, the County was able to take advantage of reduced mobilization costs for the contractor and lower bulk unit bid prices than if the work was bid separately.  If the additional work described above is now bid separately, parts of the original contract would have to be rebid resulting in the County forfeiting the cost advantage of the original Contract and the work would end up costing the County more.  Additionally, the bid process window would force the commencement and completion of work into the rainy season – potentially precluding the work from even being done this year.  Either or both of these results are undesirable and thus putting the additional work out to bid would not produce an advantage for the County.  Graydon v. Pasadena Redevelopment Agency, (1980) 104 Cal.App.3d 634

Staff respectfully recommends that the Board:

1. Approve Contract Change Orders 1, 2, 3, 4, 5, 6, 7, 8, for the County Service Areas #11-#5-#8-#35-#9 Road Maintenance Project, PWB-1903 with VSS International, Inc.;

2. Authorize the RMA Director to execute Contract Change Orders 1, 2, 3, 4, 5, 6, 7, 8, with VSS International, Inc.: and

3. Authorize the RMA Director to issue supplemental change orders in an amount of not to exceed $6,657.47  (Contract Contingency).