COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

 

DATE:

July 16, 2008

BOARD MEETING DATE:

August 5, 2008

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

James C. Porter, Director of Public Works

SUBJECT:

Resurfacing of Bay Road between Willow Street and 2nd Avenue in the North Fair Oaks Area

(Federal Project No. STPL-5935 (041), F-36[388])

 

RECOMMENDATION:

Adopt a resolution terminating the current Contract with the low bidder,
C.F. Archibald Paving, Inc. (Contractor) and authorizing the Director of Public Works to revise the Project plans and specifications and re-advertise for bids for the Resurfacing of Bay Road between Willow Street and 2nd Avenue in the North Fair Oaks Area (Federal Project No. STPL-5935 (041), F-36 [388]).

 

VISION ALIGNMENT:

Commitment: Responsive, effective and collaborative government.

Goal 20: Government decisions are based on careful consideration of the future impact, rather than temporary relief or immediate gain.

 

Terminating the current Contract will eliminate the Department’s risk of losing the federally obligated funding for this Project.

 

BACKGROUND:

PREVIOUS BOARD ACTION

1.

Adopted Resolution No. 069478 on June 3, 2008, which awarded the Contract to the Contractor with the not-to-exceed amount of $475,570.

   

HISTORY:

Caltrans replaced their previously adopted Race-Conscious Disadvantaged Business Enterprise (DBE) Program and implemented their Race-Neutral DBE Program for Federal-Aid Contracts, which changed the DBE required language that is included in the contract specification.

 

The Department submitted to Caltrans the Project plan, specification and estimate (PS&E) package to request authorization to proceed (E-76) with construction for this Project. Caltrans reviewed and concurred with our submitted PS&E package and issued an E-76 for this Project on February 1, 2008.

 

DISCUSSION:

Thereafter, on Wednesday, July 2, 2008, the Department received a memo from Caltrans, dated July 2, 2008 (copy attached), regarding “Federal-Aid Contracts with DBE (Disadvantaged Business Enterprise) Goals”. This memo stated that the inclusion of DBE contract provisions that are not “race-neutral” renders those projects ineligible for federal reimbursement.

 

The current Contract is predicated on the receipt of $250,000 in federal funding, which could be at risk since the contract includes the DBE language that is not race-neutral. In order to preserve the federal funding, Caltrans has recommended that the County terminate the current contract, and revise and re-bid the Project plans and specifications to comply with the current Race Neutral DBE Program for Federal-Aid Contracts.

 

Although the work was scheduled to start on July 7, we advised the Contractor not to begin work and that we would recommend termination of the contract. Staff has thoroughly reviewed and revised our specifications and related documents to ensure that they comply with the current Race Neutral DBE Program for Federal-Aid Contracts and that federal funding for upcoming project will not be jeopardized.

 

A resolution has been approved as to form by County Counsel.

 

FISCAL IMPACT:

The Department will reimburse the Contractor a reasonable cost for the work that the Contractor has incurred on this project to date as per Section 8-1.11 of the Caltrans Standard Specifications.

 

There is no impact to the General Fund. The cost of the work will be reimbursed to the Contractor through Road Funds.

 

Attachment:

Letter from Caltrans