Inter-Departmental Correspondence

Department of Public Works



April 13, 2011


May 10, 2011







    Honorable Board of Supervisors


    James C. Porter, Director of Public Works


    Resurfacing of Various Streets in the Ladera, North Fair Oaks, District 4 and Palomar Park Areas [Project No. RT203, Federal Aid Project No. STPL-5935 (058), Project File No. E4870000]



    Adopt a Resolution:



    Adopting the plans and specifications, including conformance with prevailing wage scale requirements, for the resurfacing of various streets in the Ladera, North Fair Oaks, District 4 and Palomar Park Areas of unincorporated San Mateo County; and



    Authorizing the President of the Board of Supervisors to execute an agreement with O’Grady Paving, Inc., in the amount of $1,342,899.10, for the entire work listed in Schedules A, B, C and D; and



    Authorizing the Director of Public Works to execute subsequent change orders up to a maximum aggregate amount, not to exceed $134,290.90, or approximately 10% of the agreement amount; and



    Authorizing the Director of Public Works to file a Notice of Exemption for a California Environmental Quality Act Categorical Exemption.



On August 10, 2010, your Board adopted Resolution No. 070993, which authorized the Director of Public Works to submit an application to the Metropolitan Transportation Commission (MTC) for federal Surface Transportation Program (STP) and/or Congestion Mitigation and Air Quality Improvement (CMAQ) Program funds to resurface various streets in the Ladera, North Fair Oaks, District 4 and Palomar Park areas.


On February 8, 2011, your Board adopted Resolution No. 071257 which “streamlined” the bid process for this project and maintenance type projects, and authorized the Director of Public Works to develop plans and specifications and to call for bids for the types of projects identified in said Resolution.



STP/CMAQ funded projects require that a project specific Underutilized Disadvantaged Business Enterprise (UDBE) participation goal be established based on the type of work to be performed. The Department established an UDBE goal of 14.25% for this project. The bidding contractors were required to meet the UDBE participation goal or demonstrate adequate good faith efforts to meet the goal through their work or their subcontractors’ work. Contractors were also required to complete forms and submit supporting documentation with their bid to demonstrate their UDBE commitment.


On Tuesday, March 29, 2011, bids were accepted for this project and subsequently referred to this office for checking and recommendation.


The first low bidder did not meet the UDBE goal or provide adequate good faith efforts documentation and did not submit the required written commitment from their UDBE subcontractor for the project with their bid. The Department determined their bid to be non-responsive. The low bidder subsequently submitted a protest on April 8, 2011 as they believed they had exceeded the UDBE goal and had provided adequate documentation of good faith efforts to meet the goal. The Department has conferred with Caltrans and both agencies agree that the low bidder did not meet the UDBE project goal and we have concluded that the good faith efforts documentation is not adequate per the requirements stated in the specifications. Therefore, we recommend your rejection of this bid and award of the contract to:


O’Grady Paving, Inc.,

2513 Wyandotte Street,

Mountain View, CA 94043


whose bid of $1,342,899.10 was the lowest responsible bid received for the work and which met the UDBE good faith efforts requirements for the project. The Engineer’s estimate was $1,650,000. A summary of the bids received and locations of the project is attached as Exhibit “A”.


Staff reviewed the bid documents and has determined that the Equal Employment program submitted by O’Grady Paving, Inc. is in accordance with the current Equal Employment Guidelines and that the Contractor complies with the equal benefits and jury duty pay provisions of the County ordinance code and the UDBE participation goal established for this project.


Department staff has determined that this project qualifies for a Categorical Exemption pursuant to Section 15301(c) of the California Environmental Quality Act (CEQA) Guidelines for Implementation, which provides that repair and maintenance of existing streets and highways is exempt from review. We request your authorization to file a Notice of Exemption for a CEQA Categorical Exemption for this project.


County Counsel has reviewed and approved the Resolution and Agreement as to form.


Approval of this action contributes to the Shared Vision 2025 outcome of a Livable Community by improving our roads for use by the traveling public to support livable connected communities.



Awarding of this contract is based on the aggregate of schedules not exceeding the total STP/CMAQ funding amount of $1,416,000. The total estimated cost for construction is $1,477,190, which includes authorization for up to $134,290.90 (ten percent [10%] maximum contingency for federal aid projects) in change orders as the work is bid on a unit price basis. The contingency is used to pay the contractor for any unforeseen conditions not anticipated in the construction agreement documents. Road funds and reimbursements from other affected agencies will be used to supplement the remaining construction cost for this project. Exhibit “A” also indicates the proposed financing for the Project. There is no impact to the General Fund.


Reimbursement for the cost of adjusting existing utility facilities that encroach within the road right-of-way will be covered by agreements executed by the Director as authorized by your Board in Resolution No. 064550, dated June 19, 2001.



    Exhibit “A” - Summary of Bids Received, Project Funding, and Locations of Paving Projects