TO: Board of Supervisors
FROM: Steven Lederer, Director of Public Works
REPORT BY: Dewey Phan, Assistant Engineer
SUBJECT: Award Construction Contract to Maggiora & Ghilotti, Inc. for the “Mt. Veeder Road MPM 3.5, RDS 25-18” Project
RECOMMENDATION
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Reject the low bid from Rehak General Engineering, LLC as non-responsive, award a Construction Contract to Maggiora & Ghilotti, Inc. for the Mt. Veeder Road MPM 3.5, RDS 25-18, and approve a Budget Amendment. (Fiscal Impact: $2,314,313 Expense; Capital Improvement Projects Fund; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
On November 20, 2024, a 72-hour storm event caused slides near Mount Veeder Road mile post markers (MPM) 3.5. Additional precipitation that continued to early February of 2025 caused additional damage. There is only one lane of traffic available for both directions of traffic.
At MPM 3.5, the initial slide consists of a downslope failure on the northern side of the roadway where a portion of the road slid down the hillside threating the remaining portions of the road. This slide is approximately 270 feet long by 12 feet wide. In February 2025, the new storm event caused two additional slides located several hundred feet north of the existing slide. One slide is approximately 50 feet long by 5 feet wide and the other slide is approximately 66 feet long by 7 feet wide. The County intends to repair these three slides as one project under one construction contract.
The Board authorized advertising for the project on June 24, 2025, and Public Works staff opened bids on July 10, 2025, with the results listed below:
Rehak General Engineering, LLC Auberry, CA $1,520,049
Maggiora & Ghilotti, Inc. San Rafael, CA $1,616,616
E.E. Gilbert Construction, Inc. Martinez, CA $1,650,102
Ground Control, Inc. San Francisco, CA $1,671,689
The first lowest bidder, Rehak General Engineering, LLC, used the wrong proposal form in submitting their bid. Therefore, Public Works staff and Counsel recommend rejecting this bidder as non-responsive. Staff recommends award to the second lowest bidder, Maggiora & Ghilotti, Inc., for their responsive total bid of $1,616,616.
The Board has previously appropriated $517,842 for design of the project, and staff provided an estimate, before the 2 additional slides were identified, of $2,000,000 additional to complete the project.
Construction is anticipated to commence in August 2025 and to be completed by December of 2025, weather and site conditions permitting. A 20% contingency is requested for any unforeseen items of work.
The total project budget with the addition of engineering design, construction management, project management, special inspection and contingency is $2,832,155 and will be funded with Capital Improvement Projects Fund (see attached project budget).
Maggiora & Ghilotti, Inc. is not a local vendor; however, the Public Contract Code requires that the construction contract be awarded to the lowest responsible and responsive bidder regardless of whether the low bidder is local or not. Staff reached out to the local construction contractor community by advertising the request for bids in the Napa Valley Register and the Solano-Napa Builder's Exchange, and by posting on the County website. Staff also sent "Notices to Contractors" to the local construction community.
Requested Actions:
1. Reject the bid from Rehak General Engineering, LLC;
2. Award the Contract for the “Mt. Veeder Road MPM 3.5, RDS 25-18” to Maggiora & Ghilotti, Inc. for their low base bid of $1,616,616 ; and
3. Approve a Budget Amendment for the following (4/5 vote required):
a. Increase Transfers Out appropriations by $2,314,313 in the Capital Improvement Projects Fund (Fund
3000, Sub-Division 3000000, Account 56100) offset by use of its available fund balance to fund Project 25021 and increase to its Transfers In revenues (Fund 2040, Sub-Division 2040500, Project 25021, Account 48200);
b. Increase Construction Services appropriations by $2,189,313 in Project 25021 (Fund 2040, Sub- Division 2040500, Project 25021, Account 52360) offset by a Transfers In revenues from Capital Improvement Projects Fund; and
c. Increase Engineer Services appropriations by $125,000 in Project 25021 (Fund 2040, Sub-Division 2040500, Project 25021, Account 52145) offset by a Transfers In revenues from Capital Improvement Projects Fund.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
The repairs are needed to open the road to two lanes of traffic and ensure public safety |
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Is the general fund affected? |
No |
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Future fiscal impact: |
Funding will be needed in FY 25-26 for permitting and construction. Permits may require mitigation planting and monitoring for up to 10 years after construction completion. |
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Consequences if not approved: |
More of the roadway could be lost potentially locking residents in and result in a major disruption to traffic flow in the area |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: Consideration and possible adoption of a Categorical Exemption Class 1: It has been determined that this type of project does not have a significant effect on the environment and is exempt from the California Environmental Quality Act. [See Class 1 (“Existing Facilities”) which may be found in the guidelines for the implementation of the California Environmental Quality Act of 14 CCR § 15301; see also Napa County’s Local Procedures for Implementing the California Environmental Quality Act, Appendix B].