TO: Board of Supervisors
FROM: Steven Lederer, Director of Public Works
REPORT BY: James Reese, Associate Engineer
SUBJECT: Approval of Contract Change Order No. 2 which exceeds the Director of Public Work’s authority for the Ridgecrest MPM 0.10, RDS 25-26 and a Budget Amendment.
RECOMMENDATION
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Approve and authorize the Director of Public Works to execute Contract Change Order No. 2, to Agreement No. 260085B with W.R. Forde Associates, Inc., to increase the maximum compensation for the construction contract from $414,377 to $1,145,064 for the “Ridgecrest MPM 0.10,” RDS 25-26 Project 25035; and approve a Budget Amendment. (Fiscal Impact $730,867 Expense; General Fund; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
In early February 2025, a severe storm event caused widespread damage throughout Napa County, including a significant landslide on Ridgecrest Drive near 50 Ridgecrest Drive. In response, the Board of Supervisors ratified a local emergency proclamation on February 14, 2025. Subsequently, on February 18, 2025, the Board approved an allocation of $9,500,000 for storm-related repairs, including $1,500,000 for the Ridgecrest Slide Repair Project, with authorization to transfer funds among the various storm related projects as necessary to facilitate timely completion.
The Ridgecrest MPM 0.10 (RDS 25-26) Project was authorized to proceed with construction on July 22, 2025, with an anticipated completion date of November 11, 2025. The original project scope included construction of a retaining wall to stabilize the landslide area.
Following commencement of construction, during discussions with homeowners affected by the landslide it was determined that the installation of approximately 1,000 linear feet of drainage pipe, as well as the repaving of Ridgecrest Drive along the length of the drainage system installation, is necessary to improve roadway drainage and long-term stability. This additional work was not included in the original project scope and represents a significant expansion of the project. Installation of the new drainage pipe is also a component of a settlement reached with two of the homeowners who had filed claims with the County regarding the landslide.
Change order No. 1 in the amount of $11,320 was previously approved by the Public Works Director to add a small wall drain at the retaining wall that WR Forde Associates, Inc. (“Forde”) was already constructing for the County, bringing the total contract cost to $414,377. The new larger drain next to the wall was assigned to Forde, at a cost of $195,242. The portion of the additional work located outside the original project area was competitively bid to Forde and another contractor currently working in the Circle Oaks Subdivision. Forde submitted the lowest bid at $392,245, compared to Argonaut Constructors’ bid of $394,470, who is performing work on the East County Roads Paving Project (RDS 25-11). The County also requested a bid for the paving of Ridgecrest Rd. from the retaining wall down to Circle Oaks Dr. This was provided at $143,200, resulting in the total change order of $195,242 + $392,245 + 143,200 = $730,687. Because the total amount of the proposed change order exceeds the Director of Public Works’ signing authority, Board approval is required.
Due to the expanded scope of work, additional construction support services are also required, resulting in a total project budget needed of $1,800.000. $1,500,000 had previously been appropriated for the project, so a $300,000 budget amendment is requested. That amount of money is expected to be claimed and reimbursed from insurance, and at the completion of the project the General Fund Non-Departmental budget is expected to be repaid in that amount.
Requested Actions:
1. Approve a Budget Amendment for the following (4/5 votes required):
a. Increase Transfers Out appropriations by $300,000 in General Fund Non-Departmental budget (Fund 1000, Sub-Division 1050000, Account 56120) offset by use of its available fund balance to transfer to Project 25035 and increase its Transfers In revenues (Fund 2040, Sub-Division 2040500, Account 48200); and
b. Increase Construction Services appropriations by $300,000 in Project 25035 budget (Fund 2040, Sub-Division 2040500, Project 25035, Account 52360) offset by a Transfer In revenue from Non-Departmental budget.
2. Authorize the Director of Public Works to execute Contract Change Order No. 2 in the amount of $730,687, which exceeds the Director’s signing authority, resulting in a total Contract amount of $1,145,064.
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 revised scope is essential to move the project forward in construction. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
This project will decrease future maintenance needs. |
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Consequences if not approved: |
If the Director of Public Works is not given authority to execute CCO No. 2, the Contractor will not complete the drainage pipe nor road overlay. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed project is part of the February 14, 2025, emergency
declaration by the Napa County and statutorily exempt as defined by 14 California Code of Regulations 15269
A&B (State CEQA Guidelines) and therefore CEQA is not applicable.