TO: Board of Supervisors
FROM: Steve Lederer - Director of Public Works
REPORT BY: Roberto De La Torre Real - Assistant Engineer
SUBJECT: Budget amendment, and construction reimbursement agreement for the “South Kelly Road Paving and Tower Road Paving Project”, RDS 25-16
RECOMMENDATION
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Approve and authorize Agreement No. 270159B with the City of American Canyon for a maximum of $2,149,156 for construction services, inspections and materials testing for the South Kelly Road and Tower Road Paving Project, RDS 25-16; and approve a Budget Amendment for the contract amount and staff time. (Fiscal Impact: $2,500,000 Expense; Local Transportation Tax (T/U) and Zone-1 Garbage Fund; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
The Napa Logistics Park Phase 2 developer was conditioned by the City of American Canyon (City) through the use permit process to make improvements to South Kelly Road between SR-29 and Devlin Road. The developer provided the City with preliminary street improvement plans, cost estimates, and fair-share funds for the completion of the conditioned improvements. The City and Napa County each have jurisdiction over discrete portions of South Kelly Road and decided to partner to deliver the improvements through the City’s South Kelly-Highway 29 Intersection project. For economies of scale, the City and County opted to include rehabilitation of Tower Road into the project, which is owned by Napa County.
On February 4, 2025, the Board of Supervisors approved the creation of Projects 25023 “South Kelly Paving Project” and 25029 “Tower Road Paving Project” and approved a reimbursement agreement with the City of American Canyon in the amount of $124,013 for design and project management services, including preparation of construction documents by BKF Engineers.
On April 28, 2026, the Board of Supervisors authorized Amendment No. 1 to agreement No. 250311B with the City of American Canyon to increase the contract maximum amount from $124,013 to $163,889 for the City and its consultant to provide supplemental topographic survey and potholing services for South Kelly and Tower Road in order to complete the design and bid the project.
The project was advertised for construction by the City of American Canyon on May 26, 2026. On July 23, 2026, bids were received and opened by City Staff. City Staff recommend awarding the construction contract to the lowest responsive bidder, Carone and Company, Inc of Concord, CA, for their low base bid of $3,128,500. The complete bid results are attached for reference. As the lead agency for project delivery, the City will enter into the construction contract and administer construction on behalf of both agencies.
To reimburse the City for costs associated with administering the County portions of the project, Agreement No. 270159B provides reimbursement for construction administration, inspection, materials testing, and related construction support services. The requested funding also includes Napa County staff time associated with project administration throughout construction.
Requested Actions:
1. Approve and authorize Agreement No. 270159B with the City of American Canyon, a municipal corporation for a maximum of $2,149,156 for City reimbursement from Napa County for construction services, materials testing, and inspections on South Kelly and Tower Road within the County limits; and
2. Approval of Budget Amendment for the following (4/5 vote required):
a. Increase appropriations for Project 25023 - South Kelly Road Paving in the Roads Fund (Fund 2040, Sub-Division, 2040500) in account 52360 - Construction Services by $1,000,000, offset by an increase of $1,000,000 in revenue account 48200 - Transfer-In from the Local Transportation Tax (T/U) Non-Operating Special Revenue Fund;
b. Increase appropriations for Project 25029 - Tower Road Paving in the Roads Fund (Fund 2040, Sub-Division 2040500) in account 52360 - Construction Services by $1,500,000, offset by an increase of $1,500,000 in revenue account 48200 - Transfer-In from Zone-1 Garbage Special Revenue Fund;
c. Increase appropriations in the Local Transportation Tax (T/U) Non-Operating Special Revenue Fund (Fund 2440, Sub-Division 1220053) in account 56100 - transfer-out by $1,000,000, offset by use of its available fund balance; and
d. Increase appropriations in the Zone-1 Garbage Special Revenue Fund (2180, Sub-Division 2180000) in account 56100 - Transfer-out by $1,500,000, offset by use of its available fund balance.
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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Where is it budgeted? |
Project 25023 will be funded by Local Transportation Tax (T/U) Non-Operating Special Revenue Fund. The project was not budgeted as part of the annual budget process. Staff monitors the revenues and cashflow and has determined that there’s enough funds to move forward with this project. |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Approval of the Budget Amendment is necessary to reimburse the City of American Canyon and move the project forward toward construction. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
Future Fiscal Impact includes standard roadway maintenance. |
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Consequences if not approved: |
Construction for S. Kelly Rd and Tower Rd cannot commence, leading to the continued degradation of both roadways. |
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Strategic Initiative: |
Build Health, Connected Communities |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: 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 as 14 CCR §15301; see also Napa County’s Local Procedures for Implementing the California Environmental Quality Act, Appendix B.]