Ratify Contract Change Order No. 001 to Agreement No. 24-208 with Nordic Industries, Inc. in the amount of $64,301.79, authorizing unanticipated and necessary extra work required by Caltrans associated with the installation and removal of a temporary shoulder closure along Interstate 5 for the Huff's Corner Levee Maintenance Project. (No general fund impact) (Lindbo/Sabatini)

Ratify Contract Change Order No. 001 to Agreement No. 24-208 with Nordic Industries, Inc. in the amount of $64,301.79, authorizing unanticipated and necessary extra work required by Caltrans associated with the installation and removal of a temporary shoulder closure along Interstate 5 for the Huff's Corner Levee Maintenance Project.

Staff is recommending that the Board of Supervisors ratify a Contract Change Order ("CCO") to Agreement No. 24-208, a construction contract with Nordic Industries, Inc. (the "Contractor"), for the Huff's Corner Levee Maintenance Project (the "Project"). The Project is an element of the Huff's Corner Levee Raise & Channel Reconfiguration Phase II Project, which is funded by a Funding Agreement between the California Department of Water Resources and the County. 

The Project involves raising a 0.3-mile stretch of the County-maintained "Huff's Corner Levee" back to its original design profile. The levee is located along the right bank of Cache Creek, extending from County Road 18 to Interstate 5 ("I-5"). The Project encroaches on the existing Caltrans' Right-of-Way ("ROW") near I-5. The specific work to be completed within the ROW includes re-establishment and grading of the levee prism to the design criteria, as well as tying the levee embankment into the highway embankment. Lastly, a fence is to be installed at the edge of the ROW.  The County successfully obtained an Encroachment Permit for these project activities to occur within the Caltrans' ROW.

The Board of Supervisors approved the award for a construction contract to Nordic Industries, Inc. in the amount of $831,000 on July 23, 2024, and authorized the Director to approve change orders consistent with the applicable change order limits of the Public Contract Code, up to a cumulative total of 10% of the contract value.  During a pre-construction field meeting between the Contractor (Nordic) and Caltrans, it was noted by the Caltrans representative that the right shoulder of southbound I-5 would need to be closed when construction work was occurring within the Caltrans' ROW.  Because this requirement was not clearly stated in the Encroachment Permit the County obtained for the Project, the associated traffic control work was not included in the Bid Schedule when the construction contract was put to bid.  On September 16, 2024, the Contractor submitted a letter to County staff regarding a "change in conditions" that detailed their plan to address the need for the unanticipated traffic control work.  The letter also included a cost estimate for the work.  The contents of the letter were reviewed by County staff, as well as the Project Team, and the work plan and cost estimate were found to be appropriate. 

No construction activities are permitted to occur after October 31, 2024, without prior approval from the regulatory agencies.  As a result, the County and Contractor needed to work quickly to get the traffic control work scheduled, and the shoulder closure installed, to avoid serious delays in the Project.  If the traffic control work was not completed by the end of the week of September 16, the Project would have been delayed by 2-3 weeks due to the availability of the crew trained to perform the work.  As a result, staff was unable to bring the CCO to the Board of Supervisors for approval prior to the work commencing, and the CCO No. 001 was approved by the Director of Community Services (the "Director") on September 18, 2024 (Attachment A).  The work was completed on September 20, 2024.  A representative photo of the shoulder closure has been included as Attachment B. As of the drafting of this staff report, the Project is tracking to be completed on schedule and within the construction season period prescribed by the Project's permits.  Although the CCO No. 001 in the amount of $64,301.79 is within the cumulative 10% Project contingency ($83,100) approved by the Board on July 24, 2024, the amount of this CCO exceeds the Director's per change order authority per the Public Contract Code, and thus Board ratification is required for this particular change order.   

On May 22, 2024, an Invitation For Bids (reference no. GSDIFBKK2414) was released for construction services related to the Huff's Corner Levee Maintenance Project.  A total of 2 bids were submitted. Nordic Industries, Inc. was deemed to be the lowest responsive and responsible bidder. The resulting construction agreement (Agreement No. 24-208), in the amount of $831,100, was approved by the Board of Supervisors on July 23, 2024 (Minute Order No. 24-72; Item No. 9).