DATE: May 20, 2025
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: Master Agreement for Trucking/Hauling Services
RECOMMENDED ACTION(S):
TITLE
1. Approve and authorize the Division Manager of Road Maintenance and Operations Division to send 30-day notice letters of termination without cause for Master Agreement No. A-21-337 for trucking/hauling services with C.B. Roadways Inc., Clay Miranda Trucking, Inc., Dragon Material Transport Inc., and Terry Johnson Trucking Inc.; and
2. Approve and authorize the Chairman to execute a Master Agreement to provide trucking/hauling services, the total term not to exceed approximately five consecutive years, which includes a base term of June 20, 2025 through March 31, 2028 and two optional one-year extensions with authority to approve such extensions on behalf of the County delegated to the Director of Public Works and Planning, total not to exceed $10,000,000 for the potential approximate five-year term.
REPORT
Your Board’s approval of the first recommended action will allow the County, through the Department of Public Works and Planning (Department), to terminate without cause current Master Agreement No. A-21-337(Agreement) for trucking/hauling services with four (4) contractors: C.B. Roadways Inc., Clay Miranda Trucking, Inc., Dragon Material Transport Inc., and Terry Johnson Trucking Inc.
Your Board’s approval of the second recommended action will allow the County, through the Department, to contract with two (2) contractors for trucking/hauling services beginning immediately after the conclusion of the 30-day notice of termination period for the current contractors. The following Contractors submitted responsive bids under a Request for Quotation (RFQ), which closed on November 19, 2024: (1) CB Roadways, Inc., and (2) Women Truck Brokers, Inc. (WTB Inc.).
The recommended master agreement is a non-exclusive agreement. The County reserves the right to engage or not engage any of the Contractors in any part of the County under the recommended master agreement, and to engage any other person or entity for the same or similar services under any other agreement, or hire its own forces, in any part of the County. This item is countywide.
ALTERNATIVE ACTION(S):
There are no alternative actions. Should your Board not approve the recommended actions, the Department will remain under the Agreement and contractors will not be able to request cost adjustments.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. Sufficient appropriations are included in the Department’s Roads Org 4510 and will be included in budget requests for the duration of the Agreement. The recommended master agreement will have a spending limit of $2,000,000 for each year (or partial first year) of the term of June 20, 2025 through March 31, 2028. If extended for one additional year, the total amount for four years is not to exceed $8,000,000. If extended for a second additional year, the maximum compensation payable for the entire potential approximate five-year term of the recommended master agreement is $10,000,000.
DISCUSSION:
The Department utilizes trucking/hauling contractors to move material such as sand, base rock, asphalt, grindings, etc. from a material dispatch plant to a road segment, or between two different road segments, while performing road maintenance and preservation work. Examples of this work include grading, shoulder repair, patching or filling of cracks and potholes, and other preservation activities.
On August 24, 2021, the Board approved and executed Master Agreement No. 21-337 for trucking/hauling services with C.B. Roadways Inc., Clay Miranda Trucking, Inc., Dragon Material Transport Inc., and Terry Johnson Trucking Inc. based on their responses to RFQ 21-053. The agreement did not contain language that allowed contractors to request price increases, and the RFQ’s cost proposal template did not factor in the need for cost adjustments for each of the five potential years in the resulting agreement. The contractors expressed a need to raise their hourly rates due to increases in the cost of fuel, insurance, and other factors that contribute to their cost of doing business. The Department is currently unable to honor those requests because a proper Modification Clause was not included in the agreement.
The Department agreed that it is not feasible for contractors to continue to provide their services at a cost lower than necessary to conduct business. Because the services they provide are essential to paving operations throughout the County, the Department released RFQ 25-022 on October 25, 2024 which closed on November 19, 2024 and included language that will allow contractors to request price increases on the resulting agreement. Requests related to fuel cost must be approved by the Director of the Department and include proof and be directly tied to the California Statewide Fuel Price Index. Approved price increase requests will not affect the total compensation amount payable to the Contractors.
Allowing the Department to send 30-day termination letters to the current contractors ensures that the start date of the recommended master agreement is in line with the beginning of the scheduled paving activities. C.B. Roadways Inc. is the only contractor on the Agreement that submitted a response to RFQ 25-022 and will be included on the recommended agreement.
The initial term being nine months (July - March) instead of a full year is to align the start of future agreements with the start of the paving season in the month of April. This will make scheduling and planning easier and ensure there will not be any issues with potentially switching contractors in the middle of the work itself.
The Department believes terminating the Agreement and entering into the new recommended master agreement is in the County’s best interest in that providing contractors the option to increase their prices ensures reliable service that supports the above-mentioned essential paving operations on its maintained roads throughout the County. The Department recommends awarding C.B. Roadways, Inc. and WTB, Inc. to satisfy operational needs.
REFERENCE MATERIAL:
BAI #43 August 21, 2021
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Master Agreement
CAO ANALYST:
Maria Valencia