BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Accept the Work as Complete and Direct the Clerk to File the Notice of Completion of Contract and Acceptance of Work for the Upper Llagas Creek Flood Protection Project, Phase 1 Completion of Milestone 3, Three-Year Mitigation Planting Establishment and Maintenance, Graniterock Company, Contractor, Project No. 26174052, Contract No. C0645 (Morgan Hill, Gilroy, Santa Clara County Unincorporated Area, Including San Martin, District 1).
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RECOMMENDATION: Recommendation
A. Accept the work on the Upper Llagas Creek Flood Protection Project Phase 1 completion of Milestone 3, Three-Year Mitigation Planting Establishment and Maintenance, Project No. 26174052, Contract No. C0645 as complete; and
B. Direct the Clerk of the Board to sign the Notice of Completion of Contract and Acceptance of Work and submit for recording to the Santa Clara County Clerk-Recorder.
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SUMMARY:
The construction contractor, Graniterock Company, has completed Milestone 3 of the Upper Llagas Creek Flood Protection Project Phase 1 (Phase 1 Project), Three-Year Mitigation Planting Establishment Maintenance Period.
Project Background
Santa Clara Valley Water District (Valley Water) is undertaking the Upper Llagas Creek Flood Protection Project (Project) in partnership with the U.S. Army Corps of Engineers (USACE) and the City of Morgan Hill (City) to provide 1% flood protection to approximately 1,100 homes and 500 businesses along West Little Llagas Creek, East Little Llagas Creek, and Llagas Creek. The Project is approximately 13.9 miles long and encompasses the City of Morgan Hill, City of Gilroy, and various unincorporated areas of Santa Clara County, including San Martin. The Project is being constructed in three phases (Phase 1, 2A, and 2B), and flood protection will only be realized after construction of all three phases is completed.
Llagas Creek and its tributaries are part of the Pajaro Watershed, the area of land over which rain falls and then drains off on its journey to the ocean, or into reservoirs for storage. The Pajaro-Llagas Watershed is a 104-square-mile region which is distinguished by its agricultural lands and natural areas.
The Phase 1 Project completed its civil work, which included mitigation planting and irrigation installation in April 2022. The remaining Phase 1 Project scope of work, completed in March 2025, was a three-year plant establishment and maintenance period.
Relevant Prior Board Actions
On September 22, 2009, the Board approved a cost-sharing agreement with the City of Morgan Hill to prepare the environmental document and the design plans and specifications for the Project.
On June 10, 2014, the Board certified the Environmental Impact Report for the Upper Llagas Creek Project and adopted Resolution No. 14-67.
On May 14, 2019, the Board adopted the plans and specifications and authorized advertisement for bids for the construction of the Phase 1 Project.
On July 23, 2019, the Board ratified Addenda Nos. 1,2,3,4, and 5 to the Contract Documents for the Phase 1 Project, awarded the Contract to Graniterock Company located in San Jose, California, in the sum of $68,118,602.00, approved a contingency sum of $10,217,790.00 and authorized the Chief Executive Officer (CEO) or designee to approve individual change orders up to the designated amount.
On May 24, 2022, the Board accepted the work on the Phase 1 Project, Flood Protection and Civil Work, including Mitigation Plantings and Irrigation Installation Phase, Phase 1, Completion of Milestones 1 and 2, Graniterock Company, Contractor, Project No. 26174052, Contract No. C0645 as complete, and directed the Clerk of the Board to sign the Notice of Completion of Contract and Acceptance of Work and submit for recording to the Santa Clara County Clerk-Recorder.
Contract Change Orders
A total of ten (10) contract change orders totaling $1,200,096.01 were executed for Milestone 3 to address various issues, including repairs to vandalized fences and gates, additional plantings and irrigation repairs, improvements to storm drains and outfalls, vegetation removal, removal of a Valley Water’s existing structure, erosion repairs, biological and vegetation monitoring, and mitigation replanting.
Table 1 presents a summary of the construction contract and contingency amounts.
TABLE 1
SUMMARY OF CONSTRUCTION CONTRACT
AND CONTINGENCY AMOUNTS
Acceptance of the Work and Recording Notice of Completion of Contract
The California Civil Code allows an owner or agent to execute a Notice of Completion of Contract after acceptance of the work by the Board. The Notice of Completion of Contract and Acceptance of Work is included in Attachment 1. The Designated Engineer has determined that the work has been completed, to the best of her knowledge, in accordance with the plans and specifications, and recommends acceptance. The Designated Engineer’s recommendation of construction acceptance is included in Attachment 2. The Project Completion Letter is included as Attachment 3. Photos of the completed Project are included in Attachment 4. The Project Delivery
Process Chart is included in Attachment 5.
Construction Contract Retention
California law requires Valley Water to release contract retention in accordance with certain time frames, which will commence once the Notice of Completion is recorded. Interest payment on retention due to the contractor may be avoided by meeting the requisite deadlines.
Valley Water is currently withholding retention funds totaling five percent (5%) of the contract items ($60,004.80) in accordance with the Public Contract Code. Per the construction Contract Documents, Valley Water is required to release retention funds associated with the contract 35 days after recording the Notice of Completion of Contract and Acceptance of Work, subject to any withholds required by law or the
contract.
Total Project Expenditures
As indicated in the Summary of Construction Contract and Contingency Amounts (Table 1), the original contract amount of $68,118,602.00 has increased by $10,216,270.81 to $78,334,872.81, an increase of approximately 15 percent.
ENVIRONMENTAL JUSTICE AND EQUITY IMPACT:
There are no Environmental Justice impacts associated with this item. This action is
unlikely to or will not result in adverse impacts and is not associated with an equity
opportunity.
FINANCIAL IMPACT:
The Upper Llagas Creek Flood Protection Project, Phase 1, Completion of Milestone 3 (Three-Year Mitigation Planting Establishment and Maintenance), Project No. 26174052, is included in the Capital Improvement Program (CIP) Fiscal Years (FY) 2025-29 Five-Year Plan and in the FY 2024-25 Adopted Budget. Total financial costs were detailed in previous sections of the agenda memorandum.
Transfer of Remaining Balances
The original contract amount of $68,118,602.00 combined with the Board-approved
contingency encumbrance of $10,217,790.00 totals $78,336,392.00, for the construction of the Project. The original contract amount $68,118,602.00, plus the total cost of all approved change orders $10,216,270.81 resulted in the final contract amount of $78,334,872.81. The remaining unspent contingency amount will be released to the project reserves upon Project completion and close-out.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have a potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
Attachment 1: Notice of Completion and Acceptance of Work
Attachment 2: Construction Contract Acceptance
Attachment 3: Project Completion Letter
Attachment 4: Construction Photos
Attachment 5: Project Delivery Process Chart
UNCLASSIFIED MANAGER: Manager
Bhavani Yerrapotu, 408-630-2735