BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Receive Report of Bids, Ratify Addenda, Waive a Minor Irregularity, Approve the Contingency Fund, and Award the Construction Contract to Disney Construction, Inc., for the Permanente and Hale Creeks Concrete Channel Repair, Under the Watershed Asset Rehabilitation Program, Project No. 62084001, Contract No. C0707 (Mountain View and Los Altos, District 7).
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RECOMMENDATION: Recommendation
A. Ratify Addenda No. 1, 2, and 3 to the Contract Documents for the Permanente and Hale Creeks Concrete Channel Repair Project;
B. Waive minor irregularity in Disney Construction, Inc.’s bid;
C. Award the Construction Contract to Disney Construction, Inc., located in Burlingame, CA, in the sum of $1,384,450 and
D. Approve a contingency sum of 15% in the amount of $207,667.50 and authorize the Chief Executive Officer or designee to approve individual change orders up to the designated amount.
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SUMMARY:
The objective of the Permanente and Hale Creeks Concrete Channel Repair Project (Project) is to prevent future deflections of the existing concrete walls and extend their service life.
The scope of the repair is to:
1) Repair concrete spalls and cracks.
2) Install vertical steel columns into the existing U-frame walls to support steel struts.
3) Install steel struts between the vertical steel columns to prevent further deflection of the existing walls.
Project Background
Permanente and Hale Creeks are part of the Lower Peninsula Watershed. The existing concrete U-frame channels were constructed in the early 1960s and have exceeded their intended design lifespan. These channels exhibit significant structural deficiencies including wall deflection, concrete spalling, and cracking. The locations of these deficiencies are most prevalent on Permanente Creek from Park Drive to Mountain View Avenue within the City of Mountain View and along Hale Creek from Arboleda Avenue to Rosita Avenue within the City of Los Altos. If these issues are not addressed, deterioration will continue and there will be an increased risk of asset failure. This project was identified as one of the high priority projects under the Watersheds Asset Rehabilitation Program (WARP).
Evaluation of alternatives to address the deflection and comply with updated structural standards has been proposed as a newly validated CIP Project and remains on the unfunded list as presented to the Board on January 14th, 2025 as part of the FY2026 - FY2030 CIP. Defining this larger project and securing additional funding will be part of future years’ CIP development. Meanwhile, the project has been proposed to prevent any further deflection of the existing walls.
Staff estimates that this repair option will extend the lifespan of the existing facility by approximately 10 years.
Addenda Ratification
Three (3) addenda (Attachment 3) were issued during the bid advertisement period to clarify the Project Contract Documents and answer bidders’ questions. To formally incorporate the addenda into the Project Contract Documents, staff recommends that the Board ratify the addenda.
Waiver of Minor Irregularity in Disney Construction, Inc.’s Bid
During the bid verification process, staff contacted Disney Construction, Inc. because the Contractor’s State License Board detail for the license number submitted for a listed subcontractor did not align with the information entered by Disney Construction, Inc. in PlanetBids. Disney Construction, Inc. explained that it made an inadvertent clerical error by transposing the subcontractor’s license number. This error is not material and did not affect Disney’s ability to fulfill the contract or give the firm an unfair advantage in the bidding process for the Project. Staff recommends that the Board waive this minor irregularity.
Contract Award
A report of bids received at the bid opening for the Project on March 26, 2025, is summarized in Table 1.
Of the 7 total bids submitted, the lowest responsive bid was submitted by Disney Construction, Inc. of Burlingame, California. The bid submitted by Disney Construction, Inc. is approximately 54% lower than the Engineer’s Estimate of $2,984,504. A review of the bids against the Engineer’s estimate reveals that the contractors’ bids were based on much lower material and labor costs which points to a potentially favorable labor market and bid environment as further demonstrated by the large number of bids. The scope of the project being well defined and smaller also potentially attracted the large number of bidders. The Engineer's estimate was based on the unit prices from a similar project, the Piedmont Creek Interim Concrete Repair implemented in 2021, and accounting for potential inflation factors as well as other anticipated escalations for steel material pricing which did not materialize in the bids received.
Staff reviewed the bid proposals and recommends the Board award the Construction Contract to Disney Construction, Inc. as the responsible bidder submitting the lowest responsive bid.
Table 1 - Bid Opening Results
|
Contractor(s) |
Bid Price |
Difference from EE (-) or + % |
Deemed Responsive |
|
Disney Construction, Inc. Burlingame, CA |
$1,384,450 |
(54)% |
Yes |
|
Granite Rock Company San Jose, CA |
$1,599,157 |
(46)% |
Yes |
|
Gordon N. Ball, Inc. Walnut Creek, CA |
$1,881,770 |
(37)% |
Yes |
|
Granite Construction Company Santa Clara, CA |
$2,014,425 |
(33)% |
Yes |
|
A & B Construction Oakland, CA |
$2,483,114 |
(17)% |
Yes |
|
Con-Quest Contractors, Inc. Burlingame, CA |
$2,881,870 |
(3)% |
Yes |
|
Engineer’s Estimate |
$2,984,504* |
|
|
|
B and D Excavation and Construction Santa Rosa, CA |
$3,074,500 |
3% |
Yes |
*The published Engineer’s Estimate, including Supplemental Bid Items, was $3,425,510.2; however, it inadvertently included a contingency.
Contingency Funds
The Contract award sum for the Project is $1,384,450. To allow staff to quickly address unforeseen or changed site conditions and other unanticipated occurrences, without causing unnecessary delays or consequential costs to the Project, staff recommends the Board approve encumbering a contingency amount of $207,667.50 (15% of the contract amount) for the subject Project.
The above-contingency amount was estimated due to known and unknown risks, such as:
1. Unanticipated variances in quantities and cost of various lump sum items estimated in the Bid Proposal;
2. Unforeseen or differing site/field conditions that may be significantly different from the baseline or as-built information used in the preparation of Project Contract Documents;
3. Coordination issues and risks associated with weather conditions and unplanned water releases in the channels that may pose construction delays.
Approval of individual change orders for the Project will be subject to approval at the following designated amounts:
Engineering Unit Manager: $50,000
Deputy Operating Officer: $100,000
Chief Executive Officer: Up to the Total Amount of Contingency
Relevant Previous Board Actions
On Feb 11, 2025, the Board adopted plans and specifications and authorized advertisement for bids for the Project.
Outreach to Bidders
The Notice to Bidders was sent to the following recipients: approximately 26 plan rooms, 83 minority businesses, 20 Chambers of Commerce, as well as small business groups, certified small business contractors, and local and regional firms that have the appropriate license for this type of work, and the Santa Clara and San Benito Counties Building and Construction Trades Council, which maintains contacts with at least 1048 contractors and 70 union representatives, for distribution to their members. The total number of entities notified in PlanetBids was 799.
Contractors were contacted using Santa Clara Valley Water District’s (Valley Water) PlanetBids Vendor Portal. Broader advertising efforts also included two placements of the Invitation to Bid in the San Jose Post-Record.
Small Business Program
This project was advertised incorporating the Small Business Enterprise (SBE) Outreach Program, establishing a small business subcontracting participation goal of at least 30 percent for non-SBE Bidders. The apparent low bidder, Disney Construction, Inc., meets the participation goal as a registered SBE.
Rights of Way
This Project will be constructed within Valley Water’s existing rights-of-way.
Regulatory Permits
This Project will be implemented using the Stream Maintenance Program 2 (SMP-2) Permits. To comply with the SMP-2 permit requirements, this work will be conducted during the summer instream working season (June 15 - October 15).
Public Outreach
Staff has coordinated with the City of Mountain View and the City of Los Altos for the planned implementation of the Project.
Before beginning construction, Valley Water will inform the surrounding neighborhood of the project and potential construction impacts. A mailer and social media will be used to reach out to neighbors, and construction site signage will be installed.
During construction, appropriate measures will be taken to minimize impacts associated with the Project, such as traffic, noise and dust. Residents and businesses in the Project area will be informed of construction impacts through multiple outreach strategies including social media such as Nextdoor and Facebook, mailers, and signs.
Next Steps
If the Board approves the recommendations, staff will proceed with Contract administration managed by Valley Water staff to facilitate the construction of the Project, which is anticipated to begin in June 2025 and be completed by October 2025.
ENVIRONMENTAL JUSTICE AND EQUITY IMPACT:
There are no environmental justice and equity 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 Permanente and Hale Creeks Concrete Channel Repair Project (Project), under the Watersheds Asset Rehabilitation Program (WARP), Project No. 62084001 is included in the Capital Improvement Program (CIP) FY 2025-29 Five-Year Plan and in the FY 2024-25 Adopted Budget. The total cost for the recommended construction contract, including the contingency sum of $207,667.50 is $1,592,117.50, which does not change the overall Total Project Cost reflected in the CIP FY 2025-29 Five-Year Plan. The Project is funded by the Watersheds Stream Stewardship Fund (Fund 12).
CEQA:
Valley Water is the lead agency under the California Environmental Quality Act for implementation of the Project. The Project is covered under the Stream Maintenance Program Update (SMP-2), 2014-2026 and the Environmental Impact Report for the Stream Maintenance Program was certified by the Board on January 24, 2012.
ATTACHMENTS:
Attachment 1: Map
Attachment 2: Project Delivery Process Chart
Attachment 3: Addendum No. 1, 2 and 3
UNCLASSIFIED MANAGER: Manager
Bhavani Yerrapotu, 408-630-2735