BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT:
Title
Accept the Work as Complete, Direct the Clerk to File the Notice of Completion of Contract and Acceptance of Work for the Permanente Creek Flood Protection Project - Rancho San Antonio Detention Basin, Construction Stage 2 - Milestone 4, Granite Construction Company, Contractor, Project No. 26244001, Contract No. C0617, and Approve a Budget Adjustment of $458,067 for the Permanente Creek Flood Protection Project (Cupertino, Districts 5 and 7).
End
RECOMMENDATION:
Recommendation
A. Accept the work on the Permanente Creek Flood Protection Project - Rancho San Antonio Detention Basin, Construction Stage 2 - Milestone 4, Project No. 26244001, Contract No. C0617 as complete;
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; and
C. Approve a budget adjustment in the amount of $458,067 to the Fiscal Year 24 Budget for the Permanente Creek Flood Protection Project.
Body
SUMMARY:
The construction contractor, Granite Construction Company (Contractor), has completed the Construction Stage 2 - Milestone 4 for the Permanente Creek Flood Protection Project - Rancho San Antonio Detention Basin (RSA Project).
Project Background
The Permanente Creek Flood Protection Project (Project) was part of the 2012 Safe, Clean Water and Natural Flood Protection Program (2012 SCW Program). The 2012 SCW Program funding was replaced in its entirety in November 2020 by the renewed Safe, Clean Water and Natural Flood Protection Program (SCW Program). This Project protects approximately 2,200 parcels by implementing flood detention and channel improvement works. The Project utilizes two flood detention areas located strategically in the watershed to maximize flood protection benefits at an acceptable cost. The Project was constructed through three separately bid sub-projects: Rancho San Antonio Detention Basin; McKelvey Park Detention Basin; and the Permanente Creek Channel Improvements. Construction of the Permanente Creek Channel Improvements and McKelvey Park Detention Basin projects were accepted as complete by the Board on April 9, 2019, and June 23, 2020, respectively.
The objective of the RSA Project is to construct an approximately 8-acre detention basin (referred to as the north basin) on the east side of Permanente Creek and another 2-acre basin (referred to as the south basin) on the west side of the creek at Rancho San Antonio County Park and Open Space Preserve. The new basins are approximately 8 to 15 feet deep, with gently sloped sides contoured for a natural appearance. An inlet structure, which replaced an existing stream crossing, was constructed between the two basins. Flows in excess of the design flow will spill into the structure and be transmitted to the basins through inlet pipes. Outlets from each basin will return temporarily detained water back to the creek. An existing parking lot was replaced, and new restroom facilities were also installed in conjunction with the parking lot. Other activities included a well relocation, trail construction, and site restoration including re-vegetation.
During construction of the RSA Project, numerous challenges arose such as delays associated with an existing Pacific Gas and Electric (PG&E) gas line discovery of environmentally sensitive resources during excavation activities and the resulting construction shutdown for almost a year and a half, and the subsequent additional work required to mitigate for California red-legged frogs which entered the RSA Project site during the shutdown.
Contract Change Order No. 33 implemented revised contract language as follows:
“The current contract documents only allow for Acceptance of Work after Project Completion, which is after completing Milestone #4. The following replacement of Article 21.01.06 Acceptance of Work would allow for a phased acceptance of work to separate the civil construction and plant establishment maintenance period.”
The RSA Project Construction Stage 1 - Milestones 1-3 (of 4) was completed and accepted by the Board. The RSA Project Construction Stage 2 - Milestone 4, comprised of completion of the three-year landscape/wetland/riparian establishment period was completed in February 2024, completion of which is now recommended for acceptance by the Board.
Relevant Board Actions
On June 28, 2016, the Board adopted the plans and specifications and authorized advertisement for bids for the construction of the RSA Project.
On October 11, 2016, the Board considered the Second Addendum to the Final Subsequent Environmental Impact Report (Final Subsequent EIR) for the Permanente Creek Flood Protection Project; ratified Addenda No. 1 through No. 7 to the Contract Documents for the Permanente Creek Flood Protection Project - Rancho San Antonio Detention Basin Project; waived minor irregularities in Granite Construction Company’s bid; awarded the Construction Contract to Granite Construction Company in the sum of $14,432,479.45; and approved a contingency sum of $1,444,000 and authorized the Interim Chief Executive Officer or designee to approve individual change orders up to the designated amount.
On November 12, 2019, the Board took the following actions:
A. Approved a Fiscal Year 2020 budget adjustment in the amount of $4,700,000, from Fund 26 Operating and Capital Reserves to the Permanente Creek Flood Protection Project - Rancho San Antonio Detention Basin, Project No. 26244001, for the following purposes: to increase the contract contingency fund in the amount of $3,000,000; to provide $1,450,000 funding for in-house engineering support, construction inspection, and contract management services; and to provide $250,000 funding for additional Native American consultant services;
B. Approved an increase of $3,000,000 to the construction contract contingency fund for Contract No. C0617 with Granite Construction Company; and
C. Approved Amendment No. 1 to Agreement A4170G with Andrew Galvan increasing the not-to-exceed compensation limit by $250,000, for a new Not-To-Exceed Fee of $398,500 and extending the Agreement term to March 31, 2021.
On January 12, 2021, the Board approved a budget adjustment of $3,886,677 from Fund 26 Operating and Capital Reserves to the Permanente Creek Flood Protection Project; authorized the Chief Executive Officer to negotiate and execute Amendment No. 2 to Agreement A4170G, for Native American Consulting Services for Permanente Creek Flood Protection Project, with Andrew Galvan, to provide Native American monitoring; and authorized the Chief Executive Officer to negotiate and execute Amendment No. 4 to Agreement No. A3932A, for Permanente Creek Flood Protection Project - Rancho San Antonio Construction Management Services, with Harris & Associates, to provide construction management services for the Permanente Creek Project, Rancho San Antonio Detention Basin Project.
On January 25, 2022, the Board accepted the work on the Permanente Creek Flood Protection Project - Rancho San Antonio Detention Basin, Construction Stage 1 - Milestones 1-3, Project No. 26244001, Contract No. C0617 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 County of Santa Clara Office of the Clerk-Recorder.
Contract Change Orders
During the previously accepted Construction Stage 1 - Milestones 1-3, a total of forty-one (41) contract change orders totaling $5,129,846.26 were executed for this contract to address various issues including unforeseen site conditions and utilities, staff-requested changes, post-design clarifications, and credits to the contract.
During Construction Stage 2 - Milestone 4 (three-year landscape/wetland/riparian establishment period), there were ten (10) contract change orders issued. These changes resulted in a construction contract contingency expenditure of $122,178.37 and included:
A. $165,631.37 for additional staff requested changes. This included costs for biological monitoring support, changes to the planting layout, and asphalt concrete trail repair.
B. $43,453.00 for credits back to the contract which included supplemental bid items and allocations for irrigation events that were not fully used.
The final total contract amount is $19,684,504.08.
Table 1 presents a summary of the construction contract amounts.
TABLE 1
SUMMARY OF CONSTRUCTION CONTRACT
AND CONTINGENCY AMOUNTS
|
|
Contract Amount |
Contingency Amount |
|
Original Contract |
$14,432,479.45 |
$1,444,000.00 |
|
Construction Stage 1 - Milestones 1-3 |
|
Contingency Amount Increase of $3,000,000 (Board Approved November 12, 2019) |
- |
$4,444,000.00 |
|
Change Order Nos. 1-37 |
$4,296,266.67 |
$147,733.33 |
|
Contingency Amount Increase of $1,388,024.63 (Board Approved January 12, 2021) |
- |
$1,535,757.96 |
|
Directed Change Order Nos. 1-4 |
$833,579.59 |
$702,178.37 |
|
Construction Stage 2 - Milestone 4 |
|
Change Order No. 38 (Staff approved) |
$3,780.00 |
$698,398.37 |
|
Change Order No. 39 (Staff approved) |
$18,885.30 |
$679,513.07 |
|
Change Order No. 40 (Staff approved) |
$1,643.56 |
$677,869.51 |
|
Change Order No. 41 (Staff approved) |
$25,830.19 |
$652,039.32 |
|
Change Order No. 42 (Staff approved) |
$7,468.58 |
$644,570.74 |
|
Change Order No. 43 (Staff approved) |
$51,161.68 |
$593,409.06 |
|
Change Order No. 44 (Staff approved) |
$3,974.17 |
$589,434.89 |
|
Change Order No. 45 (Staff approved) |
$6,985.84 |
$582,449.05 |
|
Change Order No. 46 (Staff approved) |
$5,276.39 |
$577,172.66 |
|
Change Order No. 47 (Staff approved) |
<$2, 827.34> |
$580,000.00 |
|
Final Contract Amount and Remaining Contingency |
$19,684,504.08 |
$580,000.00 |
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 of Construction Stage 2 - Milestone 4. The Designated Engineer’s Representative’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 Santa Clara Valley Water District (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 associated with Construction Stage 2 - Milestone 4 ($23,919.42) 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.
Recording a Notice of Completion is recommended for Construction Stage 2 - Milestone 4. Retention withheld for Milestone 4 will be released as a result of the Board’s acceptance and the Notice of Completion is recorded.
Total Project Expenditures
As indicated in the Summary of Construction Contract and Contingency Amounts (Table 1), the original contract amount of $14,432,479.45 has been increased by $5,252,024.63 to $19,684,504.08, an increase of approximately 26.7 percent (26.7%).
The remaining contingency sum of $580,000 will be returned to the Safe, Clean Water and Natural Flood Protection Fund (Fund 26) Operating and Capital Reserves upon closeout of the Project.
Recommended Budget Adjustment
When preparing this board agenda item to accept the Project as complete, staff determined that $458,067 of funding had been erroneously budgeted to the Permanente Creek Flood Protection Project. Therefore, staff recommends the Board approve a budget adjustment that would return $458,067 back to Fund 26 Operating and Capital Reserves.
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 Permanente Creek Flood Protection Project - Rancho San Antonio Detention Basin Construction Stage 2 - Milestone 4, Project No. 26244001, is included in the Capital Improvement Program (CIP) FY 2024-28 Five-Year Plan and in the FY 2023-24 Adopted budget.
The recommended budget adjustment would transfer $458,067 from current year budget of the Permanente Creek Flood Protection Project to Fund 26 Operating and Capital Reserves. The recommended budget adjustment would decrease the overall Total Project Cost reflected in the CIP FY 2024-28 Five-Year Plan.
The remaining contingency sum of $580,000 will be returned to Fund 26 Operating and Capital Reserves upon closeout of the project.
The Project was funded through the Safe, Clean Water and Natural Flood Protection Program Fund.
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 Summary
Attachment 5: Project Delivery Process Chart
UNCLASSIFIED MANAGER:
Manager
Bhavani Yerrapotu, 408-630-2735