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, Approve the Contingency Fund, and Award the Construction Contract to Brannon Corporation, for the Calabazas Creek Erosion Repair Project, under the Watershed Asset Rehabilitation Program, Project No. 62084001, Contract No. C0715 in the Sum of $1,148,268 (Cupertino, District 5).
End
RECOMMENDATION: Recommendation
A. Ratify Addenda No(s). 1, 2, and 3 to the Contract Documents for the Calabazas Creek Erosion Repair Project;
B. Award the Construction Contract to Brannon Corporation, located in Morgan Hill, CA, in the sum of $1,148,268; and
C. Approve a contingency sum of 15% in the amount of $172,240 and authorize the Chief Executive Officer or designee to approve individual change orders up to the designated amount.
Body
SUMMARY:
The objective of the Calabazas Creek Erosion Repair Project (Project) is to repair the eroded channel banks at targeted locations along the creek between Miller Avenue and Bollinger Road. The Project aims to minimize future bank failures, minimize impacts to water quality and riparian habitat associated with bank erosion, add native vegetation, reduce the need for ongoing maintenance, and continue to provide existing flood protection level of service to the community. The Project is estimated to take two months to complete, with the work in the channel limited to the summer construction season of June 15 to October 15.
Project Background
The Calabazas Creek Rehabilitation Project (Rehabilitation Project), from Miller Avenue to Bollinger Road, within the City of Cupertino was completed in 2023 as one of the high priority capital projects under the Watersheds Asset Rehabilitation Program (WARP).
Following the first storm of the season, after the completion of the Rehabilitation Project, regulatory agencies and the Santa Clara Valley Water District (Valley Water) staff conducted a site walk to gauge the conditions of the rehabilitated creek. Several deficiencies were identified, including toe and bank erosion, at transition locations between the improved and unimproved channel length of the Rehabilitation Project.
Repair of these deficiencies was needed and required by the regulatory agencies to prevent further erosion from continuing along the slopes and compromising the rehabilitated channel.
The Project scope of work entails repair and stabilization of channel banks that are eroding at four locations through the installation of rip-rap (two locations) or grouted rip-rap (two locations).
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.
Contract Award
A report of bids received at the bid opening for the Project on June 25, 2025, is summarized in Table 1.
Of the 4 total bids submitted, the lowest bid submitted by Ground Control, Inc. was deemed nonresponsive, resulting in Brannon Corporation of Morgan Hill, CA submitting the lowest responsive bid. The bid submitted by Brannon Corporation is approximately 7.5% lower than the Engineer’s Estimate of $1,241,760. A review of the bids against the Engineer’s Estimate reveals that the Engineer’s Estimate was within the range of the four bids received and within 5% of the average of the four bids.
Staff reviewed the bid proposals and deemed the bid responsive and indicative of the construction market competition and recommends the Board award the Construction Contract to Brannon Corporation as the responsible bidder submitting the lowest responsive bid.
Table 1 - Bid Opening Results
|
Contractor(s) |
Bid Price |
Difference from EE (-) or + % |
Deemed Responsive |
|
Ground Control, Inc., San Francisco, CA |
$844,197 |
(-) 32.0% |
No |
|
Brannon Corporation, Morgan Hill, CA |
$1,148,268 |
(-) 7.5% |
Yes |
|
Atlas Structural Retrofit Contractors, Tustin, CA |
$1,253,999.72 |
(+) 1.0% |
Yes |
|
Ghilotti Construction Company, Santa Rosa, CA |
$1,569,707.50 |
(+) 26.4% |
Yes |
|
Engineer’s Estimate |
$1,241,760 |
|
|
Contingency Funds
The Contract award sum for the Project is $1,148,268. 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 $172,240 (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 Prior Board Actions
On September 14, 2021, the Board adopted and certified the Final Mitigated Negative Declaration (FMND) for the Rehabilitation Project.
On March 22, 2022, the Board adopted the plans and specifications and authorized advertisement for the bids for the Rehabilitation Project.
On May 20, 2022, the Board awarded the construction contract for the Rehabilitation Project to Granite Construction Company.
On November 26, 2024, the Board accepted the work as complete and directed the Clerk to file the notice of completion of contract and acceptance of work for the Rehabilitation Project.
On May 27, 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; 57 minority businesses, and several Chambers of Commerce and small business groups; 105 certified small business contractors; 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 500 contractors and 70 union representatives, for distribution to their members. The total number of entities notified in PlanetBids was 539.
Contractors were contacted using Valley Water PlanetBids Vendor Portal. Broader advertising efforts included the placement 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 goal of at least 30 percent for non-SBE Bidders. Brannon Corporation is certified by the California Department of General Services as an SBE and will perform more than 30% of the work, exceeding the participation goal.
Rights-of-Way
Valley Water has obtained all necessary rights-of-way to construct the Project.
Regulatory Permits
Valley Water has obtained all necessary regulatory permits for the construction of the Project, except for an amendment to the Lake and Streambed Alteration Agreement, which is being negotiated with the California Department of Fish and Wildlife for a permit to finalize an onsite mitigation area. It is anticipated that this permit will be received in the next couple of weeks and an additional mitigation area will be required to be implemented during construction as a change order. Staff has identified a suitable location for this work and expect the cost to be under $15,000. The Notice to Proceed for the contractor will not be issued until we receive this permit.
Public Outreach
During the design phase, staff successfully coordinated with the City of Cupertino 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 August 2025 and be completed by October 2025.
ENVIRONMENTAL JUSTICE AND EQUITY IMPACT:
There are no environmental justice and equity impacts associated with Calabazas Creek Erosion Repair Project. This action is unlikely to result in adverse impacts and is not associated with an equity opportunity.
FINANCIAL IMPACT:
The Project is included under the Watersheds Asset Rehabilitation Program (WARP), Project No. 62084001. The WARP is included in the Capital Improvement Program (CIP) Fiscal Years (FY) 2026-30 Five-Year Plan and in the FY 2025-26 Adopted budget. The total cost for the recommended construction contract, including the contingency sum of $172,240 is $1,320,508 and does not change the overall total project cost reflected in the CIP FY 2026-30 Five-Year Plan. There are adequate funds in the FY 2025-26 Adopted budget to encumber funds for Project construction. 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.
On September 14, 2021, the Board adopted and certified the Final Mitigated Negative Declaration (FMND) for the Rehabilitation Project. The proposed scope of work and impact is part of the project described in the FMND and all mitigation measures identified in the MND will be implemented.
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