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 Calabazas Creek Rehabilitation Project, Stage 1-Civil Work (Milestones 1-3) and Stage 2 - Plant Establishment (Milestones 3A, 4, & 5), Under the Watersheds Asset Rehabilitation Program, Granite Construction Company, Contractor, Project No. 62084001, Contract No. C0683, (Cupertino, District 5).
End
RECOMMENDATION:
Recommendation
A. Accept the work on the Calabazas Creek Rehabilitation Project, Stage 1 - Civil Work (Milestones 1-3) and Stage 2 - Plant Establishment (Milestones 3A, 4, & 5), Project No. 62084001, Contract No. C0683 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.
Body
SUMMARY:
The construction contractor, Granite Construction Company (Contractor), has completed the Calabazas Creek Rehabilitation Project Stage 1 - Civil Work (Milestones 1-3) and Stage 2 - Plant Establishment (Milestones 3A, 4, & 5) (Project).
Project Background
The Project was undertaken as part of the Watersheds Asset Rehabilitation Program (WARP). During past inspections by Watersheds Operations and Maintenance staff, deficiencies were observed along the creek between Miller Avenue and Bollinger Road, including erosion, bank failures, and surfaces lacking adequate vegetation cover. These deficiencies were exacerbated as a result of winter storm events in years 2016-2017. The Project entailed repairing and stabilizing the channel bank at ten (10) locations during two (2) summer seasons.
The Project’s Stage 1- Civil Work (Milestones 1-3) included the following elements:
• Rehabilitated damaged creek bank sections to As-built/natural conditions;
• Minimized likelihood of future bank failure;
• Minimized impacts on water quality and riparian habitat associated with continued bank erosion;
• Reduced the need for on-going maintenance; and
• Continued to provide adequate flood protection
The Project’s Stage 2 - Plant Establishment (Milestones 3A, 4, and 5) included hydroseeding and plant establishment that began in December 2023 following the installation of native grass and trees. Establishment of the native grass has been completed and staff has determined that the remaining work to maintain the trees is more suitably accomplished by retaining and working directly with a specialized landscape contractor with oversight and support from Santa Clara Valley Water District (Valley Water) staff.
Relevant Prior Board Actions
On September 14, 2021, the Board adopted a resolution adopting the Final Mitigated Negative Declaration and mitigation monitoring and reporting program for the Project.
On March 22, 2022, the Board adopted the plans and specifications and authorized advertisement for bids for construction of the Project, per the Notice to Bidders and authorized the Designated Engineer to issue addenda, as necessary during the bidding process.
On May 24, 2022, the Board ratified Addenda Nos.1 and 2 to the Contract Documents; waived minor irregularities in the Contractor’s Bidder’s Bond; awarded the Contract No. C0683 to the Contractor, in the sum of $14,892,700; approved a contingency sum of $1,489,270; and authorized the Chief Executive Officer or designee to approve individual change orders up to the designated amount.
On January 9, 2024, the Board approved an increase of $800,000 to the construction contingency sum, bringing the total contingency to $2,289,270 for the Project.
Contract Change Orders
A total of twelve (12) contract change orders and two (2) directed contract change orders totaling $1,677,208.83 were executed for this contract to address various issues, including unforeseen site conditions, additional tree removal, additional equipment mobilization, permit amendment impacts, acceleration of the contract schedule, and invasive species removal.
Table 1 presents a summary of the 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 for Stage 1 and Stage 2 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 associated with Stage 1 - Civil Work (Milestones 1-3) and Stage 2 - Plant Establishment (Milestones 3A, 4, & 5) ($828,495.45) 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 Stage 1 - Civil Work (Milestones 1-3) and Stage 2 - Plant Establishment (Milestones 3A, 4, & 5). Retention withheld for Stage 1 and Stage 2 will be released as a result of the Board’s acceptance and after the Notice of Completion is recorded.
Project Expenditures
As indicated in the Summary of Construction Contract and Contingency Amounts (Table 1) at Stage 1 - Civil Work (Milestones 1-3) and Stage 2 - Plant Establishment (Milestones 3A, 4, & 5) completion, the original contract amount of $14,892,700.00 has been increased by $1,677,208.83 to $16,569,908.83. This represents an increase of approximately 11.3 percent (11.3%).
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 Calabazas Creek Rehabilitation Project, Stage 1 - Civil Work (Milestones 1-3) and Stage 2 - Plant Establishment (Milestones 3A, 4, & 5), under the Watersheds Asset Rehabilitation Program, Project No. 62084001, is included in the Capital Improvement Program (CIP) Fiscal Years (FY) 2025-29 Five-Year Plan and in the FY 2024-25 Adopted budget. The Project is funded through the Watershed and Stream Stewardship Fund (Fund 12). Total financial costs were detailed in previous sections of this agenda memorandum. No additional funding is recommended.
Transfer of Remaining Balances
Upon construction contract close-out, the remaining unspent contingency amount of $612,061.17 will be released to Fund 12 Watershed and Stream Stewardship 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 for Stage 1 & Stage 2
Attachment 4: Construction Photos
Attachment 5: Project Delivery Process Chart
UNCLASSIFIED MANAGER:
Manager
Bhavani Yerrapotu, 408-630-2735