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 Santa Clara Conduit Inspection and Rehabilitation Project - Phase 2, as part of the 10-Year Pipeline Inspection and Rehabilitation Project, Con-Quest Contractors Inc., Contractor, Project No. 95084002, Contract No. C0697 (Morgan Hill, Gilroy, Unincorporated San Benito County, and Unincorporated Santa Clara County, District 1).
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RECOMMENDATION: Recommendation
A. Accept the work on the Santa Clara Conduit Inspection and Rehabilitation Project - Phase 2, as part of the 10-Year Pipeline Inspection and Rehabilitation Project, Project No. 95084002, Contract No. C0697 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, Con-Quest Contractors Inc. (Contractor), has completed the Santa Clara Conduit Inspection and Rehabilitation Project - Phase 2 (Project), as part of the 10-Year Pipeline Inspection and Rehabilitation Project.
Project Background
The Santa Clara Conduit is included in Santa Clara Valley Water District’s (Valley Water) Pipeline Maintenance Program (PMP) and is an identified capital effort under the 10-Year Pipeline Inspection and Rehabilitation Project. The PMP defines the activities associated with the maintenance and repair of water supply conveyance systems throughout Valley Water’s jurisdiction.
The purpose of the 10-Year Pipeline Inspection and Rehabilitation Project is to maintain the integrity of approximately 140 miles of large-diameter raw and treated water transmission pipelines, extend their useful life, and address concerns related to infrastructure reliability. Other projects completed as part of the 10-year Inspection and Rehabilitation Project include: Almaden Valley Pipeline, Pacheco Conduit, Snell Pipeline, Cross Valley and Calero Pipelines, and Central and Parallel East Pipelines.
Santa Clara Conduit
The Santa Clara Conduit (SCC) consists of approximately 22 linear miles of primarily 96-inch prestressed concrete cylinder pipe (PCCP). It conveys raw water from the Bifurcation structure near Casa De Fruta Parkway and Pacheco Pass Highway to the Coyote Pumping Plant in Morgan Hill. The SCC was constructed in 1988 and is owned by the U.S. Bureau of Reclamation (USBR). SCC is part of the USBR San Felipe System and is operated and maintained by Valley Water. It begins at the Bifurcation structure, runs along the Santa Clara Tunnel, continues along the cities of Gilroy, San Martin, and Morgan Hill in Santa Clara County and the northern portion of San Benito County, and ends at the Coyote Pumping Plant.
The Santa Clara Conduit was inspected and rehabilitated in two phases. The first phase was completed under the “Santa Clara Conduit Rehabilitation and Pacheco Conduit Sectionalizing Vault Replacement Project,” Contract No. C0673, and covers the Santa Clara Conduit from the end of the Santa Clara Tunnel to Sectionalizing Valve 1, located in unincorporated Santa Clara and San Benito Counties, City of Gilroy, and City of Morgan Hill. The construction for Phase 1 of the Project was completed in July 2024 and transitioned to Phase 2 in August 2023.
The completed Project scope of work included completely draining and removing all water from the Santa Clara Conduit in the section between Sectionalizing Valve 1 and Coyote Pumping Plant, performing repairs on pipeline appurtenances, replacing line valves, providing support for a manned internal pipeline inspection, installing an Acoustic Fiber Optic (AFO) monitoring system, installing supervisory control and data acquisition (SCADA) system components, installing corrosion protection systems, and performing internal pipeline repair work as identified during the inspections.
Relevant Prior Board Actions
On November 13, 2007, the Board certified the Pipeline Maintenance Program Environmental Impact Report (PMP EIR) and adopted the Mitigation Monitoring Plan.
On March 9, 2010, the Board adopted Resolution 10-24, setting a time and date for the public hearing on the Engineer’s Report for the subject Project.
On April 13, 2010, the Board held a public hearing and adopted Resolution 10-29 approving the PMP Engineer’s Report and approving the PMP.
On January 8, 2019, the Board approved a sole source purchase of equipment and services from Pure Technologies U.S., Inc. to provide electromagnetic inspection, acoustic fiber optic (AFO) monitoring system, and AFO system services for the 10-Year Pipeline Inspection and Rehabilitation Program.
On April 11, 2023, the Board adopted the Project plans and specifications and authorized advertisement for bids for construction, authorized the designated engineer to issue addenda, as necessary, during the bidding process, and found the project to be substantially complex and requiring a construction contract retention of 10 percent.
On August 8, 2023, the Board ratified Addenda Nos. 1 and 2 to the Contract Documents for the Project, awarded the Construction Contract to Con-Quest Contractors, Inc. located in Burlingame, CA, in the sum of $8,484,651.00; and approved a contingency of 10% in the amount of $848,465.00 and authorized the Chief Executive Officer or designee to approve individual change orders up to the designated amount.
Contract Change Orders
A total of nine (9) contract change orders totaling a net increase of $92,798.59 were executed for this contract to address various issues, including unforeseen site conditions, unforeseen utility conflicts, post-design clarifications, Valley Water requested changes, and credits back to the contract for deleted items of work and adjustments to bid items based on final quantity measurements.
These changes included:
A. $473,137.26 for additional work required to address unforeseen site conditions and utility conflicts. This includes work such as procurement of additional reducing nozzles, vault, piping, and appurtenances modifications, additional dewatering operations, pipe leak repairs, road sinkhole repairs, addressing pipe misalignments, addressing utility conflicts/coordination, and survey monument preservation.
B. $232,090.55 for additional Valley Water-requested changes and post-design clarifications. This includes work such as procurement of carbon steel tie rods, restrained dismantling joint (RDJ)positioning swap at Calaveras Fault Crossing Outlet (CFO), installation of electrical breakers, light fixtures, utility pull boxes, combined air release valve (CARV)enclosure, and new appurtenances, delivery delay of line valves, erection of a scaffold system, weed abatement, and acceleration of work.
C. <$612,429.22> for credits associated with the deletion of contract work. This amount includes $60,434.00 in credit for deletion of base bid items associated with the Sectionalizing Valve 2 (SV2) bypass, pipe tee, and pump out risers which were not performed as part of this contract. The amount also includes $551,995.22 in credit for deletion of supplemental bid items associated with internal pipe repairs and other miscellaneous items including Carbon Fiber Reinforcement for PCCP (Bid Item 46), Cement Mortaring for Internal Pipeline Repairs (Bid Item 47), Welding for Internal Pipeline Repairs (Bid Item 48), Internal Pipeline Debris Removal Work (Bid Item 49), Internal Pipeline Weko-Seal Installation (Bid Item 50), Additional Potholing to Locate Utilities (Bid Item 51), Pavement Restoration (Bid Item 52), and Professionally Facilitated Project Partnering (Bid Item 53) . The internal pipeline repairs and investigation of existing utilities are dependent on the findings of the internal pipeline inspection and field markings through an Underground Service Alert (USA).
The final total contract amount is $8,577,449.59.
Table 1 presents a summary of the construction contract and contingency amounts for this Project.
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 his 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 ten percent (10%) of the contract items ($857,744.96) 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. Retention withheld will be released as a result of the Board’s acceptance and recording of the Notice of Completion.
Total Project Expenditures
As indicated in the Summary of Construction Contract and Contingency Amounts (Table 1), after Change Orders 1-9 were processed, the original contract amount of $8,484,651.00 was increased to $8,577,449.59, which is an increase of approximately 1.09 percent.
ENVIRONMENTAL JUSTICE IMPACT:
There are no environmental justice impacts associated with this item. This action is unlikely to or will not result in disproportionate impacts on any specific community relative to the general population from the implementation of this project.
FINANCIAL IMPACT:
Santa Clara Conduit Inspection and Rehabilitation Project, as part of the 10-Year Pipeline Inspection and Rehabilitation Project, Project No. 95084002, is included in the Capital Improvement Program (CIP) FY 2026-30 Five-Year Plan and in the FY 2025-26 Adopted budget. The Project is funded through the Water Utility Enterprise Fund (Fund 61) with 95.89% of the costs allocated to North County Zone W-2, 3.16% to South County Zone W-5, 0.89% to South County Zone W-7, and 0.06% to South County Zone W-8.
Transfer of Remaining Balances
The original contract amount of $8,484,651.00, combined with the Board approved contingency encumbrance of $848,465.10, totals $9,333,116.10 for construction of the Project. The original contract amount ($8,484,651.00) was reduced by $512,382.31 with Change Order No. 9’s contract credit, resulting in a reduced contract amount of $7,972,268.69. After deducting the cost incurred for Change Orders 1-8, totaling $605,180.90, the final contract amount is $8,577,449.59.
The total approved amount for construction of the Project $9,333,116.00 less the final contract amount including all change orders and credit is $8,577,449.59 resulting in a positive balance of $755,666.51. Upon construction contract close-out $755,666.51 will be released to project reserves for the 10-Year Pipeline Inspection and Rehabilitation Project (95084002).
CEQA:
The recommended action does not constitute a project under CEQA because it does not have 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
Emmanuel Aryee, 408-630-3074