BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Notice of Completion of Contract and Acceptance of Work for the Coyote Warehouse Project (Stage 1 of Construction), Calstate Construction, Inc., Contractor, Project No. 91234011, Contract No. C0635 (Morgan Hill) (District 1).
End
RECOMMENDATION:
Recommendation
A. Accept the work on the Coyote Warehouse Project (Stage 1 of Construction), Calstate Construction, Inc., Contractor, Project No. 91234011, Contract No. C0635 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, Calstate Construction, Inc., has completed Stage 1 of Construction for the Coyote Warehouse Project (Project). The construction contract was awarded in the amount of $5,699,000 and the construction contract amount through completion of Stage 1 is $5,544,403.84. Subject to any withholds required by law or the contract, acceptance of the work by the Board will allow for the release of $275,020.20 in retention to the contractor.
Project Background
The objective of the Project was to construct a suitable storage facility for parts and materials used in the maintenance and operation of Valley Water’s pipelines and infrastructure to support ongoing operations to efficiently provide reliable drinking water to water retailers, business, and residents in Santa Clara County. Improvements include installation of an approximately 21,600 square foot pre-engineered metal building warehouse, site grading, paving, utilities, installation of a bio-retention swale and screening landscaping.
The contractor has completed Stage 1 of Construction of the Project.
Stage 2 of Construction includes a 24-month period of landscape maintenance which is in progress and scheduled for completion in December 2022.
Previous Board Actions
On June 13, 2017, the Board adopted Resolution 17-41 setting the time and date for a public hearing on the Engineer’s Report to take place on June 27, 2017.
On June 27, 2017, the Board conducted a public hearing on the Initial Study/Mitigated Negative Declaration (IS/MND) and the Engineer’s Report for the Project; adopted Resolution 17-44 adopting the IS/MND and the Mitigation and Monitoring Report Program; adopted Resolution 17-45 to approve the Engineer’s Report; and approved the Project.
On October 9, 2018, the Board adopted the plans and specifications and authorized advertisement for bids to construct the Project.
On December 11, 2018, the Board awarded the subject contract to Calstate Construction, Inc. in the amount of $5,699,000 and approved a contingency fund of $569,900. The Board authorized the Chief Executive Officer (CEO) to approve individual change orders up to the total amount of the contingency, with the Engineering Unit Manager and Deputy Operating Officer to approve individual changes up to $100,000 and $250,000, respectively.
Contract Change Orders
A total of five (5) contract change orders totaling a net credit of $154,596.16 were executed for this contract to address various issues, including unforeseen site conditions, post-design clarifications, Valley Water requested changes, and credits back to the contract for adjustments to bid items based on final quantity measurements.
These changes included:
A. $466,024.00 for additional work required to address post-design clarifications. This included grinding and resurfacing 66,768 square feet of asphalt pavement; replacing 1725 square feet of existing concrete pads and aggregate base material; installation of new detector loops to maintain functionality of front gate as part of the paving work; and installation of bollards around backflow preventer and modifications to the fire alarm system.
B. $419,771 for additional work required to address unforeseen site conditions.
This included sifting and processing operations to remove large cobbles and rocks that were discovered during subsurface preparation of the existing soil; excavating multiple test pits to determine subsurface soil conditions; and crushing of approximately 1800 cubic yards of cobbles and rocks extracted from the soil to produce necessary structural fill material that was reused as subgrade for the Project.
C. $53,746.00 for additional work requested by Valley Water staff. This included slab modifications to accommodate a future mezzanine; lowering the height of stockpile material; installation of a continuous fall protection cable system on the roof of Coyote Warehouse building; and installation of an additional card reader and adjustment to interior cameras inside the Coyote Warehouse building.
D. Total credits in the amount of $1,094,137.16 to the contract for adjustments to bid items based on final quantity measurements and deletion of supplemental bid items of work. Deletion of the supplemental bid items of work included: No. 10 - Pavement Demolition and Removal, No. 11 - Pavement Aggregate, No. 12 - Pavement Asphalt, No. 13 - Concrete Removal and Replacement with Pavement Drains.
Table 1 presents a summary of the construction contract amounts.
TABLE 1. SUMMARY OF CONSTRUCTION CONTRACT
AMOUNTS
|
|
Contract Amount |
|
Original Contract |
$5,699,000.00 |
|
Change Order No. 1 (staff approved) |
$26,422.00 |
|
Change Order No. 2 (CEO approved) |
$277,461.00 |
|
Change Order No. 3 (CEO approved) |
$137,977.00 |
|
Change Order No. 4 (CEO approved) |
<$529,608.00> |
|
Change Order No. 5 (staff approved) |
<$66,848.16> |
|
Current Contract Amount (Stage 1 of Construction) |
$5,544,403.84 |
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 five percent (5%) of the contract ($275,020.20) 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 of Contract and Acceptance of Work is recommended for Stage 1 of Construction. A second Notice of Completion and Acceptance of Work will be recommended after Stage 2 work is completed at a later date.
Project Expenditures
As indicated in the Summary of Construction Contract (Table 1), at the end of Stage 1 Construction the original contract amount of $5,699,000 has been decreased by $154,596.16 to $5,544,403.84. This represents a decrease of approximately 2.7 percent (2.7%).
FINANCIAL IMPACT:
The Coyote Warehouse Project is included in the Five-Year 2021-25 Capital Improvement Program (CIP) and in the FY 2020-21 Adopted Budget. The total Project cost remains unchanged. Financial costs are detailed in previous sections of this agenda memorandum. No additional funding is recommended.
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 Photos
Attachment 5: Project Delivery Process Chart
UNCLASSIFIED MANAGER:
Manager
Heath McMahon, 408-630-3126