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 Permanente and Hale Creek Concrete Channel Repair Project, Disney Construction, Inc., Contractor, Project No. 62084001, Contract No. C0707 (Mountain View and Los Altos, District 7).
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RECOMMENDATION: Recommendation
A. Accept the work on the Permanente and Hale Creeks Concrete Channel Repair Project, Project No. 62084001, Contract No. C0707 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, Disney Construction, Inc. (Contractor), has completed the Permanente and Hale Creeks Concrete Channel Repair Project (Project).
Project Background
Permanente and Hale Creeks are part of the Lower Peninsula Watershed. The existing concrete U-frame channels were constructed in the early 1960s and have exceeded their intended design lifespan. These channels exhibit significant structural deficiencies, including wall deflection, concrete spalling, and cracking. The locations of these deficiencies were most prevalent on Permanente Creek from Park Drive to Mountain View Avenue within the City of Mountain View and along Hale Creek from Arboleda Avenue to Rosita Avenue within the City of Los Altos. If these issues were not addressed, deterioration would continue, and there would be an increased risk of asset failure. This project was identified as one of the high-priority projects under the Watersheds Asset Rehabilitation Program (WARP).
Evaluation of alternatives to address the deflection and comply with updated structural standards has been proposed as a newly validated CIP Project and remains on the unfunded list as presented to the Board on January 14, 2025 as part of the FY2026 - FY2030 CIP. Defining this larger project and securing additional funding will be part of future years’ CIP development. Meanwhile, the project was constructed to prevent any further deflection of the existing walls.
Staff estimates that this repair option will extend the lifespan of the existing facility by approximately 10 years.
The objective of the Project is to prevent future deflections of the existing concrete walls and extend their service life.
The scope of the repair is to:
1) Repair concrete spalls and cracks;
2) Install vertical steel columns into the existing U-frame walls to support steel struts; and
3) Install steel struts between the vertical steel columns to prevent further deflection of the existing walls.
Relevant Prior Board Actions
On February 11, 2025, the Board adopted plans and specifications and authorized advertisement for bids for construction.
On April 22, 2025, the Board received report of bids; awarded the Project construction contract to the Contractor, in the sum of $1,384,450; approved a 15 percent contingency sum of $207,667.50, and authorized the Chief Executive Officer or designee to approve individual change orders up to the designated amount.
Contract Change Orders
Three (3) contract change orders totaling $119,115.50 were executed for this contract to address Valley Water requested changes and credits back to the contract for deleted items of work.
These changes included:
A. $79,297.88 for the additional concrete spall repairs for the walls at Hale Creek discovered during construction and steel anchor pull tests for both Permanente and Hale Creeks.
B. $110,065.60 for additional spall repairs for the existing cracks within the channel bottom at Hale Creek discovered during construction.
C. $31,372.02 for additional steel bracings at Permanente Creek and additional concrete spall repairs for the slab at Permanente Creek deemed necessary during construction.
D. ($101,620.00) credits included the deduction for the remaining unnecessary contract work for the joint seal replacement, joint header repair, crack, and for the supplemental work for winterization which was not performed since the project was completed before winterizing the site was needed.
Table 1 presents a summary of the construction contract and contingency amounts associated with the Project.
TABLE 1
SUMMARY OF CONSTRUCTION CONTRACT
AND CONTINGENCY AMOUNTS
|
|
Contract Amount |
Contingency Amount Remaining |
|
Original Contract |
$1,384,450.00 |
$207,667.50 |
|
Change Order No. 1 (DOO approved) |
$79,297.88 |
$128,369.62 |
|
Change Order No. 2 (DOO approved) |
$110,065.60 |
$18,304.02 |
|
Change Order No. 3 Final (Staff Approved) |
(70,247.98) |
$88,552.00 |
|
Final Change Order Amount |
$119,115.50 |
|
|
Final Contract Amount with Change Orders and Credit |
$1,503,565.50 |
$88,552.00 |
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 their knowledge, in accordance with the plans and specifications, and recommends acceptance. The Designated Engineer’s representative 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.
Santa Clara Valley Water District (Valley Water) is currently withholding retention funds totaling five percent (5%) of the contract items ($75,178.28) 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.
Total Project Expenditures
As indicated in the Summary of Construction Contract and Contingency Amounts (Table 1), the original contract amount of $1,384,450.00 increased by $119,115.50 to $1,503,565.50 in approved change orders and credits, an increase of approximately 8.60 percent, which is under the Board-approved contingency.
ENVIRONMENTAL JUSTICE IMPACT:
There are no environmental justice impacts associated with this item. This action is unlikely to or will not result in adverse impacts.
FINANCIAL IMPACT:
The Permanente and Hale Creek Concrete Channel Repair Project (Task No. 5219) is included under the Watersheds Asset Rehabilitation Program (WARP), Project No. 62084001, and is included in the Capital Improvement Program (CIP) FY 2026-30 Five-Year Plan and in the FY 2025-26 Adopted budget. The Project was funded by the Watersheds Stream Stewardship Fund (Fund 12).
Transfer of Remaining Balances
The original contract amount of $1,384,450.00, combined with the Board-approved contingency encumbrance of $207,667.50, totals $1,592,117.50 for construction of the Project. The total final expended amount for the construction of the Project is $1,503,565.50. This results in a remaining balance of $88,552.00 and upon completion and close-out of Contract No. C0707is planned for release to WARP (Project No. 62084001), project reserves.
CEQA:
Valley Water is the lead agency under the California Environmental Quality Act for implementation of the Project. The Project is covered under the Stream Maintenance Program Update (SMP-2), 2014-2026 and the Environmental Impact Report for the Stream Maintenance Program was certified by the Board on January 24, 2012.
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
Bhavani Yerrapotu, 408-630-2735
Emmanuel Aryee, 408-630-3074