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 Teresa Water Treatment Plant Filter Media Replacement Project, Thompson Builders Corporation, Contractor, Project No. 93284013, Contract No. C0681 (San Jose, District 7).
End
RECOMMENDATION: Recommendation
A. Accept the work on the Santa Teresa Water Treatment Plant Filter Media Replacement Project, Project No. 93284013, Contract No. C0681 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, Thompson Builders Corporation (Contractor), has completed the Santa Teresa Water Treatment Plant Filter Media Replacement Project (Project).
Project Background
The Santa Teresa Water Treatment Plant (STWTP) is the largest of Santa Clara Valley Water District’s (Valley Water) three potable water treatment plants, delivering up to 100 million gallons of water per day to retailers, businesses, and residents within Valley Water’s service area. The plant supplies most of South San Jose, including Almaden Valley, Blossom Valley, and Santa Teresa.
The Project replaced filter media, inlet valves, and other appurtenances within the filters that are beyond their estimated useful life cycle. This will help ensure that STWTP maintains its operational capacity and continues to effectively serve customers, retailers, and the public with safe, high-quality drinking water.
Relevant Prior Board Actions
On September 14, 2021, the Board adopted a Resolution setting the time and place for the Public Hearing on the Engineer’s Report to take place on September 28, 2021.
On September 28, 2021, the Board held a Public Hearing and adopted Resolution 21-81 approving the Engineer’s Report for this Project, approved the CEQA Exemption Determination for this Project, and approved the Project.
On February 22, 2022, the Board found that the Santa Teresa Water Treatment Plant Filter Media Replacement Project was substantially complex and required a construction contract retention of ten percent (10%), found that Binnies nozzle domes (stock number 998/906) and Binnies nozzle stems (stock number 998/904) should be designated by specific brand name and catalog item as sole source products to match other products already in use at the Santa Teresa Water Treatment Plant (Public Contract Code section 3400(c)(2)), adopted plans and specifications and authorized advertisement for bids for the Santa Teresa Water Treatment Plant Filter Media Replacement Project per the Notice to Bidders, and authorized the Designated Engineer to issue addenda, as necessary, during the bidding process.
On April 26, 2022, the Board ratified Addenda Nos. 1 and 2 to the Contract Documents for the Santa Teresa Water Treatment Plant Filter Media Replacement Project, awarded the Construction Contract to Thompson Builders Corporation, in the sum of $13,187,640, and approved a contingency sum of $1,978,146 and authorized the Chief Executive Officer or designee to approve individual change orders up to the designated amount.
Contract Change Orders
A total of five (5) contract change orders totaling net decrease of $2,297,262.69 were executed for this contract to address various issues, including unforeseen issues with manufacturers and suppliers, unforeseen issues and conflicts, Valley Water requested changes, and credits back to the contract for deleted items of work.
These changes included:
A. $422,378.00 for the additional cost to change the underdrain nozzle manufacturer to meet the Division of Drinking Water’s National Sanitation Foundation certification requirements.
B. $186,831.00 for additional work required to address the Fire Protection Plan for the Snell Pipeline Inspection and Rehabilitation Project, which included setting up temporary fire protection measures at STWTP with suction and returned lines for fire water, fire hydrant, pump, pipes, and other appurtenances.
C. $22,169.00 for additional sludge removal from wash water basins, troubleshooting Filter 3W valve actuator, and sealed cracks with NSF certified epoxy in both East and West Filter Galleries.
D. $136,812.31 for storage of three filters worth of Granular Activated Carbon at Calgon’s yard and additional costs of sand and delivery.
E. ($3,065,453.00) credits included the deletion of contract work requested by operations and maintenance staff such as filter siphons (Bid Item 4). Additional credits included the removal of wash water effluent valves (Bid Item 6) due to unforeseen existing conditions and extra underdrain nozzles (Bid Item 9). Remaining credits included supplemental work (Bid Items 13 through 18A) which were not performed as part of this contract.
Table 1 presents a summary of the construction contract and contingency amounts.
TABLE 1
SUMMARY OF CONSTRUCTION CONTRACT
AND CONTINGENCY AMOUNTS
|
|
Contract Amount |
Contingency Amount Remaining |
|
Original Contract and Board-Approved Contingency |
$13,187,640.00 |
$1,978,146.00 |
|
Change Order No. 1 (CEO approved) |
$422,378.00 |
$1,555,768.00 |
|
Change Order No. 2 (Deputy approved) |
$186,831.00 |
$1,368,937.00 |
|
Change Order No. 3 (Staff approved) |
$22,169.00 |
$1,346,768.00 |
|
Change Order No. 4 (Deputy approved) |
$136,812.31 |
$1,209,955.69 |
|
Contingency Amount Spent on COs 1-4 and Remaining |
$768,190.31 |
$1,209,955.69 |
|
Change Order No. 5 Final (Staff approved contract credit) |
($3,065,453.00) |
|
|
Reduced Contract Amount with Credit |
$10,122,187.00 |
|
|
Final Contract Amount with Change Orders and Credit |
$10,890,377.31 |
|
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 ($1,089,037.75) 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 $13,187,640.00 has been decreased by $2,297,262.69 to $10,890,377.31 in approved change orders, a decrease of approximately 17.42 percent and under the Board approved contingency.
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 Santa Teresa Water Treatment Plant Filter Media Replacement Project, Project No. 93284013, is included in the Capital Improvement Program (CIP) FY 2025-29 Five-Year Plan and in the FY 2024-25 Adopted budget. The Project was funded by the Water Utility Enterprise Fund (Fund 61), with 100 percent of the cost allocated to Zone W-2 (North County).
Transfer of Remaining Balances
The original contract amount of $13,187,640.00, combined with the Board-approved contingency encumbrance of $1,978,146.00 totals $15,165,786.00, for construction of the Project. The original contract amount of $13,187,640.00 was reduced by ($3,065,453) with Change Order #5’s contract credit, resulting in a reduced contract amount of $10,122,187. When combined with the contingency amount spent on Change Orders 1-4, totaling $768,190.31, the final contract amount with all change orders and credit is $10,890,377.31.
The total approved for construction of the Project of $15,165,786.00 less $10,890,377.31 (the final contract amount with all change orders and credit) results in a positive balance of $4,275,408.69. Upon Project completion and close-out, $4,275,408.69 is planned for release to the Water Utility Enterprise Fund (Fund 61).
CEQA:
The Project qualifies for a Categorical Exemption under CEQA Guidelines Section 15301; Existing Facilities [Class 1 - operation, repair, maintenance, minor alteration of existing structures and facilities]. A Notice of Exemption has been prepared and filed with the County of Santa Clara Office of the Clerk-Recorder.
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