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 Hale Creek Enhancement Pilot Project (Stage 1), McGuire and Hester, Contractor, Project No. 26164001, Contract No. C0667 (Mountain View, Los Altos, District 7).
End
RECOMMENDATION:
Recommendation
A. Accept the work on the Hale Creek Enhancement Pilot Project (Stage 1), Project No. 26164001, Contract No. C0667 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, McGuire and Hester, has completed Stage 1 (Milestones 1 and 2) for the Hale Creek Enhancement Pilot Project (Project).
Project Background
Hale Creek is a major tributary to Permanente Creek. The purpose of the Project was to restore geomorphic and habitat functions to a 650-foot-long section of Hale Creek, between Marilyn Drive and North Sunshine Drive in Mountain View and Los Altos, by replacing the existing concrete channel with a soft-bottom channel comprised of natural substrates and vegetation.
The objective of the Hale Creek Enhancement Pilot Project was to provide Santa Clara Valley Water District (Valley Water) the opportunity to examine a new approach using a hybrid method of hardscape vertical structures combined with a vegetated soft bottom channel to test the potential for restoration of geomorphic habitat functions in an urbanized and constrained setting while maintaining and enhancing flood protection. The results of the Project will be used to inform future work for the rest of Hale Creek, as well as miles of concrete channels in Santa Clara County as they reach the end of their life cycle.
The Project is being constructed in two stages. Stage 1 construction work was comprised of completing Milestone 1 and Milestone 2, civil work and plant installation.
Stage 2 construction consists of the landscape and revegetation establishment maintenance work (Milestone 3), which is in progress and scheduled for completion in December 2025. This Board action is only to accept as complete Stage 1 (Milestones 1 and 2). Staff will recommend a separate Board action to accept the Stage 2 work (Milestone 3) after the landscape and revegetation establishment maintenance phase of the contract is completed.
Relevant Prior Board Actions
On November 20, 2012, the Board certified a Final Subsequent Environmental Impact Report (FSEIR) for the Permanente Creek Flood Protection Project.
On March 8, 2022, the Board considered the Sixth Addendum to the FSEIR for the Permanente Creek Flood Protection Project, which evaluated the environmental impacts of the construction and operation of the Hale Creek Enhancement Pilot Project.
On March 8, 2022, the Board adopted the plans and specifications and authorized advertisement for bids for construction.
On May 10, 2022, the Board awarded the subject contract to the Contractor in the amount of $6,380,681.50 and approved a contingency fund of $957,102.23. The Board authorized the Chief Executive Officer (CEO) or designee 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 change orders up to $100,000 and $250,000, respectively.
Contract Change Orders
A total of three (3) contract change orders totaling $153,038.87 were executed for this contract to address changes due to various issues, including unforeseen site conditions, post-design clarifications, Valley Water requested changes and credits to the contract for adjustments to bid items based on final quantity measurements.
These changes included:
A. $154,640.70 for additional work required to address unforeseen site conditions. This includes work ranging from relocating irrigation piping for $2,767.29 to redirecting soil off-haul to the landfill for disposal due to exceedance of Regional Water Quality Control Board (RWQCB) Environmental Screening Levels (ESLs) for $138,071.41.
B. $69,682.23 for additional work required to address post-design clarifications. This includes work ranging from $3,715.95 for additional work to close a gap between fence types to $14,063.96 for additional work in removing the work shed remaining on private property.
C. $77,926.94 for additional Valley Water-requested changes. This includes work ranging from $2,620.80 for changes to bridge deck rebar to $35,000 for additional bank work to ensure Project geomorphic success.
D. $149,211.00 credit for deleted items of work and adjustment based on final quantities.
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 |
|
Original Contract |
$6,380,681.50 |
$957,102.23 |
|
Change Order No. 1 (staff approved) |
$57,778.97 |
<$57,778.97> |
|
Change Order No. 2 (staff approved) |
$73,771.61 |
<$73,771.61> |
|
Change Order No. 3 (staff approved) |
$21,488.29 |
<$21,488.29> |
|
Final Contract Amount and Remaining Contingency |
$6,533,720.37 |
$804.063.36 |
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. The Construction Summary including photos of the Project are included as 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.
In accordance with the Public Contract Code, Valley Water is currently withholding retention funds totaling five percent (5%) of the contract items associated with Stage 1 contract amount ($323,968.77). 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 work and a second Notice of Completion will be recommended once Stage 2 work is complete. Retention withheld for Stage 1 will be released as a result of the Board’s acceptance. Retention for Stage 2 will be released after that work is completed and a Notice of Completion is recorded.
Total Project Expenditures
As indicated in the Summary of Construction Contract and Contingency Amounts (Table 1), at Stage 1 completion, the original contract amount of $6,380,681.50 has been increased by $153,038.87 to $6,533,720.37, an increase of approximately 2.4 percent.
ENVIRONMENTAL JUSTICE IMPACT:
There are no Environmental Justice impacts associated with this Board action to approve the Notice of Completion of Contract and Acceptance of Work. However, the completed Project will have a positive impact on the community by providing flood protection to the communities surrounding the creek, promoting a stable geomorphic channel condition, and enhancing creek habitat values.
FINANCIAL IMPACT:
The Hale Creek Enhancement Pilot Project (Stage 1), Project No. 26164001, is included in the Capital Improvement Program (CIP) Fiscal Year FY 2024-2028 Five Year Plan and in the FY 2023-24 Adopted Budget. Total financial costs were detailed in previous sections of the 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 Summary
Attachment 5: Project Delivery Process Chart
UNCLASSIFIED MANAGER:
Manager
Karl Neuman, 408-630-3059