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 Lower Calera Creek Flood Protection Project, Stage 2 (Milestones 2-4), Granite Construction Company, Contractor, Project No. 40174005, Contract No. C0666-1 (Milpitas, District 3).
End
RECOMMENDATION: Recommendation
A. Accept the work on the Lower Calera Creek Flood Protection Project, Stage 2 (Milestones 2-4), Project No. 40174005, Contract No. C0666-1 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, Granite Construction Company, has completed Stage 2 (Milestones 2-4) of the Lower Calera Creek Flood Protection Project (Project).
Project Background
The Project is a portion of the larger Lower Berryessa Creek Flood Protection Project (LBC Project), which extends approximately 1.6 miles from its confluence with Lower Penitencia Creek upstream to Calaveras Boulevard and is part of several flood protection improvements within the city of Milpitas. The LBC Project will help protect the surrounding area by removing approximately 1,800 parcels from the one (1) percent floodplain and provide improved maintenance access to the channel. The LBC Project was carried out in two (2) phases.
The LBC Project, Phase 1 (Phase 1 Project) was completed in December 2016 and included improvements from the Lower Penitencia Creek confluence up to Abel Street. The LBC Project, Phase 2 (Phase 2 Project) includes the segment along Lower Berryessa Creek between Abel Street and Calaveras Boulevard and a segment of Calera Creek from the Union Pacific Railroad that spans to about 880 feet upstream of Arizona Avenue (i.e., Lower Calera Creek). The civil construction work for the Phase 2 Project was completed in July 2020. The plant establishment work was completed in March 2023.
This Project for the Lower Calera Creek segment is the last element of the Phase 2 Project. The Project was constructed in two stages. Stage 1 construction work comprised completing Milestone 1, which was completed in March 2023. Stage 2 (Milestones 2-4) consisted of the waterline repair, plant installation, and a three-year planting establishment and maintenance period (Milestones 2-4), which was completed in January 2026.
Relevant Prior Board Actions
On December 13, 2011, the Board adopted a Resolution certifying the Final Program Environmental Impact Report, adopted the Mitigation Monitoring and Reporting Program and Findings of Fact and Statement of Overriding Considerations for the Program, and approved the Lower Berryessa Creek and Lower Calera Creek elements of the Program.
On January 26, 2021, the Board adopted the plans and specifications and authorized advertisement for bids for the Project, per the Notice to Bidders, and authorized the Designated Engineer to issue addenda, as necessary, during the bidding process.
On January 26, 2021, the Board authorized the Chief Executive Officer to execute the Master Agreement with the City of Milpitas (City) for the construction of City improvements, modifications to City facilities, and work within City’s right of way for Santa Clara Valley Water District (Valley Water) to proceed with construction of the Lower Berryessa Creek Flood Protection, Lower Calera Creek Flood Protection, and Lower Penitencia Creek Improvements Projects.
On April 6, 2021, the Board ratified Addenda Nos. 1, 2, and 3 to the Contract Documents and rejected all bids for Contract C0666, adopted plans and specifications, authorized re-advertisement for bids for the Project, and authorized the Designated Engineer to issue addenda, as necessary, during the bidding process.
On May 25, 2021, the Board ratified Addendum No. 1 to the Contract Documents, per the Notice to Bidders, awarded the subject contract to Granite Construction Company for $17,899,365.00, approved a contingency sum of $1,789,936.50, and authorized the Chief Executive Officer or designee to approve individual change orders up to the designated amount.
On April 12, 2022, the Board approved an increase of $1,299,635.00 to the construction contract contingency encumbrance.
On June 13, 2023, the Board approved a budget adjustment of $1,600,000 from the Lower Berryessa Creek Phase 1 Project to the Lower Calera Creek Flood Protection Project and approved an increase of $1,000,000 to the construction contract contingency sum for the Lower Calera Creek Flood Protection Project, Contract No. C0666-1.
On June 27, 2023, the Board accepted the work on the Lower Calera Creek Flood Protection Project, Stage 1, Granite Construction Company, Project No. 40174005, Contract No. C0666-1 as complete, and directed 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.
On November 26, 2024, the Board approved a budget adjustment of $121,000 to the construction contract contingency sum for the Lower Calera Creek Flood Protection Project, Contract No. C0666-1.
Contract Change Orders
A total of two (2) contract change orders and two (2) directed change orders, totaling $1,188,393.00, were executed during Milestones 2-4 to address various issues, including unforeseen site conditions, migratory birds, utility conflicts, and City of Milpitas and Santa Clara Valley Transportation Authority-requested changes.
These changes included replacing and repairing a portion of the City of Milpitas’ sewer and water pipes, redesigning the floodwall foundations, the existing pump station bypass, unsuitable soil excavation, Class 2 soil off-haul, and resequencing and accelerating the schedule.
Table 1 presents a summary of the construction contract and contingency amount.
TABLE 1
SUMMARY OF CONSTRUCTION CONTRACT
AND CONTINGENCY AMOUNTS
|
|
Contract Amount |
Remaining Contingency Amount |
|
Original Contract |
$17,899,365.00 |
$1,789,936.50 |
|
Change Order Nos. 1 to 4 (Staff Approved) |
$576,201.57 |
$1,213,734.93 |
|
Contingency Amount Increased by $1,299,635.00 (Board Approved) |
|
$2,513,369.93 |
|
Change Order No. 5 (Revised floodwalls to avoid field conflicts) |
$2,231,121.62 |
$282,248.31 |
|
Change Order Nos. 6 to 10 (Staff Approved) |
$192,628.80 |
$89,619.51 |
|
Contingency Amount Increased by $1,000,000.00 (Board Approved) |
|
$1,089,619.51 |
|
Change Order Nos. 11 to 12 (Staff Approved) |
$21,409.95 |
$1,068,209.56 |
|
Final Stage 1 (Milestone 1) Contract Amount and Remaining Contingency |
$20,920,726.94 |
$1,068,209.56 |
|
Change Order No. 13 (DOO Approved) |
$185,393.34 |
$882,816.22 |
|
Directed Change Order No. 1 (ACEO Approved) |
$474,606.66 |
$408,209.56 |
|
Directed Change Order No. 2 (DOO Approved) |
$148,393.00 |
$259,816.56 |
|
Contingency Amount Increased by $121,000.00 (Board Approved) |
|
$380,816.59 |
|
Change Order No. 14 (ACEO Approved) |
$380,000.00 |
$816.56 |
|
Final Stage 2 (Milestones 2-4) Contract Amount and Remaining Contingency |
$22,109,119.94 |
$816.56 |
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 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 the Construction Summary 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 with the Santa Clara County Clerk-Recorder. 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 items associated with Stage 2 (Milestones 2-4) amount ($70,212.18) 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 withholdings required by law or the contract.
Project Expenditures
As indicated in the Summary of Construction Contract and Contingency Amounts (Table 1), at Stage 2 (Milestones 2-4) completion, the original contract amount of $17,899,365.00 has been increased by $4,209,754.94 to $22,109,119.94, an increase of approximately 23.5%.
ENVIRONMENTAL JUSTICE IMPACT:
There are no Environmental Justice impacts associated with the Lower Calera Creek Flood Protection Project. This action is unlikely to or will not result in disproportionate impacts on any specific community(s) relative to the general population from the implementation of this project.
FINANCIAL IMPACT:
The Lower Calera Creek Flood Protection Project, Stage 2 (Milestones 2-4), Project No. 40174005, as part of the larger Lower Berryessa Creek Flood Protection Project, is included in the Capital Improvement Program (CIP) Fiscal Year (FY) 2026-30 Five-Year Plan and in the FY 2025-26 Adopted Budget. Total financial costs were detailed in previous sections of the agenda memorandum.
Transfer of Remaining Balances
The original contract amount of $17,899,365.00, combined with the original Board-approved contingency encumbrance of $1,789,936.50, totaled $19,689,301.50. In addition, the Board's approval of the following contingency increases at the April 12, 2022, June 13, 2023, and November 26, 2024 board meetings of $1,299,635.00, $1,000,000.00, and $121,000.00, respectively, increased the total contingency amount to $4,210,571.50.
The original contract amount ($17,899,365.00) plus the total cost of all approved change orders ($4,209,754.94) resulted in a final contract amount of $22,109,119.94. Upon Project completion and close-out, any remaining balance will be released to the Watershed and Stream Stewardship Fund (Fund 12).
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
Bhavani Yerrapotu, 408-630-2735