BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT:
Title
Approve an Increase of $800,000 to the Construction Contract Contingency Sum for the Calabazas Creek Rehabilitation Project, Project No. 62084001, Contract No. C0683, as Part of the Watersheds Asset Rehabilitation Program (Cupertino, District 5).
End
RECOMMENDATION:
Recommendation
Approve an increase of $800,000 to the construction contingency sum, bringing the total contingency to $2,289,270, for the Calabazas Creek Rehabilitation Project.
Body
SUMMARY:
The objective of the Calabazas Creek Rehabilitation Project (Project) is to restore the existing channel to as-built natural conditions, minimize future bank failures, minimize impacts to water quality and riparian habitat associated with bank erosion, remove non-native vegetation, add native vegetation, reduce on-going maintenance, and continue to provide flood protection to the community.
Project Background
The Project is being undertaken as part of the Watersheds Asset Rehabilitation Program (WARP). During past inspections by Watersheds Operations and Maintenance staff, deficiencies were observed along the creek between Miller Avenue and Bollinger Road, including erosion, bank failures, and surfaces lacking adequate vegetation cover. These deficiencies were exacerbated as a result of winter storm events in 2016-2017. The Project scope entails civil work to repair and stabilize the channel bank at ten (10) locations during two (2) summer seasons.
Relevant Prior Board Actions
On September 14, 2021, the Board adopted a resolution adopting the Final Mitigated Negative Declaration (FMND) and mitigation monitoring and reporting program for the Project.
On March 22, 2022, the Board adopted the plans and specifications and authorized advertisement for bids for the Project.
On May 24, 2022, the Board received the report of bids and awarded the construction contract to Granite Construction Inc. (Contractor) in the amount of $14,892,700, approved a ten percent (10%) contingency sum of $1,489,270, and authorized the Chief Executive Officer or designee to approve individual change orders up to the designated amount.
Field Condition Discovered During Construction
Construction of the Project began in June 2022 and during that first summer season, the Contractor completed repairs for six (6) of the ten (10) eroded bank locations by installing rock rip-rap and minor concrete.
In December 2022, as part of preconstruction planning for the second season, both Santa Clara Valley Water District (Valley Water) and the Contractor determined the existing width of the creek bed at several creek locations would not be adequate to support the crane equipment needed for the sheet piling installation. To ensure that the crane had sufficient space, additional temporary soil disturbance and tree removals would be required that were not previously addressed in the approved regulatory permits.
Staff diligently worked with the regulatory agencies to negotiate mitigation measures for the additional construction impacts and received the permit amendments by July 6, 2023. However, the requirement to amend the initial regulatory permits delayed the start of construction work for the second season from April 15, 2023 to July 24, 2023.
With more than three months of the 2023 construction season delayed, Valley Water and the Contractor strategized options for moving the Project forward. Staff determined that accelerating the construction schedule was the lowest cost option for completing the Project on schedule. The Contractor agreed to accelerate and immediately commenced work.
The Contractor’s acceleration of the original construction schedule required increasing their labor hours, equipment, and overhead expenses until November 2023. All civil work was completed by November 13, 2023, and the next step in the Project will be a six-year plant establishment and maintenance phase.
Contract Change Orders
A total of five (5) contract change orders totaling $742,452.84 have been executed, to date, for this contract to address various issues, including unforeseen site conditions, additional tree removal, additional equipment mobilization, permit amendment impacts, and acceleration of the contract schedule.
Table 1 presents a summary of the current construction contract and contingency amounts.
TABLE 1
SUMMARY OF CONSTRUCTION CONTRACT
AND CONTINGENCY AMOUNTS
|
|
Contract Amount |
Remaining Contingency Amount |
|
Original Contract |
$14,892,700.00 |
$1,489,270.00 |
|
Change Order No. 1 (Staff Approved) Site 7 Impacts and Site 6 Design Delay |
$47,640.21 |
$1,441,629.79 |
|
Change Order No. 2 (DOO Approved) Additional Tree Removal |
$206,00.00 |
$1,235,629.79 |
|
Change Order No. 3 (DOO Approved) Additional Equipment Mobilization |
$110,000.00 |
$1,125,629.79 |
|
Change Order No. 4 (Staff Approved) Permit Amendment Impacts |
$27,497.71 |
$1,098,132.08 |
|
Change Order No. 5 (CEO Approved) Season 2 Acceleration - October Billing |
$351,314.92 |
$746,817.76 |
|
Current Contract Amount and Remaining Contingency |
$15,635,152.84 |
$746,817.76 |
|
Change Order No. 6 (Pending CEO Approval) Season 2 Acceleration - November Billing |
$746,817.76 |
$0.00 |
|
$800,000.00 Contingency Amount Increase (Pending Board Approval) |
|
$800,000.00 |
|
Proposed Current Contract Amount and Remaining Contingency |
$16, 481,970.60 |
$800,000.00 |
Increased Construction Contingency Recommendation
The Contractor’s acceleration efforts for the Project continued through November 2023 to meet the original contract schedule. Future change orders will be issued to compensate the Contractor for remaining costs of the acceleration effort not yet invoiced. Staff and the Contractor estimate that the remaining costs of the acceleration effort is approximately $650,000.
In addition, an estimated $150,000 of the additional recommended contingency funds will be available during the six-year plant establishment phase in case of unforeseen conditions such as erosion repairs, invasive plant removal, or replacement planting or hydroseeding, exceeding the scope of the contract.
As shown in Table 1, insufficient funds remain in the current remaining contingency to execute a future change order to compensate the Contractor for additional acceleration costs. Staff is recommending the Board approve an increase in contingency fund in the amount of $800,000, which will enable staff to execute future contract change orders for the additional contract acceleration costs and potential extra work that may be required during the plant establishment phase. If approved by the Board, the additional contingency amount will result in a total contingency of $2,289,270.
ENVIRONMENTAL JUSTICE IMPACT:
There are no Environmental Justice impacts associated with this item.
FINANCIAL IMPACT:
The Calabazas Creek Rehabilitation Project is part of the Watersheds Asset Rehabilitation Program (WARP), Project No. 62084001, and is included in the Capital Improvement Program (CIP) Fiscal Year (FY) 2024-28 Five-Year Plan and in the FY 2023-24 Adopted Budget. There are sufficient funds in the Project’s FY 2023-24 budget for the increase to the contract contingency in the amount of $800,000. The Project is funded through the Watershed and Stream Stewardship Fund (Fund 12).
CEQA:
The recommended action does not constitute a project under CEQA because it does not have the potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
Attachment 1: Map
UNCLASSIFIED MANAGER:
Manager
Bhavani Yerrapotu, 408-630-2735