BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Notice of Completion of Contract and Acceptance of Work for the Snell Pipeline (Santa Teresa Water Treatment Plant to Coyote Creek Line Valve) Rehabilitation Project, Mountain Cascade, Inc., Contractor, Project No. 95084001, Contract No. C0608, (San Jose)(District 4, 6, 7).
End
RECOMMENDATION:
Recommendation
A. Accept the work 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, Mountain Cascade, Inc., has completed the Snell Pipeline (Santa Teresa Water Treatment Plant to Coyote Creek Line Valve) Rehabilitation Project. The construction contract was awarded in the amount of $2,461,500.00 and the final contract amount is $2,604,279.28. Subject to any withholds required by law or the contract, acceptance of the work by the Board will allow for the release of $260,427.92 in retention to the contractor.
The Snell Pipeline conveys treated water from the Santa Teresa and Penitencia Water Treatment Plants to the retailers and municipalities in the District’s San Jose service area. This contract involved work on a portion of the Snell Pipeline, from the Santa Teresa Water Treatment Plant to the Coyote Creek Line Valve. This portion of the Snell Pipeline is approximately 5.3 miles long and consists of 60 to 72-inch diameter Prestressed Concrete Cylinder Pipeline constructed in the late 1980s, and approximately 0.3 miles of the Santa Teresa Tunnel.
The completed contract included the internal inspection of the pipeline and the rehabilitation of approximately sixty-four (64) sites, consisting of thirty-nine (39) air valves, five (5) buried valves, two (2) turnout sites, one (1) flowmeter replacement, and seventeen (17) sites with miscellaneous appurtenance improvements.
Completion of this contract improves the long-term reliable delivery of treated water to the retailers and municipalities in the District’s San Jose service area. The Project completed pursuant to this contract is part of the District’s ongoing pipeline maintenance program being completed through the 5-year Pipeline Rehabilitation capital project, which is part of the 10-year Pipeline Maintenance Program (Program). A total of 63 miles of pipeline segments have been rehabilitated to date under the Program through five separate construction contracts.
Previous Board Actions
On November 11, 2016, the Board approved the plans and specifications and authorized advertisement for bids for the construction of the Snell Pipeline (Santa Teresa Water Treatment Plant to Coyote Creek Line Valve) Rehabilitation Project.
On January 12, 2016, the Board awarded the subject contract to Mountain Cascade, Inc. in the amount of $2,461,500 and approved a contingency fund of $370,000. 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 changes up to $30,000 and $50,000 respectively.
Contract Change Orders
A total of six (6) contract change orders totaling the amount of $142,779.28 were executed for this contract to address unforeseen site conditions, utility conflicts, District-requested changes, and final bid quantity revisions.
These changes included:
A. $79,383.62 for additional work required to address unforeseen site conditions and utility conflicts. (Change Order No. 1 - Items C & D, Change Order No. 2 - Items A & D, Change Order No. 3 - Items B, F & G, and Change Order No. 4 - Item A).
B. $193,940.28 for additional District-requested changes to benefit the Project. (Change Order No. 1 - Items A & B, Change Order No. 2 - Items B & C, Change Order No. 3 - Items A & D, Change Order No. 5 - Item A, and Change Order No. 6 - Items B & C).
C. <$130,544.62> for deductive changes to bid items of work based on actual field work completed. (Change Order No. 3 - Item C & E, Change Order No. 4 - Item B, Change Order No. 5 - Item B, and Change Order No. 6 - Items A & D).
The final contract amount is $2,604,279.28, which includes a net increase of $142,779.28 in contract changes within the Board-approved contingency fund. The net increase is a result of the additive and deductive changes to the contract outlined above.
Table 1 presents a summary of the construction contract and contingency amounts.
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TABLE 1. SUMMARY OF CONSTRUCTION CONTRACT AND CONTINGENCY AMOUNTS Contract Amount Contingency Amount Original Contract $2,461,500.00 $370,000.00 Change Order No. 1 (Staff Approved) $29,787.81 <$29,787.81> Change Order No. 2 (Staff Approved) $28,176.90 <$28,176.90> Change Order No. 3 (Staff Approved) $26,920.43 <$26,920.43> Change Order No. 4 (Staff Approved) $23,681.53 <$23,681.53> Change Order No. 5 (Staff Approved) $14,703.19 <$14,703.19> Change Order No. 6 (Staff Approved) (Final) $19,509.42 <19,509.42> Final Contract Amount and Remaining Contingency $2,604,279.28 $227,220.72 |
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 written 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.
Release of Retention
California law requires the District 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.
The District is currently withholding retention funds totaling ten percent (10%) of the current contract amount ($260,427.92) in accordance with the Public Contract Code. Per the construction contract documents for the Project, staff is required to release retention funds associated with the contract 35 days after recording of 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 $2,461,500.00 has been increased by the amount of $142,779.28 to $2,604,279.28, an increase of approximately 6 percent. There were sufficient funds in the Board-approved contingency amount to pay these additional costs.
FINANCIAL IMPACT:
Total financial costs are detailed above in this Agenda Memorandum Summary section. The Project has been completed and 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 of Contract
Attachment 2: Recommendation of Acceptance
Attachment 3: Project Completion Letter
Attachment 4: PowerPoint
Attachment 5: Project Delivery Process Chart
UNCLASSIFIED MANAGER:
Manager
Debra Caldon, 408-630-3057