BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Receive Report of Bids, Ratify Addenda, Approve the Contingency Fund, and Award the Construction Contract to Granite Rock Company, for the South Babb Flood Mitigation Project, under the Watershed Asset Rehabilitation Program, Project No. 62084001, Contract No. C0716 in the Sum of $1,225,742 (San Jose, District 6).
End
RECOMMENDATION: Recommendation
A. Ratify Addendum No. 1 to the Contract Documents for the South Babb Flood Mitigation Project;
B. Award the Construction Contract to Granite Rock Company, located in San Jose, CA, in the sum of $1,225,742; and
C. Approve a contingency sum of 10% in the amount of $122,574 and authorize the Chief Executive Officer or designee to approve individual change orders up to the designated amount.
Body
SUMMARY:
The objective of the South Babb Flood Mitigation Project (Project) is to reduce short-term impacts from flooding to the apartment complex located adjacent to the Project area.
The Project scope includes construction of underground storm water troughs behind the existing floodwall and modifying the floodwalls with openings and flap gates, allowing ponding water to drain back to Lower Silver Creek.
Project Background
South Babb Creek is a tributary to Lower Silver Creek, which is a 43.6 square mile drainage area within the larger Coyote Creek watershed. The entire section of South Babb Creek is located within the City of San Jose and drains into Lower Silver Creek downstream of the Farringdon Drive bridge.
In 2018, Santa Clara Valley Water District (Valley Water) completed civil construction of floodwalls as part of the Lower Silver Creek Project at the confluence with South Babb Creek. Following construction, Valley Water completed a 100-year flood event study that included a hydrologic and hydraulic model of the Lower Silver Creek watershed in support of the Federal Emergency Management Agency’s (FEMA) Cooperating Technical Partnership program. The results of the hydraulic modeling indicated that, in this event, flood water would spill along South Babb Creek onto the street surface at several bridge crossings. Flood waters would then flow north easterly and pond behind the floodwalls constructed for the Lower Silver Creek Project (Reach 5C), preventing overland drainage back into the creek. The water eventually would flow to the north and flood an apartment complex located adjacent to the Project area. FEMA has initiated a Physical Map Revision based on the recent hydraulic modeling, which will add the apartment complex to the regulatory floodplain if no additional measures are taken.
The long-term South Babb Flood Protection Project is currently on the Capital Improvement Program (CIP) unfunded project list. Each year unfunded CIP projects are reevaluated for the Board's consideration for inclusion into the next year's CIP Five-Year Plan. Staff continues to explore grants and other funding opportunities to fund this long-term project and other watershed projects.
To mitigate the short-term impacts to the apartment complex, staff developed several alternatives. In January 2023, the South Babb Flood Mitigation Project (Project) was identified as one of the high priority projects to be implemented under the Watersheds Asset Rehabilitation Program (WARP). This Project, the selected alternative, reduces flooding conditions primarily at the apartment complex through the design and construction of underground storm water troughs behind the floodwall and modifying the floodwalls with openings and flap gates, allowing ponding water to drain back to Lower Silver Creek. A map of the Project location is shown on Attachment 1.
Addenda Ratification
One (1) addendum (Attachment 2) was issued during the bid advertisement period to clarify the Project Contract Documents and answer bidders’ questions. To formally incorporate the addendum into the Project Contract Documents, staff recommends that the Board ratify the addendum.
Contract Award
A report of bids received at the bid opening for the Project on June 11, 2025, is summarized in Table 1.
Of the 4 total bids submitted, the lowest responsive bid was submitted by Granite Rock Company of San Jose, California. The bid submitted by Granite Rock Company is approximately 23.7% lower than the Engineer’s Estimate of $1,607,055. A review of the bids against the Engineer’s estimate reveals that the Engineer's estimate was within the range of the four bids received and within 5% of the average of the four bids.
Staff reviewed the bid proposals and deemed the bid responsive and indictive of the construction market competition and recommends the Board award the Construction Contract to Granite Rock Company as the responsible bidder submitting the lowest responsive bid.
Table 1 - Bid Opening Results
|
Contractor(s) |
Bid Price |
Difference from EE (-) or + % |
Deemed Responsive |
|
Granite Rock Company, San Jose, CA |
$1,225,742 |
(-) 23.7% |
YES |
|
Con-Quest Contractors, Burlingame, CA |
$1,532,900 |
(-) 4.6% |
YES |
|
Atlas Structural Retrofit Contractors, Tustin, CA |
$1,614,850 |
(+) 0.5% |
YES |
|
Disney Construction, Burlingame, CA |
$1,736,333 |
(+) 8.0% |
YES |
|
Engineer’s Estimate |
$1,607,055 |
|
|
Contingency Funds
The Contract award sum for the Project is $1,225,742. To allow staff to quickly address unforeseen or changed site conditions and other unanticipated occurrences, without causing unnecessary delays or consequential costs to the Project, staff recommends the Board approve encumbering a contingency amount of $122,574 (10% of the contract amount) for the subject Project.
The above contingency amount was estimated due to known and unknown risks, such as:
1. Unanticipated variances in quantities and cost of various lump sum items estimated in the Bid Proposal;
2. Unforeseen or differing site/field conditions that may be significantly different from the baseline or as-built information used in the preparation of Project Contract Documents;
3. Coordination issues and risks associated with weather conditions and unplanned water releases in the channels that may pose construction delays.
Approval of individual change orders for the Project will be subject to approval at the following designated amounts:
Engineering Unit Manager: $50,000
Deputy Operating Officer: $100,000
Chief Executive Officer: Up to the Total Amount of Contingency
Relevant Previous Board Actions
On November 28, 2017, the Board accepted only the Construction Phase of the contract (Milestone 1 as that portion of the Project had been completed) for the Lower Silver Creek Flood Protection and Creek Restoration Project, Reaches 5C-6A, Contract No. CO580.
On January 12, 2021, the Board accepted the Landscape and Revegetation Establishment Maintenance Phase for the Lower Silver Creek Flood Protection and Creek Restoration Project, Reaches 5C-6A, Contract No. CO580.
On April 22, 2025, the Board adopted the plans and specifications and authorized advertisement for bids for the South Babb Flood Mitigation Project.
Outreach to Bidders
The Notice to Bidders was sent to the following recipients: 26 plan rooms, 83 minority businesses, 44 Chambers of Commerce, as well as small business groups, certified small business contractors, and local and regional firms that have the appropriate license for this type of work, and the Santa Clara and San Benito Counties Building & Construction Trades Council, which maintains contacts with at least 1048 contractors and 70 union representatives. The total number of entities notified in PlanetBids was 1322.
Contractors were contacted using Valley Water’s PlanetBids Vendor Portal. Broader advertising efforts also included two placements of the Invitation to Bid in the San Jose Post-Record.
Small Business Enterprise Participation
This Project was advertised in accordance with Valley Water’s Small Business Enterprise (SBE) Policy, which encourages participation from certified small businesses and establishes a 30 percent SBE subcontracting participation goal for non-SBE prime bidders. Granite Rock Company, the lowest responsive and responsible bidder, is not a certified SBE but demonstrated compliance with Valley Water’s SBE Policy by completing the required Good Faith Effort to engage SBE subcontractors.
Rights of Way
This Project will be constructed within Valley Water rights of way. Construction access through the driveway and parking areas around the apartment complex has been granted through a temporary construction lease.
Regulatory Permits
The Project will be implemented in the Santa Clara Valley Habitat Plan (VHP) permit area and is considered a covered activity as described in VHP Sections 2.3.2 (Urban Development) and 2.3.3 (In Stream Capital Projects). Because the Project is located entirely within an area that has been mapped as an “Urban-Suburban” land cover type and is outside of a specialty Burrowing Owl, Wetland, or Potential Serpentine Fee Zone, it is exempt from payment of land cover or specialty fees. However, the Project is still required to comply with the relevant VHP Conditions and implement VHP Avoidance and Minimization Measures as applicable.
Public Outreach
Before beginning construction, Valley Water will inform the surrounding neighborhood of the Project and potential construction impacts. A mailer and social media will be used to reach out to neighbors, and construction site signage will be installed once the contractor has begun the work.
Next Steps
If the Board approves the recommendations, staff will proceed with Contract administration managed by Valley Water staff to facilitate the construction of the Project, which is anticipated to begin in August 2025 and be completed by December 2025. The Project Delivery Process Chart (Attachment 3) highlights the current Project phase and the staff recommendation before the Board.
ENVIRONMENTAL JUSTICE AND EQUITY IMPACT:
There are no environmental justice and equity impacts associated with the South Babb Flood Mitigation Project. This action is unlikely to or will not result in adverse impacts and is not associated with an equity opportunity.
FINANCIAL IMPACT:
The Project is included under the Watersheds Asset Rehabilitation Program (WARP), Project No. 62084001. The WARP is included in the Capital Improvement Program (CIP) Fiscal Years (FY) 2026-30 Five-Year Plan and in the FY 2024-25 Adopted budget. The total cost for the recommended construction contract, including the contingency sum of $122,574 is $1,348,316 and does not change the overall total project cost reflected in the CIP FY 2026-30 Five-Year Plan. There are adequate funds in the FY 2024-25 Adopted budget to encumber funds for Project construction. The Project is funded by the Watersheds Stream Stewardship Fund (Fund 12).
CEQA:
Valley Water is the lead agency under the California Environmental Quality Act for implementation of the Project. This Project is exempt under CEQA Guidelines Section 15301, which exempts minor alterations of existing public facilities, and CEQA Guidelines Section 15304, which exempts minor alterations in the condition of the land. A Notice of Exemption was prepared and filed with the Santa Clara County Office of the Clerk-Recorder on April 24, 2025.
ATTACHMENTS:
Attachment 1: Map
Attachment 2: Addendum No. 1
Attachment 3: Project Delivery Process Chart
UNCLASSIFIED MANAGER: Manager
Bhavani Yerrapotu, 408-630-2735