BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Notice of Completion of Contract and Acceptance of Work of the Wolfe Road Recycled Water Facilities Project, JMB Construction, Inc., Contractor, Project No. 91244001, Contract No. C0607 (Sunnyvale) (Districts 3 and 5).
End
RECOMMENDATION:
Recommendation
A. Accept the work as complete on the Wolfe Road Recycled Water Facilities Project; 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 County of Santa Clara Office of the Clerk-Recorder.
Body
SUMMARY:
The construction contractor, JMB Construction, Inc., has completed the Wolfe Road Recycled Water Facilities Project (Project). The construction contract was awarded in the amount of $8,868,584 and the final contract amount is $9,660,617.21. Subject to any withholds required by law or the contract, acceptance of the work by the Board will allow for the release of $483,030.86 in retention to the contractor.
Project Background
The Project was a partnering project between Valley Water, the City of Sunnyvale, California Water Service Company, and Apple, Inc. The purpose of the Project is to expand the recycled water distribution system in the City of Sunnyvale and provide service to Apple’s new corporate headquarters in Cupertino (Apple Campus 2).
The Project included the construction of approximately 13,300 linear feet of 24-inch diameter recycled water pipeline, a booster pump station, and appurtenances. The recycled water pipeline was installed along Wolfe Road in the City of Sunnyvale from just south of Kifer Road to Homestead Road where it connects to the Homestead Crossing pipe that was installed by Apple to deliver water to the new Apple Campus 2 in Cupertino. The new booster pump station was located on the City of Sunnyvale’s San Lucar Pump Station site near the intersection of Kifer and Wolfe Roads.
The Project is complete and has been fully tested for operation. Apple completed required testing of their recycled water system and received approval to operate in April 2019. Staff is coordinating with the City of Sunnyvale, Apple and California Water Service for system startup and to begin delivery of recycled water, with a target date in mid to late May 2019.
Previous Board Actions
On November 10, 2015, the Board adopted plans and specifications and authorized advertisement for bids for construction of the Project.
On November 10, 2015, the Board adopted the plans and specifications and authorized advertisement for bids for the Project.
On February 9, 2016, the Board awarded the subject contract to JMB Construction, Inc. in the amount of $8,868,584 and approved a contingency fund of $1,330,000. The Board authorized the Chief Executive Officer (CEO) to approve individual change orders up to the total amount of the contingency, with the Senior Project Manager and Deputy Operating Officer to approve individual changes up to $100,000 and $250,000, respectively.
Contract Change Orders
A total of five (5) contract change orders totaling $792,033.21 were executed for this contract to address various issues, including unforeseen site conditions, utility conflicts, utility verification, District-requested changes, neighborhood concerns, post-design clarifications, permit requirements, schedule delays, and credits to the contract.
These changes included:
A. $194,738.14 for additional work required to address unforeseen site conditions. This includes work ranging from a tree removal at the pump station for $1,008.00 to revisions to the profile of the jack and bore pipeline at a buried bridge abutment for $68,691.57.
B. $115,841.69 for additional work required to address utility conflicts. This includes work ranging from pipe realignment due to an existing cable conduit for $14,712.82 to revisions to the profile of the jack and bore pipeline at El Camino and Fremont Avenue intersections for $47,708.09.
C. $57,203.22 for additional work required for utility verification. This includes work ranging from potholing and changes to the connection at the pump station for $14,004.16 to potholing at the sanitary sewer laterals and Fremont Avenue receiving pit for $25,633.53.
D. $156,216.13 for additional District-requested changes. This includes work ranging from providing a sheet metal cover for air release valves for $4,083.64 to relocating a combination air release valve for $57,891.40.
E. $5,335 for neighborhood concerns. This includes requested work for additional vibration monitoring.
F. $207,304.98 for additional work required to address post-design clarifications. This includes work ranging from connecting motor over temperature relays for $515.58 to installing HVAC for $113,229.64.
G. $61,327.58 for additional work to address permit requirements. This includes work ranging from grouting an annular space of the Caltrain jack and bore casing pipe for $18,030.60 to additional work to meet Caltrain operational and safety requirements during the jack and bore work for $43,296.98.
H. $7,235.82 for schedule delays. This includes a cost share for office space for the District’s portion of delay liability of the project schedule.
I. $13,169.35 credit for reimbursements for repair costs incurred by City of Sunnyvale and deletion of a supplemental bid item.
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 |
$8,868,584.00 |
$1,330,000.00 |
|
Change Order No. 1 (staff approved) |
$93,052.63 |
<$93,052.63> |
|
Change Order No. 2 (staff approved) |
$85,415.13 |
<$85,415.13> |
|
Change Order No. 3 (staff approved) |
$249,446.59 |
<$249,446.59> |
|
Change Order No. 4 (staff approved) |
$236,179.87 |
<$236,179.87> |
|
Change Order No. 5 (staff approved) |
$127,938.99 |
<$127,938.99> |
|
Final Contract Amount and Remaining Contingency |
$9,660,617.21 |
$537,966.79 |
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 her 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 Attachment 4.
Construction Contract 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 five percent (5%) of the contract amount in accordance with the Public Contract Code. Per the construction contract documents, the District 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.
Total Project Expenditures
As indicated in the Summary of Construction Contract and Contingency Amounts (Table 1), the original contract amount of $8,868,584 has been increased by $786,438.49 to $9,660,617.21, an increase of approximately 9 percent.
FINANCIAL IMPACT:
Total financial costs were detailed in previous sections of the agenda memorandum. 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 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
Katherine Oven, 408-630-3126