BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Notice of Completion of Contract and Acceptance of Work for the Infrastructure Reliability Portfolio 2 (IRP2) Water Treatment Plant Operations Building Seismic Retrofit Project, S.J. Amoroso Construction Co., Inc., Contractor, Project No. 93764003, Contract No. C0596 (Los Gatos) (District 7).
End
RECOMMENDATION:
Recommendation
A. Accept the work as complete;
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; and
C. Authorize reducing the current construction contract retention of ten percent (10%) to five percent (5%), consistent with the minimum amount required by the California Public Contract Code.
Body
SUMMARY:
The construction contractor, S.J. Amoroso Construction Co., Inc., has completed the IRP2 Water Treatment Plant Operations Building Seismic Retrofit Project - Rinconada Water Treatment Plant and Vasona Pump Station (Project). The construction contract was awarded in the amount of $8,367,000 and the final contract amount is $9,888,999.01. Subject to any withholds required by law or the contract, acceptance of the work by the Board will allow for the release of retention to the contractor.
The Project was constructed to seismically retrofit the control building at the Rinconada Water Treatment Plant, the Vasona Meter Shop and the Vasona Pump Station to meet life-safety criteria. Additionally, completion of this Project provides additional staff space, modernized building components, and improved plant operations.
Previous Board Actions
On April 22, 2014, the Board approved the plans and specifications and authorized advertisement for bids for the construction of the Project. Additionally, the Board found that the Project was substantially complex and, therefore, required a construction contract retention of ten percent (10%).
On July 8, 2014, the Board awarded the subject contract to S.J. Amoroso Construction Co., Inc. in the amount of $8,367,000 and approved a contingency sum of $1,255,050. 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 $100,000 and $250,000 respectively.
On January 26, 2016, the Board approved increasing the contingency sum by $500,000.
Contract Change Orders
A total of fourteen (14) staff-approved contract change orders totaling the amount of $1,521,999.01 were executed for this contract to address unforeseen site conditions, utility conflicts, District-requested changes, and requested changes by the local building and fire officials having jurisdiction over the Project.
These changes included:
A. $726,520 for additional work required to address unforeseen site conditions.
B. $106,305 for additional work to address unforeseen utility conflicts.
C. $330,123 for additional District-requested changes to benefit the Project.
D. $246,604 for additional work required to address post-design clarifications.
E. $51,600 for additional work required to address post-design requests from the local building and fire permit officials having jurisdiction over the Project.
F. ($52,837) credit for adjustments based on final quantity measurement.
G. $113,684 for additional work to accelerate and mitigate delays due to unforeseen conditions.
The final contract amount is $9,888,999.01, which includes all the contract change orders.
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 |
$8,367,000.00 |
$1,755,050.00 |
|
Change Order No. 1 (Staff approved) |
$98,472.00 |
<$98,472.00> |
|
Change Order No. 2 (Staff approved) |
$93,469.00 |
<$93,469.00> |
|
Change Order No. 3 (Staff approved) |
$127,029.00 |
<$127,029.00> |
|
Change Order No. 4 (Staff approved) |
$57,534.00 |
<$57,534.00> |
|
Change Order No. 5 (Staff approved) |
$67,300.00 |
<$67,300.00> |
|
Change Order No. 6 (Staff approved) |
$91,733.00 |
<$91,733.00> |
|
Change Order No. 7 (Staff approved) |
$36,442.00 |
<$36,442.00> |
|
Change Order No. 8 (Staff approved) |
$77,201.00 |
<$77,201.00> |
|
Change Order No. 9 (Staff approved) |
$155,169.00 |
<$155,169.00> |
|
Change Order No. 10 (Staff approved) |
$174,563.00 |
<$174,563.00> |
|
Change Order No. 11 (Staff approved) |
$114,480.00 |
<$114,480.00> |
|
Change Order No. 12 (Staff approved) |
$167,305.01 |
<$167,305.01> |
|
Change Order No. 13 (Staff approved) |
$178,388.00 |
<$178,388.00> |
|
Change Order No. 14 (Staff approved) |
$82,914.00 |
<$82,914.00> |
|
|
|
|
|
Final Contract Amount and Remaining Contingency |
$9,888,999.01 |
$233,050.99 |
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 ten percent (10%) retention. Staff is recommending an immediate release of five percent (5%) retention. If the reduction is authorized by the Board, staff would continue to withhold the remaining 5% retention until 35 days after the recording of the Notice of Completion of Contract and Acceptance of Work.
Public Contract Code (PCC) Section 7201 limits retention amounts for public works construction contracts to 5% of the total contract price unless the governing body finds the proposed project is ‘substantially complex’ and requires a contract retention of 10%. On April 22, 2014, the Board found that the Project was substantially complex and, therefore, required a construction contract retention of 10%. Since the Project is now complete, the circumstances supporting a 10% retention no longer exist.
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. The Public Contract Code requires public entities to retain no less than a 5% contract retention. The purpose of staff’s recommendation to reduce retention at this time is to allow for release of 5% ($494,450) of the total retention now instead of the contractor waiting the entire 35 days after recordation of the Notice of Completion to receive the full 10% amount withheld. Taking this recommended action is consistent with statutory and contractual requirements.
Total Project Expenditures
As indicated in the Summary of Construction Contract and Contingency Amounts (Table 1), the original contract amount of $8,367,000 has been increased by $1,521,999.01 to $9,888,999.01, an increase of approximately 18 percent. There were sufficient funds in the Board-approved contingency amount to pay these additional costs.
The total expenditures to date for the Project are presented in Table 2. The expenditures listed herein apply to work required to plan, design, and construct the IRP2 Water Treatment Plant Operations Buildings Seismic Retrofit Project - Rinconada Water Treatment Plant and Vasona Pump Station.
The value for Construction Hard Costs includes the construction contract as well as utility agreements, utility relocation, and permit fees.
TABLE 2. IRP2 Water Treatment Plant Operations Building Seismic Retrofit Project Expenditures to Date
|
Planning Phase: |
$1,401,340 |
|
Design Phase: |
$2,383,370 |
|
Construction Phase: |
$1,699,440 |
|
Construction Hard Costs: |
$13,249,900 |
|
Total Project Expenditures to Date: |
$18,734,050 |
FINANCIAL IMPACT:
Total financial costs are detailed above in the agenda memorandum summary. 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 and Acceptance of Work
Attachment 2: Recommendation of 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