BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Accept the Work as Complete and Direct the Clerk to File the Notice of Completion of Contract and Acceptance of Work for the Hale Creek Enhancement Pilot Project, Stage 2, Milestone 3, McGuire and Hester, Project No. 26164001, Contract No. C0667 (Mountain View, Los Altos, District 7).
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RECOMMENDATION: Recommendation
A. Accept the work on the Hale Creek Enhancement Pilot Project, Stage 2, Milestone 3, Project No. 26164001, Contract No. C0667 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.
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SUMMARY:
The construction contractor, McGuire and Hester, has completed Stage 2 (Milestone 3) for the Hale Creek Enhancement Pilot Project (Project).
Project Background
Hale Creek is a major tributary to Permanente Creek. The purpose of the Project was to restore geomorphic and habitat functions to a 650-foot-long section of Hale Creek, between Marilyn Drive and North Sunshine Drive in Mountain View and Los Altos, by replacing the existing concrete channel with a soft-bottom channel comprised of natural substrates and vegetation.
The objective of the Hale Creek Enhancement Pilot Project was to provide Santa Clara Valley Water District (Valley Water) the opportunity to examine a new approach using a hybrid method of hardscape vertical structures combined with a vegetated soft bottom channel to test the potential for restoration of geomorphic habitat functions in an urbanized and constrained setting while maintaining and enhancing flood protection. The results of the Project will be used to inform future work for the rest of Hale Creek, as well as miles of concrete channels in Santa Clara County, as they reach the end of their life cycle. The Project is part of the voter-approved Safe, Clean Water and Natural Flood Protection Program (Safe, Clean Water Program).
The Project was constructed in two stages. Stage 1 construction work comprised of completing Milestones 1 and 2, civil work and plant installation was completed in April 2023. Stage 2 construction consisted of the landscape and revegetation establishment maintenance work (Milestone 3) which was completed in December 2025.
Relevant Prior Board Actions
On November 20, 2012, the Board certified a Final Subsequent Environmental Impact Report (FSEIR) for the Permanente Creek Flood Protection Project.
On March 8, 2022, the Board considered the Sixth Addendum to the Final Subsequent Environmental Impact Report (Final Subsequent EIR) for the Permanente Creek Flood Protection Project, which evaluated the environmental impacts of the construction and operation of the Hale Creek Enhancement Pilot Project.
On March 8, 2022, the Board adopted the plans and specifications and authorized advertisement for bids for construction.
On May 10, 2022, the Board awarded the Construction Contract to McGuire and Hester in the sum of $6,380,681.50; and approved a contingency sum of $957,102.23 and authorized the Chief Executive Officer or designee to approve individual change orders up to the total amount of the contingency, with the Engineering Unit Manager and Deputy Operating Officer authorized to approve individual change orders up to $100,000 and $250,000, respectively.
On August 8, 2023, the Board accepted the work on the Hale Creek Enhancement Pilot Project, Stage 1 (Milestones 1 and 2), Project No. 26164001, Contract No. C0667 as complete and directed 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.
Contract Change Orders
A total of two (2) contract change orders totaling $87,620.00 were executed for Milestone 3 to address various issues, including bank repair at Sunshine Drive and additional plant installations.
Table 1 presents a summary of the construction contract and contingency amounts.
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 recommendation of construction acceptance is included in Attachment 2. The Project Completion Letter is included as Attachment 3. The Construction Summary, including photos of the Project, is included as Attachment 4. The Project Delivery Process Chart is included in Attachment 5.
Construction Contract Retention
California law requires Valley Water 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.
In accordance with the Public Contract Code, Valley Water typically withholds retention funds totaling five percent (5%) of the contract items. However, staff inadvertently did not withhold any retention funds during Stage 2 (Milestone 3).
Per the construction Contract Documents, Valley Water 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 withholdings required by law or the contract. Since no retention was withheld for Stage 2 work, there will not be any retention funds to be released once the Notice of Completion is recorded.
Total Project Expenditures
As indicated in the Summary of Construction Contract and Contingency Amounts (Table 1), at Stage 2 (Milestone 3) completion, the original contract amount of $6,380,681.50 increased by $240,658.86 to $6,621,340.36, an increase of approximately 3.8 percent.
ENVIRONMENTAL JUSTICE IMPACT:
There are no environmental justice impacts associated with this Board action to approve the Notice of Completion of Contract and Acceptance of Work. However, the completed Project will have a positive impact on the community by providing flood protection to the communities surrounding the creek, promoting a stable geomorphic channel condition, and enhancing creek habitat values.
FINANCIAL IMPACT:
The Hale Creek Enhancement Pilot Project, Stage 2 (Milestone 3), Project No. 26164001, is included in the Capital Improvement Program (CIP) Fiscal Year FY 2026-2030 Five Year Plan and in the FY 2025-26 Adopted Budget. Total financial costs were detailed in previous sections of the agenda memorandum.
Transfer of Remaining Balances
The original contract amount of $6,380,681.50 combined with the Board-approved
contingency encumbrance of $957,102.23 totals $7,337,783.73 for the construction of the Project. The total final expended amount for the construction of the Project is $6,621,340.36. The remaining unspent contingency amount of $716,443.37 will be released to the Safe, Clean Water Program Operating and Capital Reserves (Fund 26) upon Project completion and close-out.
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 Photos
Attachment 5: Project Delivery Process Chart
UNCLASSIFIED MANAGER: Manager
Bhavani Yerrapotu, 408-630-2735