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 Security Upgrades and Enhancements Project, Swinerton Builders, Contractor, Project No. 60204022, Contract No. C0713 for Coyote Pumping Plant (Morgan Hill, District 1), Santa Teresa Water Treatment Plant (San Jose, District 7), Winfield Complex (San Jose, District 4), Headquarters Corporate Yard (San Jose, District 4), and Silicon Valley Advanced Water Purification Center (San Jose, District 3).
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RECOMMENDATION: Recommendation
A. Accept the work on the Security Upgrades and Enhancements Project, Project No. 60204022, Contract No. C0713 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, Swinerton Builders (Contractor), has completed the Security Upgrades and Enhancements Project for Coyote Pumping Plant, Santa Teresa Water Treatment Plant, Winfield Complex, Headquarters Corporate Yard, and Silicon Valley Advanced Water Purification Center.
Project Background
The Capital Improvement Program (CIP) Fiscal Years (FY) 2026-2030 Five-Year Plan identifies the Security Upgrades and Enhancements Project (Project) as a path to significantly enhance the overall security at Santa Clara Valley Water District (Valley Water) facilities. This Project's scope includes installing an updated security system, using modern technology capable of meeting today’s security threats of theft, trespass, and vandalism. The Project objective is to increase physical security for Valley Water properties, facilities, fleet, equipment, and staff through security upgrades and enhancements.
The Project is being delivered in three phases:
• Phase 1: Fencing Replacement
• Phase 2: Surveillance and Access Control Replacement
• Phase 3: Surveillance System Expansion
Phase 1 of the Project includes upgrades and enhancements to perimeter fencing and vehicular and pedestrian gate access at five Valley Water sites, plus one additional site included as a supplemental bid item. The remaining scope, which includes installing an updated security system and using modern technology capable of meeting today’s security threats of theft, trespass, and vandalism, will be delivered in subsequent phases, subject to board approvals.
The five Project sites for Phase 1 include:
Site 1: Coyote Pumping Plant, 1833 Peet Road, Morgan Hill, CA (District 1)
Site 2: Santa Teresa Water Treatment Plant, 7011 Graystone Lane, San Jose, CA (District 7)
Site 3: Winfield Complex, 5905 Winfield Blvd, San Jose, CA (District 4)
Site 4: Headquarters, Corporate Yard, 5770 Almaden Expressway, San Jose, CA (District 4)
Site 5: Silicon Valley Advanced Water Purification Center, San Jose, CA (District 3)
Site 6 (Supplemental): Blossom Hill Annex, 1020 Blossom Hill Rd, San Jose, CA (District 4)
Relevant Previous Board Actions
On September 24, 2024, the Board adopted Resolution 24-46 setting the time and place of a public hearing on the Engineer’s Report and CEQA Exemption Determination for the Project.
On October 8, 2024, the Board conducted a public hearing and adopted Resolution 24-48 approving the Engineer’s Report and approving the Project.
On October 22, 2024, the Board adopted the plans and specifications and authorized advertisement for bids for the Project.
On December 10, 2024, the Board ratified Addenda No. 1 and 2 to the Contract Documents for the Security Upgrades and Enhancements Project, awarded the Construction Contract to Swinerton Builders, located in Santa Clara, CA, in the sum of $2,194,000.29, and approved a contingency of 15% in the amount of $329,100 and authorized the Chief Executive Officer or designee to approve individual change orders up to the designated amount.
Contract Change Orders
A total of nine (9) contract change orders totaling a net increase of $316,917.28 were executed for this contract to address various issues, including unforeseen site conditions, unforeseen utility conflicts, post-design clarifications, Valley Water requested changes, and credits back to the contract for deleted items of work.
These changes included:
A. No-cost change orders to execute changes to the milestone completion dates and include the implementation of Supplemental Bid Item No. 7 for Blossom Hill Annex, transferring of all fencing-related permitting responsibility from Swinerton to Valley Water, and changes to the milestone durations and completion dates.
B. $1,437 for additional work required to address unforeseen site conditions. This includes a fee for re-delivery of fencing material due to the contractual laydown area being inaccessible.
C. $261,388.20 for additional work required due to post-design clarifications. This includes work such as installation of concrete grade beams for rolling gates, installation of additional gate operators for the swing gates at Santa Teresa Water Treatment Plant, and additional fencing and gate scope.
D. $129,129.25 for additional work required per Valley Water-requested changes. This includes work such as additional fence demolition, additional pedestrian gates, and additional vehicle detection loops for access and egress at vehicle gates.
E. $33,444.00 for additional work required to resolve utility conflicts. This includes work such as exploratory potholing work around the clearwell at Santa Teresa Water Treatment Plant and costs for re-routing the fence alignment at Headquarters Corporate Yard to avoid a PG&E gas main.
F. <$108,481.17> for credits to the contract associated with reimbursement to Valley Water for repairs of Valley Water property damaged by the Contractor, and for the removal of fencing scope at the clearwell at Santa Teresa Water Treatment Plant and at Coyote Pumping Plant.
The final total contract amount is $2,510,917.57
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. Photos of the completed Project are included in 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.
Valley Water is currently withholding retention funds totaling five percent (5%) of the contract items ($125,545.87) in accordance with the Public Contract Code. 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 withholds required by law or the contract.
Recording a Notice of Completion is recommended. Retention withheld will be released as a result of the Board’s acceptance and recording of the Notice of Completion.
Total Project Expenditures
As indicated in the Summary of Construction Contract and Contingency Amounts (Table 1), the original contract amount of $2,194,000.29 has been increased by $316,917.28 to $2,510,917.57, which is an increase of approximately 14.4 percent (14.4%).
ENVIRONMENTAL JUSTICE IMPACT:
There are no environmental justice impacts associated with the Security Upgrades and Enhancements Project. This action is unlikely to or will not result in disproportionate impacts on any specific community(ies) relative to the general population from the implementation of this project.
FINANCIAL IMPACT:
The Security Upgrades and Enhancements Project, Project No. 60204022, is included in the Capital Improvement Program (CIP) Fiscal Years (FY) 2026-30 Five-Year Plan and in the FY2025-26 Adopted Budget.
The Project is funded by a combination of the Water Utility Enterprise Fund Operating and Capital Reserve (Fund 61, 60%), Watershed & Stewardship Fund Operating and Capital Reserve (Fund 12, 30%), and Safe, Clean Water Fund Operating and Capital Reserve (Fund 26, 10%). The portion of the Project cost that is paid for by the Water Utility Enterprise (Fund 61) is allocated 76.2% to North County Zone W-2, 18.3% to South County Zone W-5, 5.1% to South County Zone W-7, and 0.4% to South County Zone W-8.
Transfer of Remaining Balances
The original contract amount of $2,194,000.29, combined with the Board-approved contingency in the amount of $329,100.00 totals $2,523,100.29 for construction of the Project. The total final expended amount for the construction of the Project is $2,510,917.57. This results in a remaining balance of $12,182.72. Upon completion of the construction contract (C0713 Security Upgrades and Enhancements Project), the remaining amount will be released to project reserves for future phases of the Security Upgrades and Enhancements Project, Project No. 60204022.
CEQA:
Staff have determined that Phase 1 of the proposed Project is exempt from CEQA review because it qualifies for a Class 1 Categorical Exemption for Existing Facilities (CEQA Guidelines Section 15301) and Class 2 Categorical Exemption for Replacement and Reconstruction (CEQA Guidelines Section 15302). Phase 1 of the Project would not result in significant environmental impacts and the applicable exceptions in CEQA Guidelines Section 15300.2 do not exist. A Notice of Exemption has been prepared and filed with the County of Santa Clara Office of the Clerk/Recorder.
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
Tony Ndah, 408-630-2208