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 Rinconada Water Treatment Plant Residuals Remediation Project, Kiewit Infrastructure West Company, Contractor, Project No. 93294058, Contract No. C0671 (Los Gatos, District 7).
End
RECOMMENDATION:
Recommendation
A. Accept the work on the Rinconada Water Treatment Plant Residuals Remediation Project, Project No. 93294058, Contract No. C0671 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.
Body
SUMMARY:
The construction contractor, Kiewit Infrastructure West Company (Contractor), has completed the Rinconada Water Treatment Plant Residuals Remediation Project (Project).
Project Background
The Rinconada Water Treatment Plant (RWTP) was completed in 1967 and is Santa Clara Valley Water District’s (Valley Water) second largest plant. The RWTP currently has the capacity to deliver up to 80 million gallons of water each day to retailers who supply residential and commercial users. The RWTP draws water from the South Bay Aqueduct as well as the San Luis, Anderson, and Calero Reservoirs.
The RWTP is the only source of treated water supply for the west side of Valley Water’s service area. Its reliable operation is critical to meet the daily water demands of more than one million customers.
RWTP Residuals Management Project No. 93294051 was implemented to modernize the handling of residual solids from the water treatment process. Construction was completed in 2016. However, start-up, testing and commissioning processes revealed numerous operational deficiencies. Staff took interim steps to maintain the system’s operability. A long-term remediation effort to achieve reliable system operations was approved by the Valley Water’s Board of Directors in May 2018 as the RWTP Residuals Remediation Project No. 93294058.
Work performed by this Project corrected the outstanding deficiencies of RWTP’s residuals management system and provides infrastructure to effectively process solids. The solids volume generated by the plant is approximately double the current system capacity. There was notable lack of capacity in the existing, under-sized, sludge mix tank, which resulted in significant increased labor for operational staff to keep the system functioning correctly.
As part of this Project, two new centrifuges, a new polymer feed system, and new sludge storage tanks were installed. The Project also includes improvements to the existing centrifuge building, centrifuge feed pump, yard piping, gravity thickener rake arms, and the loadout structure.
Previous Board Actions
On May 15, 2012, the Board awarded Agreement No. A3585A to CDM Smith, Inc., to perform engineering services for the design of the RWTP Residuals Management Project for a not-to-exceed fee of $1,449,316.
On April 23, 2013, the Board Adopted a Resolution to Adopt the Final Initial Study-Mitigated Negative Declaration for the Rinconada Water Treatment Plant Residuals Management Project; conducted a public hearing on the Engineer's Report; Adopted a Resolution to Approve the Engineer’s Report; and approved the Project - Project No. 93294051.
On August 27, 2013, the Board awarded a construction contract for the RWTP Residuals Management Project to Preston Pipeline, Inc., in the amount of $15,818,300.
On October 25, 2016, the Board accepted the RWTP Residuals Management Project as complete and authorized the Clerk to sign the Notice of Completion of Contract and Acceptance of the Work.
On January 24, 2017, the Board approved a budget adjustment of $3,356,000 from the Water Utility Operating and Capital Reserve to the Fiscal Year 2016-17 Project budget to fund short-term remediation efforts necessary to maintain the residuals management system’s functionality.
On May 8, 2018, the Board approved a budget adjustment of $5 million from the RWTP Residuals Management Project to fund project expenditures for Fiscal years 2018 and 2019, and awarded Agreement No. A4144A to Stantec Consulting Services Inc., for Project planning and design services for a not-to-exceed fee of $3,296,795.
On April 27, 2021, the Board found the Project was substantially complex and requires a construction contract retention of ten percent; found Square D PowerLogic ION electrical power monitoring system (or most current) should be designated by specific brand name and catalog item as a sole source product, to match other products already in use at the RWTP; found that that Schneider Electric Modicon Unity Pro PLC programming software (or most current), and iFix HMI and Historian software by GE Intelligent Platforms (or most current) should be designated by specific brand name and catalog item as sole source products, to match other products already in use at the RWTP; found that that Cisco (IE3300 or most current) rack-mounted ethernet switches should be designated by specific brand name and catalog item as a sole source product, to match other products already in use at the RWTP; found that that RFIdeas RFID Reader (RDR-6081AKU or most current) and ESM Software TSL-RFID Security Software (or most current) should be designated by specific brand name and catalog item as a sole source product, to match other products already in use at the RWTP; found that Hiller Separation & Process DP66-422 Centrifuges, identical to the two existing centrifuges, should be designated by specific brand name and catalog item as a sole source product, to match other products already in use at the RWTP; found that that Schneider Electric M580 PLCs (updated version of the Schneider Electric Modicon PLCs no longer in production) should be designated by specific brand name and catalog item as a sole source product, to match other products already in use at the RWTP; considered the Second Addendum to the Project’s Initial Study/Mitigated Negative Declaration (IS/MND); approved the Project; adopted the plans and specifications and authorized advertisement for bids for the construction of the Rinconada Water Treatment Plant Residuals Remediation Project per the Notice to Bidders; and authorized the Designated Engineer to issue addenda, as necessary, during bidding.
On July 13, 2021, the Board ratified Addenda Nos. 1 and 2 to the Contract Documents for the Project; awarded the Construction Contract to Kiewit Infrastructure West Co. in the sum of $22,979,980; and approved a contingency sum of $3,447,000 and authorized the Chief Executive Officer or designee to approve individual change orders up to the designated amount.
Contract Change Orders
A total of twenty-six (26) contract change orders totaling a net increase of $3,260,285.00 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. $250,142 for additional work required to address unforeseen site conditions. This includes work from demolition of an existing concrete asphalt section to additional excavation at Centrate Wet Well B area.
B. $171,897 for additional work required to address unforeseen utility conflicts. This includes work from relocation of communication pullbox enclosure to additional potholing and field investigation for electrical ductbank relocation at various locations.
C. $221,869 for additional District-requested changes to benefit the Project. This includes work from installation and testing of backflow preventer to temporary installation of steel plates and hydro-vac operation at various locations to safely pothole utilities and remove buried debris.
D. $2,418,831 for additional work required to address post-design clarifications. This includes work from modification of the Gravity Thickener Access Hatch to installation of approximately 2,790 linear feet of conduits, 29,988 linear feet of electrical wiring, and 436 wiring termination points at various control panels.
E. <$138,454> credit for deletion of contract work and District-furnished materials. This includes credits from deletion of space heater at sump pump local control panel to deletion of testing for Medium Voltage Equipment.
F. $336,000 for global settlement of all impacts due to schedule delays. The delay was a result of the system control and data acquisition (SCADA) programming changes associated with the centrifuge conveyor system, which required additional work.
Table 1 presents a summary of the construction contract and contingency amounts.
TABLE 1
SUMMARY OF 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 ten percent (10%) of the contract items ($2,624,026.50) 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.
Total Project Expenditures
As indicated in the Summary of Construction Contract and Contingency Amounts (Table 1), the original contract amount of $22,979,980.00 has been increased by $3,260,285.00 to $26,240,265.00, an increase of approximately 14.1 percent.
ENVIRONMENTAL JUSTICE AND EQUITY IMPACT:
There are no environmental justice impacts associated with this item. This action is unlikely to or will not result in adverse impacts and is not associated with an equity opportunity.
FINANCIAL IMPACT:
The Rinconada Water Treatment Plant Residuals Remediation Project, Project No. 93294058, is included in the Capital Improvement Program (CIP) Fiscal Years (FY) 2025-29 Five-Year Plan and in the FY 2024-25 Adopted budget. The Project was funded by the Water Utility Enterprise Fund (Fund 61), with 100 percent of the cost allocated to Zone W-2 (North County).
Transfer of Remaining Balances
The original contract amount of $22,979,980.00, combined with the Board-approved contingency encumbrance of $3,447,000, totals $26,426,980.00, which sum was allocated to pay for construction of the Project. The original contract amount ($22,979,980.00), plus the total cost of all approved change orders ($3,260,285.00) resulted in the final contract amount of $26,240,265.00, and a remaining unspent contingency amount of $186,715.00.
Upon construction contract close-out, $186,715.00 will be released to Fund 61 operating and capital reserves.
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
Emmanuel Aryee, 408-630-3074