BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Notice of Completion of Contract and Acceptance of Work for the Upper Guadalupe River Project Reach 6, Plant Establishment Maintenance Phase, DeSilva Gates Construction, Contractor, Project No. 26154002, Contract No. C0556 (San Jose) (District 6).
End
RECOMMENDATION:
Recommendation
A. Accept the work 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:
California law requires the District to release contract retention in accordance with certain time frames which will commence once the Notice4 of Completion is recorded. Interest payment on retention due to the contractor may be avoided by meeting the requisite deadlines.
The construction contractor, DeSilva Gates Construction, has completed the four-year Plant Establishment Maintenance Phase of the Upper Guadalupe River Reach 6 Project, located between Interstate 280 and the Union Pacific Railroad Bridge (Project). The construction contract was awarded in the amount of $9,733,333 and the final contract amount is $10,684,776.04. Subject to any necessary withholds required by law or the contract, acceptance of the Plant Establishment Maintenance Phase work by the Board will allow for the release of approximately $89,750 in retention to the contractor.
The Reach 6 construction was the first phase in providing 100-year flood conveyance capacity for the Upper Guadalupe River Flood Protection Project between Interstate 280 and Blossom Hill Road, a Clean, Safe Creeks and Natural Flood Protection Program project. Reach 6 is the only portion of the Upper Guadalupe River Project fully-funded by the District. The Reach 6 work restores and protects natural stream functions and will also provide long-term benefits to stream ecology, wildlife, and fisheries.
The Board accepted the Construction and Plant Installation Phase of the contract in September 2012. This Board action is for the acceptance of the four-year Plant Establishment Maintenance Phase of the contract.
Previous Board Actions
On December 8, 2009, the Board approved the plans and specifications and authorized advertisement for bids for the construction of Upper Guadalupe River Project Reach 6.
On April 13, 2010, the Board awarded the subject contract to DeSilva Gates Construction in the amount of $9,733,333 and approved a contingency fund of $970,000. 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 Senior Project Manager and Deputy Operating Officer to approve individual changes up to $30,000 and $50,000 respectively.
On September 11, 2012, the Board accepted the Construction and Plant Installation Phase of the project.
Contract Change Orders
During the Construction and Plant Installation Phase of the Project, a total of seventeen contract change orders totaling the amount of $944,667 were executed for this contract to address various unforeseen field conditions, quantity adjustments, and owner requested items to provide benefit to the Project. As stated earlier, the Board accepted the Construction and Plant Installation Phase of the contract on September 11, 2012.
During the Plant Establishment Maintenance Phase of the Project, one contract change order in the amount of $6,776.04 was executed to install additional erosion protection, provide temporary fencing for an extended period, and repair of cracking in walking paths.
The final contract amount is $10,684,776.04, which includes an increase of $951,443.04 in contract changes within the Board-approved contingency fund.
Table 1 presents a summary of the construction contract and contingency amounts.
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TABLE 1. SUMMARY OF CONSTRUCTION CONTRACT AND CONTINGENCY AMOUNTS |
|
|
Contract Amount |
Contingency Amount |
|
Original Contract |
$9,733,333.00 |
$970,000.00 |
|
Construction and Plant Installation Phase (accepted September 11, 2012): |
|
Change Order Nos. 01 to 17 |
$944,667.00 |
<$944,667.00> |
|
Plant Establishment Maintenance Phase: |
|
Change Order No. 18 |
$6,776.04 |
<$6,776.04> |
|
Final Contract Amount and Remaining Contingency |
$10,684, 776.04 |
$18,556.96 |
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.
Release of 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 Plant Establishment Maintenance Phase of the contract ($89,751.90) in accordance with the Public Contract Code. Per the construction contract documents for the Project, the District is required to release retention funds associated with the contract 35 days after recording of 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 $9,733,333 has been increased by $951,443.04 to $10,684,776.04, an increase of approximately 10 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 value for Construction hard costs includes the construction contract as well as utility agreements, utility relocation, and permit fees.
TABLE 2. Upper Guadalupe River Project Reach 6 Expenditures to Date
|
Planning Phase: |
$277,520 |
|
Design Phase: |
$5,288,990 |
|
Construction Phase: |
$4,365,460 |
|
Construction Hard Costs: |
$11,617,170 |
|
Total Project Expenditures to Date: |
$21,549,140 |
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
Attachment 2: Recommendation of Acceptance
Attachment 3: Project Completion Letter
Attachment 4: PowerPoint
Attachment 5: Project Delivery Process Chart
UNCLASSIFIED MANAGER:
Manager
Melanie Richardson, 408-630-2035