BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Update on the Rinconada Water Treatment Plant Reliability Improvement Project - Project No. 93294057 (Los Gatos) (District 7).
End
RECOMMENDATION:
Recommendation
Receive an update on the construction progress for the Rinconada Water Treatment Plant (RWTP) Reliability Improvement Project.
Body
SUMMARY:
On May 26, 2015, the Board awarded a $179,850,000 construction contract (Contract) to Balfour Beatty Infrastructure, Inc. (BBII) for the Rinconada Water Treatment Plant Reliability Improvement Project (Project). The Contract provided for the Project to be built in five phases within a 5-year period. The existing Rinconada Water Treatment Plant (RWTP) is to remain operational during the entire construction period, with the newly-constructed facilities and upgrades integrated with plant operations at the end of each phase.
Phase 2 of the work includes the construction of several new facilities for the upgraded treatment system at the RWTP--the flocculation/sedimentation, ozone generation, and washwater recovery facilities. It also includes the installation of an electrical control building and appurtenant wiring and control systems, significant underground piping, and installation of chemical feed systems.
BBII's current estimated completion date of Phase 2 work is about 2 years late per the original construction schedule. During the past 3 months, the District has initiated formal correspondence with BBII to document the District's concerns regarding quality of construction work, BBII's apparent failures to date to comprehensively remedy construction defects, and BBII's lack of diligence to progress the Contract work. This correspondence was provided to the Board in the September 14, 2018 Non-Agenda packet. The District has advised BBII and the sureties bonding this Project, that these performance issues are cause for the District finding BBII in material breach of the District's Contract.
FINANCIAL IMPACT:
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