BOARD AGENDA MEMORANDUM
Government Code Section 84308 Applies: Yes ☐ No ☒
(If “YES” Refer to Attachment A)
SUBJECT:
Title
Adopt Plans and Specifications and Authorize Advertisement for Bids for Construction of the Coyote Creek Flood Protection Project, Project No. 26174043, Contract No. C0724, (San Jose, Districts 2, 3, and 6).
End
RECOMMENDATION:
Recommendation
A. Consider the First Addendum to the Final Environmental Impact Report for the Coyote Creek Flood Protection Project, along with the Final Environmental Impact Report;
B. Adopt Plans and Specifications and Authorize Advertisement for Bids for Construction of the Coyote Creek Flood Protection Project, per the Notice to Bidders; and
C. Authorize the Designated Engineer to issue addenda, as necessary, during the bidding process.
Body
SUMMARY:
The Santa Clara Valley Water District (Valley Water) is undertaking the Coyote Creek Flood Protection Project (CCFPP or Project) to provide flood risk reduction measures against a flood event equivalent to the February 2017 flood or approximately a 20-year flood event. The CCFPP is approximately nine (9) miles long and located within the city of San Jose. The Project is part of the Safe, Clean Water and Natural Flood Program that voters renewed in November 2020.
Staff is recommending the Board adopt the Project’s plans and specifications and authorize staff to advertise for construction bids, per the Notice to Bidders (Attachment 2), exclusively to the list of Valley Water Pre-Qualified Bidders.
PROJECT BACKGROUND
The CCFPP’s primary objective is to provide protection from floods up to the level that occurred on February 21, 2017, equivalent to a flood level with a 5% risk of occurring in any given year (also referred to as a 20-year event), along Coyote Creek, between Montague Expressway and Tully Road, in San Jose. The CCFPP involves construction of multiple floodwalls, passive barriers and earthen berms along a nine (9) mile stretch of Coyote Creek.
Following a February 2020 order from the Federal Energy Regulatory Commission (FERC) regarding Anderson Dam, the original Coyote Creek Flood Protection Project was split into two projects to accommodate the construction of a new outlet tunnel at Anderson Dam. As a result, Valley Water accelerated the design and construction of an initial project, the Coyote Creek Flood Management Measures Project (CCFMMP), representing 40% of the original Coyote Creek Flood Protection Project, so the creek can handle the potential release of higher flows from the larger outlet tunnel from the Anderson Dam Tunnel Project. The Board awarded the CCFMMP construction contract in May 2023 and accepted the work as completed in June 2025.
Construction of the remaining components of the original CCFPP, the current CCFPP, is planned for completion before the Anderson Dam Seismic Retrofit Project (ADSRP) Stage 2 Diversion is in operation (estimated in 2028). In total, the Project includes constructing approximately 17,060 feet of improvements along the 9-mile stretch of Coyote Creek from Montague Expressway to Tully Road. The Project will result in flood risk reduction benefits to homes, businesses, schools, and transportation infrastructure, including disadvantaged communities along Coyote Creek.
Rights-Of-Way
A. Phased Notices to Proceed. Right-of-way transactions are still pending, which will impact the contractor’s access to certain geographic areas of the Project. Consequently, to commence Project construction in a few months, staff intends to utilize phased Notices to Proceed (NTP) approvals to authorize the contractor to proceed with building the Project in a certain sequence, as real property rights are secured.
B. Right-of-Way Status. CCFPP will be built in five reaches of Coyote Creek: Reaches 4, 5, 6, 7, and 8. The first phase of NTP approval (first phase) is to authorize the Contractor to proceed with construction in portions of Reaches 4, 5, 6, 7, and 8, which consist of approximately two-thirds of the proposed CCFPP improvements. Issuing phased NTP approvals allows staff additional time to acquire the remaining necessary rights-of-way. Staff anticipates acquiring the right-of-way necessary to construct the first phase of the Project by July 2026. Staff will not recommend the Board award a construction contract until all required real property rights for the first phase are secured.
Regulatory and other Permits
Valley Water is currently in the process of obtaining the regulatory permits from the San Francisco Bay Regional Water Quality Control Board and the California Department of Fish and Wildlife (CDFW). Valley Water is already in receipt of the draft Lake and Streambed Alteration Agreement from CDFW and is negotiating the final permit conditions. It is anticipated that these permits will be acquired prior to the start of construction.
Valley Water is also coordinating with the City of San Jose to secure approval for the proposed work within public right-of-way and on the City’s storm drain system for backflow prevention. It is anticipated that the City approval will be obtained prior to the start of construction. In addition, the operations and maintenance agreement, outlining roles and responsibilities of the proposed improvements within City’s owned property, public right-of-way and storm drain network will be finalized by the end of this year.
Addendum to the Final Environmental Impact Report
Design for CCFPP has been updated from the version approved by the Board in March 2025, necessitating Board consideration before taking any further action on the Project. Changes in the design were necessary to effectively drain stormwater runoff and also prevent backflow into the City of San Jose storm drain system. Staff has prepared an Addendum to the Final Environmental Impact Report (EIR) (Attachment 3) to evaluate the environmental impacts associated with the above described Project changes. The Addendum describes changes to the Project, evaluates the potential impacts, and concludes that the proposed Project modifications would not result in any new significant environmental impacts or substantially increase the severity of significant impacts beyond those identified in the Final EIR.
Board Adoption of Plans and Specifications and Addenda Authorization
Board adoption of plans and specifications and Board authorization to advertise are recommended in order to proceed to bid the Project for construction. Authorizing the Designated Engineer to issue addenda during bidding allows for modifications to the construction Contract Documents, if necessary, during the bidding period and before the contract is awarded.
Relevant Prior Board Action(s)
On March 11, 2025, the Board adopted a resolution certifying the Final EIR for the Project, adopted the California Environmental Quality Act (CEQA) Findings of Fact, Statement of Overriding Considerations, and Mitigation Monitoring and Reporting Program for the Project, and approved the Project.
Public Outreach
Valley Water will use a variety of outreach strategies to keep the community informed of the Project’s progress and important milestones. During the Project’s design phase, numerous public meetings were held, both virtual and in-person, within the adjacent neighborhoods. Valley Water also utilized physical mailers and Nextdoor social media posts to inform the community.
During construction, public outreach will be targeted to the surrounding neighborhoods and include pre-construction and construction update public meetings. In addition to the outreach tactics used during the design phase, construction phase outreach will include regular email updates and construction site signage.
Contractor Pre-Qualification Process & Outreach to Bidders
Because of the size and complexity of the CCFPP, staff prequalified contractors wishing to bid on this Project. The prequalification questionnaire required contractors to demonstrate they have successfully completed projects of similar size and scope as the CCFPP.
Prior to the pre-qualification process, Valley Water did extensive industry outreach through PlanetBids to ensure broad awareness and participation, with the Request for Prequalification Application (RFPA) outreach going out to local and regional firms that have the appropriate license for this type of work, and the Santa Clara and San Benito Counties Building and Construction Trades Council, which maintains contacts with at least 100 union representatives, for distribution to their members.
The notice of RFPA was published on Valley Water’s vendor portal at PlanetBids on July 22, 2025, and an optional prequalification conference for contractors was held via Zoom on August 12, 2025. Six (6) contractors submitted the prequalification application by the October 8, 2025, deadline.
Prequalification applications were reviewed by staff and list of final prequalified contractors was posted on Valley Water’s website on November 26, 2025. The following six (6) contractors met the prequalification requirements and will be the only contractors eligible to bid on the Project.
• Anvil Builders, Inc.
• Gordon N. Ball, Inc.
• Granite Construction Company
• Granite Rock Company
• Mountain Cascade, Inc.
• Shimmick Construction Company, Inc.
Next Steps
Upon Board approval of the recommendations, staff will proceed to advertise the Project for construction bids. The next Board action needed is to award the construction contract, tentatively scheduled for July 28, 2026. The Project Delivery Process (Attachment 4) highlights the current Project phase and the staff recommendations before the Board.
ENVIRONMENTAL JUSTICE IMPACT:
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. However, CCFPP will have beneficial Environmental Justice impacts. The intent of the CCFPP is to protect the public, including disadvantaged communities from dangers associated with flooding similar to the flooding event that occurred in February 2017. Construction of the Project does not disproportionately impact undeserved or disadvantaged communities.
FINANCIAL IMPACT:
There is no financial impact associated with the recommendation to Adopt Plans and Specifications and Authorize Advertisement for Bids. The CCFPP, Project No. 26174043 is included in the Capital Improvement Program (CIP) Fiscal Years (FY) 2026-30 Five-Year Plan and in the FY 2025-26 Adopted Budget. The estimated construction cost of the Project is $140 million to $160 million and does not increase the total Project cost reflected in the CIP Draft FY 2027-31 Five-Year Plan. Construction contract costs are anticipated to begin in FY 2026-27 and will be included in the biennial budget process. If the contract award amount exceeds the estimated costs, it will be addressed through the next CIP and biennial budget cycles and through budget adjustment(s), if needed. The Project is funded through the Safe, Clean Water and Natural Flood Protection Program Fund (Fund 26).
The Department of Water Resources (DWR) has awarded Valley Water $3.8 million in Integrated Regional Water Management Program (IRWMP) grant funding for a portion of CCFPP construction work.
On February 14, 2023, the U.S. Environmental Protection Agency (EPA) and Valley Water entered into a Master Agreement for the Safe Clean Water program pursuant to the Water Infrastructure Finance and Innovation Act (WIFIA) Loan Program. Through WIFIA, the EPA will provide up to $147 million in low-cost loans to Valley Water to support crucial flood control initiatives, including CCFPP.
CEQA:
Valley Water is the lead agency under the CEQA for the implementation of the Project. On March 11, 2025, the Board adopted a Resolution (Resolution No. 2025-16) certifying the Final EIR, adopting the Mitigation Monitoring and Reporting Program and approved the CCFPP. The Final EIR is available for review through this link: <https://fta.valleywater.org/fl/3707stZEOx>
An Addendum to the certified Final EIR (Attachment 3) has been prepared and is part of this Board item as a recommendation for the Board’s consideration. The Addendum concludes that the proposed Project modifications would not result in any new significant environmental impacts or substantially increase the severity of significant impacts beyond those identified in the Final EIR.
ATTACHMENTS:
Attachment 1: Location Map
Attachment 2: Notice to Bidders
Attachment 3: First Addendum to the Final EIR
Attachment 4: Project Delivery Process
Attachment 5: Plans
Attachment 6: Specifications
UNCLASSIFIED MANAGER:
Manager
Bhavani Yerrapotu, 408-630-2735