BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☒ No ☐
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Approve Amendment No. 3 to Agreement No. A5050Ab with Black & Veatch Corporation, to provide a Desalination Engineering Feasibility Study, Project No. 91441003, PB File VW0379, Increasing the Not-to-Exceed Fee by $791,699 for a Revised Total Not-to-Exceed Fee of $2,509,437 (Countywide).
End
RECOMMENDATION: Recommendation
Approve Amendment No. 3 to Agreement No. A5050Ab with Black & Veatch Corporation, to provide a Desalination Engineering Feasibility Study, Project No. 91441003, PB File VW0379, Increasing the Not-to-Exceed Fee by $791,699 for a Revised Total Not-to-Exceed Fee of $2,509,437.
Body
SUMMARY:
Santa Clara Valley Water District (Valley Water) is evaluating the engineering feasibility of a seawater desalination facility in Santa Clara County that would use seawater from the South San Francisco Bay. The project aims to provide a reliable, long-term potable water supply to meet the needs of current and future populations. This study builds on Valley Water's previous environmental and feasibility assessments of the proposed desalination facility. The Consultant will evaluate the engineering feasibility of a seawater desalination facility in the South Bay; identify a suitable site and evaluate a production capacity ranging from 10 to 40 million gallons per day (MGD) for potable water supply; and develop a conceptual-level facility design.
Agreement No. A5050A History
On January 1, 2024, Valley Water issued a Request for Proposal (RFP No. VW0379) for the Desalination Engineering Feasibility Study (Study). Following a competitive solicitation process and staff recommendation, the Board approved Agreement A5050A with Black & Veatch Corporation on July 9, 2024, to provide a Desalination Engineering Feasibility Study, Project No. 91441003, File No. VW0379, for a Total Not-to-Exceed fee of $1,717,738, and an initial term of 12 months, with two one-year option periods.
On July 9, 2025, Amendment No. 1 was executed to extend the term from July 9, 2025, to July 9, 2026, to allow the Consultant to continue providing professional services for Valley Water’s Desalination Engineering Feasibility Study Project.
On June 22, 2026, Amendment No. 2 was executed to extend the term from July 9, 2026, to December 31, 2028, to allow the Consultant to continue providing professional services for Valley Water’s Desalination Engineering Feasibility Study Project.
Amendment No 3
Amendment No. 3 (A5050Ac) to Agreement No. A5050A will allow Black & Veatch Corporation to continue providing professional services for Valley Water’s Desalination Engineering Feasibility Study Project.
The amendment will add scope and funds to support the continued evaluation of engineering feasibility of a seawater desalination facility, evaluate a suitable capacity and location in the South Bay with minimum 10 million gallons per day (MGD) and maximum 40 MGD production capacity for drinking water supply and develop a concept-level setting for the facility. This amendment will increase the not-to-exceed (NTE) fee by $791,699 for a revised total NTE fee of $2,509,437.00.
The need for these additional services was identified through the Study's initial technical evaluations and stakeholder engagement and represents a continuation of the work performed under the original feasibility study. The additional analyses will provide the technical information needed to support future Board decisions regarding the feasibility of a seawater desalination facility, which is identified in Valley Water's 2050 Water Supply Master Plan as a drought-resilient and sustainable water supply strategy to help address projected long-term water supply shortages.
This Amendment will incorporate one (1) new task, Task 7 - Post Alternative Analysis Additional Support Tasks, and its associated subtasks into the Agreement. These include hydrodynamic modeling of the preferred intake location, evaluation of potential outfall locations for brine management, interconnecting channel analysis, identification of funding opportunities for planning studies, continued coordination with regulatory agencies and key stakeholders.
The proposed additional services are summarized below:
7.1 - Hydrodynamic Modeling: Model brine commingling with wastewater effluent and evaluate near-field conditions for a potential deep bay brine discharge. Optional work may assess a co-located intake and discharge, including recirculation, plume behavior, and feasibility.
7.2 - Funding Opportunities: Identify applicable federal and state funding programs for desalination planning, feasibility studies, and early project development. Optional work includes grant application support and requires feasibility documentation.
7.3 - Interconnecting Channel Analysis: Assess water quality, bathymetric conditions, and potential effects from the Sunnyvale Oxidation Ponds to refine the feasibility of an Interconnecting Channel intake. Prepare a Supplemental Interconnecting Channel Evaluation Memorandum, with optional field bathymetric mapping if needed.
7.4 - Project Management and Coordination: Manage the added scope; maintain the project schedule; coordinate regular virtual meetings; and provide agendas, meeting minutes, invoices, progress reports, and related project management support within the authorized budget.
The Agreement shall expire on December 31, 2028, unless its term is extended or otherwise modified by a written amendment executed by both Parties prior to the expiration date.
Table 1 - Summary of Tasks and Fees (Revised)
|
Task |
Description |
Original Not-to-Exceed Fees |
Amendment No 3 |
Revised Total NTE Fees |
|
1 |
Project Management |
$233,563 |
- |
$233,563 |
|
2 |
Data and Information Collection |
$67,034 |
- |
$67,034 |
|
3 |
Feasibility Study |
$889,957 |
- |
$889,957 |
|
4 |
CEQA and Other Regulatory Requirements |
$80,537 |
- |
$80,537 |
|
5 |
Presentation of Results |
$35,961 |
- |
$35,961 |
|
6 |
Supplemental Services |
$410,686 |
- |
$410,686 |
|
7 |
Post Alternative Analysis Additional Support Tasks |
$0 |
$791,699 |
$791,699 |
|
Total Not-to-Exceed Fees |
$1,717,738 |
$791,699 |
$2,509,437 |
Table 2 - Project Schedule (Revised)
|
Task |
Description |
Duration From Notice to Proceed (months) |
|
1 |
Project Management |
Duration of Agreement |
|
2 |
Data and Information Collection |
3 |
|
3 |
Feasibility Study |
12 |
|
4 |
CEQA and Other Regulatory Requirements |
12 |
|
5 |
Presentation of Results |
Duration of Agreement |
|
6 |
Supplemental Services |
Duration of Agreement |
|
7 |
Post Alternative Analysis Additional Support Tasks (Added) |
Duration of Agreement |
ENVIRONMENTAL JUSTICE IMPACT:
Further analysis is necessary to determine the Environmental Justice impacts associated with any potential future desalination project in Santa Clara County. Any analysis of the environmental impact will be completed if a specific project is being proposed for Valley Water’s investment. The findings of that analysis will be presented to the Board during a future update.
FINANCIAL IMPACT:
The Desalination Project, Project No. 91441003, is included in the FY 2027 Adopted Operating Budget. A budget adjustment to carry forward $300,000 from FY 2026 to FY2027 was completed in July 2026 and approved by the Board of Directors as part of the year-end-budget adjustment process. In addition, there is enough budget in Project No. 91441003 for FY2027 to accommodate the increase of $791,699 in expenditures due to the Standard Consultant Agreement, and therefore no financial impact. The Not-to-Exceed (NTE) fee for Amendment No. 3 to Agreement A5050Ab is $791,699, resulting in a total NTE fee of $2,509,437.00.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
Attachment A: Gov. Code Section 84308
Attachment 1: Agreement
Attachment 2: Amendment No. 1
Attachment 3: Amendment No. 2
Attachment 4: Amendment No. 3
UNCLASSIFIED MANAGER: Manager
Kirsten Struve, 408-630-3138