COMMITTEE AGENDA MEMORANDUM
Capital Improvement Program Committee
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: title
Receive an Update on the Dam Safety Program Projects, the Updated Dam Safety Program Master Schedule, Project Priorities, and Implementation of the Contractor Manager/General Contractor Project Delivery Method for the Calero Dam Seismic Retrofit Project.
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RECOMMENDATION: Recommendation
Receive information on the updated Dam Safety Program Master Schedule, project priorities, and implementation of the Contractor Manager/General Contractor Project Delivery Method for the Calero Dam Seismic Retrofit Project.
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SUMMARY:
Valley Water owns and operates 12 jurisdictional dams and 10 reservoirs in Santa Clara County. Dam safety regulatory requirements, Board policies, and obligations associated with dam ownership set the direction for the Dam Safety Program (Program). Staff last provided the Capital Improvement Program (CIP) Committee with an update on the Program’s strategy and master schedule for construction in June 2024. On February 18, 2025, the CIP Committee requested that staff provide a detailed update on the Calero and Guadalupe Dam Seismic Retrofit projects, which staff presented to the committee on October 10, 2025. With the award of a nearly $2 billion construction contract for Valley Water’s highest priority project, the Anderson Dam Seismic Retrofit Project, and the suspension of the Pacheco Reservoir Expansion Project, staff has conducted a portfolio-level review of the other Dam Safety Projects to prioritize funding, staffing, engineering, and construction resources for projects that provide the greatest public safety risk reduction. The recommended changes to the master schedule are not intended to reduce Valley Water's commitment to dam safety, but rather re-sequence the investments to maximize public safety benefits within available resources. Valley Water developed the proposed schedule revisions in coordination with Division of Safety of Dams (DSOD) to ensure they remain consistent with DSOD standards and prior recommendations. Following its review of the updated schedule, DSOD found the proposed schedule acceptable, as documented in its September 24, 2026, letter to Valley Water.
Decision Framework
The goal of the review was to re-evaluate the dam safety program’s capital projects and implementation schedule using a risk-informed, value-based decision-making framework while continuing to fulfill Valley Water’s obligations as a responsible dam owner.
The framework was based on the following decision priorities:
1) Public Safety - Prioritize project components that provide the greatest reduction in public safety risk.
2) Regulatory Compliance - Address deficiencies necessary to meet current dam safety regulations and engineering standards.
3) System Reliance & Operational Flexibility - Prioritize rehabilitation and asset management investments that improve long-term system reliability and operational performance.
4) Portfolio Sustainability - Deliver projects within available funding, staffing, and industry resource constraints while maintaining an acceptable level of dam safety.
Dam Safety Program Master Schedule Revisions Summary
While the recommended Master Schedule has changed based on the priorities described above, Valley Water remains committed to implementing the seismic retrofit and safety improvements at Calero, Guadalupe, Coyote, and Almaden Dams. A summary of the revisions is as follows:
1) Sequence projects to limit overlap to no more than two major construction projects at any given time, reducing public safety risk and delivery risks while optimizing available resources and maintaining compliance with DSOD requirements.
2) Prioritize embankment retrofits at Calero, Guadalupe, and Coyote dam, as these improvements provide the greatest reduction in dam safety risk and are the highest construction priority.
3) The wear-and-tear of outlet works will be addressed through routine maintenance.
4) Strengthen the Guadalupe Intake Tower as an interim risk reduction measure pending future project implementation.
Project-Specific Updates
Calero Reservoir is a critical component of Valley Water’s raw water system. It operates as part of an interconnected network that includes Almaden Reservoir, the Almaden-Calero Canal, Calero Creek, groundwater recharge facilities, and the raw water conveyance system. Because of Calero Dam’s size and importance for water supply, the Calero Dam Seismic Retrofit Project (CDSRP) remains the Program’s highest priority. Staff will continue to prioritize work on improvements to the embankment and spillway to address public safety concerns and restore full capacity of the reservoir. Replacement of the outlet works will be deferred and addressed as part of the ongoing dam maintenance. Construction of the CDSRP to improve the embankment and spillway is now expected to begin in 2029 and end in 2032.
Although the Guadalupe Dam Seismic Retrofit Project (GDSRP) is the furthest along in design, Guadalupe Dam is about a third the size of Calero Dam and presents additional environmental challenges due to the presence of mercury. These factors support prioritizing GDSRP behind Calero. Since the stability of the intake riser has the potential to be a more immediate public safety concern, staff has pulled this component out of the larger project and plans to start construction on it in 2027 as part of a small capital project. The spillway and embankment construction will begin after the completion of the CDSRP in 2032.
Staff recently completed a conceptual analysis to evaluate both seismic and flood capacity concerns on Coyote Dam. Since Coyote Dam is directly connected to Anderson Reservoir via Coyote Creek, construction cannot begin on Coyote Dam until the completion of the Anderson Dam Seismic Retrofit Project (ADSRP) in 2034, as further explained below. Construction of the Coyote Dam Seismic Stability Project is expected to last until 2037.
It is a requirement through both ADSRP environmental regulatory permits and the CEQA and NEPA documents that Coyote Creek remains wetted throughout the construction of ADSRP. This supports fish passage, water supply, groundwater recharge, and recreational uses. Similarly, Coyote Reservoir must remain as a viable water source for wildfire suppression, and provide recreational opportunities for boating and fishing throughout ADSRP construction.
The main channel of Coyote Creek has two major water sources; releases from Anderson Reservoir and releases of imported water through the Coyote Discharge Line which enters the south channel of Coyote Creek downstream of Anderson Dam. When imported water releases are restricted, flows within Coyote Creek are completely dependent on waters released from Anderson Reservoir. Because Anderson Reservoir is being managed at deadpool throughout construction of ADSRP, there is not adequate water to keep the main channel of Coyote Creek wet over time. Therefore, the creek is dependent on releases from Coyote Reservoir flowing into Anderson Reservoir and then being released downstream.
Since Almaden Dam is seismically stable and produces less than 10% of the local water supply, the Almaden Dam Improvement Project has been moved to the lowest priority list among the dam safety projects and is slated to start construction in 2037, after the completion of the Coyote Dam Seismic Stability Project.
Seismic Stability evaluations are ongoing for Uvas and Chesbro Dams. Additionally, safety evaluations are scheduled for Lenihan and Stevens Creek Dams.
Construction Manager/General Contractor Project Delivery Method
In May 2026, Valley Water’s Board of Directors authorized staff to use the Construction Manager-General Contractor (CM/GC) project delivery method for Calero, Guadalupe, Coyote, and Almaden dam safety projects should staff determine that the method would improve project outcomes. Senate Bill 598 authorizes the use of CM/GC for qualifying water infrastructure projects through January 1, 2031.
CM/GC is a project delivery method in which Valley Water selects a contractor early to provide construction expertise while design is still underway. The contractor works with Valley Water and the design team to refine cost, schedule, constructability, and risk considerations before proposing a construction price. Valley Water is not obligated to award the construction contract unless staff and the contractor reach an acceptable agreement and the Board approves the contract.
CM/GC is particularly well suited to complex dam safety projects because it allows the contractor’s construction expertise to inform design decisions before the construction price is established. Staff has decided to move forward with this delivery method for the Calero project to strengthen coordination among Valley Water, the designer and the contractor in order to identify constructability and site risks early, and to provide greater cost and schedule certainty before Valley Water commits to construction.
Calero Dam Seismic Retrofit Project
The Calero Dam Seismic Retrofit Project (CDSRP) includes major dam safety improvements and will require careful coordination of design, environmental review, regulatory approvals, construction access, reservoir operations, and construction sequencing. Early CM/GC involvement will allow the selected contractor to help assess these implementation considerations before Valley Water establishes the final construction scope schedule, and construction cost.
Since the CDSRP Design Consultant Agreement was issued prior to the Board’s authorization of CM/GC, the agreement will need to be amended to address the change in procurement method. This amendment will need to go to the Board of Directors for approval. Staff will work with the design consultant to complete the amendment prior to the Preconstruction Services Phase.
The CM/GC delivery method for CDSRP will be structured in three steps, with separate Board actions to approve the preconstruction services contract and, if an acceptable price is reached, the final construction contract.
First, Valley Water will issue a public Request for Qualifications (RFQ) to identify firms with the experience, technical expertise, financial capacity, safety record, and resources needed to perform CM/GC services. The preliminary CM/GC procurement schedule will identify prequalification from September through December 2026. Staff will evaluate the applications received and establish a list of qualified CM/GC firms. The qualified firms will be eligible to compete for the pre-construction services contract.
Next, Valley Water will issue a Request for Proposals (RFP) to the pre-qualified firms. Staff will evaluate the proposals using the criteria identified in the solicitation, select the highest-ranked firm, and negotiate a preconstruction services contract. Staff will bring the negotiated preconstruction services contract to the Board for approval. Award of this contract does not authorize construction; it authorizes the contractor to provide preconstruction support while the project design is finalized.
During the pre-construction services phase, the CM/GC will work with Valley Water and the design team to support final design, review constructability, develop and validate cost estimates, assist with schedule development, identify and manage project risks, and plan the construction approach. This early collaboration is intended to improve cost certainty, reduce avoidable construction risks, and establish a clear basis for the eventual construction price.
After the design is sufficiently developed, the CM/GC will submit a proposed Guaranteed Maximum Price (GMP), along with supporting cost documentation. The GMP establishes the maximum amount Valley Water would pay for construction, subject to the final contract terms and any Board-approved changes. Valley Water staff will evaluate and negotiate the proposed GMP and construction contract on an open-book basis. This allows staff to review the contractor’s underlying costs, assumptions, subcontractor pricing, contingencies, and project risks before determining whether the proposed price and contract terms are fair and reasonable. If agreement is reached, staff will return to the Board to adopt the final plans and specifications, and request approval of the GMP and the construction contract.
If Valley Water and the CM/GC cannot reach agreement on a fair and reasonable GMP, Valley Water is not obligated to award the construction contract to that firm. Instead, staff would evaluate available alternatives, which may include competitive bidding, changes to the project scope or phasing, or another delivery approach. Staff would return to the Board, as needed, to present the recommended path forward and request any required authorization.
The following table summarizes the CM/GC procurement process for CDSRP, along with key activities, anticipated dates, and Board actions.
Table 1 - Implementation Steps and Board Actions
If this delivery method proves successful for CDSRP, staff will consider applying the CM/GC delivery method in accordance with the Board of Directors’ approval on subsequent projects within the Dam Safety Program Master Schedule.
ENVIRONMENTAL JUSTICE IMPACT:
There are no environmental justice impacts associated with this informational report.
ATTACHMENTS:
Attachment 1: PowerPoint
Attachment 2: Master Schedule
UNCLASSIFIED MANAGER:
Manager
Andrew Garcia, 408-630-2817