BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Proposed Amendments to Consultant Agreements to Enable Valley Water’s Compliance with February 20, 2020 Order of the Federal Energy Regulatory Commission on Anderson Dam Seismic Retrofit Project, Project No. 91864005; Authorize Chief Executive Officer to Negotiate and Execute Amendment No. 7 to Agreement A3676A Between Santa Clara Valley Water District and URS Corporation and Amendment No. 8 to Agreement A3555A Between Santa Clara Valley Water District and Black and Veatch Corporation up to an additional $10M.
End
RECOMMENDATION:
Recommendation
A. Discuss the need to amend consultant agreements with URS Corporation (for engineering design services) and Black and Veatch Corporation (for project management services) to enable Valley Water’s compliance with the February 20, 2020 letter order of Federal Energy Regulatory Commission (FERC) concerning the Anderson Dam Seismic Retrofit Project (ADSRP); and
B. Authorize the Chief Executive Officer to negotiate and execute Amendment No. 7 to Agreement A3676A with URS Corporation up to an additional $8M and Amendment No. 8 to Agreement A3555A with Black and Veatch Corporation up to an additional $2M.
Body
SUMMARY:
Background
ADSRP and FERC-Ordered Interim Risk Reduction Measures
The Anderson Dam Seismic Retrofit Project (ADSRP) will correct dam seismic deficiencies and otherwise meet all current Federal Energy Regulatory Commission (FERC) and California Department of Water Resources, Division of Safety of Dams (DSOD) dam safety design standards. The ADSRP will also address impacts of the operation of Anderson Reservoir on the beneficial uses of Coyote Creek, including restoration of fisheries, wildlife, water quality, and water supply. Throughout 2019 to early 2020, project staff and consultants had been progressing with preparation of 90% design plans and specifications and supporting environmental and permitting documents. Construction of the ADSRP was scheduled to start in the fall of 2022. On February 20, 2020, the Santa Clara Valley Water District (Valley Water) received a letter order from FERC to immediately implement the following ADSRP-related interim risk reduction measures:
1. Immediately Lowering the Operating Level of the Reservoir to Elevation 565 feet:
Effective February 20, 2020, Valley Water has been directed to immediately lower the operating level of the reservoir to elevation 565 feet. This elevation must be maintained until October 1, 2020, at which point Valley Water must begin lowering the reservoir level further. Due to the winter operations rule curves previously adopted by Valley Water’s Board of Directors to help prevent exceedance of the operating capacity restriction, Valley Water is already in compliance with this portion of the FERC directive.
2. Draining the Reservoir to Elevation 488 Feet (Deadpool):
Effective October 1, 2020, Valley Water has been directed to begin safely lowering the operating level of the reservoir to elevation 488 feet (deadpool). Valley Water must take the necessary steps to drain the reservoir in a safe manner, including mitigation of potential rim instability around the reservoir. In addition, Valley Water must develop a plan to maintain this elevation throughout the rainy season and into the foreseeable future.
3. Expediting Design and Construction of the Low-Level Outlet Tunnel:
Valley Water should expedite the design and construction of the low-level outlet tunnel as soon as possible. The directive ordered Valley Water to submit a plan to FERC by March 21, 2020, showing the proposed plan and schedule for preliminary and final design of this tunnel as well as its construction. The District has complied with this directive. Once constructed, the outlet tunnel will be utilized to help maintain the level of the reservoir below FERC and/or DSOD-mandated operating restrictions.
4. Developing Measures Necessary to Safely Drain the Reservoir to Deadpool and Minimize Environmental Impacts:
Valley Water must also work with FERC staff and federal, state and local resource agencies to minimize the environmental impacts of these directives, including rim instability risks and the anticipated environmental impacts of dewatering the reservoir and constructing the low level outlet tunnel.
To meet the FERC directive, the ADSRP team has had to bifurcate the Project to expedite the low-level outlet tunnel design from the overall ADSRP design. However, to keep the overall ADSRP on schedule, efforts on both the tunnel project and overall project are continuing in parallel. As such, both Valley Water’s project management consultant and engineering design consultant have had to add additional staff resources and additional work tasks to support completion of the outlet tunnel design and development of mitigation measures for these regulatory mandates.
FINANCIAL IMPACT:
Staff estimates the total cost of amending these two consultant agreements will result in $8,000,000 in additional design services by URS Corporation and $2,000,000 of additional project management services by Black and Veatch Corporation. A budget adjustment for this fiscal year is not necessary. A total of $4,200,000 for these anticipated expenses was included as part of the Fiscal Year 2019-20 midyear budget adjustments approved by the Board on February 25, 2020. The remaining $5,800,000 expenditure to fully fund these two amendments will be recommended by staff for inclusion in the Board-approved FY21 annual budget for the ADSRP Project Number 91864005.
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:
None.
UNCLASSIFIED MANAGER:
Manager
Christopher Hakes, 408-630-3796