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. A4418A with COWI North America, Inc. for Construction Management Services for the Anderson Dam Tunnel Project, Project No. 91864006, CAS File No. 5135, Increasing the Fee by $14,008,500 for a Total Revised Fee of $53,170,972 and Extending the Term to April 30, 2027 (Morgan Hill, District 1).
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RECOMMENDATION: Recommendation
Approve Amendment No. 3 to Agreement No. A4418A, with COWI North America, Inc. for Construction Management Services for the Anderson Dam Tunnel Project, Project No. 91864006, increasing the fee by $14,008,500, for a revised total fee of $53,170,972 and extending the term to April 30, 2027.
Body
SUMMARY:
Santa Clara Valley Water District (Valley Water) is undertaking the Anderson Dam Federal Energy Regulatory Commission Order Compliance Project (FOCP) in response to the February 20, 2020, order from the Federal Energy Regulatory Commission (FERC) to implement interim risk reduction measures at Anderson Dam. One of those risk reduction measures is the Anderson Dam Tunnel Project (ADTP).
Agreement A4418A (Agreement) with COWI North America, Inc. (Consultant) was awarded on January 5, 2021, by the Board to provide construction management services for the ADTP.
Amendment No. 3 to the Agreement will extend the term of the Agreement by one year, incorporate administrative updates, and add funding in the amount of $14,008,500, for a revised total fee of $53,170,972.
Project Background
The Anderson Dam Seismic Retrofit Project (ADSRP) will correct dam seismic deficiencies and meet all current FERC and California Department of Water Resources, Division of Safety of Dams (DSOD) dam safety design standards.
The ADTP will construct a diversion system to augment the existing outlet, which will consist of a new diversion tunnel, an outlet structure, and a micro-tunnel lake tap. ADTP also includes modifications to Coyote Creek just downstream of the base of the dam and modifications to the existing intake structure.
The diversion system, which will consist of a 23-ft diameter, approximately 1,450-ft long tunnel, will be able to pass releases from the reservoir at flow rates up to 2,000 cubic feet per second (CFS). The new outlet structure will be used to control flows through the tunnel, which will go through dissipation chambers and will be discharged into a rip-rap lined channel before entering the Coyote Creek. Modifications to Coyote Creek just downstream of the base of the dam will be made to accommodate the higher flows from the tunnel.
Relevant Prior Board Actions
On January 5, 2021, the Board approved Agreement A4418A with COWI North America, Inc. for construction management services for the ADTP for a total fee of $20,465,000.
On April 27, 2021, the Board approved the construction contract award to Flatiron West Inc.
On December 13, 2022, the Board approved Amendment No. 1 to Agreement A4418A (Agreement) with COWI North America, Inc. (Consultant) to expand the scope of services; and add funding, for a revised total fee of $29,049,817.
On February 27, 2024, the Board approved Amendment No. 2 to Agreement A4418A (Agreement) with COWI North America, Inc. (Consultant) to extend the term of the Agreement by two years, incorporating administrative updates, and add funding, for a revised total fee of $39,162,472.
On January 28, 2025, the Board approved an increase of $40,000,000 to the construction contract contingency sum, bringing the total construction contract contingency to $80,000,000.
Consultant Agreement Scope of Services
Amendment No. 3 to the Agreement with COWI North America, Inc., will provide the Consultant with additional time and funds to continue providing essential construction management services, inspections, environmental compliance, and supplemental services for the ADTP. Specifically, this amendment extends the Agreement term by one year, from April 30, 2026, to April 30, 2027 and increases the fee by $14,008,500 to cover contract time extensions (Time Impact Analyses 4 through 6, as shown in Table A below, for an additional 23 months), for a revised total fee of $53,170,972.
The additional funds are necessary to ensure continued oversight, regulatory compliance, and quality assurance as the project advances. The time extension is necessary due to a revised construction completion date, currently scheduled for December 2026.
Table A below summarizes each time extension, including a time impact analysis of the project schedule.
Table A - Project Schedule Extensions and Completion Dates
The additional funds will cover the provisions of the necessary construction management services, including:
• Project management (coordination of regular inspections by FERC/DSOD, facilitating construction progress and technical meetings, preparation of weekly/monthly construction reports, etc.),
• Construction management (processing and tracking design changes, change orders, reviewing contractor’s cost proposals, etc.),
• Conducting special construction inspections and providing coverage for up to 24-hour construction work schedule to comply with quality control inspection program (QCIP) required by FERC and DSOD,
• Conducting perimeter air quality monitoring and daily/weekly testing to comply with the Bay Area Air Quality Management District’s requirements and permit, and
• Monitoring for environmental compliance with biological permits issued by regulatory agencies (State Water Resources Control Board, California Department of Fish and Wildlife).
A summary of the tasks and fees for the recommended Amendment No. 3, including previous administrative fund reallocations, is presented in Table 1.
Staff’s recommendation to approve Amendment No. 3 to the Agreement was presented at the Capital Improvement Program (CIP) board committee meeting on June 16, 2025.
ENVIRONMENTAL JUSTICE AND EQUITY IMPACT:
There are no Environmental Justice impacts associated with this item
FINANCIAL IMPACT:
The Anderson Dam Tunnel Project, Project No. 91864006, 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 increased not-to-exceed (NTE) fee for Amendment No. 3 to Agreement A4418A is $14,008,500, resulting in a total NTE fee of $53,170,972. There are adequate funds in the Project’s FY 2025-26 Adopted Budget to encumber the anticipated expenditures for the Consultant’s services during this fiscal year.
Approval of this Amendment No. 3 to Agreement No. A4418A would be an increase to the Total Project Cost (TPC) reflected in the CIP’s Adopted FY 2026-30 Five-Year Plan by approximately $9 million. The increase to the TPC will be addressed during the development of next year’s CIP FY 2027-31 Five-Year Plan and the biennial Budget process. The Project is funded through the Water Utility Enterprise Fund (Fund 61), with 81.7% of the costs allocated to North County Zone W-2, and South County Zones as follows; 7.5% to Zone W-5 and 10.8% to Zone W-7.
CEQA:
CEQA provides a statutory exemption for emergency projects, which include specific actions necessary to prevent or mitigate an emergency (Public Resources Code §21080(b)(4) and CEQA Guidelines §15269(c)). After analysis of the facts and applicable law, on June 23, 2020 following a public hearing, the Board determined that the FOCP, inclusive of the ADTP measure, qualifies for this emergency exemption. Valley Water filed a Notice of Exemption with the County of Santa Clara Clerk/Recorder on June 26, 2020.
ATTACHMENTS:
Attachment A: Gov. Code § 84308
Attachment 1: Amendment No. 3
Attachment 2: Amendment No. 2
Attachment 3: Amendment No. 1
Attachment 4: Agreement
UNCLASSIFIED MANAGER: Manager
Ryan McCarter, 408-630-2983