BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☒ No ☐
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Approve Agreement A5464A with GEI Consultants, Inc., for Construction Management Services for the Anderson Dam Seismic Retrofit Project, Project No. 91864005, for a Not-to-Exceed fee of $180,717,246 (Morgan Hill, District 1).
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RECOMMENDATION: Recommendation
Approve Agreement A5464A with GEI Consultants, Inc., for Construction Management Services for the Anderson Dam Seismic Retrofit Project, for a not-to-exceed fee of $180,717,246.
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SUMMARY:
The Anderson Dam Seismic Retrofit Project (ADSRP) will address dam safety concerns related to the performance of Anderson Dam. Anderson Reservoir has been operated under restriction since December 2008. Upon completion of the ADSRP, Anderson Reservoir will return to its original storage capacity.
Staff recommends the Board approve the Agreement for Construction Management Services for ADSRP (Agreement).
Project Background
Anderson Reservoir has been operated under restriction and the Anderson Dam Seismic Retrofit Project (ADSRP) was initiated based on preliminary findings from a seismic stability evaluation. Planning for the ADSRP commenced in 2012 and completed in 2013. The Planning Study Report was provided to the Board in a Non-Agenda Memo dated August 29, 2013.
On February 20, 2020, the Federal Energy Regulatory Commission (FERC) directed Santa Clara Valley Water District (Valley Water) to: (i) immediately maintain Anderson Reservoir below elevation 565 feet; (ii) begin to further lower Anderson Reservoir to dead pool (elevation 490 feet) no later than October 1, 2020, and maintain Anderson Reservoir at dead pool (elevation 490 feet) thereafter; and (iii) design and construct a new low-level outlet as soon as possible.
The ADSRP will remove and replace most of the existing dam with a well-compacted, zoned embankment dam; construct a new low-level outlet and a new high-level outlet to meet DSOD requirements for emergency drawdown of the reservoir; remove, replace, and extend the existing concrete spillway to safely pass the probable maximum flood; and make other improvements to Anderson Dam. Upon completion of the ADSRP, Anderson Reservoir will return to its original storage capacity. Design of the ADSRP is progressing toward 100 percent completion. Prequalification for the construction contractor for the ADSRP was completed in May 2025. Advertisement for the construction contract for the ADSRP is scheduled for August 2025.
Consultant Scope of Services
The recommended Agreement with GEI Consultants, Inc. includes the necessary services for the firm to manage ADSRP construction. A summary of the tasks and budget is presented in Table 1 below. The basic scope of services includes Project Management, Preconstruction Services, Construction Management, Quality Assurance and Quality Control (QA/QC), Safety Management, Training, Testing, Start-Up and Commissioning, Construction Inspections, Partnering, Claims and Disputes Management, Environmental Compliance Services, Acceptance and Closeout of the Project.
The Supplemental Services task includes additional services, if necessary, to facilitate value engineering and risk reduction workshops, evaluate alternative technical concepts or alternative construction approaches proposed by the contractor, participate with Valley Water Designer in the evaluation of alternative design approaches, provide expertise and assistance on engineering/construction related topics, participate in design modification analyses, perform special studies and analyses on topics requested by Valley Water, provide resources to augment Valley Water staff for technical or management services in response to changed conditions or additional work scope, and other unforeseen issues. Prior to performing any Supplemental Services, the Consultant will be required to obtain written authorization from Valley Water’s Deputy Operating Officer pursuant to an approved Task Order.
Table 1 - Summary of Tasks and Budget for
Proposed Consultant Agreement with GEI Consultants, Inc.
Consultant Selection Process
On December 23, 2024, a Request for Proposal (RFP) for Construction Management Services for ADSRP was published on Valley Water’s Procurement Portal, Planet Bids. The RFP was sent to firms that are registered in Planet Bids under category code 95826 - Construction Management Services. An optional virtual pre-proposal meeting was held via Zoom on January 10, 2025, with 55 attendees.
Valley Water received proposals from two (2) consultant firms on February 7, 2025; COWI North America, Inc. (COWI), and GEI Consultants, Inc. (GEI). An Evaluation Committee (EC), consisting of subject matter experts (four internal and one external), evaluated and ranked the written proposals and invited the two (2) firms to participate in virtual interviews. Based on the combined (proposal and interview) rating scores, the EC recommended that staff enter into contract negotiations with GEI the highest ranked firm.
Negotiations with GEI have now been successfully completed. Staff recommends Board approval of the Agreement with GEI, for Construction Management Services for the Anderson Dam Seismic Retrofit Project, for a not-to-exceed fee of $180,717,246 through the Agreement expiration of March 31, 2034.
ENVIRONMENTAL JUSTICE IMPACT:
The Anderson Dam Seismic Retrofit Project addresses water supply equity by ensuring a cost-effective, high-quality supply is available for all of Santa Clara County, including disadvantaged communities.
FINANCIAL IMPACT:
The Anderson Dam Seismic Retrofit Project, Project No. 91864005, 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 not-to-exceed (NTE) fee for the Agreement A5464A is $180,717,246.
Approval of Agreement A5464A would increase the Total Project Cost (TPC) reflected in the CIP’s Adopted FY 2026-30 Five-Year Plan by approximately $62,338,563. The increase in the TPC will be incorporated into the CIP’s Preliminary FY 2027-31 Five-Year Plan. There are adequate funds in the Project’s FY 2025-26 Adopted Budget to encumber the planned expenditures to be incurred during this fiscal year. Funds to cover subsequent fiscal year anticipated services will be included in the biennial budget process and recommended by staff during annual fiscal year budget process or through budget adjustment(s), if needed.
The ADSRP is forecasted to receive up to $54.1 million from the renewed Safe, Clean Water & Natural Flood Protection Program (Fund 26), with the remainder of the total ADSRP cost funded by the Water Utility Fund (Fund 61) with 81.7% of the costs allocated to North County Zone W-2, 7.5% to South County Zone W-5 and 10.8% to South County Zone W-7.
A portion of the ADSRP project cost is expected to be financed by the Water Infrastructure Finance and Innovation Act (WIFIA) pursuant to the United States Environmental Protection Agency WIFIA Master Agreement with Valley Water entered into through its Santa Clara Valley Water District Public Facilities Financing Corporation, for the SCVWD Master Program for Water Reliability Program (WIFIA Agreement) dated February 14, 2023.
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 84308
Attachment 1: Agreement
UNCLASSIFIED MANAGER: Manager
Ryan McCarter, 408-630-2983