COMMITTEE AGENDA MEMORANDUM
Capital Improvement Program Committee
Government Code § 84308 Applies: Yes ☒ No ☐
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: title
Receive Information on Change Orders to Anderson Dam Tunnel Project Construction Contract.
End
RECOMMENDATION: Recommendation
Receive information on Change Orders to Anderson Dam Tunnel Project Construction Contract.
Body
SUMMARY:
During the May 17, 2021, Capital Improvement Program (CIP) Committee meeting, staff provided an update on the Anderson Dam Tunnel Project (ADTP) No. 91864006. The Committee requested staff provide monthly change order status updates after construction of the ADTP commences on July 7, 2021.
Project Background
Santa Clara Valley Water District (Valley Water) is undertaking the Anderson Dam Federal Energy Regulatory Commission Order Compliance Project (FOCP) as a result of the February 20, 2020, directive from the Federal Energy Regulatory Commission (FERC) to implement interim risk reduction measures at Anderson Dam. One of those measures is the ADTP.
On April 27, 2021, Valley Water’s Board of Directors awarded the construction contract for the ADTP to the top-ranked, best-value proposer, Flatiron Dragados West, Inc. (FDW), in the sum of $161,140,321 and approved a contingency amount of $40,000,000 (25% of the contract price). The Board directed staff to discuss delegating authority for contingency expenditures with the CIP Committee. On January 28, 2025, the Board of Directors approved an increase of $40,000,000 to the construction contract contingency sum, bringing the total construction contract contingency to $80,000,000.
By unanimous roll call vote at its May 17, 2021, meeting, the Committee approved recommending to the full Board that it consider delegating authority to staff to approve change orders for the ADTP at the amounts stated below and that the CIP Committee receive regular monthly reports with information regarding approved change orders, pending change orders, and the cumulative amounts. Valley Water’s Board of Directors accepted the CIP Committee recommendations at its regular meeting on May 25, 2021.
Delegated Approval Authority
Unit Manager: Up to $100,000
Assistant Operating Officer: Up to $250,000
Deputy Operating Officer: Up to $500,000
Assistant Chief Executive Officer: Up to $2.5 million
Chief Executive Officer: Up to $5 million
Board of Directors: $5 million and above
Construction Contract Change Orders Status
There are two new Contract Change Orders (CCO No. 65 and No. 66) to present to the CIP Committee. The value of CCO No. 65 is $0.00 and No. 66 is a net credit of $127,174.22. Two attachments, providing information on construction contract change orders (Attachment 1) and construction contract financials (Attachment 2), are included for reference.
Contract Change Order No. 65
1. Bond Name Change from Flatiron West Inc. to Flatiron Dragados West LLC. This administrative change formally recognizes the Contractor's legal name change from Flatiron West, Inc. to Flatiron Dragados West LLC, following a merger.
This Change Order is administrative in nature and necessary to maintain accuracy and consistency across Contract Documents, bonding, insurance, payment, and project files. There is no change to the scope of work, contract price, or contract time from this action and is therefore valued as a no-cost change.
Contract Change Order No. 66
1. Existing Middle Intake Credit. Valley Water issued Contract Document Clarification (CDC) 004, which included structural revisions to the existing Middle Intake to address comments from regulatory agencies. CDC 064 was also issued which removed the scope of work for replacement of existing hydraulic piping and flex hoses at the Intake Structures (Lower, Middle and Upper) that were no longer required. The work per CDC 004 included construction of a temporary access road, mobilization of customized heavy equipment for drilling and installation of rock anchors at the Intake Structure, construction of reinforced concrete footing blocks, and site restoration.
The structural modifications to the Middle Intake Structure were performed and completed on a Time & Material (T&M) basis. After incorporating all credits from the original Intake Structure scope of work, the net amount results in a credit to the Project. This change order item is estimated to be valued at net credit amount of <$127,174.22>.
Other Changes from Previous Month Contract Change Order Status
1. CCO No. 63 was presented at the April 2026 CIP Committee meeting for two items: (1) Time-Related Overhead for Time Impact Analysis (TIA) 006 Through Construction Completion; and (2) Decrease to Bid Item No. 2e - Operate Active Treatment System estimated to be valued at $3,610,129.25 and <$50,000.00>, respectively. The total amount of CCO No. 63 was estimated at $3,560,129.25 at the time. Time Related Overhead for Time Impact Analysis (TIA) 006 Through Construction Completion cost has been updated and reduced due to decimal rounding from $3,610,129.25 to $3,610,128.60. CCO No. 63 has now been revised to reflect an updated total amount of $3,560,128.60.
ENVIRONMENTAL JUSTICE IMPACT:
There are no environmental justice impacts associated with this item.
ATTACHMENTS:
Attachment A - Gov. Code § 84308: Flatiron Dragados West
Attachment 1: Construction Contract Change Orders Status
Attachment 2: Construction Contract Financial Status
UNCLASSIFIED MANAGER:
Manager
Ryan McCarter, 408-630-2983