BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☒ No ☐
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Approve Amendment No. 10 to Agreement No. A3676A with URS Corporation for Design Services for the Anderson Dam Seismic Retrofit Project, Project No. 91864005, and Engineering Support During Construction for the Anderson Dam Tunnel Project, Project No. 91864006, Increasing the Not-to-Exceed fee by $15,496,898 for a Revised Total Not-to-Exceed fee of $83,455,670, and Extending the Agreement Term to December 31, 2027 (Morgan Hill, District 1).
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RECOMMENDATION: Recommendation
Approve Amendment No. 10 to Agreement No. A3676A with URS Corporation (Consultant) for design services for the Anderson Dam Seismic Retrofit Project, Project No. 91864005, and engineering support during construction for the Anderson Dam Tunnel Project, Project No. 91864006, increasing the not-to-exceed fee by $15,496,898 for a total not-to-exceed fee of $83,455,670, and extending the Agreement term to December 31, 2027.
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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.
Agreement No. A3676A with URS Corporation was awarded to provide design services for the ADSRP. Amendment No. 8 to Agreement No. A3676A added engineering support during construction for the Anderson Dam Tunnel Project (ADTP).
Amendment No. 10 to Agreement No. A3676A will add to the existing scope, increase the not-to-exceed (NTE) Fee by $15,496,898 for a total NTE Fee of $83,455,670, extend the Agreement Term from December 31, 2025, to December 31, 2027, and incorporate administrative updates, which include adding requirements from the Water Infrastructure Finance and Innovation Act (WIFIA) Program.
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 August 27, 2013, the Board approved Agreement No. A3676A with URS Corporation for design services for the ADSRP. As modified, 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 is ongoing and currently scheduled to be completed in May 2025. Advertisement for the construction contract for the ADSRP is scheduled for June 2025.
On February 20, 2020, the Federal Energy Regulatory Commission (FERC) directed 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 Anderson Dam Tunnel Project (ADTP) was initiated in 2020, and design of the ADTP was completed in 2021. On January 5, 2021, the Board approved Amendment No. 8 to Agreement No. A3676A, which added engineering support during construction for the ADTP. On April 27, 2021, the Board approved award of the construction contract for the ADTP to Flatiron West. Construction for the ADTP is ongoing and currently scheduled to be completed in October 2025.
Agreement No. A3676A Amendment History and Relevant Prior Board Actions
On December 28, 2015, the Chief Executive Officer (CEO) approved Amendment No. 1, which extended the term of the Agreement from February 29, 2016, to August 29, 2016.
On August 11, 2016, the CEO approved Amendment No. 2, which extended the term of the Agreement from August 29, 2016, to December 31, 2016.
On February 21, 2017, the CEO approved Amendment No. 3, which extended the term of the Agreement from December 31, 2016, to June 30, 2017.
On May 17, 2017, the CEO approved Amendment No. 4, which extended the term of the Agreement from June 30, 2017, to December 31, 2017.
On July 25, 2017, the Board approved Amendment No. 5, which added to the existing scope, increased the total not-to-exceed Fee, and extended the term of the Agreement from December 31, 2017, to July 31, 2020.
On October 23, 2018, the Board approved Amendment No. 6, which added to the existing scope, increased the total not-to-exceed Fee, and extended the term of the Agreement from July 31, 2020, to June 30, 2022.
On April 6, 2020, the Board authorized the CEO to negotiate and execute Amendment No. 7. On June 2, 2020, the CEO approved Amendment No. 7, which added to the existing scope, increased the total not-to-exceed Fee, and extended the term of the Agreement from June 30, 2022, to June 30, 2023.
On January 5, 2021, the Board approved Amendment No. 8, which added to the existing scope including engineering support during construction for the ADTP, increased the total not-to-exceed Fee, and extended the term of the Agreement from June 30, 2023, to December 31, 2023.
On February 14, 2023, the Board approved Amendment No. 9, which added to the existing scope, increased the total not-to-exceed Fee, and extended the term of the Agreement from December 31, 2023, to December 31, 2025.
Amendment No. 10 to Agreement No. A3676A
Amendment No. 10 to Agreement No. A3676A will add to the existing scope, increase the not-to-exceed (NTE) Fee by $15,496,898 for a total NTE Fee of $83,455,670, extend the Agreement Term from December 31, 2025, to December 31, 2027, and incorporate administrative updates, which include adding requirements from the Water Infrastructure Finance and Innovation Act (WIFIA) Program.
Amendment No. 10 to Agreement No. A3676A was discussed at the Capital Improvement Program (CIP) Board committee meeting held on March 17, 2025. The Committee members supported staff’s recommendation to present this item for approval to the full Board.
The tasks and not-to-exceed additional fees for the recommended Amendment No. 10 to Agreement No. A3676A are summarized below:
Task 1: Additional Project Management Services for the extended term of the Agreement from December 31, 2025, to December 31, 2027.
Task 2A: Additional effort to update the Geotechnical Data Report and Site Geologic Map with new information. Additional effort to prepare a new Drilling Program Plan for investigation and instrumenting of Landslide A at the upstream end of the dam foundation excavation, investigation of a fault zone near the High-Level Outlet Tunnel, and drilling and instrumentation needed during the ADSRP construction.
Task 3A: Additional effort to update the Geotechnical Baseline Report with new information.
Task 3B: Additional effort to complete the design of Live Oak Park Restoration.
Task 7: Additional effort to address comments from staff, the Federal Energy Regulatory Commission (FERC), the California Department of Water Resources, Division of Safety of Dams (DSOD), and an independent Board of Consultants (BOC). Additional effort to complete the design of the County Parks Entrance and Low-Level Outlet Works, and address construction schedule risk. By letter dated May 22, 2023, the BOC recommended consideration be given to an intake tower as an alternate to the sloping intake structure for the low-level outlet given new information on the faulting characteristics of the right abutment. By letter dated June 14, 2023, the BOC expressed concerns on the ADSRP construction schedule and recommended the construction schedule risk be addressed as a matter of public safety. By letter dated April 5, 2024, the DSOD expressed similar concerns on the ADSRP construction schedule. In response to these comments, design of the ADSRP will be revised to include an intake tower for the low-level outlet and measures to address construction schedule risk.
Task 8: Additional effort to support Best Value selection of the construction contractor for the ADSRP.
Task 9: Additional Supplemental Services for the ADSRP and the ADTP for currently indefinite scope, which may include additional meetings required by staff, the Federal Energy Regulatory Commission (FERC), and the California Department of Water Resources, Division of Safety of Dams (DSOD), additional geotechnical explorations, additional efforts to complete the design of the County Parks Restoration, additional efforts to support securing environmental permits, additional efforts to support securing encroachment permits, additional efforts to prepare construction contract documents, additional efforts to address constructability review comments from the Construction Management Consultant, and additional efforts to perform landslide monitoring.
Task 10: Additional engineering support during construction for the ADTP including accommodating a longer duration of construction, which is currently scheduled to be completed in October 2025.
A summary of tasks and fees for the previous Agreement No. A3676A amendments as well as the proposed Amendment No. 10 is presented in Table 1.
Next Steps
Upon Board approval, design of the ADSRP will be completed and the construction contract for the ADSRP will be advertised and awarded. Following completion of design of the ADSRP, staff will recommend Board approval of a future amendment to Agreement No. A3676A to add engineering support during construction for the ADSRP. Separately, construction of the ADTP will be completed with the Consultant providing engineering support during construction for the duration of ADTP construction, which is currently scheduled to be completed in October 2025.
Safe, Clean Water and Natural Flood Protection Program
In November 2020, Santa Clara County voters overwhelmingly approved Measure S, a renewal of Valley Water's Safe, Clean Water and Natural Flood Protection Program (Safe, Clean Water Program). The Safe Clean Water Program has six priorities (Priorities A-F), each of which identifies specific projects with deliverables known as key performance indicators (KPIs). The ADSRP is included in the Program under Priority C with a KPI that provides up to $54.1 million, providing partial funding for the Project. For more information on the Safe, Clean Water Program visit <https://www.valleywater.org/safe-clean-water-and-natural-flood-protection-program>.
ENVIRONMENTAL JUSTICE AND EQUITY 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 (ADSRP), Project No. 91864005 and the Anderson Dam Tunnel Project (ADTP), Project No. 91864006, are included in the Capital Improvement Program (CIP) Fiscal Year (FY) 2025-29 Five-Year Plan and in the FY 2024-25 Adopted Budget. The increased not-to-exceed (NTE) Fee for Amendment No. 10 to Agreement A3676A is $15,496,898 ($14,496,884 for the ADSRP and $1,000,014 for the ADTP), resulting in a total NTE Fee of $83,455,670 ($74,413,851 for the ADSRP and $9,041,819 for the ADTP), which has been incorporated into the CIP Draft FY 2026-30 Five-Year Plan.
There are adequate funds in the Project’s FY 2024-25 Adopted Budget to encumber the planned expenditures for the Consultant’s services to be incurred during this fiscal year. Funds to cover subsequent fiscal year anticipated Consultant services will be included in the biennial budget process and recommended by staff during the annual 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 ADSRP total project cost funded by the Water Utility Fund (Fund 61) with 81.37% of the costs allocated to North County Zone W-2, 7.85% to South County Zone W-5, and 10.78% to South County Zone W-7.
A portion of the ADSRP Project costs 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. The WIFIA Agreement requires professional services consultants paid with WIFIA loan funds to comply with certain federal requirements, which have been incorporated into Amendment No. 10 to Agreement A3676A.
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:
Attachment A: Gov. Code 84308
Attachment 1: Amendment No. 10
Attachment 2: Amendment No. 9
Attachment 3: Amendment No. 8
Attachment 4: Amendment No. 7
Attachment 5: Amendment No. 6
Attachment 6: Amendment No. 5
Attachment 7: Amendment No. 4
Attachment 8: Amendment No. 3
Attachment 9: Amendment No. 2
Attachment 10: Amendment No. 1
Attachment 11: Original Agreement
UNCLASSIFIED MANAGER: Manager
Ryan McCarter, 408-630-2983