COMMITTEE AGENDA MEMORANDUM
Capital Improvement Program Committee
SUBJECT:
title
Review Significant Project Plan Updates Since Adoption of the Fiscal Year 2022-26 Capital Improvement Program Five-Year Plan.
End
RECOMMENDATION:
Recommendation
Review Significant Project Plan Updates Since Adoption of the Fiscal Year 2022-26 (FY 22-26) Capital Improvement Program (CIP) Five-Year Plan and provide feedback, as necessary.
Body
SUMMARY:
Updates to capital project plans are considered to be significant if total project costs (TPC) increase or decrease by more than $1 million, project completion is extended beyond one year, or if there are any changes to project scope. Summaries of the significant project plan updates for capital projects since the Board’s adoption of the FY 22-26 CIP Five-Year Plan are provided below, organized by type of improvement. A full list of all capital project changes is included as Attachment 1.
The scope, schedule, and cost increases summarized below and included in Attachment 1 will be reflected in the FY 2023-27 Preliminary CIP, which is scheduled to be presented to the CIP Committee in December 2021 and to the Board in January 2022 with corresponding financial analysis of impact to each respective Fund. The TPC increases or decreases (with inflation) detailed below and in Attachment 1 by fund are as follows: Water Utility Enterprise Fund (Fund 61) increased by $785.968M; Watersheds Stream Stewardship Fund (Fund 12) decreased by $27.223M; Safe, Clean Water and Natural Flood Protection Program Fund (Fund 26) increased by $14.881M; and Information Technology Fund (Fund 73) decreased by $1.342M.
WATER SUPPLY
Storage Facilities:
91854001 Almaden Dam Improvements Project: TPC decreased by $1.295M
The uninflated TPC remains the same, however the inflated TPC decreased by $1.295M. The project completion schedule remains the same, but the environmental phase was updated to accommodate the environmental review process. The project’s planned expenditures were revised to reflect the burn rate for FY22 through FY26, to accurately align with updated project schedule. As a result of the shift in phase schedules, the overall TPC decreased due to inflation changes.
91864005 Anderson Dam Seismic Retrofit Project: TPC increased by $588.746M/Scope change
There was no change to the project schedule. Changes to project scope include: 1) Addition of an in-reservoir access roads approximately four (4) miles long to be constructed to stockpile areas SA-K and SA- L located inside the reservoir; a temporary bridge to cross reopened North Channel, dredging of sediment at the upstream side of the dam to construct the foundation of the dam, operation of the active water treatment system for four (4) years, increased haul and processing of excavated materials to stockpile areas SA-K and SA-L over longer distances during embankment construction, heavy equipment cost over precipitation season, a new 33-inch bypass pipeline and downstream control valves in the low-level outlet works for making cold water releases to Coyote Creek, increase in the size of concrete encasement between low-level outlet tunnel and downstream outlet works and mass concrete backfill under outlet structure required. 2) Other miscellaneous additions which include a bridge over Coyote Creek, maintenance access to Northern Channel and reopening, electrical work, SCADA work and security work, instrumentation required for four (4) interim dams instead of two (2) interim dams, wick drains and drainage blanket. 3) Winterization of the Stage 2B/3A interim dams (includes placement of rip-rap on downstream of interim dams, etc.). 4) New Unlined Spillway, a requirement from the dam safety regulatory agencies, increased spillway invert thickness due to post 60% field investigation findings of most of spillway underlain by weak soil like rock and replacement of spillway crest base. 5) Increase in the Sloping intake size by approximately 33% in size to accommodate the addition of a separate 33-inch bypass pipeline with three intakes. 6) Addition of Mechanical fish screens for all intakes in the sloping intake structure (three 54-inch intakes for 78-inch pipeline and three 30-inch intakes for 33-inch bypass pipeline). 7) Additional costs for NOA related construction air monitoring to cover two additional years of earthwork activities. 8) Additional Environmental Mitigation related projects. Changes to project costs include: 1) Planning & Environmental Phase costs have increased by $34.597M due to Environmental Consultant fees, Santa Clara Habitat Agency fees, Legal support fees, Environmental Review, and additional Valley Water labor. 2) Design Phase & ROW costs have increased by $47.327M due to Project Management and Design Consultant fees, Division of Safety of Dams fee, Right-of-Way Acquisitions, and additional Valley Water labor. 3) Construction Phase costs have increased by $473.807M due to increased Construction Management and Engineering Support During Construction Consultant fees, revised Construction Contract costs, Environmental Mitigation, and additional Valley Water labor. 4) Additionally, the encumbered balances have increased by $10.923M as a result of funds being added to various contracts and consultant agreements (Flatiron West Inc., Horizon Water and Environment, LLC, COWI North America Inc., Black and Veatch Corporation, URS Corporation, Best Source, HDR Engineering, Inc., VNF Solutions, LLC, AECOM Technical Services, Inc.) and Other open Purchase Orders.
91234002 Coyote Pumping Plant ASD Replacement: TPC increased by $11.773M
The Design Phase schedule has been extended to reflect the current status of the design-build entity procurement process and to account for the overlap that occurs between design and construction in a project that is delivered using the progressive design-build delivery method. The overall project duration has not changed. The environmental phase cost has increased due to the extra effort required to coordinate the completion of the National Environmental Policy Act (NEPA) document with the United States Bureau of Reclamation. As the first progressive design-build project for Valley Water, the project team was also responsible for developing templates specific to the progressive design-build project delivery method. The design phase cost has increased to account for the additional funds needed to cover the cost of preparing those documents, including the Request for Qualifications (RFQ), Request for Proposal (RFP), and the design-build agreement, as well as to cover the review of the documents submitted by potential proposers, including the Statement of Qualifications (SOQ) and the proposal, and to cover negotiations for phase 1 of the design-build agreement. Furthermore, additional funds are needed to cover phase 1 of the design-build agreement, currently estimated to be 10% of the latest construction cost estimate. Phase 1 includes review of the preliminary design documents, development of construction cost estimates, design workshops with staff, phase 2 (construction) negotiations, and completion of the final design. This cost increase also accounts for the anticipated high level of effort that will be required to manage the design-build agreement, including close oversight of cost estimates and invoicing, and the staff time that will be required to collaborate with the design-build entity as the design progresses. The original construction cost estimate had not been updated and was developed based on 2013 conditions. The design consultant (Brown & Caldwell) has prepared a detailed Class 4 construction contract cost estimate using the 30% design documents. The estimate was prepared using quantity take-offs, vendor quotes and equipment pricing. The high equipment costs reflect current market conditions, via the incorporation of vendor quotes, which have further been impacted by recent supply chain disruptions. The Construction Phase cost has increased by $8.7M to reflect the latest Class 4 construction contract cost estimate.
91894002 Guadalupe Dam Seismic Retrofit - Design & Construction: TPC decreased by $1.939M
The uninflated TPC remains the same, however the inflated TPC decreased by $1.939M. Project completion schedule remains the same at FY28. Adjustments have been made to the planned expenditures in FY22, FY23, and FY24 based upon the current burn rate projections (reduced FY22, increased FY23 and FY24, net change zero). As a result of the shift in planned expenditures, the overall TPC decreased due to inflation changes.
91954002 Pacheco Reservoir Expansion Project: TPC decreased by $58.179M
The uninflated TPC remains the same at $2.205B, however the inflated TPC decreased by $58.179M. Project completion schedule remains the same at FY32. As a result of project evolution, the current cost for planning, environmental and design phases have been re-evaluated, resulting in changes to phase cost. Factors that contributed to the changes in phase costs are mainly a result of requiring less resource hours to planning and environmental, but additional resource hours to design for project support. FY21 ($24M), FY22 ($15.4M), FY23 ($11.9M), FY24 ($2.4M) decreased, yet FY25 ($33.9M) and FY26 ($19.8M) increased (net change is zero).
91214010 Small Capital Improvements, San Felipe Reach 1: TPC decreased by $3.973M
Small Capital project forecasts are revised each year. Asset rehabilitation projects are added, removed, and rescheduled based on asset condition and project need. In addition, project costs are updated each year based on market conditions. These revisions to both schedule and costs cause several minor changes in expected expenditures over the forecasted period.
Transmission Facilities:
95084002 10-Year Pipeline Rehabilitation Project: TPC decreased by $1.051M
The uninflated TPC remains the same. However, the inflated TPC decreased by $1.051M. The project completion schedule remains the same at FY27. Environmental Phase costs have increased to fund the PMP programmatic EIR, project staff, environmental staff, and consultant task order. A budgetary estimate ($800,000) has been provided by Panorama Environmental, Inc., the environmental consultant working on the PMP update. Design Phase, Construction Phase, and Close-Out Phase have decreased because the Design Phase Work Plans for Snell Pipeline and West Pipeline have been completed that include a detailed analysis of the project costs and expenditures. As a result of the shift in phase costs, the overall TPC decreased due to the avoidance of inflation.
92304001 Almaden Valley Pipeline Replacement: TPC increased by $20.572M
Project schedule remains the same. However, the Construction Phase was extended by 1 year to accommodate new information provided by the Programmatic EIR. Each new fiscal year, the CIP adds the upcoming FY planned expenditures from the original Project Plan. The 21-year total Project Plan was initiated in FY21, and the CIP only provides for a 15-year projection. This CMM update adds FY37 into the 15-year projection. There were also cost increases to planning and environmental phases due to new data that was provided during the Programmatic EIR. Note that budget for years FY38-FY41 is not included in TPC, but is reflected in the funding models via placeholder.
95044001 Distribution Systems Implementation Project: TPC increased by $1.048M/Schedule extended by 2 years
Through the development of the consultant’s scope of services and completing the consultant selection process for the accompanying WTP Implementation Project (Project No. 93044001), staff has a more refined plan for the work and project cost. Since the project schedule will extend to the end of FY25, additional labor cost is needed to support the work. The project schedule extended by two years.
26764001 IRP2 Additional Line Valves Project: TPC increased by $4.540M
Overall project schedule remains the same. However, the Environmental Phase was extended by four years. The IRP2 Additional Line Valves Project will be constructed with the 10-year Pipeline Inspection and Rehabilitation Projects. The project costs have increased for the following reasons: Environmental Phase costs have increased because CEQA clearance must be coordinated with the 10-Year Pipeline Inspection and Rehabilitation Project. Concurrent implementation of the IRP2 Project and the 10-year Pipeline Inspection and Rehabilitation Project will minimize impacts to local retailers and reduce amount of water released to the environment. Design Phase costs have increased due to the purchase of property from PG&E and UPRR, ongoing coordination needed to acquire easements for construction and long-term maintenance of the facilities proposed as a part of the project, and delays in acquiring encroachment permits from outside agencies who were experiencing staffing constraints as a result of COVID-19 restrictions. The encroachment permit delays required additional staff time to follow-up with outside agencies to procure permits. These encroachment permits were necessary to proceed with preliminary investigations, and subsequently the design of the project. Construction costs have increased based on the engineer’s estimate developed during the design phase. The primary reasons are due to larger size vaults to house and access mechanical and electrical equipment, higher material costs, and higher excavation shoring costs than were previously estimated.
Treatment Facilities:
93294051 RWTP Residuals Management: TPC increased by $1.916M/Schedule extended by 3 years
The Project schedule was extended by three years. The Construction Phase was extended by three years to capture ongoing contract legal issues. Project costs have increased due to ongoing Contract Legal issues as well as the rental of a mobile centrifuge and on-call maintenance agreements.
93294058 RWTP Residuals Remediation: TPC increased by $9.162M
The overall project schedule remains the same. However, the Design Phase was extended by 2 years to accommodate the mobile centrifuge and on call agreement. The design phase has been extended to 6/30/2023 as the mobile centrifuge and on-call standing order maintenance contract are line items under this phase and must remain open and active until the end of construction. The Construction Phase has been adjusted to end at the end of FY23. The Close-out Phase has been adjusted to align with construction schedule adjustments. The Design Phase cost has been increased to reflect a previously procured on-call standing order maintenance contract. The Construction Phase cost has been increased to account for the higher than estimated construction contract bid. The Construction Phase cost was also increased to include engineering support services during construction and operations involvement to help ensure successful implementation of the project.
93294057 RWTP Reliability Improvement Project: TPC increased by $101.801M/Schedule extended by 1 year
The overall project schedule has been extended by 1 year to accommodate the updated closeout phase schedule. The Design Phase of the project has been extended to 2023 to accommodate the re-packaging and re-bidding of the remaining phases of the project. The Construction Phase of the project has been extended to reflect the duration required to complete Phases III - VI. Design Phase cost increases are mainly due to the remaining phases requiring repackaging of the plans and specifications to accurately reflect the status of the work for construction contractors to bid on. The increased Construction Phase cost reflects the first detailed review and cost estimate of outstanding improvements remaining from the previous Reliability Improvement Project construction project initiated in 2015.
93764004 Small Capital Improvements, Water Treatment: TPC decreased by $2.550M
The forecasts are revised each year. Asset rehabilitation projects are added, removed, and rescheduled based on asset condition and project need. In addition, project costs are updated each year based on market conditions. These revisions to both schedule and costs cause several minor changes in expected expenditures over the forecasted period. It’s not a single asset rehabilitation project that leads to the change, but rather the cumulative total of multiple changes.
93044001 WTP Implementation Project: TPC increased by $1.319M/Schedule extended by 2 years
Increase in Planning and Environmental phases due to additional consultant costs and staff labor costs to manage the consultant through FY25. Project schedule extended by two years due to delays in consultant negotiations and finalizing the agreement with the consultant.
Recycled Water Facilities:
91304001 Purified Water Project (PWP): TPC increased by $113.184M/Schedule extended by 1 year
Overall project schedule extended by 1 year to FY29 to accommodate the addition of a close out phase. In June 2021, Valley Water completed the Countywide Water Reuse Master Plan (CoRe Plan) which identified feasible opportunities to expand water reuse. The CoRe Plan outlines indirect and direct potable reuse project portfolios in a programmatic approach to consider a wide range of reuse opportunities for flexible implementation. To this end, Valley Water directed the PWP consultant to consider project options that include the possibility of obtaining treated effluent from the City of Palo Alto, in addition to the already planned transfer of effluent from the City of San Jose. The addition of the effluent transfer option from the City of Palo Alto will require additional preliminary investigations and a subsequent change in the project scope. The total project costs have increased by $106.514M (uninflated) due to the addition of a second option to transfer treated effluent from the City of Palo Alto and in order to obtain better pricing from the P3 entity, additional preliminary work was added to the overall project scope. Schedule was updated to include a closeout phase to be complete in FY29. The overall project schedule will be extended by one year to accommodate the addition of a closeout phase.
91094009 South County Recycled Water - Short Term 1B: TPC increased by $5.073M/ Schedule extended by 2 years
The project schedule was extended by two fiscal years due to NEPA clearance delays and the project advertisement for construction bids was placed on hold until discussions of the governance of the South County Recycled Water Pipeline system progressed. A Technical Working Group between Valley Water, City of Gilroy and City of Morgan Hill was approved by the City Councils and the Valley Water Board of Directors at a Joint Session between the parties on 8/23/2021. The project scope changed due to switch from high density polyethylene pipe (HDPE) to welded steel pipe due to the utility congestions and the constructability of the HDPE. Project cost increases are due to purchase of additional real estate along Phase 1C and for increased construction contract costs, construction management services, construction inspection and engineering support during construction.
91094010 South County Recycled Water Pipeline - Short Term 2: TPC increased by $791K/Schedule extended by 2 years
The project schedule was extended by two years due to the slow-down in the residential development along the recycled water conveyance route; increase in construction phase costs are due to delays associated with unanticipated impacts from the pandemic, which have altered development planning, permitting and construction activities in the city of Gilroy. The TPC increased by $791K due to inflation resulting from the schedule changes.
FLOOD PROTECTION
Lower Peninsula Watershed:
10394001 Palo Alto Flood Basin Tide Gate Structure Replacement: TPC increased by $1.041M/Scope change
The project scope was updated to remove the levee trail surface improvements. The levee trail surface improvements were intended to smoothen, strengthen, and provide an all-weather trail surface for the contractor to use during construction, and would have been installed by Valley Water’s Operations & Maintenance (O&M) staff. Additional time needed for regulatory approval for the levee trail surface improvements combined with O&M staff’s concerns about completing the planned work within the allotted time window further reduce the benefits of this work. In lieu of the levee trail surface improvements, the construction contractor will be required to perform in-kind repairs to the levee as needed, during the normal project work seasons. The project schedule was updated for the following Phases: Environmental Phase: Valley Water is currently in discussions with multiple regulatory agencies to obtain the necessary regulatory permits to cover the proposed project activities. In addition, Valley Water is coordinating and discussing potential required tribal and archaeological monitoring. More time is needed to acquire all necessary project permits and negotiate reasonable permit conditions. Construction Phase: In the current materials market, the contractor’s steel sheet pile procurement lead time is estimated at five and a half months from time of order. Prior to the contractor ordering these materials, the contractor must design and submit their proposed Dewatering System Plan for review and approval from Valley Water, RWQCB, CDFW, and NMFS. We anticipate a minimum of seven and a half months lead time will be needed to ensure a smooth start to onsite construction and prevent delay claims and change orders due to long material procurement lead times. Construction advertisement remains on schedule, but construction start may require adjustment for approval of the Dewatering System Plan and procurement of project materials. Additionally, the proposed schedule will allow ample time to implement a contractor pre-qualification to help ensure bidding contractors are experienced in similar work conditions.
26244001 Permanente Creek, SF Creek to Foothill Expwy Project: TPC decreased by $3.700M/Schedule extended by 3 years
Construction is complete; however, the project schedule has been extended by three years to include a plant establishment period and closeout activities. There are minor cost increases for Planning, Environmental, Design and right-of-way Phases due to various task code discrepancies. The Construction Phase cost decreased since the soil off-haul and civil construction at Rancho San Antonio was able to be completed earlier and at a lower cost than anticipated. The civil construction of the project was completed as of April 2021. However, staff will continue to work with the Rancho San Antonio contractor during the plant establishment period, which will last until February 2024. There will be some additional closeout tasks after the completion of the plant establishment period, hence the closeout Phase end date is set to June 30, 2024.
10244001 Permanente Creek, SF Bay to Foothill Expwy: TPC increased by $787K/Schedule extended by 2 years
As a sub-project of the Permanente Creek Flood Protection Project, the project number was re-opened under Fund 12 and two fiscal years were added to the project schedule. For FY22, $125K will be needed for the cost-share agreement with the City of Mountain View for the bleacher retrofit at the McKelvey Park Detention Basin Project, and $325K for the Channel Improvements Project to design the retrofit and begin the construction of the retrofit in late spring 2022.
26284002 San Francisquito Creek - Construction SF Bay to Middlefield Rd: TPC increased by $8.068M/Schedule extended by 4 years
The overall project schedule has been extended by four years. The schedule of this project has been extended to accommodate the USACE Continuing Authorities Program Section 205 (CAP 205) process as well as the updated duration needed for the San Francisquito Creek Joint Powers Authority to apply for and receive state and federal regulatory permits. Based on the current status of the CAP 205 study and permit applications, this project will be advertised in early 2023 for construction in summer of 2023 for the creek widening sites, with Pope-Chaucer Bridge bid and construction in 2024. The end date of the Construction Phase was extended to December 2027 to cover the three-year plant establishment period and the Close-Out Phase was extended into FY 28 due to close-out time needed after the end of the plant establishment period. The total project cost for Phase 2 (Highway 101 to Middlefield Road) will increase by $6.928M because of the need to extend the project schedule to accommodate the CAP 205 process. The environmental budget has increased to accommodate the additional efforts needed to apply for and receive the state and federal regulatory permits. The planned expenditures for right-of-way has increased to account for the cost escalation of the permanent and temporary construction easements and additional staff hours needed for the associated real estate and rights-of-way mapping tasks. Construction budget has increased to account for the construction cost escalation and the cost of two floodwalls upstream of University Avenue that were not budgeted previously. In addition, close-out budget has increased to cover the three-year plant establishment period.
Guadalupe Watershed:
30154019 Guadalupe River Tasman Drive to I-880: TPC increased by $3.262M/Schedule extended by 2 years
The overall project schedule has been extended by 2 years due to delay in feasibility alternatives review and extension of the design schedule from two to three years; based upon these changes the start of construction will be moved out by two years to FY25.
Coyote Watershed:
26174041 Berryessa Creek, Calaveras to I-680 Corps: TPC increased by $768k/Schedule extended by 3 years
The overall project schedule has been extended by 3 years to reflect the completion of the Construction and Close-Out Phases for the project from FY21 to FY24. The Construction Phase extension is required to meet the recent San Francisco Bay Regional Water Quality Control Board permitting requirements regarding the Stormwater Management Plan and the Adaptive Management Plan for maintenance purposes. The additional 3 years for closeout are necessary for payment of Valley Water’s participation costs for the design and construction work managed by the U.S. Army Corps of Engineers as outlined in the Project Cooperation Agreement for the project.
40174005 Berryessa Ck, Lower Pen Ck to Calaveras Blvd. Phase 2: TPC increased by $1.501M
There are no changes to the project schedule. Additional funds are needed in response to higher than anticipated labor costs for in-house construction staff. Recent monthly labor spending rates during construction indicate there is insufficient budget for construction staff labor costs for FY22 and FY23. Staff estimates an additional $500k is needed for FY22, and $800k needed for FY23. The total additional project funds requested is $1.300M for the Construction Phase. Staff labor costs for Environmental, Design and Close-Out Phases were higher in FY21 by $222k.
40334005 Lower Penitencia Creek - Berryessa to Coyote Creeks: TPC increased by $6.892M/ Schedule extended by 1 year
The overall project schedule is extended by one year. Valley Water issued Notice to Proceed to Gordon N. Ball (Contractor) for construction on June 18, 2021. Construction is scheduled to be completed on December 31, 2022 (FY23). The 3-year plant establishment period will begin after construction and ending on December 31, 2025 (FY26). The total project cost increase is to account for an increase in design cost and construction cost in FY21. Project expenditures for FY21 have been moved to FY22 and through remaining FYs due to construction starting later in summer 2021 instead of summer 2020. Actual bid price and design cost have been included with FY21 expenditures. Plant establishment will now be completed in FY26.
Uvas Llagas Watershed:
26174051 Upper Llagas Creek - Land, Easements, Rights-Of-Way, Relocation, and Disposal Areas Reimbursable: TPC increased by $3.045M
The overall project schedule remains the same. The costs to relocate various existing utilities in conflict with the project has increased due to the discovery of previously unknown underground utilities and cost increases for construction materials. The costs to acquire the last couple of remaining properties required for the project have increased, including an extended full property acquisition that involves a property relocation. The eligible costs associated with this increase will be reimbursed by DWR - State Subventions Program.
Multiple Watersheds:
00044026 SF Bay Shoreline: (TPC decreased by $38.766M)
There is no change to the overall project schedule. The Shoreline Project cost has significantly increased from $194M to $545M. USACE has received a fixed $124.3M in federal funding and now has a federal shortfall of $91.2M. The total non-federal sponsors share of the increased project cost is $308.54M, however Valley Water has additionally agreed to be responsible to fund the federal shortfall of $91.2M. The project budget was originally planned to support the $194M project cost and there are now not enough funds to support the significant increase in the project cost. However, there are enough funds in place to complete all the project elements within Reaches 1-3. On August 8, 2021, USACE awarded the Reaches 1-3 construction contract to Maloney Odin Joint Venture for $129.8M and construction is anticipated to commence in November 2021. The non-federal sponsors share of the Reaches 1-3 contract is $58.4M. As a result of the significant project increase, the Reach 4-5 levee and Artesian Slough Closure structure design is currently on hold for the following reasons; a) to eliminate overlap with Reaches 1-3 construction, such that we don’t have contractors competing for fill, which is a key cost driver; b) to provide time for the non-federal sponsors to address financing the local cost share and federal shortfall to complete the project beyond Reaches 1-3 as authorized; and c) to identify other opportunities to complete the project beyond Reaches 1-3 at a lower cost. The Design and Environmental Phase have been extended by 12 months, so that USACE can gather additional field data and conduct hydraulic analysis required for the Union Pacific Railroad Closure Structure and Pedestrian Bridge design.
62084001 Watersheds Asset Rehabilitation Program: (TPC decreased by $8.849M)
The uninflated total project cost remains the same, however the inflated total project cost decreased by $8.849M. The schedule remains the same with only a shift in proposed planned expenditures for future years. The work requests coming from Watersheds Operations and Maintenance Division can vary from year to year, depending on the immediate needs and priorities. For FY23 and FY24, the Operations and Maintenance Engineering Support Unit has requested a number of projects be handled under the Watersheds Asset Rehabilitation Program. Below is the current list and estimated construction costs planned for FY23 and FY24. FY23 (Total construction expenditures needed above current approved project plan): $3M. 1) Gabion repair work at San Carlos Street, Guadalupe River $1M. 2) Gabion repair work at Blossom Hill Road, Guadalupe River $1M. 3) Reinforced Concrete Box repair work at Finch Avenue, Calabazas Creek $1M. FY24 (Total construction expenditures needed above current approved project plan): $14M. 4) Alviso levee repair, Alviso Slough $2M. 5) Malone Road retaining wall repair, Guadalupe River $2M 6) Levee rehabilitation, Randol Creek $2M (was initially validated FY23 for unfunded list). 7) Channel erosion repair, Regnart Creek $5M (Union Pacific Trail to Bubb Road). 8) U-frame wall repair, Permanente Creek $3M (Mountain View Avenue to Park Avenue). As outlined, $17M in additional funding will be needed in FY23 and FY24 to account for increased construction costs. To make up for this difference, expenditures planned from FY31 through FY34 have been reduced by $16,382,000 and redistributed to FY23 and FY24. As a result of the shift in planned expenditures, the overall total project cost decreased due to inflation changes.
WATER RESOURCES STEWARDSHIP
Multiple Watersheds:
20444001 Salt Ponds Restoration Project: (TPC increased by $6.826M/Schedule extended by 3 years)
The overall project schedule has been extended by three years. The recommended project will be determined at the conclusion of planning phase. Staff presented the Feasibility Study to the Board during 4/27 meeting and received approval to proceed to planning phase. During planning phase, staff will explore a robust set of alternatives, including an integrated project alternative (Feasibility Study Option C) which combines the Calabazas/San Tomas creek realignment project with SBSPRP planned tidal marsh restoration project. Although the staff-recommended alternative has yet to be determined, to be conservative the budget and schedule presented herein is largely based on Option C which has the largest scope of the options that were identified in the Feasibility Study. Construction costs remained unchanged but will be revised once staff recommended alternative is presented to the Board at the end of the planning phase. Revised cost estimates from planning through design phases are also based on Option C from the Feasibility Study, which is the highest cost option.
The total cost for project planning, environmental, and design phases estimated at $7.8M, an increase of $6M. SF Bay Restoration Authority (Measure AA) and California Department of Fish and Wildlife (Proposition 1) grant funding of $3.87M would offset 65% of that increase. The construction cost estimate of $1.575M remains unchanged but will be revised upon Board selection of project alternative at conclusion of planning phase, expected in March 2024. In summary, the project cost has increased by $6.012M based on Option C, the largest and most complex option with significant increase in scope from the original realignment project and increases are due to changes in planning through design cost estimates. Construction cost estimate was not revised with $19.5M for Option C but will be later updated with the refined construction cost estimate of the staff recommended alternative at the end of planning phase.
26044004 Bolsa Road Fish Passage Improvements: Schedule extended by 3 years
Expenditures are reduced in FY23 and increased in FY24, FY25, and FY26 to accommodate the 3-year plant establishment period. The overall project schedule was extended by 3 years to capture the remaining tasks such as plant establishment period as well as resolving any outstanding claims and completing any transition work to move the project from the Construction Phase to the Operations and Maintenance Phase. The new close-out end date is in FY26.
26044003 Ogier Ponds: TPC increased by $2.115M/Schedule extended by 1 year/ Scope change
The project completion schedule was extended by 1 year to account for addition of design phase. The proposed project scope updates include design work which was not previously included in the Project Plan. The project is being considered as a conservation measure in the Anderson Dam Seismic Retrofit Project Environmental Impact Report (ADSRP EIR). As such, the project will deliver sufficient design details to the ADSRP EIR preparers for EIR impact analysis by the end of calendar year 2021. This will require expediting typical project planning and design work procedures to meet the ADSRP EIR schedule. The project site is located on Santa Clara County Parks property. Beginning in 2018, Valley Water has been negotiating a memorandum of Agreement (MOA) with County Parks; however, the MOA is not yet finalized. Ongoing negotiations have delayed the project start by more than two years. To avoid further delay, Valley Water coordinated with County Parks to obtain a right of entry to the project site via the existing Master License Agreement with County Parks. As a result, Valley Water has commenced collecting data for the project which extends the Environmental phase and now includes a Design phase period. Valley Water continues to pursue a final MOA with County Parks. The revised planned project expenditures include additional funds to complete the design phase.
INFORMATION TECHNOLOGY
73274009 Data Consolidation Project: TPC increased by $39k/Schedule extended by 2 years
The project schedule was extended by 2 years to accommodate additional needs identified by a 2021 audit of the Community Projects Review Unit (CPRU). The audit recommendations must be implemented by June 2023 per auditors, so other tasks within this project will need to be delayed to meet that deadline.
73274001 IT Disaster Recovery Project: TPC increased by $3k/Schedule extended by 2 years
The project schedule was extended by 2 years due to Covid-19 responses and because Valley Water was not able to complete the Disaster Recovery planning process. This process was pushed into FY 22 for completion. Upon completion of the Disaster Recovery planning process, Information Technology will prioritize approved projects and implement selected projects during FY22 - FY24.
73274008 Software Upgrades and Enhancements Project: TPC decreased by $1.384M/Scope change
There was no change to the overall project schedule. The scope of this project is being updated to include upgrades and enhancements for additional technology solutions including Munibilling, Information Technology Service Management, Online Payment Processing, Various Cloud Migrations (SMP, Oracle, Maximo, GIS), Workforce Planning, Learning Management System Upgrades, Expansion of Hyland Onbase and proposed expansions to Wells Management and CRM tools. These changes to scope do not increase the project’s overall planned expenditures. TPC decrease was due to under expenditure in FY21.
Next Steps
The CIP team has processed the project plan updates and provided the Financial Planning and Revenue Unit (Unit 683) with detailed data. Based on the data provided, Unit 683 will perform financial analysis of the impacts these changes have on the respective funds. The financial analysis will be shared with the CIP Committee, along with the Preliminary CIP for FY 2023-27 during the December 13 committee meeting and with the Board on January 11, 2022.
ATTACHMENTS:
Attachment 1: Capital Project Plan Updates FY2022-26 CIP
Attachment 2: PowerPoint
UNCLASSIFIED MANAGER:
Manager
Rechelle Blank, 408-630-2615