BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Adopt Plans and Specifications and Authorize Advertisement for Bids for the Federal Energy Regulatory Commission Order Compliance Project Live Oak Restoration Reach Project, as part of the Anderson Dam Seismic Retrofit Project, Project No. 91864005, Contract No. C0726 (Morgan Hill, District No.1).
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RECOMMENDATION: Recommendation
A. Adopt the Plans and Specifications and Authorize Advertisement for Bids for Construction of the FERC Order Compliance Project (FOCP) Live Oak Restoration Reach Project (LORRP) per the Notice to Bidders; and
B. Authorize the Designated Engineer to issue addenda, as necessary, during the bidding process.
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SUMMARY:
The FOCP Live Oak Restoration Reach Project (Project) serves as compensatory mitigation for impacts associated with other Federal Energy Regulatory Commission (FERC) Order Compliance Projects (FERC Project No. P-5737-007 or FOCP).
The Project will enhance steelhead (Oncorhynchus mykiss) spawning and rearing habitat along an approximately 2,600-foot section of Coyote Creek, extending from the Coyote discharge line (CDL) outlet on the South Channel downstream along the Live Oak Area of Anderson Lake County Park. Project features such as spawning gravel augmentation sites, large woody debris and boulder placement, and vegetated gravel bars will enhance approximately 2.6 acres of creek habitat.
Project construction is expected to take approximately seven (7) months to complete. In-channel work will be limited to the dry season, from June 15, 2026, through October 15, 2026. The estimated construction cost for the Project ranges from $5 million to $6 million.
Project Background
Anderson Dam is under the jurisdiction of FERC and California Department of Water Resources, Division of Safety of Dams (DSOD) and must meet their dam safety design standards. FERC has jurisdiction over Anderson Dam safety measures and operations due to licensing a small hydroelectric facility on this reservoir.
Pursuant to FERC’s authority, for public health and safety reasons, on February 20, 2020, Santa Clara Valley Water District (Valley Water) received an Order from FERC to immediately implement the following interim risk reduction measures: (a) immediately lower and maintain the reservoir operating level no higher than elevation 565 feet; (b) lower the reservoir to elevation 488 feet (deadpool) beginning no later than October 1, 2020, as safely and quickly as possible and maintain deadpool to the extent feasible; (c) immediately design and construct the low-level outlet tunnel (Anderson Dam Tunnel) to more reliably and quickly drawdown the reservoir after an earthquake and/or to better maintain deadpool during significant precipitation; and (d) implement the dam safety directives, including design and construction of the proposed low-level outlet, while securing alternative water supplies and working with FERC staff, and federal, state and local resource agencies to minimize environmental effects.
Pursuant to FERC’s Order, Valley Water immediately restricted the reservoir operating level to 565 feet elevation; began defining the interim risk reduction measures; and initiated emergency consultation processes regarding adverse environmental impacts of these interim risk reduction measures with the regulatory agencies, as appropriate.
The FOCP is a set of proposed interim risk-reduction measures, as set forth in the FERC Order, during the interim period prior to construction and operation of the Anderson Dam Seismic Retrofit Project (ADSRP). The Project restores aquatic habitat within Coyote Creek, directly downstream of Anderson Dam at Live Oak Park. This Project serves as a mitigation project for the FOCP. It was identified in the FOCP Habitat Mitigation and Monitoring Plan and designated as a mitigation project to address the potential effects of reservoir dewatering and sediment deposition on steelhead spawning and rearing habitat associated with the FOCP and Anderson Dam Seismic Retrofit Project.
Relevant Prior Board Actions
On June 23, 2020, the Board adopted a resolution approving the Engineer’s Report, approved the CEQA Exemption determination for the FOCP, and approved the Project.
On October 10, 2023, the Board approved Agreement No. A4932A with Stillwater Sciences for planning and permitting services to provide creek restoration modeling and design support for Project conservation measures, federal Endangered Species Act Section 7 consultation for fisheries resources, biological monitoring of fisheries resources for FERC Order Compliance Project environmental compliance, and general environmental support services for fisheries resources topics, as needed.
On June 24, 2025, the Board approved Amendment No. 1 to Agreement No. A4932A with Stillwater Sciences for continued support on regulatory permitting and compliance for the Anderson Dam Seismic Retrofit Project and FOCP.
Pre-Qualification of Bidders
Because of the complex creek improvements and the complexity of water control for the Project, contractors were prequalified in accordance with Valley Water’s procurement authority under California Public Contract Code Section 20101. The Request for Prequalification Application (RFPA) was published on Valley Water’s vendor portal at PlanetBids, and five applications were received on December 30, 2025.
Applications were evaluated through a pass/fail process that considered both financial capacity and three core technical qualifications:
• Experience controlling water on projects requiring diversion, dewatering, and pumping;
• Creek channel construction experience using gravels and boulders; and
• Large wood habitat structure construction experience.
Following technical and financial review, reference checks, and internal approvals, Valley Water finalized and published the list of prequalified contractors on March 16, 2026. The applicants meeting the established criteria are the following five firms, which are invited to proceed to the next stage of procurement:
• Teichert & Son, Inc.
• Granite Rock Company
• Ground Control, Inc.
• Hanford Applied Restoration & Conservation
• Mountain Cascade, Inc.
Board Adoption of Plans and Specifications and Addenda Authorization
Board adoption of plans and specifications and Board authorization to advertise is recommended in order to proceed to bid the Project for construction. Authorizing the Designated Engineer to issue addenda during the bidding period allows for modifications to the construction Contract Documents, if necessary, during the bidding period and before the contract is awarded.
Rights of Way
This Project will be constructed within Valley Water’s existing rights-of-way, the City of Morgan Hill rights-of-way, and County of Santa Clara rights-of-way.
Staff is working with the County of Santa Clara to obtain a lease agreement. The County of Santa Clara anticipates executing this agreement prior to May 2026.
Public Outreach
Staff has coordinated with the County of Santa Clara for the planned implementation of the Project.
Prior to construction, Valley Water will inform the surrounding neighborhood about the upcoming Project and potential construction impacts. A mailer and social media will be used to reach out to neighbors, and construction signs will be installed at the Project site. Project construction and updates will be shared at Anderson Dam public meetings. A project and construction update will be provided at the next Anderson Dam Seismic Retrofit Project meeting scheduled on March 26.
Residents, commercial businesses, and visitors will be informed of potential temporary impacts, as appropriate. Construction contract documents include requirements and measures to minimize impacts during the construction.
Permits
Environmental permits and other approvals necessary for the construction of the Project are included in the contractor bid package. Permits already obtained for the project include:
• U.S. Fish and Wildlife Service, Biological Opinion
• National Marine Fisheries Service Final, Biological Opinion
• Section 106 National Historic Preservation Act Compliance
• State Water Resources Control Board, 401 Water Quality Certification/Waste Discharge Requirements
• California Department of Fish and Wildlife, Lake and Streambed Alteration Agreement
• Valley Habitat Plan Certificate of Compliance
Forthcoming approvals are still pending:
• U.S. Army Corps of Engineers, 404 permit modification
• SWRCB approval of the LORRP Plan in partial fulfillment of the FOCP HMMP
• CDFW approval of the LORRP Plan in partial fulfillment of the FOCP HMMP
The Contractor will be required to obtain encroachment permits from the City of Morgan Hill and the County of Santa Clara for use of the public right-of-way for hauling and traffic control.
Next Steps
If the Board approves the recommendations, staff will proceed to advertise the Project for construction bids. Staff anticipates recommending the Board award a construction contract in May 2026. The Project Delivery Process Chart (Attachment 2) highlights the current Project phase and the staff recommendations before the Board.
ENVIRONMENTAL JUSTICE IMPACT:
There is no environmental justice impact anticipated with the Live Oak Restoration Reach Project. This action is unlikely to or will not result in disproportionate impacts on any specific communities relative to the general population from the implementation of this project.
FINANCIAL IMPACT:
There is no financial impact associated with adopting the plans and specifications and authorizing advertisement for bids for construction. The Live Oak Restoration Reach Project is part of the Anderson Dam Seismic Retrofit Project, Project No. 91864005, and is included in the Capital Improvement Program (CIP) Fiscal Years (FY) 2026-30 Five-Year Plan and in the FY 2025-26 (FY26) Adopted Budget. The estimated construction contract costs are included in the estimated total project cost (TPC) and there are adequate funds in the ADSRP’s FY26 Adopted Budget to encumber the planned expenditures for construction to be incurred during this fiscal year. The estimated cost of the Project is between $5 and $6 million.
Budget for this project is included as part of the FY 2026-27 biennial budget process. If the contract award amount exceeds the estimated costs, it will be addressed through the next CIP and biennial budget cycles and 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 project cost funded by the Water Utility Enterprise 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.
The Live Oak Restoration Reach Project is receiving $80,000 from the Fish Habitat Improvement Project, Project No. 26042002, within the Safe, Clean Water and Natural Flood Protection Program’s Project D4: Fish Habitat and Passage Improvement. This funding supports key performance indicator (KPI) #5 “Complete five (5) habitat enhancement projects based on studies that identify high-priority locations for large wood, boulders, gravel, and/or other habitat enhancement features.”
CEQA:
The Project is part of the mitigation strategy for impacts of the FOCP and supports the implementation of the FOCP Habitat Mitigation and Monitoring Plan. Since the project serves as a mitigation to offset FOCP impacts, implementation of the LORRP is required to help complete FOCP. CEQA provides a statutory exemption for emergency projects, which includes 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 Live Oak Restoration Reach Project, qualifies for the statutory exemption for emergency projects. Valley Water filed a Notice of Exemption with the County of Santa Clara Clerk/Recorder on June 29, 2020.
ATTACHMENTS:
Attachment 1: Notice to Bidders
Attachment 2: Project Delivery Process Chart
Attachment 3: Map
UNCLASSIFIED MANAGER: Manager
Ryan McCarter, 408-630-2983