BOARD AGENDA MEMORANDUM
Government Code Section 84308 Applies: Yes ☒ No ☐
(If “YES” Refer to Attachment A)
SUBJECT:
Title
Consider AECOM Technical Services, Inc.’s Request for Retention Release and Modification of Retention Requirements in Agreement No. A4215A for Planning, Design, and Environmental Documentation and Permitting Support for the Pacheco Reservoir Expansion Project, Project No. 91954002, and Approve Amendment No. 1 to Agreement No. A4215A with AECOM Technical Services, Inc. (Merced County, District 1).
End
RECOMMENDATION:
Recommendation
A. Consider AECOM Technical Services, Inc.’s Request for Retention Release and Modification of Retention Requirements in Agreement No. A4215A for Planning, Design, and Environmental Documentation and Permitting Support for the Pacheco Reservoir Expansion Project, Project No. 91954002; and
B. Approve Amendment No. 1 to Agreement No. A4215A with AECOM Technical Services, Inc.
Body
SUMMARY:
The Pacheco Reservoir Expansion Project (Project) will expand the storage capacity of the existing Pacheco Reservoir from 5,500 acre-feet (AF) to up to 140,000 AF to provide increased emergency water supplies, improved water quality, ecosystem benefits, and incidental flood protection.
Recent discussions developed in support of the Project’s environmental documents, permitting timelines, field investigations, and design process have prompted necessary changes to the Project scope and sequence of work. A combination of these factors contributed to scope changes and a revised schedule forecast to complete the required Project elements prior to the construction phase.
Staff recommends approval of Amendment No. 1 which extends the Agreement term consistent with the current Project schedule and implements other administrative updates to this Agreement which commenced on November 20, 2018. Additional time is necessary for the Consultant to prepare the required changes to complete the Project.
Consultant requests the board consider approving release of a portion of retention withheld to date and that the retention requirements in the Agreement be modified (see discussion below in this Board Agenda Memorandum). Staff is not providing a recommendation as to Consultant’s request, but only submitting it to the Board for its consideration and input.
Project Background
Project History
In late 2021, the planning phase and 30% design were near completion and the Draft Environmental Impact Report (DEIR) was released for public review. The DEIR included five alternatives and identified the preferred project alternative as a hardfill dam type located approximately one mile upstream of the existing North Fork Dam. Upon release of DEIR, the Department of Water Resources Division of Safety of Dams (DSOD) rejected the hardfill dam concept, due to limited performance history, and stated the earthfill dam type alternative included in the DEIR remained a feasible option.
Project Progress to Date
After receiving DSOD’s request, staff and Consultant completed a 30% design update in June 2022. Additionally, the revised alternatives analysis and staff-recommend Project technical memoranda were completed in September and November 2022, respectively.
On January 10, 2023, staff presented the Planning Study Report (PSR) to the Board, which marked completion of the planning phase. The PSR identified the recommended project as the upstream, earthfill dam type, with a 140,000 AF capacity, approximately one mile upstream of the existing dam.
On March 16, 2023, the Board received information on the water supply strategy, Water Supply Master (WSMP) Plan update, and work study session on Project’s milestones review. The WSMP outlined the framework for a sustainable and reliable future water supply in Santa Clara County with the Pacheco Reservoir Expansion Project (PREP) being one of the recommended projects that address this water supply strategy. The work study session addressed Project funding, environmental benefits, Project status, and upcoming milestones.
The Project geotechnical investigations, environmental investigations, and analysis necessary to support the 60% design and environmental documents, are scheduled to be completed in late 2023. These investigations are necessary to advance the design of the dam and related improvements. The investigations will also aid in further assessing the environmental impacts and developing mitigation options, including cultural resources.
Impacts to the Project Schedule
After reviewing the DEIR comments and gathering additional Project information, staff and Project consultants determined there is a need to further develop the impact analyses and mitigation on the electrical transmission line, construction access improvements, as well as complete tribal consultations. Staff proposes re-circulating the PREP DEIR to address these needs while combining it with a PREP Draft Environmental Impact Statement (DEIS) that is necessary to fulfill the National Environmental Policy Act (NEPA) requirements. This draft joint document has an anticipated release for public comment in mid-2025, followed by a final joint document to be certified by the Board in mid-2026.
Previous Relevant Board Actions
On November 20, 2018, the Board approved an agreement (Agreement No. A4215A) with Consultant for professional planning, design, and environmental documentation and permitting support services for the Pacheco Reservoir Replacement Project for a not-to-exceed fee of $104,723,000.
Consultant Work Performed to Date
The Project’s major construction components include the new dam, spillway, outlet works, conveyance pipeline, pump station, decommission the existing dam, channel restoration, utility upgrades, and access improvements. To date, tasks completed by Consultant in support of this Project scope are the DEIR; the planning phase, which includes initial environmental and geotechnical investigation and analysis, various technical memoranda which are the problem definition, alternatives analysis, and staff-recommended Project reports with revisions, the PSR; and the 30% design.
Consultant is currently performing tasks related to the design phase environmental and geotechnical investigations and analysis; participating in interagency meetings and discussions with the regulators to establish mitigation terms; refining mitigation cost estimates; preparing a joint recirculated DEIR and DEIS document; and the 60% design.
Amendment No. 1
Agreement Term Extension
Restricted and delayed private property access to most of the Project’s physical area requiring environmental and geotechnical data collection, and investigations, has caused significant Project delays. Extending the Agreement expiration date by three years will provide the Consultant with sufficient additional time to complete the remaining design, environmental, and permitting services.
The recommended Amendment No. 1 (Attachment 1) extends the term of the Agreement from its current expiration date of November 30, 2025, to November 30, 2028, and incorporates administrative changes.
Consultant’s Request for Retention Release and Modification of Retention Requirements
Consultant requests the board consider approving release of a portion of retention withheld to date and that the retention requirements in the Agreement be modified. Staff is not providing a recommendation as to Consultant’s requests, but only submitting them to the Board for its consideration and input.
Current and Revised Retention Requirements
The existing retention requirements in the original Agreement are not per Santa Clara Valley Water District’s standard template and were specifically negotiated with Consultant to benefit small business subconsultants working on the Project. The current language is stated in Schedule PD, Attachment One, Fees and Payments, section 3. Terms and Conditions, paragraph G.:
“G. Consultant may request, and District DOO may consider, release of retention for Consultant’s small business subconsultants twelve months after all work assigned to the subconsultant has been completed and no additional services are anticipated from them.”
Consultant requests retention be released pursuant to a revised version of the section referenced above, as follows:
“G. Retention may be released only to the Consultant’s small business subconsultants and small business subcontractors performing services described in Task 6.1 Environmental Investigations and Studies, Task 7 Geotechnical Data Collection and Investigations, and Task 16 Supplemental Services task orders that support Task 6.1 and Task 7, twelve months after each of the two phases of environmental field studies and geotechnical investigation work are completed.”
The revised provision deletes the existing additional requirement for retention release that “no additional services are anticipated from them.” The small business firms could therefore perform services in the future and retention from payments to Consultant for their services could be reinitiated.
The majority of small business subcontractors and subconsultants working on the Project are performing services described in Tasks 6.1 and 7, which makes up 27% of the total Not-to-Exceed fee ($104,723,000) of the Agreement.
Capital Improvement Program Support for Amendment No. 1
Staff’s recommendation to approve Amendment No. 1 to the Agreement was discussed at the Capital Improvement Program (CIP) board committee meeting on October 17, 2022. The committee members supported staff’s recommendation to extend the term of the Agreement by three years, from November 30, 2025, to November 30, 2028, and make administrative updates to the standard language of the Agreement.
As explained above, Consultant requests the board consider approving release of a portion of retention withheld to date, only for small business subconsultants’ and subcontractors’ services performed pertaining to particular tasks (6.1 Environmental Investigations and Studies, and Task 7 Geotechnical Data Collection and Investigations). They also request certain retention requirements in the Agreement be
modified, as detailed above. Consultant’s requests were considered by the CIP Committee at its October 17, 2023 meeting and the Committee members supported presenting this item to the full board to consider and provide input.
Subsequent to the CIP Committee meeting, Consultant requested the Agreement also be revised to allow for release of retention withheld in the future for small business subconsultants’ and subcontractors’ services performed pursuant to Task 16 Supplemental Services Task Orders that support Task 6.1 Environmental Investigations and Studies, and Task 7 Geotechnical Data Collection and Investigations. This request is included for the board’s consideration and to provide input.
Next Steps
Amendment No. 1 (Attachment 1) currently includes Consultant’s requested revised retention requirements. If the board approves the Consultant’s requests and Amendment No. 1, staff will take the necessary steps to release a portion of the retention withheld to date and administer the Agreement in accordance with the revised requirements.
If the board does not approve Consultant’s requested revised retention requirements, Amendment No. 1 will be revised in accordance with the board’s direction to staff.
ENVIRONMENTAL JUSTICE IMPACT:
There are no Environmental Justice Impacts associated with this item. However, the Environmental Justice Impacts will be assessed and reported as part of Project implementation action items brought to the Board. As part of executed Project components, community input was solicited for consideration through public meetings, which helped inform Project design.
FINANCIAL IMPACT:
The Pacheco Reservoir Expansion Project (Project No. 91954002) is included in the Capital Improvement Program (CIP) Fiscal Year (FY) 2024-28 Five-Year Plan and in the FY 2023-24 Adopted Budget. The recommendation does not result in a financial impact. The approved action reduces the Agreement retention amount due to the Consultant upon completion of the Agreement.
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. 1
UNCLASSIFIED MANAGER:
Manager
Ryan McCarter, 408-630-2983