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.
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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 is one new Contract Change Order (CCO No. 63) to present to the CIP Committee. The amount of CCO No. 63 is estimated at $3,560,129.25. 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. 63
1. Time-Related Overhead for Time Impact Analysis (TIA) 006 Through Construction Completion.
This change compensates Flatiron Dragados West (FDW) for Time-Related Overhead (TRO) due to an extension of contract time, as determined by TIA 006, through construction completion (May 1, 2026 - December 4, 2026).
The time extension was required due to changes in the Low-Level-Outlet-Tunnel final lining, including steel pipe extensions of 96-inch and 156-inch pipes in the tunnel, and changes to 132-inch and 156-inch large diameter steel pipes outside of the tunnel that connect the tunnel to the Diversion Outlet Structure in order to control flows from the reservoir before being released to Coyote Creek.
Previous Contract Change Order 055 compensated FDW for TRO costs for contract time extension from September 18, 2025 through April 30, 2026. The TRO is calculated on a daily, per-calendar-day basis and will be exhausted at the end of April 2026 to cover overhead costs required to keep the job running and construction moving forward.
This TRO cost covers the remaining portion through construction completion (May 1, 2026 - December 4, 2026), including all costs for field and corporate office overhead, bond, and insurance for an extended contract duration of 218 calendar days (195 compensable and 23 non-compensable calendar days). The TRO will be paid through monthly progress payments over the extended duration of approximately seven months. This portion of the change order is valued at $3,610,129.25.
2. Decrease to Bid Item No. 2e - Operate Active Treatment System
Bid Item No. 2e (Operate Active Treatment System) was previously increased to cover up to 44 months of operating an Active Treatment System (ATS). Given the current amount of water being encountered during construction and the remaining work outstanding, the ATS is no longer necessary and will be decommissioned upon approval of a revised Storm Water Pollution Prevention Plan. Credit for this item will be made at the original bid unit rate of $10,000 per month, for up to 5 months remaining, resulting in a total estimated credit of <$50,000.00>.
Other Changes from Previous Month Contract Change Order Status
1. None.
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