BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Amendment No. 2 to Standard Consultant Agreement No. A3685A between the Santa Clara Valley Water District and Overland, Pacific & Cutler, Inc., to increase the agreement by $318,500 for additional Real Estate Services for the Upper Llagas Creek Flood Protection Project, Project No. 26174051 (Morgan Hill) (District 1).
End
RECOMMENDATION:
Recommendation
A. Approve a budget adjustment from the Safe, Clean Water Operating and Capital Reserve for the sum of $318,500 to fund expenditures for additional real estate services as described in Amendment No. 2 to Standard Consultant Agreement No. A3685A between the Santa Clara Valley Water District and Overland, Pacific & Cutler, Inc. for the Upper Llagas Creek Flood Protection Project; and
B. Approve Amendment No. 2 to Standard Consultant Agreement No. A3685A between the Santa Clara Valley Water District and Overland, Pacific & Cutler, Inc. for the Upper Llagas Creek Flood Protection Project to provide additional real estate services for a new not-to-exceed fee of $2,123,025.
Body
SUMMARY:
The Santa Clara Valley Water District (District) is undertaking the Upper Llagas Creek Flood Protection Project (Project) in partnership with the U. S. Army Corps of Engineers (Corps) and the City of Morgan Hill (City) to improve flood protection to the City and unincorporated areas of Santa Clara County including San Martin.
The Project was originally being administered by the United States Natural Resources Conservation Service (NRCS) but in 1999, the Corps was authorized by Congress to take over from NRCS and construct the Project. However, due to lack of federal funding, the Corps’ progress on the Project stalled. To get the Project back on schedule, the Corps approved the District’s request to take over the Project design phase and other tasks. The District, as local sponsor, is responsible for property rights acquisition, utility relocations, and the design and construction of numerous box culverts.
On October 22, 2013, the Board approved Agreement A3685A (Agreement) with Overland, Pacific & Cutler, Inc. (OPC or Consultant) to provide real estate services, such as appraisal of land rights, negotiation with property owners, and conducting hazardous substance liability assessments, for a total not-to-exceed fee of $1,804,525. Since November 2013, Consultant has been performing on schedule acquiring the necessary rights-of-way for the Project. As of today, the District has acquired the necessary property interests from 31 property owners for Phase 1 of the Project and from 32 property owners for Phase 2 of the Project.
Amendment No. 1 was executed on December 29, 2015 to extend the expiration date of the Agreement from December 31, 2015 to December 31, 2016.
During Phase 1 acquisition, the necessity for additional work was identified, beyond the scope of the original Agreement. Additional properties along the project footprint were identified as needed for acquisition. For the magnitude of the Project and the number of properties needed, meetings and conference calls had to occur more frequently than originally identified in the existing Agreement. To work towards agreements in negotiation with property owners, design alignment changes were made and the process from appraisals to acquisition had to begin again. With the new extended timeframe of the Agreement, additional budget is needed for project management, acquisition services, relocation assistance services, appraisal services, and supplemental services.
Staff recommends approval of Amendment No. 2 to Standard Consultant Agreement No. A3685A between the Santa Clara Valley Water District and Overland, Pacific & Cutler, Inc. for the Upper Llagas Creek Flood Protection Project (Amendment No. 2) (See Attachment 1) which incorporates all additional real estate services work determined necessary at this time. The additional real estate services described in Amendment No. 2 includes additional project management, additional acquisition services, and additional supplemental services.
FINANCIAL IMPACT:
A budget adjustment from the Safe, Clean Water Operating and Capital Reserve is recommended in order to fully fund all remaining real estate services of this Project, as described above. If the recommended budget adjustment and Amendment No. 2 are approved by the Board, the maximum compensation limit of the Agreement will be increased by $318,500 for a not-to-exceed amount of $2,123,025.
There are adequate funds in the Safe Clean Water (Fund 26) capital reserves to fund the requested budget adjustment.
CEQA:
On June 10, 2014, the Board certified the Environmental Impact Report for the Upper Llagas Creek Project, Resolution No. 14-67.
ATTACHMENTS:
Attachment 1: Amendment No. 2
UNCLASSIFIED MANAGER:
Manager
Ngoc Nguyen, 408-630-2632