BOARD AGENDA MEMORANDUM
Government Code Section 84308 Applies: Yes ☐ No ☒
(If “YES” Refer to Attachment A)
SUBJECT:
Title
Adopt Plans and Specifications and Authorize Advertisement for Bids for Construction of the Federal Energy Regulatory Commission (FERC) Order Compliance Project Coyote Creek Flood Management Measures Project, Project No. 91864007, Contract No. C0690, (San Jose), (District 2, 3 and 6).
End
RECOMMENDATION:
Recommendation
A. Adopt Plans and Specifications and Authorize Advertisement for Bids for Construction of the FERC Order Compliance Project (FOCP) Coyote Creek Flood Management Measures Project, per the Notice to Bidders; and
B. Authorize the Designated Engineer to issue addenda, as necessary, during the bidding process.
Body
SUMMARY:
The FOCP Coyote Creek Flood Management Measures Project (CCFMMP or Project) is one of several Anderson Dam FERC Order Compliance Projects, which are a set of interim risk reduction measures required prior to construction and operation of the Anderson Dam Tunnel Project (ADTP). The immediate objective of CCFMMP is to reduce the risk of flooding to homes, schools, businesses, and transportation networks from flood flows associated with a 20-year recurrence interval flood, approximately equivalent to the February 2017 flood event and as a result of water releases from Anderson Dam that may occur after construction of Santa Clara Valley Water District’s (Valley Water) ADTP, scheduled to be completed in 2024. The CCFMMP entails constructing floodwalls.
Staff is recommending the Board approve the Project’s final plans and specifications and authorize staff to advertise for construction bids.
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, 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 elevation 565 feet; 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 time period prior to construction and operation of the Anderson Dam Seismic Retrofit Project (ADSRP). The FOCP consists of four broad categories of actions. The CCFMMP is part of Category IV. Avoidance and Minimization Measures.
Valley Water expedited a portion of the original Coyote Creek Flood Protection Project (CCFPP) in response to the FERC order and created the CCFMMP. The overall flood risk reduction objective of CCFMMP and CCFPP is protecting areas of Coyote Creek against a flood event approximately equivalent to the February 2017 flood event. This goal will be met by the completion of CCFMMP and CCFPP. CCFPP is in the design phase and will likely be ready for construction in 2025.
Rights-Of-Way
A. Phased Notices to Proceed. Right-of-way transactions are still pending which will impact the contractor’s access to certain geographic areas of the Project. Consequently, to commence Project construction in a few months, staff intends to utilize phased approvals to authorize the Contractor to proceed with building the Project in a certain sequence, as real property rights are secured.
B. Right-of-Way Status. CCFMMP will be built in three reaches of Coyote Creek, Reaches 5, 6 and 7. The first phase of approval to authorize the Contractor to proceed with construction will occur in Reach 5, which consists of approximately 60% of the proposed CCFMMP improvements. Issuing phased notices to proceed allows staff additional time to acquire the necessary rights-of-way in Reaches 6 and 7. Staff anticipates completing the right-of-way acquisitions necessary to construct the first phase (Reach 5) of the Project by April 2023. Staff will not recommend the Board award a construction contract until all required real property rights for the first phase (Reach 5) are secured.
C. Encampment Relocation. Staff is currently negotiating with City of San Jose to provide outreach services and assist with relocation of encampments in the project area. Staff will not recommend the Board award a construction contract until the City of San Jose and Valley Water reach an agreement regarding relocation of encampments in the Project area.
Regulatory Permits
All necessary regulatory permits have been obtained for the construction of the Project.
Board Adoption of Plans and Specifications and Addenda Authorization
Board adoption of plans and specifications and Board authorization to advertise is needed to proceed to bid the Project for construction. Authorizing the Designated Engineer to issue addenda during bidding allows for modifications to the construction Contract Documents, if necessary, during the bidding period and before the contract is awarded.
Relevant Prior Board Action(s)
On June 9, 2020, the Board adopted a resolution providing for the notice of time and place of public hearing on the Engineer’s Report and CEQA Exemption determination for the Anderson Dam FOCP to occur on June 23, 2020, at 6:00 PM by teleconference Zoom meeting.
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.
Public Outreach
Valley Water will use a variety of outreach strategies to keep the community informed of the Project progress and important milestones. During the Project’s design phase, numerous public meetings were held, both virtual and in-person, within adjacent neighborhoods. Valley Water also utilized physical mailers and Nextdoor social media posts.
During construction, outreach will be targeted to the surrounding neighborhoods and include pre-construction and construction update public meetings. In addition to the outreach tactics used during the design phase, construction phase outreach will include regular email updates and construction site signage.
Outreach to Bidders
The Notice to Bidders (Attachment 2) will be sent to the following: (1) local and regional firms that have the appropriate license for this type of work; and (2) the Santa Clara and San Benito Counties Building and Construction Trades Council, which maintains contacts with at least 100 union representatives, for distribution to their members.
Next Steps
Upon Board approval of the recommendations, staff will proceed to advertise for bids for Project construction. The next Board action is award of the construction contract, tentatively scheduled for May 9, 2023. The Project Delivery Process (Attachment 3) highlights the current Project phase and the staff recommendations before the Board.
ENVIRONMENTAL JUSTICE IMPACT:
There are beneficial Environmental Justice impacts. The intent of CCFMMP is to protect the public, including disadvantaged communities from dangers associated with flooding similar to the flooding event that occurred in February 2017. Construction of the Project does not disproportionately impact underserved or disadvantaged communities.
FINANCIAL IMPACT:
There is no financial impact associated with the recommendation to Adopt Plans and Specifications and Authorize Advertisement for Bids. The CCFMMP is part of the Anderson Dam Seismic Retrofit Project included in the Capital Improvement Program (CIP) Fiscal Year (FY) 2023-27 Five-Year Plan and in the FY 2022-23 Adopted Budget. The estimated construction contract cost for the Project is $57M to $69M. Based on current estimates, there are adequate funds in the Project’s Board-adopted FY 2022-23 budget to encumber the planned expenditures for construction to be incurred during this fiscal year. Funds to cover the remaining anticipated construction costs will be included in the biennial budget process and recommended by staff during the annual fiscal year budget process or through budget adjustment(s), if needed.
The Project is funded through the Water Utility Enterprise Fund (Fund 61), with 81.8% of the costs allocated to North County Zone W-2, and South County Zones as follows: 7.9% allocated to Zone W-5, and 10.3% allocated to Zone W-7.
CEQA:
CEQA provides a statutory exemption for emergency projects, which include 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 Coyote Creek Flood Management Measures Project, qualifies for this exemption. Valley Water filed a Notice of Exemption with the County of Santa Clara Clerk/Recorder on June 29, 2020.
ATTACHMENTS:
Attachment 1: Location Map
Attachment 2: Notice to Bidders
Attachment 3: Project Delivery Process
Attachment 4: Plans
Attachment 5: Specifications
UNCLASSIFIED MANAGER:
Manager
Bhavani Yerrapotu, 408-630-2735