BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Approve Specific Brand or Trade Name Designation, Adopt Plans and Specifications, and Authorize Advertisement for Bids for the Almaden Valley Pipeline Replacement Project - Phase 1, Project No. 92304001, Contract No. C0714 (San Jose, Unincorporated Santa Clara County) (District 1, District 7).
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RECOMMENDATION: Recommendation
A. Find that the Almaden Valley Pipeline Replacement Project is substantially complex and, therefore, requires a construction contract retention of 10 percent (10%);
B. Find that certain Supervisory Control and Data Acquisition instrumentation components as specified in the Plans and Specifications should be designated as specific brand or trade name products. Public Contract Code Section 3400(c)(2);
C. Adopt the Plans and Specifications and Authorize Advertisement for Bids for Construction of the Almaden Valley Pipeline Project - Phase 1 per the Notice to Bidders; and
D. Authorize the Designated Engineer to issue addenda, as necessary, during the bidding process.
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SUMMARY:
The objective of the Almaden Valley Pipeline Replacement Project - Phase 1 (Project) is to increase the reliability and useful life of the pipeline.
The project scope includes completely draining and removing all water from the Almaden Valley Pipeline (AVP) between Coleman Line Valve and Calero Line Valve, relining 19,000 linear feet of AVP with steel pipe, replacing line valves, installing a new line valve, providing support for pipeline replacement activities, procuring long-lead material, installing supervisory control and data acquisition (SCADA) system components, and installing corrosion protection systems.
Staff is recommending that the Board approve the Project’s Plans and Specifications and authorize advertisement for construction bids per the Notice to Bidders (Attachment 3).
Project Background
The Almaden Valley Pipeline (AVP) is included in the Santa Clara Valley Water District’s (Valley Water) Pipeline Maintenance Program (PMP). The PMP defines the activities associated with maintenance and replacement of water supply conveyance systems including pipelines, appurtenances, electrical systems, control systems, and structures, throughout Valley Water’s jurisdiction.
The Almaden Valley Pipeline (AVP) is comprised of three (3) pipeline segments: Segment 1, which begins at the Vasona Pump Station in Los Gatos and ends at the Coleman Line Valve in San Jose; Segment 2, which begins at the Coleman Line Valve and ends at the Santa Teresa Force Main in San Jose; and Segment 3, which begins at the Santa Teresa Force Main and ends at the Calero Valve yard in Santa Clara County.
Segment 1 is made up of 4.4 miles of Prestressed Concrete Cylinder Pipe (PCCP), while Segment 2 is made up of 3.6 miles of Welded Steel Pipe (WSP), and Segment 3 is made up of 3.5 miles of PCCP.
The Project (Phase 1) will replace Segment 3 of the pipeline because this segment has become embrittled, continues to degrade, and poses a significant risk to the water source availability of the San Luis Reservoir, Anderson Reservoir, and Calero Reservoir. The degradation of Segment 3 is unpredictable and can trigger costly emergency action if unaddressed. The Project will shut down AVP to install a new steel pipeline within the existing AVP alignment. The new steel pipeline will replace AVP from within by using the existing AVP as a pathway to install a slightly smaller, new steel pipeline.
Construction Contract Retention
Public Contract Code (PCC) Section 7201 limits retention amounts for public works construction contracts to five percent (5%) of the total contract price. PCC section 7201(b)(4) provides that retention proceeds on a project may exceed 5% where the Board makes a finding that the proposed project is “substantially complex” and, therefore, requires a retention amount greater than 5%.
To comply with the PCC regarding increasing the retention to 10%, staff recommends that the Board find that the Project is substantially complex. Substantially complex Project challenges, in this case, pertain to the complexity and precision required to conduct critical work within a constrained shutdown schedule. The pipeline shutdown durations are negotiated up to years in advance and require the cooperation of other water agencies to minimize unplanned disruption in the delivery of treated water from Santa Teresa Water Treatment Plant throughout Santa Clara County. A disruption in the delivery of treated water in Santa Clara County could result in water shortages and disruption to water retailers.
Specific Brand or Trade Name Justification
For a specific brand or trade name product to be mandated by a public entity for a construction project, at least one of four criteria must be met as stated in PCC 3400(c). For this Project, PCC Section 3400(c)(2) allows the awarding authority to make a finding that such designations are justified to obtain necessary items to match other products in use on a particular public improvement, either completed or in the course of completion.
To comply with the PCC regarding the use of specific brand or trade name products for Project construction, staff recommends that the Board find certain items as specified in the Plans and Specifications are necessary to match the existing equipment already in use at other Valley Water facilities using the District’s SCADA system.
Releasing certain information in the Plans and Specifications, including identification of the specific brand or trade name products and details of the integration of the products into the existing information technology systems, to the public, may increase the potential for an attack on a Valley Water information technology system. To protect Valley Water’s information technology systems, all parties interested in accessing the Project Plans, Specifications, and addenda, must register as a vendor at the Valley Water Vendor Portal and submit a completed Non-Disclosure Agreement (NDA) to access the Contract Documents.
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.
The Project Plans and Specifications were provided by separate communication to Valley Water’s Board of Directors for their review, prior to taking the recommended action to adopt the Plans and Specifications for bid advertisement. Addenda will be provided to the Board pursuant to the same communication protocols. The Notice to Bidders informs interested parties that they must execute an NDA in order to access the Plans, Specifications, and addenda.
Relevant Prior Board Actions
On April 8, 2025, the Board adopted Resolution 2025-22 Setting the Time and Date for a Public Hearing on the Final Program Environmental Impact Statement and Engineer’s Report for the Pipeline Maintenance Program (PMP).
On April 22, 2025 the Board held a public hearing and adopted Resolution 2025-25 and Resolution 2025-26 certifying the final Program EIR for the PMP and Adopting CEQA findings of fact, statement of overriding considerations, and mitigation monitoring and reporting program and approving the Engineer’s Report for the PMP.
Rights of Way
Valley Water has all the necessary right-of-way needed for the construction of the Project.
Permits
Staff is working to obtain the Project’s Lake Streambed Alteration (LSA) Agreement with the California Department of Fish and Wildlife (CDFW). The construction contract will be awarded by Valley Water once the LSA Agreement is signed and secured.
Staff has obtained conditional right-of-way letters from the City of San Jose and County of Santa Clara. The final approved encroachment permits from these cities will be completed by the contractor after the construction contract is awarded and issued prior to construction commencement.
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 January 2026.
ENVIRONMENTAL JUSTICE IMPACT:
There are no environmental justice impacts associated with the 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. However, this project will enhance the reliability and operational flexibility of the pipeline and address existing system vulnerabilities. Upgrades to the Almaden Valley Pipeline will allow Valley Water to better service communities during times of emergency and future maintenance projects.
FINANCIAL IMPACT:
There is no financial impact associated with the recommendation to Adopt Plans and Specifications and Authorize Advertisement for Bids.
The Almaden Valley Pipeline Replacement Project (Project) is included in the Capital Improvement Program (CIP) Fiscal Years (FY) 2026-30 Five-Year Plan and in the FY 2026-27 Adopted Budget. Based upon estimated construction contract costs, there are adequate funds in the Project’s FY 2026 Adopted Budget to encumber the planned expenditures for construction to be incurred during this fiscal year. The estimated cost of the Project is $60 million, which would result in a $32.3 million increase to the Total Project Cost (TPC) reflected in the CIP FY 2026-30 Five-Year Plan. The increase to the TPC will be incorporated into the Draft CIP FY 2027-31 Five-Year Plan. The revised TPC would be approximately $136 million. 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, Project No. 92304001, is funded by the Water Utility Enterprise Fund (Fund 61) with 100% of the costs of the Project allocated to Zone W-2 (North County).
CEQA:
On April 22, 2025, the Board certified an Environmental Impact Report for the Pipeline Maintenance Program (PMP EIR) (accessible via <<https://fta.valleywater.org/dl/qRvvY7YPH2>>). The PMP provides for the routine inspection, rehabilitation, and maintenance of Valley Water’s raw and treated water pipelines and evaluates the environmental impacts of the PMP activities. All proposed activities for the AVP Project, including the construction of underground valves and vaults, are adequately analyzed in the PMP EIR. During Project construction, Valley Water and its contractor will comply with all applicable BMPs and mitigation measures from the PMP EIR and permit conditions.
ATTACHMENTS:
Attachment 1: Notice to Bidders
Attachment 2: Project Delivery Process Chart
Attachment 3: Map
UNCLASSIFIED MANAGER: Manager
Emmanuel Aryee, 408-630-3074