BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☒ No ☐
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Approve Amendment No. 1 to Agreement No. A4751A with Ghirardelli Associates, Inc. for Construction Management Services for the Federal Energy Regulatory Commission Order Compliance Project Coyote Creek Flood Management Measures Project, Project No. 91864007, and the Coyote Creek Flood Protection Project, Project No. 26174043, Increasing the Fee by $11,262,693, for a Total Revised Fee of $16,855,256 (San Jose, Districts 2, 3 and 6).
End
RECOMMENDATION: Recommendation
Approve Amendment No. 1 to Agreement No. A4751A with Ghirardelli Associates, Inc. for Construction Management Services for the Federal Energy Regulatory Commission Order Compliance Project Coyote Creek Flood Management Measures Project, Project No. 91864007, and the Coyote Creek Flood Protection Project, Project No. 26174043, increasing the fee by $11,262,693, for a total revised fee of $16,855,256.
Body
SUMMARY:
The Federal Energy Regulatory Commission Order Compliance Project (FOCP) Coyote Creek Flood Management Measure Project (CCFMMP) and the Coyote Creek Flood Protection Project (CCFPP), collectively referred to as “Project”, represent phase one and phase two, respectively, of a 9-mile flood protection project along Coyote Creek between Montague Expressway and Tully Road in the City of San Jose.
Phase one, CCFMMP, is an expedited portion of the Project in response to the Anderson Dam Federal Energy Regulatory Commission (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 phase one, CCFMMP, is to reduce the risk of flooding in San Jose as a result of water releases from Santa Clara Valley Water District’s (Valley Water) Anderson Dam that may occur after construction of ADTP. The scope of phase one, CCFMMP, includes construction of seven (7) floodwalls in a total of three (3) reaches along Coyote Creek.
Phase one of the Project, CCFMMP, is currently under construction, scheduled for completion by Summer 2025, and phase two, CCFPP, is in the final stages of design.
Phase two of the Project, CCFPP, will construct all the remaining flood protection elements, including steel sheet pile floodwalls, concrete T-walls, flood gates and flood doors, and passive barriers. The overall flood risk reduction objective of protecting areas of Coyote Creek against a flood event approximately equivalent to the February 2017 flood event will be met by the completion of both phase one, CCFMMP, and phase two, CCFPP.
Pursuant to Agreement A4751A (Agreement) with Ghirardelli Associates, Inc. (Consultant), which was awarded by the Board on April 25, 2023, the Consultant has been providing construction management services overseeing the construction of phase one of the Project, CCFMMP. The Agreement included an option to amend the Agreement to add construction management services for phase two, CCFPP. Staff is therefore recommending that the Agreement be amended to exercise this option.
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, Valley Water received an Order from FERC on February 20, 2020 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 FERC Order Compliance Projects 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 FERC Order Compliance Projects consist of four broad categories of actions. The CCFMMP is part of Category IV. Avoidance and Minimization Measures.
Valley Water expedited a portion of the Project, phase one, CCFMMP, in response to the FERC Order. The immediate objective of phase one, CCFMMP, is to reduce the risk of flooding in San Jose as a result of water releases from Valley Water’s Anderson Dam that may occur after construction of the Anderson Dam Tunnel. The scope of phase one, CCFMMP, includes construction of seven (7) floodwalls in a total of three (3) reaches along Coyote Creek.
The overall flood risk reduction objective of the Project is protecting areas of Coyote Creek against a flood event approximately equivalent to the February 21, 2017, flood event. This goal will be met by the completion of phase one, CCFMMP, and phase two, CCFPP. Construction of phase one, CCFMMP, began in Summer 2023 and is scheduled to be completed by Spring 2025.
Phase two, CCFPP, will construct all the remaining Coyote Creek flood protection elements, including steel sheet pile floodwalls, concrete T-walls, flood gates and flood doors, and passive barriers, within the Project geographic area that are necessary to convey flows similar to those that occurred during the February 2017 flood event and any additional flows from the new Anderson Dam stage 2 diversion tunnel, which will be part of the ADSRP. Phase two, CCFPP, is in the final stages of design and is anticipated to begin construction Summer 2026.
Relevant Prior Board Actions
On April 25, 2023, the Board approved Agreement A4751A with Ghirardelli Associates, Inc. for construction management services for phase one, CCFMMP, for a total fee of $5,592,563.
On May 16, 2023, the Board approved the construction contract award to Gordon N. Ball, Inc. for phase one, CCFMMP, in the sum of $43,927,438.
Amendment No. 1 Additional Scope
Amendment No. 1 to the Agreement with Ghirardelli Associates, Inc. will expand the original scope of services, incorporate administrative updates, and add funding for the Consultant to perform construction management services for phase two, CCFPP. A summary of the tasks and fees for the recommended Amendment No. 1 is presented in Table 1.
The scope of services includes Project Management, Preconstruction Services, Construction Management, Construction Administration and Change Management, Safety Management, Construction Inspections, Partnering, Claims and Disputes Management, Environmental Compliance Services, and Acceptance and Closeout.
The Supplemental Services task includes value engineering/risk reduction workshop facilitation, evaluation of alternative technical concepts or alternative construction approaches proposed by contractor, performing special studies and analyses on topics requested by Valley Water, and providing resources to augment Valley Water staff for technical or management services in response to changed conditions or additional scope of work, and other unforeseen issues. Prior to performing any Supplemental Services, the Consultant will be required to obtain written authorization from Valley Water’s Deputy Operating Officer pursuant to an approved Task Order.
Staff’s recommendation to approve Amendment No. 1 to the Agreement was presented at the Capital Improvement Program (CIP) board committee meeting on May 19, 2025.
|
Table 1. REVISED COST BREAKDOWN |
|
Task |
Description |
Original Not-to-Exceed Fees |
Amendment No. 1 Not-to-Exceed Fees |
Revised Total Not-to-Exceed Fees |
|
1 |
Project Management - CCFMMP |
$267,461 |
|
$267,461 |
|
2 |
Preconstruction Services - CCFMMP (Completed) |
$29,614 |
|
$29,614 |
|
3 |
Construction Management - CCFMMP |
$1,017,128 |
|
$1,017,128 |
|
4 |
Construction Administration and Change Management - CCFMMP |
$963,022 |
|
$963,022 |
|
5 |
Safety Management - CCFMMP |
$73,808 |
|
$73,808 |
|
6 |
Construction Inspections - CCFMMP |
$2,022,512 |
|
$2,022,512 |
|
7 |
Partnering, Claims, and Disputes Management - CCFMMP |
$293,620 |
|
$293,620 |
|
8 |
Environmental Compliance Services - CCFMMP |
$89,501 |
|
$89,501 |
|
9 |
Acceptance and Closeout - CCFMMP |
$106,432 |
|
$106,432 |
|
10 |
Supplemental Services - CCFMMP |
$729,465 |
|
$729,465 |
|
11 |
Project Management - CCFPP |
|
$471,535 |
$471,535 |
|
12 |
Preconstruction Services - CCFPP |
|
$85,326 |
$85,326 |
|
13 |
Construction Management - CCFPP |
|
$2,001,330 |
$2,001,330 |
|
14 |
Construction Administration and Change Management - CCFPP |
|
$2,680,103 |
$2,680,103 |
|
15 |
Safety Management - CCFPP |
|
$67,096 |
$67,096 |
|
16 |
Construction Inspections - CCFPP |
|
$4,244,387 |
$4,244,387 |
|
17 |
Partnering, Claims, and Disputes Management - CCFPP |
|
$259,573 |
$259,573 |
|
18 |
Environmental Compliance Services - CCFPP |
|
$215,959 |
$215,959 |
|
19 |
Acceptance and Closeout - CCFPP |
|
$218,252 |
$218,252 |
|
20 |
Supplemental Services - CCFPP |
|
$1,019,132 |
$1,019,132 |
|
Total Not-to-Exceed Fees |
$5,592,563 |
$11,262,693 |
$16,855,256 |
ENVIRONMENTAL JUSTICE AND EQUITY IMPACT:
There are no Environmental Justice impacts associated with this item.
FINANCIAL IMPACT:
The Coyote Creek Flood Protection Project, Project No. 26174043, is included in the Capital Improvement Program (CIP) Fiscal Years (FY) 2025-29 Five-Year Plan and in the FY 2024-25 Adopted Budget. The increased not-to-exceed fee for Amendment No. 1 is $11,262,693, resulting in a total not-to-exceed fee of $16,855,256.
Approval of this Amendment No. 1 will not change the overall Total Project Cost reflected in the CIP Draft FY 2026-30 Five-Year Plan. There are adequate funds in the Board-adopted FY 2024-25 Budget to encumber the initial planned expenditures for the consultant agreement this fiscal year. Funds to cover the remaining Consultant services 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 CCFPP is funded through the Safe, Clean Water and Natural Flood Protection Program Fund (Fund 26).
CEQA:
The CCFMMP, which is part of the FERC Order Compliance Project (FOCP) was determined to be statutorily exempt from CEQA pursuant to Public Resources Code 21080(b)(4) and CEQA Guidelines 15269(c) which exempt emergency projects including specific actions necessary to prevent or mitigate an emergency. Valley Water filed a Notice of Exemption for its approval of FOCP with the County of Santa Clara Clerk/Recorder on June 29, 2020. As to the CCFPP, Valley Water certified a final Environmental Impact Report and approved the project on March 11, 2025; Valley Water filed a Notice of Determination with the Santa Clara Clerk/Recorder on March 13, 2025.
ATTACHMENTS:
Attachment A: Gov. Code 84308
Attachment 1: Amendment No. 1
Attachment 2: Agreement
UNCLASSIFIED MANAGER: Manager
Emmanuel Aryee, 408-630-3074