BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Adopt Plans and Specifications and Authorize Advertisement for Bids for the South County Recycled Water Pipeline Phase 1C Project, Project No. 91094009, Contract No. C0723 (Gilroy, Unincorporated Santa Clara County, District 1).
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RECOMMENDATION: Recommendation
A. Adopt the plans and specifications and authorize advertisement for bids for the construction of the South County Recycled Water Pipeline Phase 1C Project per the Notice to Bidders; and
B. Authorize the Designated Engineer to issue addenda, as necessary, during bidding process.
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SUMMARY:
The objective of the South County Recycled Water Pipeline Phase 1C Project (Project) is to expand the existing recycled water distribution system in the City of Gilroy to serve recycled water to additional customers as planned in the South County Recycled Water Master Plan.
The Project scope includes installing approximately 3,200 linear feet of 24-inch diameter pipe from the east of Luchessa Avenue to Cameron Boulevard. The pipeline connects the 36-inch recycled water pipeline installed as a part of Phase 1B to the South County Regional Wastewater Authority’s (SCRWA) 12-inch recycled water pipeline to create redundancy in the system.
Project Background
In 2004, the Santa Clara Valley Water District (Valley Water) and SCRWA, with the participation of the Cities of Gilroy and Morgan Hill, jointly prepared the South County Recycled Water Master Plan (2004 Master Plan). The 2004 Master Plan was updated in 2015 (2015 Master Plan Update) and approved by both the SCRWA Board and Valley Water’s Board of Directors (Board). The 2015 Master Plan Update carried forward the immediate and short-term capital investments that had been defined in the 2004 Master Plan and re-evaluated the long-term capital investments to expand the use of recycled water in Gilroy and Morgan Hill. The immediate-term facilities were completed in 2006. The short-term Phase 1 distribution facilities were split into Phases 1A, 1B, and 1C. The Phase 1A facilities were completed in 2012. At the request of the City of Gilroy, a portion of the Phase 1B facilities (Camino Arroyo Service Line) was completed in June 2015.
The remaining phases were bid and awarded under the South County Recycled Water Pipeline Short-Term Phase 1B/2A/1C/2B Project (Contract No. C0668), with Phase 1C included as a supplemental item. Phase 1B facilities, along with the Phase 2A facilities, were installed in August 2023. The work for Phase 2B is ongoing under Contract No. C0668. Unfortunately, Valley Water was not able to proceed with the Phase 1C work under Contract No. C0668 because easements were not secured in sufficient time. As the scope was removed from Contract No. C0668, the funds allocated for Phase 1C were disencumbered and released in the Fiscal Year 2024-25 (FY 25) adjusted budget and rolled over into the FY 2025-26 (FY 26) adjusted budget to allow for the scope to be re-bid under the Project (Contract No. C0723).
This Project will complete the short-term Phase 1 distribution system facility improvements in the 2015 Master Plan Update to help resolve the current recycled water distribution system’s operational deficiencies, improve the system’s reliability, expand the system to serve new customers, and allow increased use by existing customers.
Relevant Prior Board Action(s)
On October 13, 2015, the Board held a Public Hearing on the Engineer’s Report and adopted Resolution 15-64 approving the Engineer’s Report.
On September 14, 2021, the Board considered the First Addendum to the South County Recycled Water Master Plan Program’s Environmental Impact Report for the Phase 1C alignment and adopted the plans and specifications and authorized advertisement for bids for construction of the South County Recycled Water Pipeline Short-Term Phase 1B/2A/1C/2B Project.
On December 12, 2021, the Board awarded a construction contract to Steve P. Rados, Inc. (Contract No. C0668) for the South County Recycled Water Pipeline Short-Term Phase 1B/2A/1C/2B Project, ratified addenda to the contract documents, and approved a construction contingency of $3,446,200.
Right of Way Acquisition Status
Valley Water has all the necessary right-of-way needed for the construction of the Project.
Permits
Valley Water obtained all its necessary permits to construct the Project. The construction contractor will be required to obtain encroachment permits from the City of Gilroy and the County of Santa Clara after contract award.
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 the bidding allows for modifications to the construction Contract Documents, if necessary, during the bidding period and before the contract is awarded.
Public Outreach
Residents, commercial businesses, and visitors will be informed of potential temporary impacts, as appropriate. Construction contract documents include requirements and measures to minimize impacts during the construction.
Next Steps
If the Board approves the recommendations, staff will proceed to advertise the Project for construction bids. Staff anticipate recommending the Board award a construction contract, scheduled for September 23, 2025.
ENVIRONMENTAL JUSTICE IMPACT:
There are no environmental justice impacts associated with the recommendation to Adopt Plans and Specifications and Authorize Advertisement for Bids. This action will not result in disproportionate impacts on any specific communities relative to the general population. However, improved access to recycled water will benefit all populations within the service area.
FINANCIAL IMPACT:
There are no financial impacts associated with the recommendation to Adopt Plans and Specifications and Authorize Advertisement for Bids.
The South County Recycled Water Pipeline (Project No. 91094009) is included in the Capital Improvement Program (CIP) Fiscal Years (FY) 2026-30 Five-Year Plan and in the FY 2025-26 (FY 26) Adjusted Budget. Based upon estimated construction contract costs, there are adequate funds in the Project’s FY 26 Adjusted Budget to encumber the planned expenditures for construction to be incurred during this fiscal year.
The estimated construction cost for this phase is between $2 million and $4 million. Funds to cover the remaining anticipated construction costs will be included in the biennial budget process and development of the CIP FY 2027-31 Five-Year Plan or through budget adjustment(s), if needed.
The Project is funded by the Water Utility Enterprise Fund (Fund 61), with 100% of the costs allocated to Zone W-5 (South County).
CEQA:
On March 22, 2011, the Board adopted Resolution 11-25 certifying the South County Recycled Water Master Plan Final Program Environmental Impact Report (PEIR), which evaluated the installation of approximately 10 miles of recycled water transmission and distribution pipelines in the City of Gilroy (Master Plan Project). Phases 1B, 2A, and 2B of the Master Plan Project were consistent with the project description in the PEIR.
Phase 1C, which is the scope of the Project, was added to the Master Plan Project after the certification of the PEIR and was evaluated by the First Addendum to the PEIR. On September 14, 2021, the Board considered the First Addendum when it adopted the plans and specifications and authorized the advertisement for bids for the South County Recycled Water Pipeline Project Short-Term Phase 1B/2A/1C/2B Project.
ATTACHMENTS:
Attachment 1: Notice to Bidders
Attachment 2: Project Delivery Chart
Attachment 3: Map
Attachment 4: Plans
Attachment 5: Specifications
UNCLASSIFIED MANAGER: Manager
Emmanuel Aryee, 408-630-3074