BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☒ No ☐
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT:
Title
Approve Amendment No. 11 to Agreement No. A3555A with Black and Veatch Corporation for Project Management Services for the Anderson Dam Seismic Retrofit Project No. 91864005, the Calero Dam Seismic Retrofit Project No. 91874004, the Guadalupe Dam Seismic Retrofit Project No. 91894002, and the Almaden Dam Improvements Project No. 91854001, Increasing the Not-to-Exceed Fee by $6,715,358 for a Revised Total of Not-to Exceed Fee of $35,547,362, and Extending the Agreement Term to April 30, 2026 (Morgan Hill, District 1).
End
RECOMMENDATION:
Recommendation
Approve Amendment No. 11 to Agreement No. A3555A (Agreement) with Black and Veatch Corporation for project management services for the Anderson Dam Seismic Retrofit Project No. 91864005, the Calero Dam Seismic Retrofit Project No. 91874004, the Guadalupe Dam Seismic Retrofit Project No. 91894002, and the Almaden Dam Improvements Project No. 91854001, increasing the not-to-exceed fee by $6,715,358 for a revised total of not-to-exceed fee of $35,547,362, and extending the Agreement term to April 30, 2026.
Body
SUMMARY:
Santa Clara Valley Water District (Valley Water) is undertaking the Anderson Dam Seismic Retrofit Project (ADSRP) to address seismic stability deficiencies, rehabilitate aging appurtenant facilities, and to comply with current dam safety standards. The reservoir is currently under a water level restriction by regulators. Full reservoir capacity will be restored upon completion of the Project. The Calero Dam Seismic Retrofit Project (CDSRP) and the Guadalupe Dam Seismic Retrofit Project (GDSRP) will stabilize the dam embankments to address seismic deficiencies. The Almaden Dam Improvements Project (ADIP) will resolve issues related to the outlet works.
The Agreement with Black and Veatch Corporation (Consultant) was awarded by the Board on January 24, 2012, to provide project management services for the ADSRP. The original Agreement provided for the possibility of negotiating a future amendment to include project management services for other dam seismic retrofit projects. Amendment No. 2, approved by the Board on June 24, 2014, added project management services for the CDSRP and GDSRP, and Amendment No. 6 approved by the Board on February 28, 2017, added services for the ADIP.
Amendment No. 11 to this Agreement will increase the not-to-exceed fee by $6,715,358, bringing the total not-to-exceed fee to $35,547,362, and document minor scope changes for the ADSRP and the CDSRP. Additionally, Amendment No. 11 will incorporate administrate updates and extend the expiration date by seventeen months, from November 15, 2024, to April 30, 2026, for the ADSRP, CDSRP, GDSRP, and ADIP, all projects included now in this Agreement. A copy of Amendment No. 11 will be provided with a Supplemental Board Agenda Memo on Friday, November 8, 2024.
Project Background
Anderson Dam Seismic Retrofit Project
In February 2020, as interim risk reduction measures, while the Anderson Dam embankment retrofit is being designed, the Federal Energy Regulatory Commission (FERC) ordered Valley Water to drain Anderson Reservoir to dead pool and immediately construct the large diameter outlet tunnel. The Anderson Reservoir has been drained to dead pool since December 2020. The outlet tunnel is currently being constructed in the scope of the Anderson Dam Tunnel Project (ADTP), which is expected to be completed by the summer of 2025.
The ADSRP will correct dam seismic deficiencies and otherwise meet all current Federal Energy Regulatory Commission (FERC) and California Department of Water Resources, Department of Safety of Dams (DSOD) dam safety design standards. Upon completion of ADSRP in 2032, Anderson Reservoir will return to its original storage capacity.
The ADSRP design is currently progressing toward 100 percent completion. Black and Veatch is supporting Valley Water staff on the construction contractor selection process implementing the Best Value method approved by the board on October 8, 2024. There will be an initial prequalification process (step one) followed by a Request for Technical Proposals and Bid Price (step two), and bid advertisement is currently scheduled for June 2025.
Calero Dam Seismic Retrofit Project
Calero Dam and Guadalupe Dam are currently operating pursuant to Valley Water and DSOD water level restrictions due to seismic concerns. In a letter dated November 16, 2023, DSOD requested Valley Water accelerate and complete the design of the CDSRP by July 1, 2026. In the same letter DSOD downgraded the safety rating of Calero Dam from Fair to Poor. To address DSOD’s concerns, Valley Water conducted a thorough review of its design efforts and explored ways to accelerate project delivery, prioritizing the repair of embankments to mitigate the risks that led to reservoir restrictions. Additionally, Valley Water retained Stantec Consulting Services, Inc. to perform engineering design services to progress the CDSRP. Based on a revised approach of segmenting the construction into two packages, and prioritizing the repair of embankments (Package A), construction is scheduled to commence by early 2028 on Package A.
Consultant is currently performing project management services for the ADSRP, CDSRP, GDSRP, and ADIP. These services include quality assurance, technical reviews, regulatory coordination with FERC and DSOD for the ADSRP, support for the ADSRP construction contractor procurement, and contracting with the independent Board of Consultants (BOC) for technical reviews related to the ADSRP.
In order to comply with FERC and DSOD requirements in a timely manner, and to maintain alignment with the Dam Safety Program project schedule, staff recommends that the Board approve Amendment No. 11 to Agreement A3555A with Black and Veatch Corporation, increasing the not-to-exceed amount by $6,715,358.
Relevant Prior Board Actions
On January 24, 2012, the Board approved Agreement A3555A with Consultant for project management services.
On June 24, 2014, the Board approved Amendment No. 2 to the Agreement.
On February 28, 2017, the Board approved Amendment No. 6 to the Agreement.
On April 6, 2020, the Board delegated authority to Valley Water’s Chief Executive Officer (CEO) to negotiate and execute Amendment No. 8 to the Agreement in an amount not-to-exceed $2,000,000. On June 8, 2020, Valley Water’s CEO executed Amendment No. 8 and it was effective on that date.
On April 13, 2021, the Board approved Amendment No. 9 to the Agreement.
NOTE: Amendment Nos. 1, 3, 4, 5, 7, and 10 were administratively approved, no-cost amendments.
Consultant Work Performed to Date
The project management services Agreement with Black and Veatch Corporation for the ADSRP, CDSRP, GDSRP, and ADIP includes the tasks described below. The budget for project management consultant services for ADSRP (Tasks 101 to 106) and CDSRP (Task 107) is nearly exhausted and requires additional budget for the Consultant to continue performing services for seventeen additional months from November 15, 2024, to April 30, 2026.
Anderson Dam Seismic Retrofit Project (ADSRP)
Task 101 Project Management & Administration
Task 102 Quality Assurance & Quality Control
Task 103 Regulatory, Permitting & Environmental Coordination
Task 104 Public Outreach
Task 105 Board of Consultants Coordination
Task 106 Supplemental Services for Anderson Dam Seismic Retrofit Project
Calero Dam Seismic Retrofit Project (CDSRP)
Task 107 PMC Services for Calero Dam Seismic Retrofit Project
Task 108 Supplemental Services for Calero Dam Seismic Retrofit Project
Guadalupe Dam Seismic Retrofit Project (GDSRP)
Task 109 PMC Services for Guadalupe Dam Seismic Retrofit Project
Task 110 Supplemental Services for Guadalupe Dam Seismic Retrofit Project
Almaden Dam Improvement Project (ADIP)
Task 111 PMC Services for Almaden Dam Improvements Project
Task 112 Supplemental Services for Almaden Dam Improvements Project
Amendment No. 11
Amendment No. 11 will allow the Consultant to continue to provide project management
services for the ADSRP and CDSRP through April 30, 2026. The cost increase of $6,715,358 is necessary for the Consultant to provide an additional seventeen months of project management services for both the ADSRP and CDSRP. Construction of the CDSRP, which was previously deferred to begin in 2032, is planned to begin construction in 2028. Design and environmental compliance and permitting efforts for CDSRP are ongoing.
The scope of services for the Agreement has been amended to close out completed tasks and modify the scope of services for the ADSRP and CDSRP. Additionally, Amendment No. 11 will extend the Agreement expiration date by seventeen months, incorporate administrative updates for the ADSRP, the CDSRP, the GDSRP, and the ADIP, all projects included now in this Agreement.
Amendment No. 11 was discussed at the Capital Improvement Program (CIP) board committee meeting held on September 16, 2024. The Committee members supported staff’s recommendation to present this item for approval to the full board.
The tasks and not-to-exceed additional fees for the recommended Amendment No. 11 are summarized below:
1. Additional project management services, including project administration, quality assurance and quality control, regulatory, construction contractor procurement support, permitting & environmental coordination, assisting in public outreach, facilitating Potential Failure Mode Workshops, and coordination and management of the BOC for the seventeen-month extended term for the ADSRP (including ADTP) (Task 101 to Task 105: $6,244,424).
2. Additional project management services for CDSRP for the seventeen-month extended Agreement term, from November 15, 2024, to April 30, 2026 (Task 107: $470,934).
A summary of the tasks and fees for the previous Agreement amendments as well as the proposed Amendment No. 11 is presented in Table 1.
Table 1 - Summary of Tasks and Fees
NOTE: Amendment Nos. 1, 3, 4, 5, 7, and 10 were administratively approved, no-cost amendments.
ENVIRONMENTAL JUSTICE AND EQUITY IMPACT:
There are no Environmental Justice Impacts associated with this action.
FINANCIAL IMPACT:
The Anderson Dam Seismic Retrofit Project, Project No. 91864005 and the Calero Dam Seismic Retrofit Project, Project No. 91874004, are included in the Capital Improvement Program (CIP) Fiscal Years (FY) 2025-2029 Five-Year Plan and in the FY 2024-25 Adopted Budget. The Not-to-Exceed (NTE) fee for Amendment No. 11 to Agreement A3555A is $6,715,358 ($6,244,424 for ADSRP and $470,934 for CDSRP), resulting in a total NTE fee of $35,547,362 ($31,915,128 for ADSRP and $1,620,247 for CDSRP).
There are adequate funds in the FY 2024-25 Adopted Budgets for ADSRP and CDSRP to encumber the anticipated expenditures for the Consultant’s services performed during this fiscal year. Funds to cover subsequent fiscal year 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. Approval of this Amendment No. 11 to Agreement A3555A would not increase the total ADSRP and CDSRP Project costs reflected in the CIP FY 2025-29 Five-Year Plan.
The ADSRP is forecasted to receive up to $54.1 million from the renewed Safe, Clean Water & Natural Flood Protection Program (Fund 26), with the remainder of the total ADSRP Project cost funded by the Water Utility Fund (Fund 61) with 81.37% of the costs allocated to North County Zone W-2, 7.85% to South County Zone W-5 and 10.78% to South County Zone W-7.
A portion of the ADSRP Project costs is expected to be financed by the Water Infrastructure Finance and Innovation Act (WIFIA) pursuant to the United States Environmental Protection Agency WIFIA Master Agreement with Valley Water entered into through its Santa Clara Valley Water District Public Facilities Financing Corporation, for the SCVWD Master Program for Water Reliability Program (WIFIA Agreement), dated February 14, 2023. The WIFIA Agreement requires professional services consultants paid with WIFIA loan funds to comply with certain federal requirements and they have been incorporated into the consultant Agreement, Amendment No. 11.
The CDSRP is funded through the Water Utility Fund (Fund 61) with 100% of the costs allocated to North County Zone W-2.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have a potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
Attachment A: Gov. Code 84308
Attachment 1: Amendment No. 10
Attachment 2: Amendment No. 9
Attachment 3: Amendment No. 8
Attachment 4: Amendment No. 7
Attachment 5: Amendment No. 6
Attachment 6: Amendment No. 5
Attachment 7: Amendment No. 4
Attachment 8: Amendment No. 3
Attachment 9: Amendment No. 2
Attachment 10: Amendment No. 1
Attachment 11: Original Agreement
*Supplemental Board Agenda Memo
*Supplemental Attachment 1: Amendment No. 11
UNCLASSIFIED MANAGER:
Manager
Ryan McCarter, 408-630-2983