To: HONORABLE MAYOR AND From: Carl W. Mosher

CITY COUNCIL

Subject: SEE BELOW Date: 10-1-03

Subject: FOURTH AMENDMENT TO THE AGREEMENT WITH THE CITY OF SANTA CLARA

RECOMMENDATION

Approval of the fourth amendment to the agreement for engineering construction and construction services by and between City of Santa Clara and the City of San Jose for implementation of portions of the South Bay Water Recycling Program, increasing the amount of compensation by $2,700,000 for a total agreement amount not to exceed $27,600,000 for recycled water projects within the City of Santa Clara.

BACKGROUND

Between 1995 and 1997, a total of $16 million was appropriated for construction by the City of Santa of Clara of approximately eleven miles of recycled water pipelines (Phase 1) within the City of Santa Clara. In February 2000, with approval of the third amendment to the “Agreement for Engineering, Construction and Construction Services by and between City of Santa Clara and the City of San Jose for Implementation of Portions of the South Bay Water Recycling Program,” an additional $8.9 million was authorized for construction of two new pipeline segments with a total length of about 6.1 miles (SC1 and SC3), and three additional segments with a total length of about 5.4 miles (SC-2, SC-4 and SC-5) were authorized, “subject to future appropriation of funds,” bringing the total contract not to exceed amount of $30 million.

ANALYSIS

In December 2001, staff compared the relative costs and benefits of new opportunities to extend the recycled water system in Santa Clara to determine the best project alternatives. The results of that analysis are implemented in the proposed fourth amendment which substitutes for the approved 2.7 mile pipeline serving various business parks (SC-3), a 2.3-mile extension to serve Santa Clara Central Park and four schools (SC-6). In addition, the fourth amendment authorizes construction of a reliability connector between the Santa Clara and San Jose systems (revised SC-5) and an extension to serve various customers in northern Santa Clara (Juliette Lane). In summary, whereas the third amendment authorized construction of 6.1 miles of pipeline, at a cost not to exceed $8.9 million, the fourth amendment will authorize construction of about 6.9 miles of pipe at a total cost not to exceed $11.6 million. Construction of the two remaining projects (SC-2 and SC-4) will be deferred subject to future appropriation and the total not to exceed amount of the agreement will remain unchanged at $30 million. The fourth amendment also extends the term of the agreement until June 30, 2008 to allow for the design and construction of the specified pipelines.

The SC-6 alignment includes approximately 1,555 meters (m) or 5,100 linear feet (LF) of 406-mm (16-in) diameter pipe; 1,320 m (4,330 LF) of 305-mm (12-in) diameter pipe; and 762 m (2,500 LF) of 203 mm (8-in) diameter recycled water pipeline to serve Central Park, Santa Clara Swim Center, Milliken Elementary School, St. Justin’s School, Central Library, Santa Clara High School, Haman School and Steve Carli Park. The pipeline will connect to the existing 406 mm (16-in) diameter pipeline located on Homestead Road adjacent to Wilson Adult Education. SC-6 will include a 61 m (200 LF) crossing beneath San Tomas Expressway and an 18 m (60 LF) crossing beneath Saratoga Creek at Kiely Boulevard.

SC-5, the San Jose-Santa Clara Connector, will increase reliability of the South Bay Water Recycling (SBWR) system by looping the Santa Clara and San Jose pipeline networks. The Santa Clara segment SC-5 includes approximately 1,200 m (4,300 LF) of 508 mm (20-in) diameter recycled water pipeline and will connect to the existing 610 mm (24-in) diameter pipeline located at Grant Street. The original SC-5 alignment was realigned to prevent conflicts with revised regional transportation plans (i.e. BART service to Silicon Valley). The revised SC-5 pipeline will proceed from the intersection of Grant and Reed Street, along Reed Street and under 46 m (150 LF) of UPRR crossing to De La Cruz to Coleman Avenue, along Coleman Avenue past Brokow Road to the San Jose city limits where it will connect with the 508 mm (20-inch) San Jose line.

The Juliette Lane pipeline includes approximately 1,800 LF of pipeline to serve irrigation customers, including Intel, located along Juliette Lane.

PUBLIC OUTREACH

During the summer and fall of 2000 the cities of San Jose, Santa Clara, and Milpitas held public meetings on the local use of recycled water. Also, representatives of various stakeholder groups (e.g. Sierra Club, League of Women Voters, Silicon Valley Chamber of Commerce) met regularly in 1998 and 1999 to create the present plans for extension of the recycled water system.

In addition, staff members from the cities of San Jose (San Jose Municipal Water), Santa Clara and Milpitas, and San Jose Water Company have attended monthly meetings to review South Bay Water Recycling planning and operations.

COORDINATION

This memo has been coordinated with the City Attorney’s office, Risk Management, and the City of Santa Clara. This memo is scheduled to be heard at the October 9, 2003 Treatment Plant Advisory Committee (TPAC) meeting.

COST IMPLICATION

1. AMOUNT OF RECOMMENDATION: $2,700,000

2. COST OF PROJECT:

Project Delivery

Construction

TOTAL $27,600,000

3. SOURCE OF FUNDING: 512 – San Jose/Santa Clara Treatment Plant Capital Fund

Fiscal Impact

In accordance with the Mayor’s prescribed budget strategy, the tasks under this agreement will focus on the protection of a vital core service, emphasizing expenditures that improve reliability of the SBWR system.

BUDGET REFERENCE

Fund #	Appn #	Appn. Name	RC #	Total Appn.*	Additional Amount Authorized by Amendment	2003-2004 Proposed Capital Budget	Last Budget Action (Date, Ord. No.)
512	6589	Revised SBAP –SBWR Extension	062873	37,220,000	$2,700,000	178

* Includes total amount approved in the 2003-2004 Adopted Capital Budget.

CEQA

Resolution No. 64667 (PP# 91-04-090) and Addenda thereto including, Numbers 6, 7, 9, and 10. Addenda Numbers 9 and 10 will be formally adopted by the Santa Clara City Council prior to execution of this amendment.

CARL W. MOSHER

Director, Environmental Services Department