The San Jose-based authority manages an integrated water resources system on behalf of Santa Clara County's 1.8 million residents. The program is part of the district’s strategy to respond to the current drought and expand the county’s water supply.
Divided into eight components, the capital cost for the smallest component is estimated to be $70m, while the largest is expected to cost $260m. The P3 method would cover all eight components. Total operation and maintenance costs for the program are estimated at $23.5m per year.
Financial advisory Clean Energy Capital published a report into four alternative delivery methods for the authority, including two P3 methods: design-build-finance-operate-maintain (DBFOM) with reference to the city of Rialto’s water P3; or a water purchase agreement based on the Carlsbad desalination P3.
A shortlist of up to three bidders is scheduled to be published in March 2016, with selection of a preferred bidder in October or November 2016. District staff will then make a recommendation to the board of directors for a PDB or P3 track in December.
Meanwhile, the district has issued request for proposals for an environmental and permitting support services mandate with bids due January 14. HDR was awarded a $2.3m project management contract by the authority in October for the program.