ITEM:		CONSENT CALENDAR
4.	CONSIDER EXPENDITURE OF BUDGETED FUNDS TO CONTRACT FOR CONSTRUCTION OF INITIAL APPURTENANT FACILITIES FOR PHASE 1 ASR PROJECT
Meeting Date:			October 15, 2007	Budgeted:	Yes
From:			David A. Berger,	Program/	Water Supply Projects
			General Manager	Line Item No.:	1-2-1 A. Account No. 4-04-7860.04
Prepared By:			Joe Oliver	Cost Estimate:	$352,000
General Counsel Approval: N/A
Committee Recommendation: The Administrative Committee considered this item on October 4, 2007 and recommended approval.
CEQA Compliance: N/A

SUMMARY: As part of the Phase 1 Aquifer Storage and Recovery (ASR) Project, Monterey Peninsula Water Management District (District) consultants and staff have been preparing project plans for construction of permanent ASR facilities at the District’s Phase 1 ASR site off of General Jim Moore Boulevard in Seaside. To best address current uncertainties regarding potential compatibility with California American Water (CAW) associated ASR facilities for the Coastal Water Project (CWP), the District’s project is divided into two segments. The first segment involves the construction of all underground mechanical, electrical and utility conduits and pipelines, as well as construction of an expanded backflush pit, roadway and associated site grading. This work will allow both the existing and newly-drilled ASR wells (i.e., ASR Wells No. 1 and 2) to be in service for injection operations during the upcoming Water Year 2008 recharge period. The second segment will include final design and construction of the electrical and chemical treatment building onsite; it is expected that this work will commence next year after additional coordination with CAW staff and CWP consultants takes place to facilitate integration with facilities in the CAW system.

Project plans have been prepared by the District’s consultant, Pueblo Water Resources, Inc. (PWR), and an engineering estimate (i.e., Engineer’s Opinion) for the proposed work is included in the attached letter (Exhibit 4-A). As shown, the total estimate for this segment of work at the Phase 1 site is $320,000.

RECOMMENDATION: To expedite installation of these required facilities in time for conducting injection operations at both wells this upcoming season, District staff recommends that the Board authorize the General Manager to solicit bids and award a contract for the work to the lowest responsive and responsible bidder, as described in Exhibit 4-A. If the lowest responsive bid exceeds the $320,000 engineering estimate by more than 10% (i.e., $320,000 + 10% = $352,000), then award of the bid will be withheld and the project plans may be modified and resolicited. Upon acceptance of a successful bid, the District will include a 10% budget contingency for use in the event that undiscovered conditions or unanticipated work is encountered during construction, as recommended in the PWR letter (Exhibit 4-A).

BACKGROUND: The District has been pursuing the Phase 1 ASR Project since 2004. During that time, the District undertook an extensive effort in engineering and planning studies for the project, culminating in the Board’s adoption of a certified Environmental Impact Report/ Environmental Assessment on August 21, 2006. Subsequently, the U.S. Army granted a Right-of-Entry to the District for the Phase 1 ASR site expansion on September 19, 2006, and the City of Seaside issued a Conditional Use Permit for the site expansion on October 11, 2006. Drilling and construction of the new ASR No. 2 well at the site was completed in April 2007. The most recent effort has been on engineering and design of permanent appurtenant facilities at the ASR site, which is the subject of this item.

IMPACT ON STAFF AND RESOURCES: A significant staff effort has been expended in planning, coordinating, analyzing and overseeing work on the District’s ASR testing program in the Seaside Basin. It is expected that this level of effort will continue to expand with implementation of the Phase 1 ASR Project during FY 2007-2008. Budgeted amounts to complete installation of the initial appurtenant facilities under this item are included in the District’s FY 2007-2008 budget (Goal: Augment Water Supply, Water Supply Projects, Objective 1-2-1 Evaluate non-dam alternatives, A. Seaside Basin ASR Project, page 16 of June 18, 2007 adopted budget). While the budgeted expenditures are offset by bond proceeds on the revenue side of the budget, the debt issuance has not yet taken place so these ASR expenditures are temporarily being funded from reserves.

EXHIBITS

4-A September 26, 2007 letter from PWR

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