ITEM:           

CONSENT CALENDAR

 

3.

CONSIDER FUNDING ADDITIONAL EXPENDITURES FOR PURE WATER MONTEREY PROJECT

 

Meeting Date:

November 14, 2016

Budgeted: 

N/A

 

From:

David J. Stoldt,

General Manager

Program/

Water Supply Projects

 

 

 

Line Item:

From 1-2-1 (ASR), 1-9-1 (Desal), and 1-10-1 (Local Projects) to 1-5-1 (Groundwater Replenishment)

 

Prepared By:

David J. Stoldt

Cost Estimate:

$0

 

General Counsel  Review:  N/A

Committee Recommendation:  The Administrative Committee reviewed this item on March 14, 2016 and a vote of 3 – 0 recommended approval.

CEQA Compliance:  N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUMMARY:  The Monterey Regional Water Pollution Control Agency (MRWPCA) Board approved a $2,334,531 contract with Kennedy/Jenks Consultants Inc. (K/J) on July 25, 2016, for 100% design and Bid Services of the Advanced Water Purification Facilities (AWPF).  This was approved outside of the adopted PWM budget.  This was done in order to meet the time constraints offered to the California Public Utilities Commission (CPUC) for approval of the project and the milestones offered to the State Water Resources Control Board (SWRCB) for extension of the Cease and Desist Order.  Continuing with the 100% design work and bid services for the AWPF is crucial to the timely completion of the project as that is the most complicated project component.  To continue progress in this regard, additional funding is required.

 

The recommendation is to authorize $871,785 of District funds for this purpose, to be transferred from other budgeted categories and the deferral of other project elements.

 

Approval of these fund transfers will only enable partial continued progress and a mid-year budget adjustment and identified funding plan will be brought to the Board in January.

 

RECOMMENDATION:  The General Manager recommends the Board authorize the reassignment of budgeted amounts totaling $871,785 to the Pure Water Monterey project. The Administrative Committee reviewed this item on November 7, 2016 and on a vote of 3 – 0 recommended adoption.

 

BACKGROUND:  The contract specifies the following: 1) contract shall be lump sum with three separate Notices to Proceed for the three phases 2) contract shall prescribe payments dates and shall only be entered into if MPWMD approves paying their share and will be contingent on a positive CPUC decision. 

 

On July 28, 2016 Notice to Proceed with Phase 2 – 60% Design was issued. 60% design was submitted to MRWPCA for review in early October 4, 2016 and discussed at a design workshop on October 19, 2016.

 

The phases and costs are broken out below:

 

Phase 2 – 60% design – scheduled completion Oct 3, 2016                                      $1,197,272

Phase 3 – 100% design – scheduled completion Nov 29, 2016                                 $   961,997

Phase 4 – Final contract docs and Bidding Support – by Jan 30, 2017                     $   175,263

Total, Phases 2, 3, and 4                                                                                 $ 2,334,531

 

The District’s portion is $1,750,898.  Hence, this action is only a partial funding.

 

The CPUC approved the Water Purchase Agreement with Cal Am on September 15, 2016.  However, the State Revolving Fund Loan (SRF) and Grant funding was delayed securing the water rights for Blanco Drain and Reclamation Ditch. Now that we have agreed to terms dismissing the water rights protests, we are moving forward as quickly as possible with the rest of the permitting work that will lead to funding from the State in the form of the SRF and Proposition 1 grant.

 

We anticipated receiving the SRF funding in December, which is why we brought the Board only a 6-month budget for PWM last June. Due to slow activity at both the SWRCB and the US Fish and Wildlife Service, we now anticipate funding in February or later. Hence, the reimbursement of pre-construction costs that we expected to use to fulfill unbudgeted costs cannot occur in time to complete final design in a timely fashion.

 

The sources of funds for this authorization comes from deferral of District activities in the current fiscal year as follows:

 

Aquifer Storage and Recovery                       $696,785  (leaves $329,130)

Cal-Am Desal Project financing                     $100,000  (leaves $100,000)

Local Water Project (Fairgrounds)                 $  75,000

Total                                                    $871,785

 

 

 

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