ITEM:		CONSENT CALENDAR
3.	CONSIDER APPROVAL OF ADDITIONAL FUNDS FOR WORK COMPLETED ON AQUIFER STORAGE AND RECOVERY WELL NUMBER 1
Meeting Date:			October 15, 2018	Budgeted:	Yes
From:			David J. Stoldt,	Program/	Water Supply Projects
			General Manager	Line Item No.:	1-2-1
Prepared By:			Jonathan Lear	Cost Estimate:	$10,066
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on October 8, 2018 and recommended approval.
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

SUMMARY: While operating ASR over the 2017 ASR injection season, District staff noted that the valve controlling injection rate on the ASR 1 well was losing nitrogen gas at a steadily increasing rate from the injection valve control system. Following the close of the injection season, District staff investigated the source of the nitrogen leak at ASR 1 and with the help of a Baski Valve technician, determined the leak in the nitrogen control system is occurring at the connection point of the valve, which is set at 420 feet in the well. Fixing the leak required the valve to be pulled from the well by a pump contractor. The original contract with ZIM was for pulling the valve allowing the technician to fix the leak and returning the valve to the well and only included one mobilization.

Once the valve was pulled, it was determined by the Baski technician that the valve was not just leaking but had been damaged past the point of field repair and needed to be taken back to the shop for higher level analysis. ZIM took the valve back to their yard in Fresno, packaged it, and shipped the valve to Baski in Colorado. After inspection at the Baski facilities, the cost estimate to repair the old valve was more expensive than purchasing a new valve. The District ordered a replacement valve and received a repeat customer discount. At that time CalAm requested the well be put back together without the Baski Valve so that it could be used as a source to the system. ZIM recommended that the water lube system be taken back to Fresno to be wire brushed and steam cleaned prior to re-installation into the well since it had been sitting at ground surface for 2 weeks and there was visible rust on the stainless steel shaft. CalAm informed the District that it would prefer the well be put back together without the cleaning process due to the need of the source for the system in a timely manner. ZIM returned to the site and assembled the well without cleaning the shaft as instructed. After the well was assembled, the lube shaft top seal bearing and flow rate was tested to be over 3.5 gpm which fell within required specification for proper line lube and well operation. When District Staff inspected the well the next morning, the flow rate on the lube system had dropped to less than 0.5 gpm, which is below required flow to properly lube the shaft. ZIM returned to the site, attached the pump rig to the shaft, and repeatedly raised and lowered the shaft approximately 16 inches to clear any obstructions to flow. This process was successful and the flow on the lube system returned to 3.5 gpm. The additional invoice is for the work ZIM performed as described in this paragraph that was not scoped in the first quote. The District received this bill last month and communicated to ZIM that timelier billing would be better for District Staff and Board. In addition ZIM recommended that if another Baski valve needs to be pulled and inspected in the future, a contingency scope be added to the original agreement in case the valve was damaged and needed to be returned. Previously, on August 11, 2017, the Board authorized not-to-exceed $24,950.00 for this work.

RECOMMENDATION: Staff recommends the Board authorize the General Manager to pay the additional invoice for $10,066 to Zim Industries for work related to get ASR 1 online as a source to the CalAm system in late 2017.

BACKGROUND: The District and CalAm share the use of the ASR wells during operation of Aquifer Storage and Recovery. In the winter, District staff operates the wells to inject excess Carmel River flows, and in the summer, CalAm operates the wells as sources to their distribution system in order to shift production from the Carmel Valley Alluvial Aquifer. Currently only ASR 1 has a permit from the Department of Drinking Water to be used as a source to the system. ASR wells 2, 3, and 4 are currently going through the permitting process to be used as sources to the CalAm system.

IMPACT TO STAFF/RESOURCES: Funds for this project are included in the FY 2018-19 budget under “Water Supply Projects,” line item 1-2-1. Funds expended to complete this work will be reimbursed to the District by CalAm through the ASR Management and Operations agreement between the District and CalAm. Staff time will be utilized to provide project management and oversee field work.

EXHIBIT

3-A Additional bill from Zim Industries to perform work on ASR 1

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