Item-3

ITEM:		CONSENT CALENDAR

3.	CONSIDER AUTHORIZING FUNDS FOR SANTA MARGARITA ASR EXPANSION ENGINEERING SERVICES WATER SUPPLY

Meeting Date:			February 21, 2019	Budgeted:	No

From:			David J. Stoldt	Program/	Water Supply Projects
			General Manager	Line Item:	35-04-786004

Prepared By:			Maureen Hamilton and Larry Hampson	Cost Estimate:	$341,000

General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on February 11, 2019 and recommended approval on a 2 to 1 vote.
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

SUMMARY: Staff requests funds and authorization to complete the design and prepare bid documents for additional facilities at MPWMD’s expanded Santa Margarita Aquifer Storage and Recovery (ASR) water treatment facilities located at 1910 General Jim Moore Boulevard in Seaside. The new facilities will be required for Cal-Am to increase its system capacity in the Seaside Basin and be able to recover all the water injected into the basin by the Pure Water Monterey recycled water project. The work includes design of a chemical storage and dispensing building with associated offloading station, injection facilities, and controls.

MPWMD and California American Water Company (Cal-Am) work jointly to plan, create, and operate existing and future ASR facilities. MPWMD and Cal-Am are jointly planning the design of the final phase of the Santa Margarita site, which is where water extracted at the Santa Margarita site and the Seaside Middle School site must be treated. Per the ASR Management & Operation Agreement MPWMD owns and is fiscally responsible for capital improvements at the Santa Margarita site and Cal-Am is fiscally responsible for operation and maintenance costs at that site. Cal-Am has an easement from the Monterey Peninsula Unified School District for the Seaside Middle School site and owns the production facilities at that site.

The water treatment facility will include works for disinfection, stabilization identified during the basis of design review discussions in December 2018, and potential additional treatment that may be required. Following the February 11, 2019 Administrative Committee meeting, discussion with the District’s consultant (Pueblo Water Resources) revealed that the existing Santa Margarita chemical treatment building does not have the space to physically house works for all the proposed treatment processes. In addition, it has been determined that the location of the existing treatment building and site constraints don’t allow locating a chemical loading pad near enough to the chemical building to operate in a safe manner. A new design is required for this site to meet demands that have emerged since the chemical building was completed in 2010.

RECOMMENDATION: Staff recommends the following:

1. That the Board of Directors authorize funds for services to complete the design and bid documents for construction at the Santa Margarita ASR facility in the amount of $341,000 as described in the following recommendations.

2. Authorize the General Manager to enter into a contract with Pueblo Water Resources (PWR) to complete the design and provide engineering services for an amount not-to-exceed (NTE) $261,445 as described in Exhibit 3-A. The contract is on a Time and Materials basis with PWR and lump sum basis with subcontracted electrical, architectural, HVAC, Structural, and Civil Engineering sub-consultants.

3. Authorize the General Manger to enter into an agreement with a qualified consultant to provide a constructability review for an amount NTE $15,000.

4. Authorize expenditures for potholing, advertising, additional geotechnical work, neighborhood outreach materials and distribution, permit expenses, and other expenses for an amount NTE $20,000.

5. Authorize the General Manager to approve changes to the above work for an amount NTE $44,555 (15% contingency).

Funding for this project will be from one or more of the District’s revenue funds and will be identified in the mid-year budget adjustments presented to the Board in March 2019. User fees are projected to be approximately $800,000 greater than budgeted, based on five months of collections. Depending on the net difference identified in the mid-year budget process, funds could come from current year revenue or from reserves.

DISCUSSION: When the Santa Margarita ASR facility (historically Phase 1 ASR project) was originally designed by MPWMD with PWR in the 2001-2006 period, it was intended as a stand-alone facility. Since then, the project concept and designs have been extensively modified to accommodate the added capacity needs of other existing and proposed ASR sites in the Seaside Groundwater Basin. Specifically, expanded well backflushing and water treatment facilities (together ASR Expansion) were identified as required.

Pure Water Monterey (PWM) project operation will require additional production capacity from the Seaside Groundwater Basin in 2020. Currently, staff projects that there will be shortfalls in the Seaside Well Field that do not allow for meeting peak summer daily demand or allow for complete recovery of all PWM injected water. ASR-2, ASR-3, and ASR-4 will be required to provide additional extraction capacity. In addition to the physical need to provide additional extraction capability in the Seaside Basin, staff notes that the State Water Resources Control Board Cease and Desist Order 2016-0016 has a September 30, 2020 milestone that includes 100% installation of the “Monterey Pipeline and other ASR related improvements.”

Regulatory approval to utilize these wells for production requires construction of water treatment (disinfection) facilities. There is no disinfection capability for wells ASR-2, ASR-3, and ASR-4. The Monterey Peninsula Unified School District prohibits placing disinfection facilities at the Seaside Middle School ASR site; thus, disinfection facilities are required at the Santa Margarita site to utilize the aforementioned wells as production wells. In addition to disinfection, Cal-Am proposes to add stabilizers and additional treatment that may be required as a result of studies of mixing several different source waters in the aquifer and pumping the water through the Cal-Am pipeline system. The existing chemical treatment building was built to accommodate two types of chemical treatment. A new building will be required to provide the necessary treatment facilities.

On July 18, 2016 the Board authorized a Contract Amendment with PWR in the amount of $300,729 to perform Santa Margarita site expansion engineering. Improvements include grading, drainage, paving, underground piping and utilities, backflush basin expansion, water treatment chemical offloading facility, site landscaping and fencing (altogether Earthworks). Water treatment facilities design was scheduled to be performed during construction of the authorized Earthworks on the former munitions range.

The following milestones were met by staff and PWR to allow ASR Expansion to begin in earnest:

· November 2016 land agreement for expanded area required for basin expansion and to accommodate underground pipeline tie-in.

· February 2017 Soil Management Plan required for Right of Entry to construct and operate on the former Fort Ord Munitions Response Area.

· April 2017 ASR Expansion kickoff meeting with Cal-Am to coordinate timing and resource prioritization with respect to facility operation.

· August 2017 Basis of design review with Cal-Am.

· Construction of an expanded backflush basin at the site to accommodate backflush needs for up to six production ASR wells (existing wells ASR 1 through 4 and proposed wells ASR 5 and 6 at the Cal-Am Fitch Park site).

Following the meetings with Cal-Am, the detailed design commenced under the July 2016 authorization for the following work:

1. Designed Earthworks including site grading, basin excavation and slope reinforcement, excavated soil placement with retaining wall (soil may not be exported from the Munitions Response Area), underground pipe installation, and a chemical delivery pad approximately 200 feet downhill from the chemical storage and treatment area. In February 2018 at a site design review meeting, which included Cal-Am senior management involved in operations and risk management, it was determined that the safest configuration at the site is to locate delivery of chemicals as closely as possible to the chemical storage and treatment area.

2. Created alternate site configurations to accommodate the safety change and to progress the Santa Margarita facility expansion within the constraints of limited site size, prohibited soil export, production and injection operation.

3. Updated design and construction drawings to include only the basin expansion and soil stockpile with retaining wall.

4. Created presentation materials and attended meeting for stakeholder site configuration selection with the City of Seaside, Fort Ord Reuse Authority, Arcadis, Cal-Am, and MPWMD on 6/1/2018; and attended Seaside City Council Meeting on 7/19/2018 to present the selected site configuration option to construct a new building.

5. Updated the Backflush Basin Expansion construction drawings to accommodate the new water treatment building including site grading, excavated soil placement, front retaining wall converted to a fence, and drainage controls.

6. Provided bid support for the Backflush Basin Expansion project.

7. Created basis of design for capacity projections, new piping configuration, water treatment facility building content and layout, final grading, and drainage. Reviewed with Operations and Engineering.

The following additional design work was performed under the 2016 authorization to accommodate the safety change and to progress the Santa Margarita facility expansion:

1. Created alternate site configurations within the constraints of limited site size, prohibited soil export, production and injection operation.

2. Revised construction drawings to include only the basin expansion.

3. Created presentation materials and attended meeting for stakeholder site configuration selection with the City of Seaside, Fort Ord Reuse Authority, Arcadis, Cal-Am, and MPWMD on 6/1/2018.

4. Created presentation materials and attended Seaside City Council Meeting on 7/19/2018 to present the selected site configuration option to construct a new building.

5. Re-designed and re-issued the Backflush Basin Expansion construction drawings to accommodate the new water treatment building including site grading, excavated soil placement, front retaining wall converted to a fence, and drainage controls.

6. Provided bid support for the Backflush Basin Expansion project.

As of the writing of this staff note, 67% of the funds authorized in July 2016 have been expended. Staff expects that the remainder of the previously authorized funds will be expended this fiscal year to fulfill the authorized scope including:

1. Chemical delivery pad, station excluding piping, and access road.

2. Sound walls.

The selected alternative requires new design work that is both significantly different from the preliminary design and outside the scope of work authorized in 2016. The following new work is required:

1. Design a new water treatment building including structural and seismic engineering, HVAC, and architectural features historically required by the City of Seaside.

2. Design water treatment works including chemical bulk and day storage, transfer and dispensing systems, instrumentation including analyzers, mixing system, safety requirements, SCADA, and materials selection to provide reliable (redundancy) treatment for water production ranging from 4.3 to 12.9 million gallons per day (MGD).

3. Modify piping and injection manifold for the new building and injection manifold location.

4. Design site electrical to for the new works.

5. Modify site grading and drainage to accommodate the new facilities.

6. Provide engineering support during the bid process.

The cost for this work is estimated to be $261,445.

PWR has been MPWMD’s ASR designer since 2001 when the test well was drilled in the Santa Margarita aquifer. Given PWR’s long and successful history as designer of MPWMD and CalAm’s existing ASR program, and their unique position successfully supporting the design evolution and facilities operation while the Monterey Peninsula water supply portfolio has been in flux, PWR is a uniquely qualified designer to complete the ASR Expansion project efficiently and consistently with existing and future operations.

An additional $15,000 in funds for a constructability review is requested. Due to the required project completion timeframe, highly constrained site size, prohibited soil export, active operations, and facility needs by the associated Fitch Park ASR project, the likelihood and impact of construction issues in design documents are high. Greater review and focus on constructability prior to bid will reduce the risk of schedule impact and cost overrun.

Funds for potholing, advertising, potential geotechnical work, preparation and distribution of neighbor outreach materials, permits, and other unforeseen costs required in advance of project commencement are requested in an amount not to exceed $20,000.

A contingency of $44,555 (15%) is requested for the work. Given the evolving inter-related Peninsula water supply projects and more immediate priorities vying for operations resources for design review, design changes are expected.

Shortly after the February 11, 2019 Administrative Committee meeting, PWR informed staff that the existing chemical treatment building could not accommodate a third treatment process that Cal-Am has determined may be needed.

EXHIBIT

3-A Proposal for Engineering Services

U:\staff\Boardpacket\2019\20190221\ConsentClndr\03\Item-3.docx

Cost Estimate:

$341,000