ITEM:		CONSENT CALENDAR
7.	CONSIDER AUTHORIZATION OF ADDITIONAL CONTINGENCY FUNDS FOR CONSTRUCTION AND RELATED SERVICES FOR THE SLEEPY HOLLOW STEELHEAD REARING FACILITY RAW WATER INTAKE AND WATER SUPPLY SYSTEM UPGRADE PROJECT
Meeting Date:			May 20, 2019	Budgeted:	No; however, funds are available from FY2018-2019 Sleepy Hollow operations
From:			David J. Stoldt, General Manager	Program/	Protect Environmental Quality
				Line Item No.:	2-3-1-F
Prepared By:			Larry Hampson	Cost Estimate:	$100,000
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on May 13, 2019 and recommended approval on a 2-1 vote.
CEQA Compliance: The Board certified the Final Initial Study/Mitigated Negative Declaration for this project and adopted the Mitigation and Monitoring and Reporting Plan on November 14, 2016.

SUMMARY: At their meeting on July 16, 2018 the Board of Directors authorized an expenditure of up to $2 million to upgrade the Sleepy Hollow Steelhead Rearing Facility located on the Carmel River, about a mile downstream of the former San Clemente Dam site. Approval of the project included authorization to enter into agreements for facilities construction and engineering services, and a contingency amount of $157,165. As of May 2019, staff estimates the cost of project work will be just over $1,977,000, leaving less than $23,000 remaining in unexpended contingency funds. Approximately 80% of the original construction work was complete as of the first week of May. Contingency funds have been used for services and materials for road repairs, additional facility upgrades, additional equipment, installation of a sign, and a power upgrade by PG&E.

Due to the unusual nature of the facility, the complex nature of the upgrade, and that change orders are usually made to facilitate progress in the field during construction, staff recommends that additional contingency funds be authorized.

RECOMMENDATION: The Board of Directors should approve the following action:

Authorize the General Manager to approve an additional $100,000 in change orders to construction and service contracts or for new service contracts for the Project to allow for unforeseen items up to a total of $257,165 in contingency funding.

DISCUSSION: The facility upgrade includes a new intake structure in the river, new pumps, a dual filtration system, modifications to the cooling tower, disease control (ultraviolet radiation of circulating water), a recirculating aquaculture system, a degassing system, an oxygenator, a power upgrade, advanced alarm systems, and an integrated control system. Below is a table of estimated expenditures through early May.

Sleepy Hollow Facility Upgrade Budget and Estimated Costs as of May 2019

Item	July 2018 Budget	Estimated Variance (+)	Estimated Variance (-)	Estimated Total Cost
Construction	$1,802,835	$32,025	($46,638)	$1,788,222
Survey Control	$10,000		($10,000)	$0
Inspection/testing	$5,000	$19,500		$24,500
Record Drawings	$25,000			$25,000
Facility Sign	$0	$1,000		$1,000
Road Repairs	$0	$82,275		$82,275
Additional facility improvements	$0	$26,850		$26,850
Construction change orders	$0	$3,200		$3,200
PG&E upgrade	$0	$26,275		$26,275
Contingency	$157,165			$22,678
Total	$2,000,000	$191,125	($56,638)	$2,000,000

Costs of facility construction will be less than the bid amount due to field changes associated with rock importation and placement and elimination of one of the bid items (transport and dispose excess material). While most of the construction tasks were bid as lump sum items and many have been completed, there have been changes to some items due to conditions encountered in the field and several key items have yet to be completed. These include installation of electrical controls and instrumentation, installation of equipment in the recirculating aquaculture system building, and equipment installation near the cooling tower.

The survey control item was eliminated, as survey control was in place at the beginning of construction. Several costs not originally budgeted include road repairs, sign installation, facility upgrades not called out in the plans and bid, and a PG&E power upgrade. Inspection services were increased due to the decision not to split responsibility for certain inspections between the District and the inspection service.

The largest additional expenditure has been road repairs. The site location is difficult to access and is approximately one mile from Carmel Valley Road over what is mostly a one-lane dirt road, which does not have an all-weather road surface. During the winter of 2018-19, heavy construction equipment and truck deliveries combined with significant rainfall to cause extensive deterioration of the access road to the facility. Staff authorized road repairs to fill in large potholes, place and compact imported road base, repair damaged asphalt sections, and improve the access road at the facility, which was heavily damaged by pipe installations and heavy equipment operation. The original contract called for resurfacing of most of the existing access road at the facility with native material, which is not suitable for providing winter access due to fines in the native material. Road repairs to the one-mile access road leading to the facility were not included in the original contract.

In addition to road repairs, work was approved to carry out improvements in the rearing channel to meet new operating requirements by the National Marine Fisheries Service and to improve the rearing channel against flood impacts. These upgrades were not included in the original construction contract.

At present, staff expects additional costs for electrical work and control systems that were not included in the original plan set and bid. The original deadline for construction completion was May 1, 2019 and has been extended to August 31, 2019. There have been significant delays due to long lead times for fabricating the specialized equipment required for the facility upgrade. Staff is targeting September and October for facility start up in order to run the facility without fish at low flows, which is one of the key design conditions that needs to be tested.

IMPACTS ON STAFF AND RESOURCES: Funds for additional contingency expenses, should they occur, would be split over the 2018-19 and 2019-20 Fiscal Years. For FY 2018-19, staff estimates that there will be up to about $88,000 in unexpended funds for Sleepy Hollow Operations (Budget Program line item 2-3-1) due to construction of the upgrade. Expenditures above that amount in FY2018-19, if any, would come from District reserves. If this item is approved, funds for the additional contingency amount would be included in the FY2019-20 budget.

Several District staff are involved in the upgrade assisting with project management, inspections, permit compliance, fish rescue, revegetation, and monitoring. The work is being performed under the direction of the District Engineer.

Above – installing power conduit in a road at Sleepy Hollow

Below – the muddy road at Sleepy Hollow

Above – a mudhole on the way to the Sleepy Hollow facility

Below – an oak tree across the road into Sleepy Hollow

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