ITEM:		GENERAL MANAGER’S REPORT
9.	UPDATE ON DEVELOPMENT OF WATER SUPPLY PROJECTS
Meeting Date:			October 18, 2021	Budgeted:	N/A
From:			David J. Stoldt,	Program/
			General Manager	Line Item No.:
Prepared By:			David J. Stoldt	Cost Estimate:
General Counsel Review: N/A
Committee Recommendation: N/A
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

DISCUSSION:

ASR: All major construction complete. Landscape plan expected by end of 2021 calendar year.

Desalination Project (MPWSP): Nothing to report.

Pure Water Monterey Project:

Total PWM water recharged to date: Approximately 4,500 AF (~ 1.47 billion gallons delivered).

Source Waters: Blanco Drain and Reclamation Ditch are operational. Salinas Stormwater Phase 1A & 1B facilities are available for use.

Advanced Water Purification Facility: AWPF is fully operational. In early October, the Waste Management District (WMD) will advertise for construction bids the AWPF-to-Waste Management District cogeneration power tie-in electrical work. Bids opening December 7^th with award in January-February 2022. WMD cogen power should be in use at the AWPF by Spring 2023.

Water Conveyance Pipeline & Blackhorse Reservoir: The pipeline & reservoir are conveying purified water full-time to the injection facilities.

Injection Wells Facilities Phase 3: All injection wells in service; nominal injection rate holding steady at 300 AF per month.

PWM permitting activities: State Division of Drinking Water and the RWQCB continue to focus on the latest IW Tracer Study and groundwater modeling results. A site visit by the regulators, M1W, and MPWMD was conducted October 13, 2021. As part of the ongoing permitting activities, a follow-up extrinsic tracer study is being initiated in October. M1W hopes to increase RWQCB waste discharge permit from 3,700 AF to 4,300 AF per calendar year by May/June 2022.

Injection Wells Phase 3: Latest schedule shows delay impacts due to the Deep Injection Wells (DIW’s) backflush pumps, for example, DIW-3 first injection is now early February 2022. The procurement delays of the DIW backflush pumps being supplied by National Pump Company are the result of their global and national-level material supply chain impacts and labor shortages. National Pump Company is expediting their Tier 2 and Tier 3 suppliers for improved delivery dates and are themselves working extended shifts and weekends. The Contractor will likely request a force majeure (or Act of God) schedule extension as a result of the DIW backflush pumps being delivered late. M1W and the on-site construction manager have requested a Time Impact Analysis from the Contractor and will address the time extension change order after review. A revised schedule is attached as Exhibit 9-A.

Expanded Pure Water Monterey

MPWMD and Cal-Am are still in discussion about how to best move the Water Purchase Agreement (WPA) forward through the CPUC.

MPWMD has proposed a 1-page Memorandum of Understanding (MOU) that would indicate the three Parties intent to sign the WPA when approved by the CPUC. Such an MOU would allow the public agencies to spend pre-construction monies. MPWMD should expect to approve an amendment to the project cost sharing agreement with M1W.

M1W and MPWMD staff are working directly with City of Seaside staff to obtain permission for the exploratory DIW borings needed in the October 2021 timeframe to develop the Injection Wells Phase 4 design at the new eastern well field. The Seaside permit to conduct the related geotechnical survey has been secured.

The upcoming exploratory borings at the eastern well field are required to complete the hydrogeologic design of the new DIW’s. To secure firm water injection capacity and ensure reliable project yield, a sixth DIW is now recommended, i.e., in addition to the planned DIW-5. The design team will add DIW-6 to the ongoing Expanded PWM Project final design and M1W staff will work with the environmental consultant to prepare the related environmental documentation which will be subject to M1W Board approval.

Expanded PWM permitting and design activities for both the AWPF expansion and Injection Wells Facilities Phase 4 are ongoing with construction scheduled to start in early September 2022, and substantial completion of new facilities by the end of 2023.

M1W and MPWMD staff have also been meeting with City of Seaside staff to initiate the final property easement acquisition process for all the PWM injection well field facilities.

EXHIBIT

9-A Executive Level Project Schedule

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