ITEM:		ACTION ITEM
12.	Consider Approval of ADDITIONAL CONTINGENCY Funds for the Sleepy Hollow Steelhead Rearing Facility rearing channel rehabilitation Project
Meeting Date:			March 20, 2023	Budgeted:	No
From:			David J. Stoldt, General Manager	Program/	Protect Environmental Quality
				Line Item No.:	2-3-1-L
Prepared By:			Larry Hampson	Cost Estimate:	$100,000
General Counsel Review: N/A
Committee Recommendation: The Finance and Administration Committee reviewed this item on March 13, 2023 and recommended approval and requested an update from staff at the April 10, 2023 Finance and Administration Committee meeting.
CEQA Compliance: Exempt under §15301 Existing Facilities.

SUMMARY: On November 14, 2022, the District Board approved a not-to-exceed amount of $739,500 for contract work at the District’s Sleepy Hollow Steelhead Rearing Facility (Facility), including $96,500 for contingencies. With that approval, it was noted that a mid-year budget adjustment would be required. As of early March 2023, $2,000 in contingency funds remained due to several unforeseen conditions encountered at the site. Because more than 30% of the project remains to be completed, additional funds may be needed to cover additional changes that may be required. Staff requests the Board authorize $100,000 in additional contingency funding, which would require increasing the line item in the mid-year budget adjustment up to $872,500 or an increase of $122,500 over the FY 2022-23 budget adopted in June 2022.

RECOMMENDATION: The Finance and Administration Committee recommends that the Board authorize an additional $100,000 in contingency funds for Sleepy Hollow Steelhead Rearing Facility Rehabilitation Project (Rehab Project).

DISCUSSION: The Facility was initially constructed in 1996 and was intended to be operated on a temporary basis to mitigate for impacts to Carmel River steelhead from water diversions until a replacement water supply was constructed. The original construction and modifications made on several occasions to address issues with operations have not been well documented.

Unforeseen conditions encountered with the Rehab Project work include:

1) Evidence that root penetration through and under the rearing channel walls and liner was present along about 80% of the channel; it was determined that the new French drain used to reduce moisture under the rearing channel should be extended an additional 100 feet to intercept any water near the headworks of the channel;

2) The original construction had not included a specified filler in 32 ½-inch expansion joints along the rearing channel walls; nearly all the joints were filled with roots that likely compromised the liner; the rearing channel walls required hand digging, cleaning of the joints, and placement of a sealer and patch on both sides of the rearing channel wall at each joint:

3) After the existing 6-inch drain at the end of the channel was exposed, it became clear that the proposed new French drain could not be connected to the existing 6” drain due to a vertical conflict; the French drain outlet needed to be rerouted and extended;

4) Some of the underground portions of the air blower piping system showed signs of overheating; it was determined that (more expensive) galvanized pipe (instead of PVC) should be placed in the underground portion of the piping system;

5) A felt liner under the Hypalon liner was discovered that helped prevent excess wear in key areas; construction of the new EPDM liner had not included installation of a liner; it was determined that a liner should be installed along the new concrete portion of the rearing channel.

Staff negotiated several changes to the contract work in order to reduce costs; however, the change orders required to address these unforeseen conditions have nearly exhausted the contingency funds authorized for the Rehab Project. As of early March 2023, approximately 30% of the project remained to be completed. If additional changes are required to complete this work, the project would have to be halted until the funding issue is resolved.

IMPACTS ON STAFF AND RESOURCES: Funds for the Rehab Project are budgeted under Sleepy Hollow Operations Budget Program line item 2-3-1-L Design/Construct Rearing Channel and Quarantine Tank Improvements. The FY 2022-23 budget adopted on June 20, 2022, included $750,000 for planning and engineering and rearing channel work. If this item is approved, the total authorized funds for the program line item would be $872,500, an increase of $122,500 over the budgeted amount. This amount includes up to $33,000 for planning and engineering services and up to $839,500 for the Rehab Project.

The work would be performed under the direction of the Project Engineer.

EXHIBIT

None

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