ADMINISTRATIVE COMMITTEE
2.	Consider Authorization for Expenditure of Budgeted Funds for Professional Services Agreement with Pueblo Water Resources Inc., to Prepare Well Construction Bid Materials and Construction Management Services for Phase 1 Aquifer Storage and Recovery Project
Meeting Date:		September 7, 2006	Budgeted:	Yes
From:		David A. Berger,	Program/	1-2-1 A. Seaside Basin ASR
		General Manager	Line Item No.:	Project, Second ASR well at existing SMTIW site, Acct. No. 4-7860.04
Prepared By:		Joe Oliver	Cost Estimate:	$171,529
General Counsel Approval: N/A
Committee Recommendation: The Administrative Committee considered this item on September 7, 2006 and recommended ___________.
CEQA Compliance: N/A

SUMMARY: At the August 21, 2006 Regular Meeting, the Board authorized certification of the final Environmental Impact Report / Environmental Assessment (EIR/EA) of the Monterey Peninsula Water Management District (MPWMD) Phase 1 Aquifer Storage and Recovery (ASR) Project. That action has set into motion several subsequent steps in order to implement this project. Those steps include making preparations for retaining a qualified drilling contractor for construction of the a second ASR well at the existing test ASR site on former Fort Ord property, as well as securing design and construction management services and initial testing of the new well. MPWMD staff proposes to retain the hydrogeologic and engineering services of Pueblo Water Resources, Inc. to assist with the installation and initial testing of the new ASR well. Pueblo Water Resources, Inc. (Pueblo) is a newly formed firm comprised of the same principal professionals formerly with Padre Associates, Inc. The MPWMD has successfully worked with these same individuals on its ASR testing program over the last six years prior to their new affiliation with Pueblo. MPWMD staff considers the proposal from Pueblo to be responsive to the MPWMD’s desire to “fast-track” the implementation of expanded ASR operations in the Seaside Basin, and competitive with other firms of similar capability in terms of professional rates, other direct charges, and the amount of time assigned to the project.

RECOMMENDATION:

Authorize the General Manager to enter into a contract with Pueblo Water Resources, Inc. to: (a) complete final design specifications for the second ASR well (described as Santa Margarita Test Injection Well No. 2 [SMTIW No. 2]), (b) prepare well construction bid specification materials, (c) provide technical support during the well construction bidding process, (d) provide construction management and oversight during SMTIW No. 2 and monitor well construction, (e) conduct baseline hydrogeologic and well performance testing upon initial well completion, and (f) prepare a summary report. This authorization will be conducted as per the Scope of Work described in the proposal from Pueblo (Exhibit 2-A), for a not-to-exceed cost estimate of $171,529. This cost estimate includes a base estimate of $155,935, and a 10% budget contingency of $15,594, held for administrative authorization in the event unforeseen project complications or constraints arise during the course of this work.

BACKGROUND: The MPWMD has been investigating ASR as a potential alternative water supply project for the Monterey Peninsula since 1996. With the recent completion and certification of the EIR/EA for the MPWMD Phase 1 ASR Project, MPWMD is now focused on the remaining tasks needed to begin implementation of this important water supply project. Even though all the necessary land use and environmental permitting for this project have not yet been secured, it is imperative that the proposed work described herein is initiated in the near future, given that the public bidding process and preparation for well construction requires considerable lead time before this work can begin. The current schedule calls for work to take place over approximately the next two months prior to well construction in the December 2006 – January 2007 period. Final permitting activities (including authorizations from the U.S. Army, City of Seaside, State Water Resources Control Board, Regional Water Quality Control Board) will be ongoing simultaneously prior to the scheduled start of construction. However, there is still uncertainty about the timing of all needed approvals, so the projected schedule is subject to change. Note that the budget authorization requested under this item does not include the planned dual ASR well testing program planned for the upcoming (Water Year 2007) injection season, or the design, engineering and construction of other permanent ancillary facilities that will ultimately be part of the Phase 1 ASR project (e.g., permanent piping, chemical/electrical building, site completion). This later work will be by separate authorization request as these future tasks are not on the current critical path, and additional coordination is required to fully develop the details of these later work components. The various tasks for implementation of the Phase 1 ASR Project have been separated as a means to “fast-track” completion of the second ASR well, as directed by the Board at the January 25, 2006 ASR workshop, in order to accelerate injection activities at this new facility as soon as possible during this coming injection season. It should be noted that Pueblo has also been retained to assist with ASR planning and analysis as part of Cal-Am’s Coastal Water Project ASR consultant team, with a focus on quality control and optimization of costs. This project coordination will benefit both the MPWMD and Cal-Am in avoiding unnecessary duplication of costs on ASR related tasks.

IMPACT TO STAFF/RESOURCES: A significant staff effort has been expended in planning, coordinating, analyzing and overseeing work on the District’s ASR testing program in the Seaside Basin. It is intended to expand that level of effort with the implementation of the permanent Phase 1 ASR Project. Amounts to undertake the tasks described in the proposal from Pueblo Water Resources, Inc. (Exhibit 2-A) are included in the MPWMD Fiscal Year 2006-2007 budget (Goal: Augment Water Supply, Objective 1-2-1 A., page 15 of June 22, 2006 adopted budget).

EXHIBIT

2-A Proposal from Pueblo Water Resources, Inc.

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