ADMINISTRATIVE COMMITTEE
2.	Consider Expenditure of Budgeted Funds to Amend Contract with Pueblo Water Resources for FY 2009-10 Aquifer Storage and Recovery Project Technical ASSISTANCE
Meeting Date:		November 10, 2009	Budgeted:	Yes
From:		Darby Fuerst,	Program/	1-2-1 A. 1 &
		General Manager	Line Item No.:	2, and B. 1 to 5
Prepared By:		Joe Oliver	Cost Estimate:	$484,405
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on November 10, 2009 and recommended _____________.
CEQA Compliance: N/A

SUMMARY: The Monterey Peninsula Water Management District (MPWMD or District) is preparing to initiate Water Year (WY) 2010 injection operations at the Phase 1 Aquifer Storage and Recovery (ASR) site on General Jim Moore Boulevard in Seaside. In addition, the District is pursuing the next phase of expansion of the ASR Project (Phase 2). Accordingly, District staff has requested and received a proposal for continued technical assistance from Pueblo Water Resources (PWR), the firm that has been providing hydrogeologic and engineering support on the Phase 1 ASR project. The PWR proposal is provided as Exhibit 2-A and describes the tasks necessary to accomplish this work in greater detail. The proposal includes a schedule for anticipated work through the end of Fiscal Year (FY) 2009-10 (i.e., June 30, 2010). The scope in this proposal represents an accelerated effort and schedule for the Phase 2 expansion portion of the work, which is above what was originally envisioned at the time the District’s FY 2009-10 budget was being developed in mid-2009. The purpose for this accelerated Phase 2 effort is in response to the recent adoption on October 20, 2009, of Order WR 2009-0060 by the State Water Resources Control Board. It is the intent of both the District and California American Water (CAW) staff that “fast-track” pursuit of the Phase 2 ASR Project will facilitate CAW’s compliance with Condition 5 of this Order, which requires the implementation of “one or more small projects, that when taken together, total not less than 500 afa [acre-feet per annum] to reduce unlawful diversions from the river”. Condition 5 further requires that the projects shall be implemented within 24 months of entry of the Order. The estimated yield for the Phase 2 ASR Project is 1,000 afa.

RECOMMENDATION: District staff recommends authorization to amend the existing contract agreement with PWR for the hydrogeologic and engineering technical services described in Exhibit 2-A, for a not-to-exceed amount of $484,405. If approved, staff will process an amendment for this amount in order to initiate this work. The requested funding authorization includes a 10% contingency amount which would only be utilized based on written request and authorization by the District.

IMPACT ON STAFF/RESOURCES: Planning, design, construction and operation of the Phase 1 ASR Project facilities and evaluation of the Phase 2 ASR expansion are ongoing significant staff commitments, as reflected in the District’s Strategic Plan. Funds for this work totaling $1,706,800 were included in the MPWMD budget (Line Items 1-2-1 A.1 & 2 and B. 1 to 5, of MPWMD FY 2009-10 budget, adopted June 15, 2009). However, the estimated amount for the Phase 2 related tasks in the PWR proposal totals $343,500, which exceeds the $154,200 total originally budgeted for the applicable Phase 2 line items in the FY 2009-10 budget by $189,300. Accordingly, funding for the full costs for the Phase 2 portion of this work will either need to be allocated from the District’s line of credit established for the 95-10 Project, or will need to be secured from another source. District staff has had recent discussions with CAW staff regarding the potential for CAW to reimburse the District for these Phase 2 costs.

BACKGROUND: The proposed work described in this item represents a continuation of current work that the District has been pursuing on the Phase 1 and Phase 2 ASR Projects, with technical assistance from PWR. Given the current knowledge base and capabilities of the PWR staff that have been assigned to this work, combined with the desired fast-track schedule for the Phase 2 ASR component of the planned work, District staff believes that it is most prudent and efficient to extend the existing contract with PWR, as opposed to pursuing a separate professional services solicitation from qualified firms for the anticipated work. PWR is prepared and able to initiate this work in accordance with the accelerated schedule, and has successfully accommodated other short-notice schedule changes on this ASR program work in the past. In addition, PWR’s hourly fee schedule is among the lowest of rates that District staff is aware of from firms doing comparable technical work in this area, or from other firms with which the District has recently retained for a similar level of professional services. This in part, led to the original contract award by competitive solicitation to PWR (formerly Padre Associates) for the development of the first full-scale ASR well at the Phase 1 ASR site. In addition, PWR currently provides technical assistance to CAW for the ASR component of the proposed Coastal Water Project. By retaining PWR, there is greater assurance that the District’s and CAW’s ASR Project plans will be coordinated and cost effective.

EXHIBITS

2-A PWR Proposal for Contract Amendment for Professional Hydrogeologic and Engineering Services Assistance, Fiscal Year 2009-10, letter of November 3, 2009

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