ADMINISTRATIVE COMMITTEE
2.	Consider Expenditure of Budgeted Funds FOR SANTA MARGARITA AQUIFER STORAGE AND RECOVERY (ASR) WELL 2 REHABILITATION WORK
Meeting Date:		November 9, 2010	Budgeted:	Yes
From:		Darby Fuerst,	Program/	1-2-1
		General Manager	Line Item No.:	A. 1. e.
Prepared By:		Joe Oliver	Cost Estimate:	$98,000 (Cal-Am reimbursable)
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on November 9, 2010 and recommended _____________.
CEQA Compliance: N/A

SUMMARY: In preparation for the upcoming Water Year (WY) 2011 ASR injection operations, the Monterey Peninsula Water Management District (MPWMD) and California American Water (Cal-Am) are planning to include well rehabilitation work for the ASR-2 well at the Santa Margarita site on General Jim Moore Boulevard in Seaside.  The purpose for this work is to restore well performance that declined subsequent to the dual-well injection testing that was performed in early WY 2009.  The normal schedule for routine well rehabilitation is every five years, but the ASR-2 schedule will be accelerated by two years given the performance decline observed in WY 2010.

The planned rehabilitation work is identical to that which was performed on the Santa Margarita ASR-1 well in 2007.  The rehabilitation of ASR-1 resulted in complete restoration of that well’s specific capacity beyond its original condition, which greatly facilitated its injection operation during this last (WY 2010) injection season.

District staff has been working with Cal-Am to review the specification and timing for conducting this work at the ASR-2 well, which will need to be coordinated with other planned work at the ASR site. It is the goal to conduct the work, which is expected to be completed over a two to three-week period, before initiating injection operations at the ASR-2 well during the upcoming WY 2011 injection season. Bids are being solicited for the work through the public bid process. The estimated cost that is included in the District’s Fiscal Year (FY) 2010-2011 budget is $98,000. Based on preliminary contractor price quotes received by the MPWMD and Cal-Am, it is anticipated that the cost for this work will be less than the budgeted amount.

RECOMMENDATION: District staff recommends authorization to award a contract for bids for the routine well rehabilitation of the Santa Margarita ASR-2 well for a not-to-exceed estimated cost of $98,000. If approved, staff expects to proceed with processing a contract award to the qualified successful bidder for this work.

IMPACT ON STAFF/RESOURCES: Planning, design, construction and operation of the Phase 1 ASR Project facilities and initiation of the Phase 2 ASR expansion are ongoing significant staff commitments, as reflected in the District’s Strategic Plan. Funds for this work are included in the MPWMD FY 2010-11 budget under Line Item 1-2-1 A. 1. e. (adopted June 21, 2010). As an operational and maintenance item, the cost for this work will be reimbursable to MPWMD under the ASR Management and Operations agreement between MPWMD and Cal-Am.

BACKGROUND: The MPWMD has been developing facilities for full-scale operation of the Phase 1 Aquifer Storage and Recovery (ASR) Project in cooperation with Cal-Am. The Phase 1 ASR site, also known as the Santa Margarita ASR site, is located near General Jim Moore Boulevard and Eucalyptus Road in Seaside. MPWMD staff considered having the ASR-2 rehabilitation work done under a change order to the existing contract for development of the Seaside Middle School ASR test well, and Cal-Am considered conducting this work through their contracting process. However, after additional consultation with MPWMD legal counsel, it was determined that the proper and most prudent approach was for the MPWMD to conduct a separate public bidding for this work. This will also ensure that the work is completed at the lowest cost to the MPWMD, Cal-Am and ultimately, the rate payers.

EXHIBITS

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