MPWMD ADMINISTRATIVE COMMITTEE MEETING--JULY 11, 2011--ITEM 9--AUTHORIZE EXPENDITURE OF BUDGETED FUNDS FOR ELECTRICAL INSTALLATION WORK AT PHASE 1 AQUIFER STORAGE AND RECOVERY SITE (WATER PROJECT 1)

ADMINISTRATIVE COMMITTEE

9.	AUTHORIZE Expenditure of Budgeted Funds FOR ELECTRICAL INSTALLATION WORK AT PHASE 1 AQUIFER STORAGE AND RECOVERY SITE (Water PROJECT 1)

Meeting Date:		July 11, 2011	Budgeted:	Yes

From:		Darby Fuerst,	Program/	1-2-1
		General Manager	Line Item No.:	A. 1.

Prepared By:		Joe Oliver	Cost Estimate:	$447,150

General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on July 11, 2011 and recommended ____________.
CEQA Compliance: N/A

SUMMARY: In preparation for the upcoming Water Year (WY) 2012 ASR injection operations, the Monterey Peninsula Water Management District (MPWMD or District) has been coordinating with California American Water (Cal-Am) staff on procuring the appropriate electrical control equipment for planned installation inside the newly-constructed facility building at the Water Project 1 (Phase 1 Santa Margarita) Aquifer Storage and Recovery (ASR) site. The electrical control equipment to operate both of the on-site ASR wells has now been purchased and the next phase of work is to install this equipment, as well as the necessary ventilation and cooling equipment for the building. This work breakdown is provided in more detail in the budget recommendation letter from the MPWMD’s technical consultant on the project, Pueblo Water Resources (Exhibit 9-A).

The electrical upgrade work at the facility building is being advertised for competitive bids and will be contracted with MPWMD similar to the construction contract for the new building. The goal is to have this work completed in time so that the electrical control equipment can be operational for use during the upcoming WY 2012 injection season, which begins December 1, 2011 (subject to the availability of excess Carmel River bypass flows). Once this work is complete, this will save costs associated with temporary generator rental as has been the case during the last two injection seasons. It is currently anticipated that staff will solicit bids for the electrical upgrade work, as well as a separate solicitation for the specialized shielded motor cable for both wells, as a means to procure this cable in a timely fashion and provide additional cost savings to the District.

RECOMMENDATION: District staff recommends authorization for expenditure of budgeted funds up to the engineer’s estimated total cost for this work of $447,150 (Exhibit 9-A). This estimate includes a 10% contingency for unanticipated items or cost variations in the estimates. Staff is currently preparing bid notice documents for the electrical upgrade work. If this item is approved, staff expects to proceed with awarding contracts for the electrical upgrade work and shielded motor cable to the qualified successful bidders 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 2011-12 budget under Line Item 1-2-1 A. 1. (adopted June 20, 2011).

BACKGROUND: The MPWMD has been developing facilities for full-scale operation of the Project 1 (Phase 1 or Santa Margarita) ASR site in cooperation with Cal-Am. The Project 1 site is located near General Jim Moore Boulevard and Eucalyptus Road in Seaside. MPWMD and Cal-Am are continuing to work on the necessary approvals and agreements needed to secure a 0.3 acre parcel adjacent to the site to accommodate additional pipeline connections to allow use of the Project 1 site with the planned ASR component of Cal-Am’s Coastal Water Project.

EXHIBITS

9-A July 5, 2011 budget recommendation letter from Pueblo Water Resources, Inc.

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