ADMINISTRATIVE COMMITTEE
1.	AUTHORIZE EXPENDITURE OF REIMBURSABLE FUNDS OBTAINED FROM THE CALIFORNIA DEPARTMENT OF FISH AND GAME TO CONTRACT WITH LIST ENGINEERING TO COMPLETE FINAL DESIGN AND DENISE DUFFY & ASSOCIATES TO COMPLETE ENVIRONMENTAL REVIEW AND PERMITTING FOR THE SLEEPY HOLLOW STEELHEAD REARING FACILITY (SHSRF) SEDIMENT CONTROL AND INTAKE RETROFIT
Meeting Date:		September 12, 2011	Budgeted:	Yes
From:		Dave Stoldt, General Manager	Program/	Sleepy Hollow Facility Operations
			Line Item No.:	2.3.1 - F. & G.
Prepared By:		Kevan Urquhart	Cost Estimate:	$276,000
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on September 12, 2011 and recommended _______________.
CEQA Compliance: N/A

SUMMARY: The Board will consider authorizing staff to accept an impending grant from the California Department of Fish and Game (CDFG), and use these funds for sole source contracts with List Engineering (LE) and Denise Duffy & Associates (DDA) to accomplish the next phase of engineering design, environmental compliance and permitting for the Sleepy Hollow Steelhead Rearing Facility (SHSRF) Sediment Control and Intake Retrofit Project, in expectation of proceeding to the final construction phase in 2012. The intake retrofit is necessary to expand the operating season for the SHSRF, as required by the National Marine Fisheries Service (NMFS) for our pending Federal Endangered Species Act (ESA), Section 10 Permit, and to ensure the SHSRF can continue to operate under increased sediment loads after the Removal and Re-Route of San Clemente Dam is accomplished in 2013-2016.

RECOMMENDATION: District staff recommends that the Board authorize the General Manager to enter into a grant agreement with the California Department of Fish and Game to design, conduct environmental compliance review, and secure permits for the SHSRF Sediment Control and Intake Retrofit project at a cost not-to-exceed $276,000, and authorize these funds to be used for sole source contracts with List Engineering for final project design, and Denise Duffy & Associates for environmental compliance review and permitting.

BACKGROUND: This grant is being funded by California American Water (Cal-Am)/NMFS ESA Section 9 Settlement Funds held by CDFG. The sole source contracts to be issued to List Engineering and Denise Duffy and Associates are 100% reimbursable.

The District completed the “Interim Retrofit Project” in 2003, which was designed to improve the intakes at the SHSRF and harden them against increasing sediment loads derived from the changing hydrology and operations of San Clemente Dam (SCD). This project was

acknowledged to be a stop-gap measure, as the full project envisioned at the time was too expensive for the District to pursue on its own, and the outcome of SCD removal or reinforcement was uncertain at the time. The Board directed staff to find State and Federal partners or other grant funds to aid in the proper completion of the Intake Retrofit. The original plan for the Intake Retrofit was produced at District expense by List Engineering on February 14, 2003, and an update to: (a) address current environmental and operational conditions and (b) focus the final conceptual design, was funded by the District and completed by List Engineering on May 11, 2010. CDFG has set aside the necessary grant funds to pay for the construction of the SHSRF Sediment Control and Intake Retrofit Project, but requires that it be done in two steps. First, the District must apply for design, environmental review and permitting support. Once those products are delivered and reviewed by CDFG and NMFS, they can be sure of the final construction costs, and will grant the funds for the final construction phase.

District staff are trying to expedite funding approval of the first phase of design, environmental compliance review and permitting, through review and approval by the Board, so that contracts can be let to the contractors as soon as CDFG grants the funds. The project must be underway, and preferably completed by the summer of 2012, or the SCD Removal/Re-Route Project may take precedent and sideline completion of this project until 2016 or later. CDFG cannot guarantee to continue to hold the currently reserved funds for this project past 2012. Delays in implementing the project may result in a loss of grant funds. The timelines for the final design, environmental review and permitting phase require that they begin as soon as possible to be able to initiate actual construction work in 2012. For this reason District staff are bundling both the Grant receipt and subcontractor expenditures in one Staff Note, and are selecting experienced local contractors for the first phase. The next and final construction phase will be subject to the competitive bidding process.

The DRAFT subcontractor proposals shown in Exhibits 1-A, 1-B, and 1-C are still subject to revision, after they are reviewed by CDFG, and their combined value, plus a 20% contingency for any potential near-term revisions is included in this not-to-exceeded request for $276,000 in 100% reimbursable spending authority.

The District’s 2011-2012 Budget for Sleepy Hollow Facility Operations includes a Planning and Design Line Item 2.3.1 - F. for $190,000 and an initial phase of construction Line Item 2.3.1 – G. for $280,000. Thus, in combination, spending authority exists for this request in the current budget.

IMPACT ON STAFF/RESOURCES: The staff person responsible for administration of the contracts and supervision of the work is Kevan Urquhart, the District’s Fisheries Supervisor. He will be advised on project management by District Engineer, Larry Hampson, and Environmental Project Manager, Henrietta Stern.

EXHIBITS

1-A DRAFT Sleepy Hollow Steelhead Rearing Facility Renovation Design Proposal from List Engineering

1-B DRAFT Sleepy Hollow Steelhead Rearing Facility Renovation Design Proposal Budget from List Engineering

1-C DRAFT Proposal For Environmental Services For The Sleepy Hollow Steelhead Rearing Facility Project from Denise Duffy & Associates

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