ADMINSTRATIVE COMMITTEE
6.	CONSIDER EXPEnDITURE of REIMBURSABLE Funds for CONSTRUCTION SUPPORT FOR aQUIFER STORAGE AND RECOVERY WELL 4 AT SEASIDE MIDDLE SCHOOL
Meeting Date:		June 4, 2012	Budgeted:	Yes
From:		David J. Stoldt,	Program/	Water Supply
		General Manager	Line Item No.:	1-2-1 B. 1
Prepared By:		Joe Oliver	Cost Estimate:	$136,818 (reimbursable)
General Counsel Review: NA
Committee Recommendation: The Administrative Committee considered this item on June 4, 2012 and recommended ________________.
CEQA Compliance: N/A

SUMMARY: The Board will consider approval of budgeted funds for hydrogeologic and engineering support for construction of Aquifer Storage and Recovery Well #4 (ASR-4) at the Water Project 2 site located at Seaside Middle School in Seaside, as part of the planned expansion of the Seaside Basin ASR Project that the Monterey Peninsula Water Management District (District) is pursuing in cooperation with California American Water (Cal-Am). This work entails drilling contractor coordination and management oversight during site preparation, borehole drilling, well construction, well development, and well production testing, as well as engineering design coordination with Cal-Am regarding integration of facilities with the Cal-Am system.

The District has received a proposal for this work from the consulting firm, Pueblo Water Resources, Inc. (PWR) (Exhibit 6-A). The proposal was requested as the assigned PWR staff have a comprehensive understanding of the District’s Phase 1 (Water Project 1) ASR Project at the adjacent Santa Margarita site, and the firm has the resources necessary to conduct this work within the limited available time frame. PWR has been assisting both the District and Cal-Am on implementation of that project, for which the firm is under existing contract with the District.

The proposed work is included in the District’s Fiscal Year 2012-13 budget as a Cal-Am reimbursable item. Accordingly, the Board’s authorization of this item is with the understanding that the District and Cal-Am will be entering into an agreement for cost reimbursement to the District for this item, and for costs associated with drilling contractor well construction, which was authorized by the Board at the May 21, 2012 meeting.

RECOMMENDATION: District staff recommends authorization to amend the existing contract agreement with PWR for the hydrogeologic and engineering technical services described in Exhibit 6-A, for a not-to-exceed amount of $136,818. 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. The Board’s approval of this item is with the understanding that the cost for this item will be reimbursed by Cal-Am by agreement with the District.

BACKGROUND: In 2008, the District began discussions with the Monterey Peninsula Unified School District (MPUSD) for potential use of an unused portion of the Seaside Middle School (formerly the Fitch Middle School) property for potential expansion of the Seaside Basin ASR program (i.e., Phase 2 or Water Project 2). In 2009, the District drilled an exploratory borehole and constructed a monitor well array at the site. This work confirmed that the site would be suitable for drilling a full-scale ASR test well. This work led to the development of a full site plan that includes two ASR wells, similar to the Santa Margarita ASR (Phase 1 or Water Project 1) site. In 2010, the District assisted Cal-Am in obtaining an easement for the ASR site, and the first ASR test well, now known as ASR-3, was drilled that year, and equipped for operation in 2011. The next major step in development of this project is to construct and test the second site well, ASR-4, which is the subject of this authorization. It is planned to construct and equip the ASR-4 well during this summer/fall so that the well will be ready for injection testing with Carmel River basin source water during the upcoming Water Year 2013 winter injection period. If the ASR-4 well construction is not initiated this summer, the next opportunity will be during the Middle School summer break in 2013, and would delay the total project completion by approximately one year.

Assuming successful completion and testing of the ASR-4 well this summer/fall, it is planned to continue development of this site into a permanent ASR facility, similar to the existing Santa Margarita (Water Project 1) site that is located approximately 1,000 feet to the southeast of the Seaside Middle School site. This will entail completion of the necessary engineering designs, environmental review, permitting and construction of permanent facilities, including: (a) permanent utility pipelines, (b) permanent electrical facilities, and (c) permanent backflush percolation system. The current schedule calls for completion of the permanent facilities at the Seaside Middle School ASR site in December 2013. There will be no water treatment facilities at the Seaside Middle School ASR site; all water from this site will be treated prior to distribution into the Cal-Am system at the offsite Santa Margarita ASR Facility building, at the Water Project 1 site.

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 since 1996. It is intended to expand that level of effort with the implementation of this next phase of ASR expansion in the basin. Funds for construction of the ASR-4 well are included in the District’s Fiscal Year 2012-2013 budget (i.e., items under Line 1-2-1 B 1, Water Project 2, Seaside Middle School site). The District and Cal-Am are in the process of completing a formal agreement for the ASR-4 well cost reimbursement; the work under this item is contingent on completion of the reimbursement agreement. Based on the anticipated timing for completion of this agreement, it is currently scheduled to begin ASR-4 well construction during the week of June 25, 2012.

EXHIBIT

6-A PWR Proposal for Professional Services; Construction Management and Testing for Seaside Middle School ASR-4 Well

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