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HomeMy WebLinkAbout12-07-10 EO&WR Committee PacketOTAY WATER DISTRICT ENGINEERING,OPERATIONS &WATER RESOURCES COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY,CALIFORNIA Board Room TUESDAY December 7,2010 11:30 A.M. This is a District Committee meeting.This meeting is being posted as a special meeting in order to comply with the Brown Act (Government Code Section §54954.2)in the event that a quorum of the Board is present.Items will be deliberated,however,no formal board actions will be taken at this meeting.The committee makes recommendations to the full board for its consideration and formal action. AGENDA 1.ROLL CALL 2.PUBLIC PARTICIPATION -OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO Tr)E BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JU- RISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA DISCUSSION ITEMS 3.RECOGNITION OF CCL CONTRACTING,RBF CONSULTING,AND LEE &RO FOR THEIR OUTSTANDING PERFORMANCE IN THE COMPLETION OF THE JAMACHA PIPELINE PROJECT (RIPPERGER/BUELNA)[5 minutes] 4.AWARD A CONSTRUCTION CONTRACT TO BLASTCO,INC.FOR THE 657-1 AND 657-2 RESERVOIR EXTERIOR/INTERIOR COATING AND UPGRADES PROJECT IN AN AMOUNT NOT-TO-EXCEED $632,500 (CAMERON)[5 minutes] 5.AWARD A CONSTRUCTION CONTRACT TO L.H.WOODS &SONS INC.IN THE AMOUNT OF $379,000 FOR THE DEL RIO ROAD AND GILLISPIE DRIVE EMERGENCY INTERCONNECTIONS PROJECT (KAY)[5 minutes] 6.APPROVE CHANGE ORDER NO.1 TO THE EXISTING CONTRACT WITH AECOM TECHNICAL SERVICES IN AN AMOUNT NOT-TO-EXCEED $176,805 FOR THE RANCHO DEL REY GROUNDWATER WELL DEVELOPMENT PROJECT (PEASLEY)[5 minutes] 7.APPROVE CHANGE ORDER NO.2 TO THE EXISTING CONTRACT WITH RBF CONSULTING FOR CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR THE 36-INCH PIPELINE,SDCWA OTAY FCF NO.14 TO THE REGULATORY SITE PROJECT IN AN AMOUNT NOT-TO-EXCEED $101,075 (RIPPERGER)[5 minutes] 8.APPROVE CREDIT CHANGE ORDER NO.3 TO THE EXISTING CONSTRUCTION CONTRACT WITH CCL CONTRACTING,INC.FOR THE JAMACHA ROAD 36-INCH POTABLE WATER PIPELINE AND 12-INCH POTABLE WATER PIPELINE REPLACEMENT PROJECTS IN THE AMOUNT OF <$1,474,033.22>(RIPPERGER) [5 minutes] 9.APPROVE THE ISSUANCE OF A RFP FOR PHASE 2 OF THE RANCHO DEL REY WELL PROJECT WHICH WILL INCLUDE EQUIPPING THE WELL AND DESIGNING A WELLHEAD TREATMENT FACILITY (SILVERMAN)[5 minutes] 10.APPROVE WATER SUPPLY ASSESSMENTS AND VERIFICATION REPORTS,AS REQUIRED BY SENATE BILLS 610 AND 221,FOR THE OTAY RANCH VILLAGE EIGHT WEST AND OTAY RANCH VILLAGE NINE PROJECTS (KENNEDY)[5 minutes] 11.INFORMATIONAL REPORT ON THE DEVELOPMENT OF CIP PROJECT BUDGETS (RIPPERGER)[10 minutes] 12.SAN DIEGO COUNTY WATER AUTHORITY UPDATE (WATTON)[10 minutes] 13.ADJOURNMENT BOARD MEMBERS ATTENDING: Jose Lopez,Chair Gary Croucher 2 All items appearing on this agenda,whether or not expressly listed for action,may be delib- erated and may be subject to action by the Board. The Agenda,and any attachments containing written information,are available at the Dis- trict's website at www.otaywater.gov.Written changes to any items to be considered at the open meeting,or to any attachments,will be posted on the District's website.Copies of the Agenda and all attachments are also available through the District Secretary by contacting her at (619)670-2280. If you have any disability that would require accommodation in order to enable you to partici- pate in this meeting, please call the District Secretary at 670-2280 at least 24 hours prior to the meeting. Certification of Posting I certify that on December 3,2010 I posted a copy of the foregoing agenda near the regular meeting place of the Board of Directors of Otay Water District,said time being at least 24 hours in advance of the meeting of the Board of Directors (Government Code Section §54954.2). Executed at Spring Valley,California on December 3,2010. 3 AGENDA ITEM 3 STAFF REPORT TYPE MEETING:Regular Board MEETING DATE:January 5,2011 SUBMITTED BY: APPROVED BY: (Chief) Ron Ripperger~ Engineering Manager Rod posada~~ Chief,Engineering PROJECT I SUBPROJECT: P2009- 001103 DIV. NO. 5 APPROVED BY: (Ass!.GM): GE~ "'- Manny Magan~~ Assistant General ~ager, Recognition to the Jamacha MANAGER'S RECOMMENDATION: Engineering and Operations Pipeline Construction Team That the Otay Water District (District)Board of Directors (Board) recognize the Jamacha Pipeline Construction Team (Lee &Ro,RBF,and CCL Contracting)for their hard work and professionalism in the completion of a successful project (see Exhibit A for project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To recognize the Jamacha Pipeline Construction Team for their hard work and professionalism in the completion of a successful project. ANALYSIS: At the September 3,2010,Engineering,Operations and Water Resources Committee meeting,the Committee recommended that the Board recognize the Jamacha Pipeline Construction Team for the work done to make the project successful.Staff has prepared certificates of recognition for Lee &Ro (Design Engineers),RBF (Construction Manager)and CCL Contracting (Contractor)to be presented at the January 5,2011 Board of Directors Meeting.A draft of the Certificate of Recognition (Exhibit B)is attached to this staff report for the Committee's review. FISCAL IMPACT: None. SRATEGIC GOAL: This project fulfills two of the District's Strategic Goals,No.1 - Community and Governance and No.5 -Potable Water,by maintaining proactive and productive relationships with the project stakeholders and by guaranteeing that the District will provide for current and future water needs. LEGAL IMPACT: None. 36-inch PL -FCF 14 to Reg Site\Staff Reports\BD 01-05-11 ,Staff Report,CCL,RBF, Attachments:Attachment A -Committee Action Exhibit A -Location Map Exhibit B -Draft Certificate of Recognition 2 P2009-001103 ATTACHMENT A ;""'S'lj'B~j'EC'Tjp'RO~j'E'C'~T':""" . ii Recognition to the Jamacha Pipeline Construction Team COMMITTEE ACTION: The Engineering,Operations,and Water Resources this item at a meeting held on December 7,2010. supported Staff's recommendation. NOTE: Committee reviewed The Committee The "Committee Action"is written in anticipation of the Committee moving the item forward for Board approval.This report will be sent to the Board as a Committee approved item,or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. ClPP2009 OTAY WATER DISTRICT SDCWA FCF NO.14 AND 36-INCH JAMACHA PlPEUNE <tlSi ItI.I . i••to.ili~~!~~~~£ii~~~;j~~~~~WlfS!~~ ItI "I....._---_..._---------------------------_..EXHIBIT A EXHIBIT 13 This certificate is awarded to CCL CONTRACTING INC. In recognition of CCL's hard work, professionalism,expertise,and outstanding performance in the completion of the Jamacha Pipeline Project. (.jr,,-4· Quality Assurance Approval Sheet Subject:Recognition to the Jarnacha Pipeline Construction Tearn Project No.:P2009-001103 Document Description:Staff Report for January 5,2011 Board Meeting Author: Ron Ripperger Printed Name QA Reviewer: Manager: p4~ Gary Silverman Printed Name Signature Rod Posada Printed Name Date I Date The above signatures attest that the attached document has been reviewed and to the best of their ability the signers verify that it meets the District quality standard by clearly and concisely conveying the intended information;being grammatically correct and free of formatting and typographical errors;accurately presenting calculated values and numerical references;and being internally consistent,legible and uniform in its presentation style. AGENDA ITEM 4 STAFF REPORT TYPE MEETING:Regular Board MEETING DATE:January 5,2011 SUBMITTED BY:Kevin Cameron ~~ Assistant Civil Engineer I PROJECT/ SUBPROJECT: P2505-001103 P2506-001103 DIV.NO.3 APPROVED BY: (Chief) APPROVED BY: (Ass!.GM): SUBJECT: Ron Ripperger ~ Engineering Manager Rod posada~o~ Chief,Engineering Manny Magana~~ Assistant Generale:tnager,Engineering and Operations Award of a Construction Contract to Blastco,Inc.for the 657-1 &657-2 Reservoir Exterior/Interior Coating and Upgrades Project GENERAL MANAGER'S RECOMMENDATION: That the Otay Water District (District)Board of Directors (Board) award a construction contract to Blastco,Inc.(Blastco)and authorize the General Manager to execute an agreement with Blastco for the 657-1 &657-2 Reservoir Exterior/Interior Coating and Upgrades Project in an amount not to exceed $632,500 (see Exhibit A for project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into a construction contract with Blastco for the 657-1 &657-2 Reservoir Exterior/Interior Coating and Upgrades Project in an amount not to exceed $632,500. ANALYSIS: The District's corrosion consultant,Schiff Associates (Schiff), completed a Corrosion Control Program (CCP)in June 2009 that addressed the installation,maintenance,and monitoring of corrosion protection systems for the District's steel reservoirs and buried metallic piping.The CCP included a reservoir maintenance schedule that showed the 657-1 and 657-2 Reservoirs to be re-coated and updated to current code.The maintenance requirements include replacing anodes for the cathodic protection system,removing the existing exterior and interior coatings,and applying a new coating to the exterior and interior of each reservoir. In addition to replacing the anodes and re-coating the reservoirs, structural upgrades are necessary to comply with the American Water Works Association (AWWA)and the Occupational Safety and Health Administration (OSHA)standards.An internal and external inspection of each reservoir was completed in August 2008 by Utility Services Company.The recommended structural upgrades,developed with input from engineering and operations staff,are as follows: new exterior ladder,new level indicators,new fall prevention devices on the interior ladders,additional manways for access,new anode access ports,new roof vents,new lanyard cables,and miscellaneous tank penetrations for chlorination and sampling. These upgrades will ensure compliance with AWWA and OSHA requirements as well as provide better access for Operations staff to maintain these facilities. On October 27,2010,Schiff performed an interior inspection on the 657-1 and 657-2 Reservoirs to assess the condition of the roof structure,analyze the coating condition,and reveal any changed conditions from the previous inspections.Schiff's inspection report found extensive corrosion on the rafters,and a leak in the elbow of the overflow pipe in the 657-1 Reservoir.These items were included in the contract documents. Staff developed the contract documents and the project was advertised for bid on November 3,2010 on the District's website and several other publications including the San Diego Union Tribune and San Diego Daily Transcript. One (1)addendum was sent out to all bidders and planhouses to address questions and clarifications to the contract documents during the bidding period. Bids were publicly opened on November 30,2010,with the following results: 2 CONTRACTOR TOTAL BID CORRECTED BID AMOUNT AMOUNT 1 Blastco,Inc.$632,500 - 2 Muehlan Marine,Inc.$633,500 - 3 Western Industrial,Inc.$638,645 $638,780 4 RPI Coating,Inc.$685,000 - 5 Olympus and Associates Inc.*$786,582 - 6 Techno Coatings,Inc.$1,064,700 - *Bld opened on December 1,2010. The Engineer's Estimate is $807,000. Staff reviewed the bids submitted for conformance with the contract requirements and determined that Blastco was the lowest responsive and responsible bidder.Blastco holds both a Class A and Class C-33 Contractor's License which expires on Oct.31,2011.Overall,the reference checks indicated a good performance record on similar projects.Staff has verified that the bid bond provided by Blastco is valid.Staff will also verify that B astco's Performance Bond is valid prior to execution of the contract. The bid for Olympus and Associates Inc.was delivered to the District on time,but was not received by the Project Manager prior to the bid opening.Legal Counsel directed Staff to contact all bidders and invite them to witness the opening of Olympus'bid on December 1,2010 at 3:00 p.m at District headquarters.The contractors elected to have the Project Manager call them with the bid results rather than attend the second bid opening. FISCAL IMPACT:# Funding for the overall projects comes from two CIP projects,P2505, the 657-1 Reservoir Exterior/Interior Coating and Upgrades,and P2506,the 657-2 Reservoir Exterior/Interior Coating and Upgrades. The total budget for CIP P2505,as approved in the FY 2011 budget, is $375,000.Total expenditures,plus outstanding commitments and forecast,is $375,000.See Attachment B-1 for budget detail. The total budget for CIP P2506,as approved in the FY 2011 budget, is $375,000.Total expenditures,plus outstanding commitments and forecast,is $375,000.See Attachment B-2 for budget detail. Staff included allowances in the bid sheet list for structural modifications and cell site equipment relocation for a total amount of $50,000. 3 Based on a review of the financial budgets,the Project Manager has determined that each budget is sufficient to support the projects. Finance has determined that 100%of the funding is available from the Replacement Fund for both ClP P2505 and P2506. STRATEGIC GOAL: This project supports the Operations Department Mission statement, "To provide all operations and maintenance services in the highest possible professional,efficient,safe,and cost effective manner to all internal and external customers,and to strive to continually improve the level of service this department provides." LEGAL IMPACT: None. P:\~'lORKING\Crp £.125(:5 &2506 6:'7-1[.2 Rs.:>srvoir coatlng\St_aff Reports\B['I'l-O~-ll,$t3ff Report,bS-'il£.2 Coacings Bid ..i\\·/ard.doC' KC/RR/RP:jf Attachments:Attachment A -Committee Action Attachment B-1 -Budget Detail for crp P2505 Attachment B-2 -Budget Detail for crp P2506 Exhibit A -Location Map 4 eilC I ":;CT: P2505-001103 P2506-001103 ATTACHMENT A Award of a Construction Contract to Blastco,Inc.for the 657-1 &657-2 Reservoir Exterior/Interior Coating and Upgrades Project COMMITTEE ACTION: The Engineering,Operations,and Water Resources this item at a meeting held on December 7,2010. supported Staff's recommendation. NOTE: Committee reviewed The Committee The "Committee Action"is written in anticipation of the Committee moving the item forward for Board approval.This report will be sent to the Board as a Committee approved item,or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. ~I Ie 1I::r;T: P2505-001103 P2506-001103 ATTACHMENT B-1 Award of a Construction Contract to Blastco,Inc.for the 657-1 &657-2 Reservoir Exterior/Interior Coating and Upgrades Project Otay Water District P2505 -657-1 Reservoir Interior/ExteriorCoating Date Updated:November30,2010 Outstanding ProjectedFina/BUdget Committed Expsnditums Commitment&Vendor/Comments 375,000 CostFomcast Planning Labor 822 822 -822 Total Planning 822 822 -822 Design Labor 13,508 13,508 13,508 Service Contracts 143 143 -143 SAN DIEGO UNION-TRIBUNE LLC 38 38 38 SAN DIEGO DAILY TRANSCRIPT Total Design 13,688 13,688 13,688 Construction Labor 20,000 519 19,481 20,000 Construction Contract 320,500 -320,500 320,500 Blastco,Inc. CM Contract 14,990 -14,990 14,990 As-Needed CM Project Closeout 5,000 -5,000 5,000 Total Construction 360,490 519 359,971 360,490 Grand Total 375,000 15,030 359,971 375,000 P2505-001 '103 P2506-001103 "'....,IEeT: ATTACHMENT B-2 Award of a Construction Contract to Blastco,Inc.for the 657-1 &657-2 Reservoir Exterior/Interior Coating and Upgrades Project Olay Water District P2506 -657-2 Reservoir IntenorlExterior Coating Date Updated:November30,2011) Outs/anding Projec1edFinalBudge!Committed Expenditures Commitmentell Vendor/Comments 375,000 CostForecast Planning Labor 569 569 569 Total Planning 569 569 569 Design Labor 12,933 12,933 12,933 Service Contracts ~43 143 '~43 SAN DiEGO UNION-TRiBUNE LLC 38 38 38 SAN mEGO DAilY TRANSCRIPT Total Design 13,114 13,114 -13,'114 Construction Labor 25,000 614 24,386 25,000 Construction Contract 312,000 -312,000 312,000 mastco,Inc. CM Contract 19,317 -19,317 19,3'17 As-Needed eM Project Closeout 5,000 5,000 5,000 Total Construction 361,317 14,727 346,590 361,317 Grand Total 375,000 28,410 346,590 375,000 OTAYWATER DISTRICT , 657-1 (1.0 MG)&657-2 (0.87 MG)RESERVOIRS EXTERIOR/INTERIOR COATINGS &UPGRADES SPRING VALLEY,CA CIP #P2505 &P2506 EXHIBIT A Quality Assurance Approval Sheet Subject:Award of a Construction Contract to Blastco,Inc. for the 657-1 &657-2 Reservoir Exterior/Interior Coating and Upgrades Project Project No.:P2505-001103 P2506-001103 Document Description:Staff Report for the January 5,2011 Board Meeting Author: Kevin Cameron Date QA Reviewer: Printed Name W!~~at~1f~/I' Gary Silverman Printed Name Manager:~~Ignature Ron Ripperger Printed Name The above signatures attest that the attached document has been reviewed and to the best of their ability the signers verify that it meets the District quality standard by clearly and concisely conveying the intended information;being grammatically correct and free of formatting and typographical errors;accurately presenting calculated values and numerical references;and being internally consistent,legible and uniform in its presentation style. AGENDA ITEM 5 STAFF REPORT 3 January 5,2011 DIV. NO. P2488/ P2489- 001103 MEETING DATE: PROJECT/ SUBPROJECT:Engineer Ron Ripperger ~ Engineerin~anager Rod posada~~· Chief,Engineering Manny Magan~~ Assistant General ~nager,Engineering and Operations Award a Construction Contract to L.H.Woods &Sons,Inc.for the Del Rio Road &Gillispie Drive Emergency Interconnections Project Regular Board Daniel Kay O'f- Associate Civil SUBJECT: APPROVED BY: (Asst.GM): APPROVED BY: (Chief) SUBMITTED BY: TYPE MEETING: GENERAL MANAGER'S RECOMMENDATION: That the Otay Water District (District)Board of Directors (Board) award a construction contract to L.H.Woods &Sons Inc.(L.H.Woods) in the amount of $379,000 for the Del Rio Road &Gillispie Drive Emergency Interconnections Project (see Exhibits A &B for project locations). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into a construction contract with L.H.Woods for the Del Rio Road and Gillispie Drive Emergency Interconnection Project in an amount not to exceed $379,000. ANALYSIS: The District has identified an opportunity and a beneficial need for the construction of two interconnections with Helix Water District (Helix). The proposed interconnections are located on Del Rio Road and Gillispie Drive in Spring Valley.The project will consist of installing a vault,bi-directional meter,blow-offs,new telemetry, and new SCADA equipment at each location.The interconnections will benefit both Helix and the District by allowing water to be transferred interchangeably between each system in the event of an emergency situation.In previous outages and emergencies,similar interconnections have proven to provide increased reliability and flexibility. The Board approved an agreement between Helix and the District at the April 7,2010 Board meeting.Since the interconnections will benefit both Districts,the agreement states that Helix and the District will share equally the cost for design,construction, operation,and maintenance of the facilities.The District is the lead agency for the planning,design and construction of the interconnections. The design for this project was performed in-house by District staff with an electrical consultant,Engineering Partners,Inc.,providing the electrical and instrumentation drawings and specifications. The project was advertised for bid on November 3,2010 on the District's website and several other publications including the Union Tribune and San Diego Daily Transcript. A non-mandatory Pre-Bid Meeting was held on November 16,2010.A presentation was given by District staff to explain the project and discuss any questions or concerns from the contractors.There was one (1)contractor that attended the meeting and meeting minutes were published. Subsequently,one (1)addendum was sent out to all bidders and planhouses to address questions and clarifications to the contract documents during the bidding period.Bids were publicly opened on November 30,2010 with the following results: CONTRACTOR TOTAL BID AMOUNT l.L.H.Woods &Sons Inc.$379,000.00 2 .Arrieta Construction $428,748.38 The Engineer's Estimate is $192,000. The evaluation process included reviewing all bids submitted for conformance to the contract documents.The lowest bidder,L.H. Woods,submitted a responsible bid and holds a Class A Contractor's 2 license which expires on May 31,2011.References were checked and L.H.Woods was found to be a highly rated company.Staff has verified that the bid bond provided by L.H.Woods is valid.Once L.H.Woods signs the contract,they will furnish the performance bond.Staff will verify the performance bond before the District executes the contract. FISCAL IMPACT: The total budget for eIP P2488,as approved in the FY 2011 budget, is $150,000.00.Total expenditures,plus outstanding commitments and forecast,are $139,036.See Attachment B-1 for budget detail. The total budget for eIP P2489,as approved in the FY 2011 budget, is $150,000.00.Total expenditures,plus outstanding commitments and forecast,are $136,257.See Attachment B-2 for budget detail. Including the agreed upon 50%reimbursement from Helix for design and construction costs,the District's share will be within the existing FY 2011 budget.Based on a review of the financial budgets, the Project Manager has determined that each budget is sufficient to support the project. Finance has determined that 40%of the funding is available from the Expansion Fund and 60%of the funding is from the Betterment Fund for both eIP P2488 and P2489. STRATEGIC GOAL: This project supports the District's Mission statement,"To provide the best quality of water and wastewater service to the customers of the Otay Water District in a professional,effective,and efficient manner,"as well as the General Manager I s vision,"...prepared for the future..."by guaranteeing the District will always be able to meet future water supply obligations and plan,design,and construct new facilities. LEGAL IMPACT: None. 3 MriJdS Generkl Manager P;\~'lORKING\CIP P2488 Del Rio Rd Interconnection\Staff Reports\BD 01-05-11,Staff Report,Helix Interconnection,(DK-RR).doc DK/RR/RP:jf Attachments:Attachment A -Committee Action Attachment B-1 -Budget Detail for crp P2488 Attachment B-2 -Budget Detail for crp P2489 Exhibit A -Location Map for crp 2488 Exhibit B -Location Map for crp 2489 4 C::IIR '~CT: P2488/P2489-001103 ATTACHMENT A Award a Construction Contract to L.H.Woods &Sons,Inc. for the Del Rio Road &Gillispie Drive Emergency Interconnections COMMITTEE ACTION: The Engineering,Operations,and Water Resources this item at a meeting held on December 7,2010. supported Staff's recommendation. NOTE: Committee reviewed The Committee The "Committee Action"is written in anticipation of the Committee moving the item forward for Board approval.This report will be sent to the Board as a Committee approved item,or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. ATTACHMENT B-1 OtayWater District P2488 -Del Rio Road Helix &Otsy Agency Interconnection Date Updated:November 23,2010 Outstanding ProjllCtBdFinalBudgetCOmmillBdExpendiluff1sCommitment&Cost Vendor/COmments 150,000 FOff1CBSt Planning Labor 1,314 1,314 1,314 Tolal Planning 1,314 1,314 -1,314 Design Labor 36,915 36,915 -36,915 Consultant Contracts 5,950 5,950 ·5,950 MWH CONSTRUCTORS INC 500 500 -500 STEWART TITLE OF CA INC 2,805 2,805 -2,805 ENGINEERING PARTNERS INC,THE Service Contracts 331 331 ·331 SAN DIEGO UNION·TRIBUNE LLC Contracted Services 665 665 -665 KIRK PAVING INC Infrastructure Equipment &Materials 558 558 -558 COUNTY OF SAN DIEGO·DPW Reimbursement by Helix (23,863)-(23,863)(23,863)HELIX WATER DISTRICT Total Design 23,862 47,725 ·47,725 Construction Labor 20,000 2,149 17,851 20,000 Service Contracts 11,795 11,795 -11,795 SAN DIEGO GAS &ELECTRIC Construction Contract 185,925 .185,925 185,925 L.H.WOODS &SONS Reimbursement by Helix (113,860)-(113,860)(113,860)HELIX WATER DISTRICT Closeout 10,000 .10,000 10,000 Tolal Construction 113,860 13,944 99,916 113,860 GrandTotal 139,038 62,982 76,053 139,036 ATTACHME T B-2 Olay Water District Date Updated:November23.2010 P2489 -Gillespie Drive Helix &OlayAgency Interconnection OutstandIng ProjectedFlnslBudgetCommittedExpendituresCommitment&Cost V8ndor/Comments 150.000 Forecast Planning Labor 189 189 ·189 Regulatory Agency Fees 100 100 ·100 PETIYCASH CUSTODIAN Total Planning 289 289 ·289 Design Labor 33,690 33,690 -33,690 Consultant Contracts 4,200 4,200 ·4,200 MWH CONSTRUCTORS INC 2,805 2,805 ·2,805 ENGINEERING PARTNERS INC.THE Construction Contracts 6,820 6,820 ·6,820 HELIX WATER DISTRICT Professional Legal Fees 374 374 -374 GARCIA CALDERON &RUIZ LLP Reibursement by Helix (23,945)-(23.945)(23,945)HELIX WATER DISTRICT Total Design 23,945 47,889 -47,889 Construction Labor 20,000 1,926 18,074 20,000 Service Contracts 972 972 -972 SAN DIEGO GAS &ELECTRIC Construction Contract 193,075 -193,075 193,075 L.H.WOODS &SONS Reibursement by Helix (112,024)(112.024)(112.024)HELIX WATER DISTRICT Closeout 10,000 -10,000 10,000 Total Construction 112,023 2,898 109,125 112,023 Grand Total 138.257 51,078 85,181 138,257 VICINITY MAP INTERCONNECTION WIHElIXWD CAPACITY =800 GPM DETAIL 1 (OWO DWG 10-1-20,2&.1-20) (HWO DWG WO 9067)~c."'i~O\S\f'l"''''i~ y..'i;.\.\i- DETAIL 1 aTAY WATER DISTRICT DEL RIO ROAD INTERCONNECTION WITH HELIX WATER DISTRICT EXHIBIT A P2488 DETAIL 1 1 I.L I Lj-ll _1_--,-_1 14"ACP CL200 INTERCat'.lN CTIONWIHE~Wi wCAP~=00 GPM ~DET~1 Q(owoy G 321-1,54-1-1)~ ftWD DWG WO 7321)UJ:::i...J C)fa i I••.. i I P2489 I OTAY WATER DISTRICT I GILLISPIE DRIVE i INTERCONNECTION WITH HELIX WATER DISTRICTcl.-----L---------.-.EXHIBIT B Quality Assurance Approval Sheet Su~ect Award a Construction Contract to L.H.Woods &Sons,Inc.for the Del Rio Road &Gillispie Drive Emergency Interconnections Project No.:P2488-001103 P2489-001103 Document Description:Staff Report for the January 5,2011 Board Meeting Author: Signature Daniel Kay /2--/2-//0 Date QA Reviewer: Printed Name Llw(4~-----(2I7-·/ro~Date Gary Silverman Printed Name Manager: Ron Ripperger Printed Name The above signatures attest that the attached document has been reviewed and to the best of their ability the signers verify that it meets the District quality standard by clearly and concisely conveying the intended information;being grammatically correct and free of formatting and typographical errors;accurately presenting calculated values and numerical references;and being internally consistent,legible and uniform in its presentation style. AGENDA ITEM 6 STAFF REPORT 2DIV.No.P2434- 001101 January 5,2011 PROJECT No. MEETING DATE:Regular Board James Peasley ~f Engineering Mahager Rod posad~~~ Chief,Engineering ,- Manny Magana~~ Assistant Generalc;;nager,Engineering and Operations Change Order No.1 to the Professional Engineering Services Contract with AECOM Technical Services,Inc.for the Rancho del Rey Groundwater Well Development Project APPROVED BY: (Asst.GM): SUBJECT: APPROVED BY: (Chief) SUBMITTED BY: TYPE MEETING: GENERAL MANAGER'S RECOMMENDATION: That the Otay Water District (District)Board of Directors (Board)approve Change Order No.1 to the existing contract with AECOM Technical Services,Inc.(AECOM)in an amount not-to-exceed $176,805 for the Rancho del Rey Groundwater Well Development (RDR Groundwater Well)Project (see Exhibit A for project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to execute Change Order No.1 (see Exhibit B)to the existing contract with AECOM in an amount not-to-exceed $176,805 for the RDR Groundwater Well Project. ANALYSIS: The development and/or acquisition of potential groundwater supply projects by the District has been resurrected in response to the regional water supply issues that have impacted water supply conditions,such as the court rulings regarding the Sacramento-San Joaquin Delta and the spiraling retail water pricing pressures.Local ground water supply projects will allow for less reliance upon imported water,achieve a level of independence from regional wholesale water agencies,and diversify the District's water supply portfolio consistent with the District's March 2007 Integrated Water Resources Plan. As a result,and in recognition of the need to develop sufficient alternative water supplies,the District took the next step towards development of a groundwater production well at the Rancho del Rey site.The Board awarded a professional engineering contract to AECOM for the RDR Groundwater Well Project on January 6,2010 in the amount of $1,561,625. The purpose of the RDR Groundwater Well Project scope of work is to firmly establish the feasibility of developing a groundwater resource production system,including determining sustainable well yield,groundwater quality,and assessing any limitations or constraints that may arise.These items were accomplished with construction and testing of a full-scale production well and a multiple level monitoring well. The RDR Groundwater Well Project scope of work accomplished the following: •Regulatory and agency coordination,compliance,and permitting. •Groundwater well water and brine disposal discharge analysis. •Multiple level groundwater monitoring well installation. •Planning,design,construction,and testing of a production well . •Monitoring well and production well completion report. The primary outcome of the RDR Groundwater Well Project is that the groundwater well is physically feasible and capable as a long-term (i.e.,approximately 30 years)production system,with a maximum sustainable yield of about 700 acre-feet per year. The approximately 700 acre-feet per year of well yield can be used as feed water to a reverse osmosis treatment system to obtain a local potable water resource of about 500 to 600 acre- feet per year. 2 In response to the community concerns about noise and vibration levels,the District chose to modify the contract terms to: 1.Limit the days of work and work hours per day during the drilling and other operations at the project site. 2.Increase sound mitigation measures. 3.Extend the contract duration. As a result of the reduced work schedule,the duration that the drilling subcontractor,AECOM,and equipment were on site increased.These changes resulted in a cost increase of $302,213. There were also cost savings that included reduced well casing size,reduced drill cuttings hauling and disposal,and conductor casing material type revision.These three items totaled a cost reduction of $161,700. In addition,there were other increased costs including labor to overcome sewer discharge permit obstacles,laboratory analyses for additional constituents,some new landscaping,and enhanced site erosion control totaling $36,292. District staff and AECOM worked with the drilling contractor to reduce their fees.For example,we were able to obtain a reduced fee for standby charges related to noise and vibration issues.AECOM also provided a discount on a portion of their labor costs. Combining the increased costs for the drilling,laboratory,and other expenses along with the reductions,the net increase for this Change Order is $176,805 or an 11.3%increase over the ::::::a:M:::::act amo~ The total budget for CIP Project P2434,Rancho del Rey Groundwater Well Development,as part of the approved FY 2011 CIP budget,is $4,250,000.Expenditures to date are $2,023,099. Total expenditures,plus outstanding commitments,including this contract,totals $2,550,223.See Attachment B for budget detail. The Project Manager anticipates that,based on the attached financial analysis,the CIP budget for P2434 will be sufficient to support the anticipated expenses payable to AECOM,including the requested change order. 3 It is important to note that the Project Manager has determined that the budget is not sufficient to cover the second phase of this CIP,the construction of a reverse osmosis treatment facility.This anticipated shortfall is being addressed in the staff report requesting authorization to issue a RFP for design of the second phase of the Rancho del Rey Well Project. Finance has determined that 40%of the funding is available from the Expansion Fund and 60%of the funding is available from the Betterment Fund. STRATEGIC GOAL: The RDR Groundwater Well Development Project supports the District's Mission statement,"To provide the best quality of water and wastewater service to the customers of the Otay Water District,in a professional,effective,and efficient mannerU and the Otay strategic goal,in planning for infrastructure and supply to meet current and future potable water demands. LEGAL IMPACT: None. P:\WORKING\CIP P2434\Staff Reports\BD 01-05-11,Staff Report,Change Order NO.1 with AECOM for RDR Well,(JP-RP).doc JP/RP:jf Attachments:Attachment A -Committee Action Attachment B -Budget Detail Exhibit A Location Map Exhibit B -Change Order No.1 4 P2434-001101 ATTACHMENT A Change Order No.1 to the Professional Engineering Services Contract with AECOM Technical Services,Inc.for the Rancho del Rey Groundwater Well Development Project COMMITTEE ACTION: The Engineering,Operations,and Water Resources Committee reviewed this item at a meeting held on December 7,2010.The Committee supported Staff's recommendation. NOTE: The "Committee Action"is written in anticipation of the Committee moving the item forward for Board approval.This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. ATTACHMENT 8 SUBJECT/PROJECT: P2434-001101 Change Order No.1 to the Professional Engineering Services Contract with AECOM Technical Services,Inc.for the Rancho del Rey Groundwater Well Development Project Date Updated:November 29,2010 Budget 4,250,000 Committed Expendl1ures Outstanding Comml1ment& Forecast ProjectedFinal Cost Vendor/Comments .----_.,,----------- .__.---",-----------------_._- ---------_.~---------- Planning Labor -308,719 308)19 -"-~8J19 Land --~--326,692~---326,092-----~--.--·----;;3:c26c:-,0"'9::;;2ci----------------- -PerrlliiS----·125 125 .---f----.125 CITY OF CHULA VISTA·DEPT,OF ..,..--. Materials 1,348 1,348 '..--'--~--1,348 VARIOUS --Rental -,----159 ,~-·--159 -.----..,,-------"'-c-;15~9c+---;;P""E:-N::-;H-;-A:-;LL-C;cO;cM~PA.,-;Nc;;Y-;----------1 Construction Costs --~154~----26,i54 ----.~\--26,154 CHILDTIME CHILDCARE,INC, ---p,:Qressional Legal Fees 4,829 4,829 -------------------4,829~ACALDERON&RUIZ LLP----- Consultant Contracts--19,481 19,481 -'19,481 JONES &STOKES ASSOCIATES INC----- ---.--------13,825 13,825 _:--I-=13~825-iViWHCONSTRUCTORSINC ------..----------------1,100 1,100 ----+---1,100 SOUTHWESTERN C-O·'C"L~LE~G~E~------ --~_._--~-_._---_..-~"-_._--_._-~-_.. 3,065 3,065 -3,065 SOUTHERN CALIFORNIA SOIL----------------1---~1c"5,-c00~0+--------·15,000 15,000 SEPARATION PROCESSES INC ----- -----,·_--,-,---~-------I---,--,-----~.-----I______..---~-..-.-------.,.-----6,930 6,930 6,930 VALLEY CONSTRUCTION MANAGEMENT --1,561,625 1,231,406 330,219 1,561,625 AECOM TECHNICAL SERVICES INC----,--~-_c____---.-,.-----I__---'_=c~_c____I___-.--------------..---Change Order No,1 176,805 176,805 176,805 AECOM TECHNICAL SERVICES INC,C,0,#1 Service ContraC"ct:-s----5,100 5,100----5:160-S R BRADLEY &ASSOCIATES INC ,.------186 -~----186 SAN DIEGO DAILY TRANSCRIPT -.--- 624 624 624 ~ON'TRIBUNE PUBLISHING CO ..---- 399 399 --_.399 REPROHAUS CORP ------ ----------------r----.--.~440 -.------440 URBINA'S MASTER SWEEPING INC 1------------.-----.-----..-----6 6 -."6 COUNTY OF SAN DIEGO --------------134 --~-----~-134 COURIEREXPRESS,INC, 1----,-,·----------+~---205 205 ----.----205 USA SIGN CO,-------------~ f-----------'----··--I--~--3°--,2~2~6-+--·-~-""3.226-3,226 -----oLiAurTAsSURANCE LABORATORY ---------------1 7,108 7,108 ~~8 MULTI WATER SYSTEMS-------_..-._-----~"._--_.--_..- __________________1 1c:',,9~5~5+_----_=1~,9=55---1,955 BARRETT CONSULTING GROUP 5,665 5,665 5,665 EARTH TECH--------.'c-=-=c-=~~~~---.--.----3,344 3,344 3,344 CITY OF CHULA VISTA-.- 16,714 16,714 16,714 BOYLE ENGINEERING CORPORATION 112 112 -c--112 MONTGOMERY WATSON LABORATORIES 2,500·--2.500~------~~·2,500 ANDREW A.SMITH COMPANY 2,000 2,000 -f---.2,000 ENARTEC ENGINEERING PLANNING 35,200 35,200 -35,200 ALCEM FENCE COMPANY INC, Regulatory Ag'e-·n-c-y""F-ee-s------I---50 50·--50 PETTY CASH CUSTODIAN -'---=------=-----=--------'---------1-------_·- Total Planning 2,550,223 2,023,099 527,124 I 2,550,223 Grand Total 2,550,223 2,023,099 527,124 2,550,223 •NOT 10 SCAlI o DEL REY \\ELL o CHILDTIME CHILDCARE, INC LOT 108 CHULA VISTA TRACT NO.89-5 MAP NO.12720 /// (96.11') (N8TJ7'44"E) OTAY WATER DISTRICT RANCHO DEL WAY PARKWAY,CHULA VISTA,CA RANCHO DEL REY GROUND WATER DEVELOPMENT CIP P2434 U'ERAL. EEAQt ...l/IQ. ~Q. ~,:.;:.. N 00~~.. DO•...c£ 1!iii ~i~Q. I iEgo 1Q I I 0ll"or:::,g,. !, J!'...I..i~.....:;- .11.r....!?~~~~ l!t~CIZS<!tL EXHIBIT A EXHIBIT B OTAY WATER DISTRICT 2554 SWEETWATER SPRINGS BLVD.,SPRING VALLEY,CA.91978,(619)670-2222 CONTRACT/P.O.CHANGE ORDER No.1 PROJECTIITEM:Rancho Del Rey Groundwater Well Development Project CONTRACTORIVENDOR:AECOM Technical Services,Inc.REF.CIP No.:P2434-001101 APPROVED BY:Board REF.P.O.No:713180 DATE:01-05-11 DESCRIPTION: There are five items as part of this change order: 1)Increased cost due to shorten work days and hours per day. 2)Increased cost due to permits and analysis required. 3)Decrease in cost due to reduced hauling and disposal fees and other savings. 4)Decrease in cost due to reduced well casing size and conductor casing material change. 5)Increase contract duration by three months. REASON: 1)The contract terms were modified to accommodate the community concerns about noise and vibration levels.In order to accommodate the concerns,work days and hours were limited during the operation at the site.Also,sound mitigation measures were increased.The cost increase for modification to the contract is $302,213. 2)Other costs,including labor to overcome sewer discharge permit obstacles,constituents'laboratory analysis,new landscaping,and enhanced site erosion control.The cost increase for these items is $36,292. 3)A cost savings,which included reduced well casing size,reduced drill cuttings hauling and disposal,and conductor casing material type revision.These items totaled a cost savings of $161 ,700. CHANGE P.O.TO READ: Revise contract to add $176,805 for a total contract amount of $1 ,738,430.00. Revise contract to extend contract duration by three months to March 31,2011. ORIGINAL CONTRACT/P.O.AMOUNT: ADJUSTED AMOUNT FROM PREVIOUS CHANGE: TOTAL COST OF THIS CHANGE ORDER: NEW CONTRACT/P.O.AMOUNT IS: ORIGINAL CONTRACT COMPLETION DATE: CONTRACT/P.O.TIME AFFECTED BY THIS CHANGE: REVISED CONTRACT COMPLETION DATE: $1,561,625.00 $0.00 $176,805.00 $1,738,430.00 12/31/10 90 days 03/31/11 IT IS UNDERSTOOD WITH THE FOLLOWING APPROVALS,THAT THE CONTRACTOR/VENDOR IS AUTHORIZED AND DIRECTED TO MAKE THE HEREIN DESCRIBED CHANGES.IT IS ALSO AGREED THAT THE TOTAL COST FOR THIS CHANGE ORDER CONSTITUTES FULL AND COMPLETE COMPENSATION FOR OBLIGATIONS REQUIRED BY THE CONTRACT/P.O.ALL OTHER PROVISIONS AND REQUIREMENTS OF THE CONTRACT/P.O.REMAIN IN FULL FORCE AND EFFECT. DIV.MGR:_ CONTRACTORIVENDOR: SIGNATURE:_ NAME:_ STAFF APPROVALS: PROJ.MGR:Sr Eng (Inti--DATE:_ DATE:_ TITLE:DATE :_CHIEF:_DATE:_ ADDRESS:ASST.GM:_---------------- _______________DISTRICT APPROVAL: GEN.MANAGER:_ DATE:_ DATE:_ COPIES:0 FILE (Orig.),0 CONTRACTORNENDOR,0 CHIEF-FINANCE,0 INSPECTION,0 ENGR.SECRETARY,0 PROJECT BINDER P:\WORKING\CIP P2434\PI,::mnino\Ch,gnop.OrrfArs\C':hrlnnp.OrrlAr#1 rlnr. CHANGE ORDER LOG Rancho Del Rey Groundwater Well Development Project Consultant:AECOM Technical Services,Inc. Project:P2434 Subproject:001101 APPROVED C.O.AMOUNT BY DATE DESCRIPTION TYPE C.O. 1 $176,805.00 Board Increase due to work days shortened,additional permits and Owneranalysisrequired,and extend completion date. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Total C.O.'s To Date: Original Contract Amount: Current Contract Amount: Change Order Breakdown for the Month: Month Net C.O.$Limit Authorization $2,000 Insp $10,000 PM/Supervisor $20,000 Manager $25,000 Chief $35,000 AGM $50,000 GM $176,805.00 $1,561,625.00 $1,738,430.00 11,3% C.O.% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% AECOM 3995 Via Oro Avenue Long Beach,CA 90810 November 17,2010 Mr.Jim Peasley Engineering Manager 2554 Sweetwater Springs Blvd. Spring Valley,California 91978-2004 SUbject:Rancho del Rey Change Order Dear Mr.Peasley, 562.420.2933 tel 562.420.2915 fax We appreciate the opportunity to meet with Mr.Posada and you this week regarding the Rancho del Rey well.Although there were several challenges to drilling and constructing the production well and monitoring well,the effort was successful.The wells have and will continue to provide important information into this valuable local water resource.The production well was completed deeper than originally planned and demonstrate the viability of producing water from the volcanic rock in addition to the overlying sediments.This letter explains the change order related to alterations which occurred during the course of the project.The change order covers the drilling and consulting fees. The major changes are summarized below:. Major Cost Increases •Increased Time -Prior to the commencement ofwork (post-bid)Otay Water District decided to adjust the anticipated work schedule in an effort to address potential community relations concerns about noise.The City of Chula Vista allows for work to occur from 7am to 10pm Monday through Friday and 8am to 10pm on weekends before needing to invoke more stringent noise actions.The District made the decision to eliminate the weekend work schedule (except during well construction)and to reduce the number of hours onsite during the week so that all work would be completed by 7pm.In addition,the District also had concerns about large delivery vehicles moving around in the parking lot of the ChiidTime daycare center during peak pick-up and drop-off periods.Accordingly,there were no deliveries made to the site before 9am or between the hours of 2pm to 6pm.The reduced work schedule increased the duration the drilling contractor and AECOM were onsite. This resulted in additional costs for items like: o Sound mitigation -$142,213 o Labor -$57,000 o Per Diem -$49,000 o Prevailing wage surcharge -$43,000 o Equipment rental (forklift,air-compressor,etc)-$11,000 AECOM Major Cost Savings •Casing Size -Following the construction ofthe monitoring well,we were able to evaluate and thus reduce the casing size of the production well from 18-inches in diameter to 12- inches. o This casing reduction resulted in a net savings of $87,000 2 •Waste Disposal -Drill cuttings were originally intended to be disposed of by hauling them to a non-hazardous waste facility.The District was able to provide an nearby District-owned property to place the non-hazardous drill cuttings.This eliminated hauling the cuttings to a disposal site. o Net savings to the District -$45,800 •Casing Materials -The bid package listed the conductor casing for the well to be stainless steel.However,because the casing is fully encapsulated in cement,it is well protected from corrosion.Therefore it was decided to use mild-steel casing for this section. o Net savings to the District --$28,900 Smaller additions and reductions occurred throughout the project including additional time acquiring the sewer discharge permit,additional laboratory expenses (increased number of constituents required for analysis),etc. We have worked with the drilling contractor to reduce some of their fees.For example,we were able to obtain a reduced fee for standby issues due to noise issues.In addition,AECOM is providing a discount on the October invoice as a goodwill gesture. Combining the increased costs for the drilling,laboratory and other expenses along with the reductions such as those discussed above,the net requested increase for this change order is $176,805. Yours sincerely, Ronald Sorensen Program Manager,Sr.Hydrogeologist ronald.sorensen@aecom.com Quality Assurance Approval Sheet Subject:Change Order NO.1 to the Professional Engineering Services Contract with AECOM Technical Services,Inc.for the Rancho del Rey GroundwaterWeli Development Project Project No.:P2434-001101 Document Description:Staff Report for the January 5,2011 Board Meeting Author: QA Reviewer: Manager: ~~~- synature V James Peasley Printed Name ~ Gary Silverman Printed Name Signature Rod Posada Printed Name Date Date The above signatures attest that the attached document has been reviewed and to the best of their ability the signers verify that it meets the District quality standard by clearly and concisely conveying the intended information;being grammatically correct and free of formatting and typographical errors;accurately presenting calculated values and numerical references;and being internally consistent,legible and uniform in its presentation style. AGENDA ITEM 7 STAFF REPORT TYPE MEETING:Regular Board MEETING DATE:January 5,2011 5DIV. NO.P2009- 001102 PROJECTI SUBPROJECT:Ron Ripperger ~ Engineering Manager Rod posada~~~ Chief,Engineering Manny Magan~~ Assistant General~nager,Engineering and Operations Change Order No.2 to the Construction Management Services Contract with RBF Consulting for the 36-Inch Pipeline,SDCWA Otay FCF No.14 to the Regulatory Site Project APPROVED BY: (Asst.GM): SUBJECT: APPROVED BY: (Chief) SUBMITTED BY: GENERAL MANAGER'S RECOMMENDATION: That the Otay Water District (District)Board of Directors (Board) approves Change Order No.2 to the existing contract with RBF Consulting (RBF)for construction management and inspection services for the 36-Inch Pipeline,SDCWA Otay FCF No.14 to the Regulatory Site Project in an amount not to exceed $101,075 (see Exhibit A for proj ect location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to execute Change Order No.2 (see Exhibit B)to the contract with RBF in an amount not to exceed $101,075. ANALYSIS: On January 16,2008,the Board awarded a contract to RBF,to provide construction management and inspection services.RBF's scope of work initially included pre-construction support such as constructability reviews,public relations support,bidding support and construction management over a 24-month period.RBF's pre-construction efforts were increased due to the District's replacement of the design consultant.Based on staff's recommendation,the General Manager executed Change Order NO.1 on June 15,2010 in the amount of $46,995 to provide funding for the additional scope of work. After Change Order No.1 was executed,it became necessary to extend the construction contract duration with CCL due to a variety of factors including coordination with their subcontractor to perform additional paving,modifications to the sampling system at the Regulatory Site Vault 7,and a longer timeframe than anticipated for flushing and completing bacteriological testing of the new pipeline. Change Order No.2 documents the concentrated effort that was required by RBF staff to oversee CCL's final work items and to ensure the project was completed to the District's satisfaction.The contract was completed at the end of November and the project is ready to be accepted. FISCAL IMPACT,~ -----The total budget for CIP P2009,as approved in the FY 2011 budget,is $21,000,000.RBF's original contact amount is $1,088,785;with the approval of Change Order NO.2 their new contract amount will be $1,236,855.Total CIP expenditures,plus outstanding commitments and forecast,including this Change Order,are approximately $19,522,797. The Project Manager anticipates that,based on the attached financial analysis,the CIP budget for P2009 will be sufficient to support this project.See Attachment B for details. Finance has determined that 40%of the funding is available from the Expansion Fund and 60%of the funding is available from the Betterment Fund for CIP P2009. STRATEGIC GOAL: This project supports the District's Mission statement,liTo provide the best quality of water and wastewater services to the customers of Otay Water District,in a professional,effective,and efficient manner.II This project fulfills the two of the District's Strategic Goals,No.1 -Community and Governance and No.5 -Potable Water,by maintaining proactive and productive relationships with the project stakeholders,and by guaranteeing that the District will provide for current and future water needs. 2 LEGAL IMPACT: None. Genera114 W11J P;\WORKING\CIP P2009 36-inch PL -FCF 14 to Reg Site\Staff Reports\BD 01-05-11,Staff Report,RBF CO#2, (RR-RP).doc RR/RP:jf Attachments Attachment A -Committee Action Attachment B -Budget Detail Exhibit A -Project Location Map Exhibit B -Change Order No.2 3 P2009-001102 CIID ·1 ._JECT: ATTACHMENT A Change Order No.2 to the Construction Management Services Contract with RBF Consulting for the 36-Inch Pipeline, SDCWA Otay FCF No.14 to the Regulatory Site Project COMMITTEE ACTION: The Engineering,Operations,and Water Resources this item at a meeting held on December 7,2010. supported Staff's recommendation. NOTE: Committee reviewed The Committee The "Committee Action"is written in anticipation of the Committee moving the item forward for Board approval.This report will be sent to the Board as a Committee approved item,or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. P2009-001102 ATTACHMENT B SUBJECTjpROJi~ci:---'--Change Order No.2 to the Construction Management Services Contract with RBF for the 36-Inch Pipeline,SDCWA Otay FCF No.14 to the Regulatory Site Project ; ••••••••_••_._._.__••••r _••_•••••••••••••_•••••••••••••.1.•...•.......•.•.....__..•___._._.•__.• otay WaterDistrict P2009 •36-lnchPipeline from SDCWAotayFCF No,14 to theRegulatorySIle Date Updated:November 05,2010 Outstanding Pro}8ctedFinalBudgetCommlltBdExpendituffJSCommitment&Vendor/Commenls 21,000,000 CostFof8CllSf Planning Labor 285,782 285,782 285,782 Printing 993 993 -993 OCB REPROGRAPHICS 596 596 -596 MAIL MANAGEMENT GROUPINC Business Meetings 110 110 -110 PETTY CASH CUSTODIAN 84 84 -84 USBANK CORPORATE PAYMENT Postage 341 341 -341 US POSTMASTER Professional Legal Fees 5,595 5,595 -5,595 BURKE WILLIAMS&SORENSEN LLP 187,474 187,474 -187,474 GARCIACAlDERON &RUIZ LLP cnherLegalExpenses 4,948 4,948 -4,948 GARCIACAlDERON &RUIZ LLP (10,290)(10,290)-(10,290)WooDRUFF,SPRADLIN &SMART RegUlatory Agency Fees 1,927 1,927 -1,927 COUNTY OF SAN DIEGO 100 100 -100 US FISH &WILDLIFE SERVICE ConsultantContracts 1,080,288 1,080,288 1,080,288 INFRASTRUCTURE ENGINEERING 25,684 25,684 25,684 JONES &STOKES ASSOCIATES INC 1,100 1,100 -1,100 SOUTHWESTERN COLLEGE (COC) Service Contracts 398 398 -398 UNIONTRIBUNE PUBLISHINGCO 957 957 -957 SAN DIEGO DAILYTRANSCRIPT 350 350 -350 RYAN BETHKE 705 705 -705 OLLI BROS Total Planning 1,587,141 1,587,142 -1,587,142 Design Labor 691,627 691,627 691,627 MileageReimbursement 69 69 -69 PETTY CASH CUSTODIAN Meals and Incidentals 63 63 63 PETTY CASH CUSTODIAN Business Meetings 46 46 46 PETTY CASH CUSTODIAN 215 215 -215 US BANK CORPORATE PAYMENT Professional LegalFees 67,883 67,883 -67,883 STEPHEN V MCCUEEsa 79,098 79,098 -79,098 GARCIACAlDERON &RUIZ LLP 153 153 -153 RWBECK cnher Legal Expenses 5,581 5,581 -5,581 GARCIACAlDERON &RUIZ LLP 17,071 17,071 -17,071 RWBECK 1,671 1,671 -1,671 SHELBURNE SHERR COURT RegulatoryAgency Fees 271 271 -271 COUNTY OF SANDIEGO -DPW OtherAgency Fees 12,830 12,830 -12,830 crrv OF EL CAJON Consultant Contracts 99 99 -99 PETTY CASH CUSTODIAN 2,915 2,915 -2,915 LEE &RO (As-Needed Design) 3,656 3,656 -3,656 RBF (As-Needed Drafting) 1,050 1,050 -1,050 SOUTHlAND TITLE 1,640 1,640 -1,640 CALTRANS 527,826 527,826 -527,826 LEE&ROINC 61,629 61,629 -61,629 C.O.#1 13,440 13,440 ·13,440 SWINERTON MANAGEMENT 4,744 4,744 -4,744 WRA&ASSOCIATES INC 41,513 41,513 ·41,513 SOUTHERN CALIFORNIA SOIL 36,750 36,750 ·36,750 MWH CONSTRUCTORS INC 4,900 4,900 ·4,900 KEN DAROIS MiscellaneousContracts 87 87 ·87 SAN DIEGODAILYTRANSCRIPT 93,000 93,000 ·93,000 SAN DIEGO COUNTY WATER 107,138 101,801 5,337 107,138 HARRIS &ASSOCIATES INC 28 28 ·28 SAN DIEGO COUNTY 5,700 5,700 -5,700 BELLATERRA HOA 700 700 ·700 SUZETTE C SWANGER 3,000 3,000 ·3,000 RAYMOND KEITH HANNA 229,800 229,800 -229,800 GROSSMONT·CUYAMACA COMMUNITY Service Contracts 7,500 7,500 -7,500 KEAGY REAL ESTATE 91 91 -91 SAN DIEGO DAILY TRANSCRIPT 244 244 -244 UNION TRIBUNE PUBLISHINGCO 349 349 ·349 MCGRAW·HILL COMPANIES 6,912 6,912 ·6,912 REPROHAUS CORP Special Projects 48 48 -48 SEDONASTAFFINGSERVICES Total Design 2,031,334 2,025,996 5,337 2,031,334 Construction Labor 325,000 288,181 36.819 325,000 Mileage Reimbursement 119 119 ·119 PETTY CASH CUSTODIAN Meals and Incidentals 83 83 ·83 PETTY CASH CUSTODIAN Business Meetings 150 150 150 US BANK CORPORATE PAYMENT Postage 1,606 1,606 1,606 US POSTMASTER Printing 2,814 1,139 1,675 2,814 MAIL MANAGEMENT GROUP INC 141 141 ·141 US BANK CORPORATE PAYMENT Regulatory Agency Fees 17,375 17.375 ·17,375 SAN DIEGO COUNTY WATER 11,641 11.641 11,641 CITY OF ELCAJON 88,279 5.100 83,178 88,279 HELIX WATER DISTRICT Other Agency Fees 1,172 1.172 ·1,172 HELIX WATER DISTRICT 68,725 -68,725 68,725 HELIX WATER DISTRICT 9,625 9,625 ·9,625 CITY OF EL CAJON ConsultantContracts 1,088,785 1,088,785 ·1,088.785 RBF-CONSULTING (CM) 46,995 46,995 ·46,995 C.O.#1 101,075 77,534 23,541 101,075 C.O.#2 13,128 13,128 ·13,128 SOUTHERN CALIFORNIASOIL 30,000 29,171 829 30,000 MARSTON+MARSTONINC 52,357 34,865 17,492 52,357 LEE &RO INC (Constr.Phase Services) 252 252 -252 SAN DIEGO NEIGHBORHOOD Construction Contracts 527,000 527,000 -527,000 SAN DIEGO COUNTYWATER 12,869 12,869 ·12,869 SOUTHERN CALIFORNIA SOIL 27,850 27,850 -27,850 HELIX WATER DISTRICT 13,680,525 12,439,847 1,240,678 13.680,525 CCL CONTRACTING (243,847)(243,847)·(243,847)C.O.#1 (63,418) (63,418)-(63,418)C.O.#2 (1,474,033).(1,474,033)(1,474.033)C.O.#3 1,485,918 1,233,364 252,554 1,485,918 CALIFORNIA BANK &TRUST 49,901 49,901 -49,901 COUNTY OF SAN DIEGO -DPW 5,998 5,998 -5,998 CLARKSON LAB &SUPPLY INC .---HARRIS &ASSOCIATES INC Professional Legal Fees 83 83 ·83 GARCIACALDERON &RUIZ LLP Service Contracts 1,311 1.311 ·1,311 UNION TRIBUNE PUBLISHING CO 266 266 -266 MCGRAW-HILL COMPANIES 450 450 ·450 REEL 'EM IN INC 252 252 -252 SAN DIEGO NEIGHBORHOODNEWS 1,769 1.769 ·1,769 MAILMANAGEMENTGROUP INC 121 121 -121 SD DAILYTRANSCRIPT Infrastructure Equipment &Mat 16,375 1,626 14,750 16,375 MESALABORATORIES INC Backfill 14,000 14,000 ·14,000 TC CONSTRUCTION INC Inline Valve 1,609 1,609 ·1,609 FERGUSONWATERWORKS #1082 Total Construction 15,904,322 15,638,114 266,208 15,904,322 Grand Total 19,522,797 19,251,252 271,545 19,522,797 6 @ ~"/ELCAJON·U \:"-.I C1 OTAY WATER DISTRICT PIPELINE 36-INCH, SDCWA FCF NO.14 TO REGULATORY SITE EXHIBIT A CIPP2009 EXHIBIT B OTAY WATER DISTRICT 2554 SWEETWATER SPRINGS BLVD.,SPRING VALLEY.CA.91978.(619)670-2222 CONTRACT/P.O.CHANGE ORDER No.02 PROJECT/ITEM:Construction Management and Inspection Services for the 36-inch Pipeline from SDCWA No.14 to Regulatory Site CONTRACTORNENDOR:RBF Consulting REF.CIP No.:P2009 APPROVED BY:Board REF.P.O.No:707935 DATE:10-Nov-10 DESCRIPTION: Increase Contract value for additional services per the attached request for contract amendment dated November 8,2010. REASON: Resulting from added scope performed as a result of extending the duration of the construction contract additional services are necessary to provide required construction management and inspection services to complete. CHANGE P.O.TO READ: Revise contract to add $101,075.00 for a total contract amount of $1 ,236,855.00. ORIGINAL CONTRACT/P.O.AMOUNT: ADJUSTED AMOUNT FROM PREVIOUS CHANGE: TOTAL COST OF THIS CHANGE ORDER: NEW CONTRACT/P.O.AMOUNT IS: ORIGINAL CONTRACT COMPLETION DATE: CONTRACT/P.O.TIME AFFECTED BY THIS CHANGE: REVISED CONTRACT COMPLETION DATE: $1,088,785.00 $1,135,780.00 $101,075.00 $1,236,855.00 01/31/10 No 03/01/11 IT IS UNDERSTOOD WITH THE FOLLOWING APPROVALS,THAT THE CONTRACTORNENDOR IS AUTHORIZED AND DIRECTED TO MAKE THE HEREIN DESCRIBED CHANGES.IT IS ALSO AGREED THAT THE TOTAL COST FOR THIS CHANGE ORDER CONSTITUTES FULL AND COMPLETE COMPENSATION FOR OBLIGATIONS REQUIRED BY THE CONTRACT/P.O.ALL OTHER PROVISIONS AND REQUIREMENTS OF THE CONTRACT/P.O.REMAIN IN FULL FORCE AND EFFECT. CONTRACTO~RNND~: SIGNATURE:--~W'Jf------------- NAME:Way e Papac TITLE: STAFF APPROVALS: PROJ.MGR:_ DIY.MGR:_ Vice Presidenc:...l DATE:1/.-/0-/0 CHIEF:_ DATE:_ DATE:_ DATE:_ ADDRESS:9755 Clairemonl Mesa Blvd ASST.GM :_---------------- _--"S=an;.;..D=i=e9=O,,-.C=A..:..9=.:2;,..;.12=-4=---________DISTRICT APPROVAL:GEN.MANAGER:_ DATE:_ DATE:_ COPIES:0 FILE (Orig.),0 CONTRACTORNENDOR.0 CHIEF-ENGINEERING.0 CHIEF-FINANCE,0 ENGR. MGR. o ACCTS PAYABLE.0 INSPECTION,0 PROJ.MGR..0 ENGR.SECRETARY.0 PURCHASING,0 PROJECT BINDER H:IPDATA\25103069\AdminlcontractIChange Order No.2,doc CHANGE ORDER LOG Construction Management and Inspection Services for the 36- inch Pipeline from SDCWA No.14 to Regulatory Site Consultant/Contractor RBf Consulting Project 1P2009 Subproject APPROVED C.O.AMOUNT BY DATE DESCRIPTION TYPEC.O. 1 $46,995.00 GM 611512010 Compensation lorAdditional ServicesduringPre-Construclion O'IInel 2 $101,075.00 Board Compensation fOl Additional Selvicesas parl of consttuction Ownercontract""',,nsion 3 ; 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 i 26 27 28 29 30 31 32 33 34 35 Total C.O's To Date: Original Contract Amount: Current Contract Amount: Change Order Breakdown for the Month: Month Nel C.O.S Limit Authorization 11/10 SO.OO Sl,OOO Insp 55,000 PM/Supervisor 510,000 Manager 515.000 Chief S20.000 AGM S50,000 GM $148,070.00 $1,088,785.00 $1,236,855.00 13.6% C.O % 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% • • • CONSULTING November 8,2010 OlAY WATER DISTRICTR[r"c"'!EO WiD NOV -9 MilO:55 Otay Water District Attn:Ron Ripperger,PE,Project Manager 2554 Sweetwater Springs Boulevard Spring Valley,CA 91978 Re:Request for Contract Amendment Construction Management and Inspection Services for the 36-inch Pipeline from SDCWA No.14 to Regulatory Site (P-2009) Dear Mr.Ripperger: When our contract was issued in February of 2008,it was anticipated that construction operations would be complete in December of 2009.Due to changes in the engineering firm ofrecord,delays were encountered resulting in a anticipated construction contract completion date of August 24, 2010 for which Contract Change Order No.1 was issued.Due to Project requirements the actual construction completion was October 31,2010,and formal administrative close-out shall be complete by November 30,2010. Our original negotiated budget for pre-construction support anticipated 7 months of services encompassing constructability reviews,public relations support and bidding support for a total of $83,144.00.Resulting from extenuating circumstances surrounding the replacement ofthe original design firm our pre-construction efforts were increased to a total of 18 months with a total cost of $272,191.25 resulting in a delta of $189,047.25. We have worked with District staff throughout the construction process to minimize costs,where possible,in an effort to mitigate the impacts of the additional pre-construction support.Our Change Order No.01 compensated us up to and including August 31,2010,however,the Contractor did not complete the field work until October 31,2010,and there remain continued administrative close-out activities and a small amount of field work to be completed by the end of November.In order to complete the remaining activities and recover costs from September 1,2010 through completion and final deliverables please process a Contract Change Order for the following: I I , Task 1 -Construction Inspection -James Bassett Task 2 -Construction Management -Wayne Papac Task 2 -Construction Management -Douglas Cook Task 2 -Construction Management -Ellen Buensuceso Task 3 -ODC's 339 hrs @ $145/hr =$49,155.00 5 hrs @ $180/hr =$900.00 232 hrs @ $160/hr =$37,120.00 132 hrs @ $75/hr =$9,900.00 2 mo @$2,000.00 =$4,000.00=========== $101,075.00 PLANNING •DESIGN •CONSTRUCTION 9755 Clairemont Mesa Boulevard.San Diego,CA 92124-1324 _858.614.5000 _Fax 858.614.5001 Offices located throughout California,Arizona &Nevada _www.RBF.com ponIedon r&t.'Yck!d papeI We respectfully request a contract FINAL amendment to add $101,075.00 to our current contract to include completion of required services. Respectfully SUbmitt~__ Wayne Papac r Vice President /Project Manager Authorized Officer CONSULTING PLANNING •DESIGN •CONSTRUCTION Quality Assurance Approval Sheet Subject:Change Order No.2 to the Construction Management Services Contract with RBF Consulting for the 36-lnch Pipeline,SDCWA Otay FCF No.14 to the Regulatory Site Project Project No.:P2009-001102 Document Description:Staff Report for January 5,2011 Board Meeting. Author:br1¥hr tI/UJ!'O Date / Ron Ripperger Printed Name QA Reviewer:~1(/"'10 10 Date I Gary Silverman Printed Name Manager:~~o~\~\~\ \0 Signature Date Rod Posada Printed Name The above signatures attest that the attached document has been reviewed and to the best of their ability the signers verify that it meets the District quality standard by clearly and concisely conveying the intended information;being grammatically correct and free of formatting and typographical errors;accurately presenting calculated values and numerical references;and being internally consistent,legible,and uniform in its presentation style. AGENDA ITEM 8 STAFF REPORT 5DIV. NO. P2009- 001103 January 5,2011 PROJECT I SUBPROJECT: MEETING DATE:Regular Board Ron Ripperger ~ Engineering Manager Rod posad~~ Chief,Engineering Manny Magafia)il~ Assistant ~;~~~a~Janager,Engineering and Operations Credit Change Order No.3 to the Construction Contract with CCL Contracting Inc.for the Jamacha Road 36-Inch Potable Water Pipeline and 12-Inch Potable Water Pipeline Replacement Projects APPROVED BY: (Asst GM): APPROVED BY: (Chief) SUBJECT: SUBMITIED BY: TYPE MEETING: GENERAL MANAGER'S RECOMMENDATION: That the Otay Water District (District)Board of Directors (Board) approves Credit Change Order No.3 to the existing construction contract with CCL Contracting Inc.(CCL)for the Jamacha Road 36-Inch Potable Water Pipeline and 12-Inch Potable Water Pipeline Replacement Projects in the amount of <$1,474,033.22>(see Exhibit A for project location.) COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to execute Credit Change Order NO.3 (see Exhibit B)for <$1,474,033.22>to the construction contract with CCL for the Jamacha Road 36-Inch Potable Water Pipeline and 12-Inch Potable Water Pipeline Replacement Projects. ANALYSIS: At the June 3,2009 Board Meeting,CCL was awarded a construction contract for the 36-Inch Pipeline Project in the amount of $16,189,243.Project construction began in July 2009 and was completed in November 2010. On January 6,2010 the Board approved Credit Change Order No.1 which provided for a change in installation methods of the 36-inch pipe under an existing riparian area within the southeasterly portion of Cuyamaca College due to differing site conditions.The original Bid Item No.7 in the contract for P2009 included $936,434 for a traditional tunnel operation.Change Order No.1 modified this item to a jack and bore operation for a revised cost of $692,587 resulting in a net change of <$243,847>. On July 7,2010 the Board approved Credit Change Order No.2 which provided for a variety of items including an increase in costs due to revising the location of airvac assemblies,removal of rocks and boulders encountered during the jack &bore operation within Cuyamaca College,and changing the specified spacers within the steel casing to redwood skids.In addition,the pipeline had to be realigned during construction due to conflicts with the new 12-inch pipe.This change order also included deletion of an allowance item for installation of a sound wall within Cuyamaca College of ($200,000). The total cost for all the additive items was $136,852.Including the credit for the sound wall allowance,Credit Change Order No.2 provided a net reimbursement amount to the District of <$63,418.11>. Credit Change Order No.3 is the final change order for the project essentially closing out the contract with CCL.This change order includes twenty-two (22)separate items consisting of one increase (Item No.21)and twenty-one (21)deductions to the contract amount. In addition,Credit Change Order No.3 extends the contract duration by fifty-three (53)days. Item No.21,valued at $11,575.20,provides for the addition of a sample pump and associated mechanical and electrical work at Vault No.7 at the Regulatory Site.The remaining twenty-one (21)items provide credits for various items such as reduced quantity of rock removal,dewatering to the storm drain,disposal of Class II regulated waste,reduced quantity of sewer lateral reconstruction, and other miscellaneous allowances added to the contract based on an independent risk analysis.The deductive items also include a credit back for allowances such as unknown utilities and paving.Exhibit B provides all the detail for this change. FISCAL IMPACT: Funding for the overall pipeline installation. by <$1,474,033.22>. project comes from CIP P2009,the 36-Inch This Credit Change Order reduces the contract 2 The total budget for CIP P2009,as approved in the FY 2011 budget,is $21,000,000.Total expenditures,plus outstanding commitments and forecast including this Credit Change Order,are $19,522,797.See Attachment B for budget detail. The Project Manager anticipates that,based on the attached financial analysis,the CIP budget for P2009 will be sufficient to support this project. Finance has determined that 40%of the funding is available from the Expansion Fund and 60%of the funding is available from the Betterment Fund for CIP P2009. SRATEGIC GOAL: This project supports the District's Mission statement,"To provide the best quality of water and wastewater service to the customers of the Otay Water District,in a professional,effective,and efficient manner."This project fulfills two of the District's Strategic Goals,No.1 -Community and Governance and No.5 -Potable Water,by maintaining proactive and productive relationships with the project stakeholders and by guaranteeing that the District will provide for current and future water needs. LEGAL IMPACT: General Manager P:\WORKING\CIP P2009 36-inch PL -FCF 14 to Reg Site\Staff Reports\BD 01-05-11 ,Staff Report,CCL CO#3, (RR-RP).doc RR/RP:jf Attachments:Attachment A -Committee Action Attachment B -Budget Detail Exhibit A -Project Location Map Exhibit B -Credit Change Order No.3 3 P2009-001103 C::111:l I II=('T ATTACHMENT A Credit Change Order No.3 to the Construction Contract with CCL Contracting Inc.for the Jamacha Road 36-Inch Potable Water Pipeline and 12-Inch Potable Water Pipeline Replacement Projects COMMITTEE ACTION: The Engineering,Operations,and Water Resources this item at a meeting held on December 7,2010. supported Staff's recommendation. NOTE: Committee reviewed The Committee The "Committee Action"is written in anticipation of the Committee moving the item forward for Board approval.This report will be sent to the Board as a Committee approved item,or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. ATTACHMENT B ... DateUpdated:November 05,2010OIayWaterDistrict P2OO9 -36-lnchPlpeIine from SDCWAOtlrlFCFNo_14 to the RegulatorySite ...........................!_~..~. SUSJ"EcTipROJECT:'j Credit Change Order N~:3'-'to theC~~~t~ucti'~~'Contractwith I CCL Contracting Inc.for the Jamacha Road 36-Inch Potable P2009-00ll03 i Water Pipeline and l2-Inch Potable Water Pipeline I Replacement Projectsi , !..~. Outstanding ProjeclBdFinalBUdgetCommitfBdExpBndituf9SCommitment&Vendor/Comments 21.000.000 CostForocasl Planning Labor 285.782 285.782 285.782 Printing 993 993 -993 OCB REPROGRAPHICS 596 596 -596 MAIL MANAGEMENT GROUP INC BusinessMeetings 110 110 -110 PETTY CASH CUSTODIAN 84 84 84 USBANK CORPORATE PAYMENT Postage 341 341 341 USPOSTMASTER Professional Legal Fees 5,595 5,595 -5.595 BURKE WILLIAMS &SORENSEN LLP 187,474 187,474 -187,474 GARCIA CALDERON &RUIZ LLP cnherLegalExpenses 4,948 4,948 -4,948 GARCIA CALDERON &RUIZ LLP (10,290)(10,290)-(10,290)WOODRUFF,SPRADLIN&SMART Regulatory Agency Fees 1,927 1,927 1,927 COUNTY OF SAN DIEGO 100 100 100 US FISH &WILDLIFE SERVICE Consultant Contracts 1,080,288 1,080,288 1,080,288 INFRASTRUCTURE ENGINEERING 25,684 25.684 ·25,684 JONES &STOKES ASSOCIATES INC 1,100 1,100 -1,100 SOUTHWESTERN COLLEGE(Co"C) Service Contracts 398 398 -398 UNIONTRIBUNE PUBLISHINGCO 957 957 -957 SAN DIEGO DAILY TRANSCRIPT 350 350 -350 RYAN BETHKE 705 705 ·705 OLLI BROS Total Planning 1,587,141 1,587,142 -1.587,142 Design Labor 691,627 691,627 691,627 Mileage Reimbursement 69 69 -69 PETTYCASH CUSTODIAN Meals and Incidentals 63 63 -63 PETTY CASH CUSTODIAN BusinessMeetings 46 46 -46 PETTYCASH CUSTODIAN 215 215 -215 US BANK CORPORATE PAYMENT Professional Legal Fees 67,883 67,883 ·67,883 STEPHENV MCCUEESa 79,098 79,098 -79,098 GARCIA CALDERON &RUIZ LLP 153 153 153 RWBECK cnherLegalExpenses 5,581 5,581 -5,581 GARCIA CALDERON &RUIZ LLP 17,071 17.071 -17.071 RWBECK 1,671 1,671 ·1,671 SHELBURNE-SHERR COURT Regulatory Agency Fees 271 271 -271 COUNTY OF SAN DIEGO-DPW cnher Agency Fees 12.830 12,830 -12,830 CITY OF EL CAJON Consultant Contracts 99 99 -99 PETTY CASH CUSTODIAN 2,915 2,915 -2,915 LEE &RO (As-Needed Design) 3,656 3,656 -3.656 RBF (As-Needed Drafting) 1.050 1.050 -1,050 SOUTHLAND TITLE 1,640 1,640 -1,640 CALTRANS 527,826 527,826 ·527,826 LEE&ROINC 61,629 61.629 -61,629 C.O,#l 13,440 13,440 -13,440 SWINERTON MANAGEMENT 4,744 4,744 -4,744 WRA&ASSOCIATES INC 41,513 41,513 -41,513 SOUTHERN CALIFORNIA SOIL 36,750 36,750 -36,750 MWH CONSTRUCTORS INC 4,900 4,900 -4,900 KENDAROIS Miscellaneous Contracts 87 87 -87 SAN DIEGO DAILYTRANSCRIPT 93,000 93,000 -93,000 SAN DIEGO COUNTYWATER 107,138 101,801 5,337 107,138 HARRIS &ASSOCIATES INC 28 28 -28 SAN DIEGO COUNTY 5,700 5,700 -5,700 BELLATERRAHOA 700 700 -700 SUZETIE C SWANGER 3,000 3,000 -3,000 RAYMOND KEITH HANNA 229,800 229,800 -229,800 GROSSMONT-CUYAMACA COMMUNITY Service Contracts 7,500 7,500 -7,500 KEAGY REAL ESTATE 91 91 -91 SAN DIEGO DAILY TRANSCRIPT 244 244 -244 UNION TRIBUNE PUBLISHINGCO 349 349 -349 MCGRAW-HILL COMPANIES 6,912 6,912 -6,912 REPROHAUS CORP Special Projects 48 48 -48 SEDONA STAFFING SERVICES Total Design 2,031,334 2,025,996 5,337 2,031,334 Construction Labor 325,000 288,181 36,819 325,000 Mileage Reimbursement 119 119 -119 PETIYCASH CUSTODIAN Meals and Incidentais 83 83 -83 PETIYCASH CUSTODIAN Business Meetings 150 150 -150 US BANKCORPORATE PAYMENT Postage 1,606 1,606 -1,606 US POSTMASTER Printing 2,814 1,139 1,675 2,814 MAIL MANAGEMENT GROUP INC 141 141 -141 US BANK CORPORATE PAYMENT Regulatory Agency Fees 17,375 17,375 -17,375 SAN DIEGO COUNTY WATER 11,641 11,641 -11,641 CITY OF EL CAJON 88,279 5,100 83,178 88,279 HELIXWATER DISTRICT Other Agency Fees 1,172 1,172 -1,172 HELIX WATER DISTRICT 68,725 -68,725 68,725 HELIX WATER DISTRICT 9,625 9,625 -9,625 CITY OF EL CAJON Consultant Contracts 1,088,785 1,088,785 -1,088,785 RBF CONSULTING (CM) 46,995 46,995 -46,995 C.O.#1 101,075 77,534 23,541 101,075 C.O.#2 13,128 13,128 -13,128 SOUTHERN CALIFORNIASOIL 30,000 29,171 829 30,000 MARSTON+MARSTONINC 52,357 34,865 17,492 52,357 LEE &RO INC (Constr.Phase Services) 252 252 -252 SAN DIEGO NEIGHBORHOOD Construction Contracts 527,000 527,000 -527,000 SAN DIEGO COUNTYWATER 12,869 12,869 -12,869 SOUTHERN CALIFORNIA SOIL 27,850 27,850 -27,850 HELIXWATER DISTRICT 13,680,525 12,439,647 1,240,678 13,680,525 CCL CONTRACTING (243,647)(243,847)-(243,847)C.O.#1 (63,418) (63,418)-(63,418)C.O.#2 (1,474,033)-(1,474,033)(1,474,033)C.O.#3 1,485,918 1,233,364 252,554 1,485,918 CALIFORNIABANK &TRUST 49,901 49,901 -49,901 COUNTY OF SAN DIEGO -DPW 5,998 5,998 -5,998 CLARKSON LAB &SUPPLY INC ----HARRIS &ASSOCIATES INC Professional Legal Fees 83 83 -83 GARCIA CALDERON &RUIZ LLP Service Contracts 1,311 1,311 -1,311 UNION TRIBUNE PUBLISHING CO 266 266 -266 MCGRAW-HILL COMPANIES 450 450 -450 REEL 'EM IN INC 252 252 -252 SAN DIEGO NEIGHBORHOODNEWS 1,769 1,769 -1,769 MAIL MANAGEMENT GROUP INC 121 121 -121 SO DAILY TRANSCRIPT Infrastructure EqUipment&MatE 16,375 1,626 14,750 16,375 MESA LABORATORIES INC Backfill 14,000 14,000 -14,000 TC CONSTRUCTION INC InlineValve 1,609 1,609 -1,609 FERGUSON WATERWORKS #1082 Total Construction 15,904,322 15,638,114 266,208 15,904,322 Grand Total 19,522,797 19,251,252 271,545 19,522,797 '"Mission Boy ~ '"'".. >: OTAYWATER DISTRICT PIPELINE 36-INCH, SDCWA FCF NO.14 TO REGULATORY SITE EXHIBIT A CIPP2009 REF.CIP No.:P20091 P2038 REF.W.O.No.:DATE:11/03/2010 EXHIBIT B OTAY WATER DISTRICT 2554 SWEETWATERSPRINGS BLVD.,SPRING VALLEY,CA.91978,(619)670-2222 CONTRACT/P.0.CHANGE ORDER No.3 PROJECTIITEM:Jamacha Rd 36-lnch Potable Water Pipeline and 12-lnch Potable Water Pipeline Replacement Project CONTRACTORNENDOR:CCl Contracting APPROVED BY:Board REF.P.O.No:710770 DESCRIPTION: See attached page 2 of 5 forcontinuation. REASON: See attached page 4 of5 for continuation. CHANGE P.O.TO READ: Revise Contract to deduct $1,474,033.22 and add 53 days time for a total Contract amount of $14,407,944.27 with a Contract Duration of 493 Calendar Days. ORIGINAL CONTRACT/P.O.AMOUNT: ADJUSTED AMOUNT FROM PREVIOUS CHANGE: TOTAL COST OF THIS CHANGE ORDER: NEW CONTRACT/P.O.AMOUNT IS: ORIGINAL CONTRACT COMPLETION DATE: CONTRACT/P.0.TIME AFFECTED BY THIS CHANGE: CONTRACT COMPLETION DATE: $ $ $ $ 16,189,243.00 15,881,977.49 (1,474,033.22) 14,407,944.27 Aug 4,2010 53 days Oct 15,2010 IT IS UNDERSTOOD WITH THE FOLLOWING APPROVALS,THAT THE CONTRACTORNENDOR IS AUTHORIZED AND DIRECTED TO MAKE THE HEREIN DESCRIBED CHANGES.IT IS ALSO AGREED THAT THE TOTAL COST FOR THIS CHANGE ORDER CONSTITUTES FULL AND COMPLETE COMPENSATION FOR OBLIGATIONS REQUIRED BY THE CONTRACT/P.O.ALL OTHER PROVISIONS AND REQUIREMENTS OF THE CONTRACT/P.O.REMAIN IN FULL FORCE AND EFFECT. CONTRACTORNENDOR: TITLE tfR~::r= ADDRESS:CCl Contracting DATE: ::::::Pk;l _ DIV.MGR:_ CHIEF:_ DATE:Mo DATE:_ DATE:_ 1938Don Lee Place,Escondido,CA 92029 ASSISTG.M.:_ DISTRICT APPROVAL: DATE:_ GEN.MANAGER:DATE:.___ COPIES:0 FILE (Olig.),0 CONTRACTORNENDOR,0 CHIEF.•ENGINEER1NG.,0 ASST CHIEF.·FINANCE 0 ENGR.MGR.o ACCTS PAYABLE 0 INSPECTION 0 PROJ MGR 0 ENGR. SECRETARY 0 PURCHASING H:\I'DATAI25103069'('M Files\Changes\Changc Orders\CO 03-final -C10S<:OUI.d,)c Contract /P,O.Change Order NO.3 Description of Work Description Item NO.1: This Change Order decreases the amount allocated for Bid Item 22,Rock Removal by $133,332.00 to a new authorized amount of $116,268.00.(Delete 4,166.63 CY at $32 /CY) Item No,2: This Change Order decreases the amount allocated for Bid Item 23, Dewatering to Sewer System by $40,000.00 to a new authorized amount of $0.00.(Delete 5,000 LF at $8 /LF) Item NO.3: This Change Order decreases the amount allocated for Bid Item 24, Dewatering to Storm Drain by $14,364.00 to a new authorized amount of $12,636.00.(Delete 1,404 LF at $9 /LF) Item NO.4: This Change Order decreases the amount allocated for Bid Item 26, Unsuitable Soils by $36,000.00 to a new authorized amount of $0.00.(Delete 800 CY at $45 /CY) Item NO.5: This Change Order decreases the amount allocated for Bid Item 27, Regulatory Site Sample Line Allowance by $7,651.24 to a new authorized amount of $2,348.76. Item NO.6: This Change Order decreases the amount allocated for Bid Item 28,Disposal of Class I Regulated Waste Material by $25,000.00 to a new authorized amount of $0.00.(Delete 50 TON at $500 / TON) Item No.7: This Change Order decreases the amount allocated for Bid Item 29,Disposal of Class II Regulated Waste Material by $30,000.00 to a new authorized amount of $0.00,(Delete 100 TON at $300 / TON) Item NO.8: This Change Order decreases the amount allocated for Bid Item 30,Disposal of Class III Regulated Waste Material by $20,000.00 to a new authorized amount of $0.00.(Delete 200 TON at $100 /TON) Item NO.9: This Change Order decreases the amount allocated for Bid Item 31,Additional Potholing -Utilities No Shown on Drawings by $98,700.00 to a new authorized amount of $6,300.00.(Delete 141 EA at $700 /EA) Item No.10: This Change Order decreases the amount allocated for Bid Item 32, Relocate/Reconstruct Sewer Laterals by $84,000.00 to a new authorized amount of $0.00.(Delete 70 EA at $1,200/EA) Item No.11: This Change Order decreases the amount allocated for Bid Item 33, Relocate/Reconstruct Water Laterals by $16,000.00 to a new authorized amount of $0.00.(Delete 40 EA at $400 /EA) Item No.12: This Change Order decreases the amount allocated for Bid Item 34, Relocation of Pipeline Construction Operation by $84,000.00 to a new authorized amount of $0.00.(Delete 12 EA at $12,000 /EA) H:IPDATAI251 030691CM FileslChangeslChange OrderslCO 03 -Final -Closeout.doc Increase page 2 of 5 Decrease $133,332,00 $40,000.00 $14,364.00 $36,000.00 $7,651.24 $25,000.00 $30,000.00 $20,000.00 $98,700.00 $84,000.00 $16,000,00 $84,000.00 o o o o o o o o o o o o Contract /P.O.Change Order No.3 Item No.13: This Change Order decreases the amount allocated for Bid Item 35,Utility Under Crossings Not Identified on the Plans Greater Than 4-inches in Diameter by $25,000.00 to a new authorized amount of $0.00.(Delete 100 EA at $250/EA) Item No.14: This Change Order decreases the amount allocated for Bid Item 37,Unknown or Unidentified Utilities Allowance by $291,883.77 to a new authorized amount of $208,116.23. Item No.15: This Change Order decreases the amount allocated for Bid Item 38,SDCWA Periodic Shutdowns by $50,000.00 to a new authorized amount of $0.00. (Delete 10 Day at $5,000 /Day) Item No.16: This Change Order decreases the amount allocated for Bid Item 39,Grove Road Pipeline (Caltrans Portion)Allowance by $50,000.00 to a new authorized amount of $0.00. Item No.17: This Change Order decreases the amount allocated for Bid Item 40,Agency Inspection and Permit Fees Allowance by $162,307.00 to a new authorized amount of$37,693.00. Item No.18: This Change Order decreases the amount allocated for Bid Item 41,Additional Mandatory Night Shift Operations by $100,000.00 to a new authorized amount of$0.00.(Delete 40 Shifts at $2,500 /Shift) Item No.19: This Change Order decreases the amount allocated for Bid Item 42, Mobilization and Demobilization of Dewatering Water Treatment System Allowance by $100,000.00 to a new authorized amount of $0.00. Item No.20: This Change Order decreases the amount allocated for Bid Item 43,Additional Paving Allowance by $62,915.88 to a new authorized amount of $37,084.12. Item No.21: This Change Order provides for addition of a sample pump and associated mechanical and electrical work at Vault 7. Item No.22: This Change Order provides for reimbursement for District costs of additional test/flushing water and bacteriological sampling costs pursuant to Section 15041 of the Contract. $11,575.20 page 3 of 5 $25,000.00 $291,883.77 $50,000.00 $50,000.00 $162,307.00 $100,000.00 $100,000.00 $62,915.88 $54,454.53 o o o o o o o o 53 Sub Total Amount $11,575.20 $1,485,608.42 53 Total Net Change Order Amount ($1,474,033.22) Revisions to:BID SCHEDULE ..... l1pif.........\.i <·i •••Rrigsi \}.lI.D'l()YBt 22 Rock Removal 3,633.37 CY $32.00 $116,268.00 23 Dewatering to Sewer System 0 LF $8.00 $0.00 24 Dewatering to Storm Drain 1,404 LF $9.00 $12,636.00 26 Unsuitable Soils 0 CY $45.00 $0.00 27 RegUlatory Site Sample Line Allowance 1 LS LS $2,348.76 28 Disposal of Class I Regulated Waste Material 0 CY $500.00 $0.00 H:IPDATAI25103069ICM FileslChangeslChange OrderslCO 03 -Final-Closeout.doc Contract /P.O.Change Order NO.3 page 4 of5 29 Disposal of Class II Regulated Waste Material 0 CY $300.00 $0.00 30 Disposal of Class III Regulated Waste Material 0 CY $100.00 $0.00 31 Additional Potholing -Utilities Not Shown on Drawings 9 EA $700.00 $6,300.00 32 Relocate/Reconstruct Sewer Laterals 0 EA $1,200.00 $0.00 33 Relocate/Reconstruct Water Laterals 0 EA $400.00 $0.00 34 Relocation of Pipeline Construction Operation 0 EA $12,000.00 $0.00 35 Utility Under Crossings Not Identified on the Plans Greater Than 0 EA $250.00 $0.004-inches in Diameter 37 Unknown or Unidentified Utilities Allowance 1 LS LS $208,116.23 38 SDCWA Periodic Shutdowns 0 Day $5,000.00 $0.00 39 Grove Road Pipeline (Caltrans Portion)1 LS LS $0.00 40 Agency Inspection and Permit Fees 1 LS LS $37,693.00 41 Additional Mandatory Night Shift Operations 0 Shifts $2,500.00 $0.00 42 Mobilization and Demobilization of Dewatering Water Treatment 1 LS LS $0.00System 43 Additional Paving 1 LS LS $37,084.12 Reason: Item No.1: The Contract Bid Item No.22,Rock Removal,quantity required a decrease due to field conditions. Item NO.2: The Contract Bid Item No.23,Dewatering to Sewer System,quantity required a decrease due to field conditions. Item NO.3: The Contract Bid Item No.24,Dewatering to Storm Drain,quantity required a decrease due to field conditions. Item NO.4: The Contract Bid Item No.26,Unsuitable Soils,quantity required a decrease due to field conditions. Item No.5: The Contract Allowance Bid Item,Item No.27,Regulatory Site Sample Line Allowance,was utilized to the maximum practical extent in the performance of the contract work and is no longer required. Item NO.6: The Contract Bid Item No.28,Disposal of Class I Regulated Waste Material,quantity required a decrease due to field conditions. Item No.7: The Contract Bid Item No.29,Disposal of Class II Regulated Waste Material,quantity required a decrease due to field conditions. Item NO.8: The Contract Bid Item No.30,Disposal of Class III Regulated Waste Material,quantity required a decrease due to field conditions. Item No,9: The Contract Bid Item No.31,Additional Potholing -Utilities Not Shown on Drawings,quantity required a decrease due to field conditions. Item No.10: The Contract Bid Item No.32,Relocate/Reconstruct Sewer Laterals,quantity required a decrease due to field conditions. Item No,11: The Contract Bid Item No,33,Relocate/Reconstruct Water Laterals,quantity required a decrease due to field conditions. H:IPDATAI25103069ICM FileslChangeslChange OrderslCO 03 -Final-Closeout.doc Contract /P.O.Change Order NO.3 page 5 of 5 Item No.12: The Contract Bid Item No.34,Relocation of Pipeline Construction Operation,quantity required a decrease due to field conditions. Item No.13: The Contract Bid Item No.35,Utility Under Crossings Not Identified on the Plans Greater Than 4-inches in Diameter,quantity required a decrease due to field conditions. Item No.14: The Contract Bid Item No.37,Unknown or Unidentified Utilities Allowance,was utilized to the maximum practical extent in the performance of the contract work and is no longer required. Item No.15: The Contract Bid Item No.38,SDCWA Periodic Shutdowns,quantity required a decrease due to field conditions. Item No.16: The Contract Bid Item No.39,Grove Road Pipeline (Caltrans Portion)Allowance,was utilized to the maximum practical extent in the performance of the contract work and is no longer required. Item No.17: The Contract Bid Item No.40,Agency Inspection and Permit Fees Allowance,was utilized to the maximum practical extent in the performance of the contract work and is no longer required. Item No.18: The Contract Bid Item No.41,Additional Mandatory Night Shift Operations,quantity required a decrease due to field conditions. Item No.19: The Contract Bid Item No.42,Mobilization and Demobilization of Dewatering Water Treatment System Allowance,was utilized to the maximum practical extent in the performance of the contract work and is no longer required. Item No.20: The Contract Bid Item No.43,Additional Paving Allowance,was utilized to the maximum practical extent in the performance of the contract work and is no longer required. Item No.21: Incorporation of the Sample Line downstream of the static mixer at Vault 7 installed as part of this project necessitated the need for an additional sample pump to allow for monitoring of the effectiveness of the new static mixer.This change is necessary to incorporate the needed additional sample pump and associated piping and electrical modifications at Vault 7. Item No.22: The Contractor did not pass bacteriological testing by the second set of tests.Section 15041-3.6 of the Contract states re- disinfection and re-testing beyond the second set of samples shall be at the Contractor's expense.The District incurred costs for additional flushing/test water from SDCWA and Helix Water District in addition to charges for additional bacteriological tests.This change is necessary to allow the District to recover the additional expenditures incurred. H:\PDATA\25103069\CM Files\Changes\Change Orders\CO 03 -Final -Closeout.doc CHANGE ORDER LOG Jamacha Rd 36-inch Potable Water Pipeline and 12-lnch Potable Water Pipeline Replacement CCl Contracting P20091P2038 PO NO.710770 APPROVED C.O.AMOUNT BY DATE DESCRIPTION TYPE C.O. 1 ($243,847.40)Board 1/6/2010 Differing Site Condition at Tunnel·Change Tunnel to Jack &Differing Site ConditionBoreOperation Rock Encountered in Jack&Bore,Change Casing Spacer Differing Site Condition 2 ($63,418.11)Board 7/7/2010 Detail,Conflicting Waterline,Change Manway Detail,Rain Days,and Owner Program Delete Soundwall Allowance Time associated with field Chanae Modifications to Vault?at the Regulatory Site,Credit for excess Differing SiteCondition 3 ($1,474,033.22)Board test water and bacteriological testing and closeout ofremaining and Owner Program unsed bid items.Chanae 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 ;10 Total C.O.'s To Date: Original Contract Amount: Current Contract Amount: Change Order Breakdown for the Month: Month Net C.O.$Limit Authorization 11/10 $1,000 Insp $5,000 PM/Supervisor $10,000 Manager $15,000 Chief $20,000 AGM $50,000 GM ($1.781,298,73) $16,189,243.00 $14,407,944.27 -11.0% C.O.% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Quality Assurance Approval Sheet Subject:Credit Change Order NO.3 to the Construction Contract with CCl Contracting Inc.for the Jamacha Road 36-lnch Potable Water Pipeline and 12-lnch Potable Water Pipeline Replacement Projects Project No.:P2009-001103 Document Description:Staff Report for January 5,2011 Board Meeting Author: QA Reviewer: Manager: &ure~--- Ron Ripperger Printed Name Signature Rod Posada Printed Name 11-'$O-to Date f(~~O -(IJ Date Date The above signatures attest that the attached document has been reviewed and to the best oftheir ability the signers verify that it meets the District quality standard by clearly and concisely conveying the intended information;being grammatically correct and free of formatting and typographical errors;accurately presenting calculated values and numerical references;and being internally consistent,legible,and uniform in its presentation style. AGENDA ITEM 9 STAFF REPORT January 5,2011TYPEMEETING: SUBMITTED BY: Regular Board Gary Silverman/J?~ Senior Civil ~ineer MEETING DATE: PROJECT/ SUBPROJECT: P2434- 001101 DIV. NO. 2,4 APPROVED BY: (Chief) APPROVED BY: (Asst.GM): SUBJECT: Ron Ripperger ~ Engineering Manager Rod posada~~ Chief,Engineering Manny Magafia~ Assistant General ()pnager,Engineering and Operations Authorization to Issue a RFP for the Design of Phase 2 of the Rancho del Rey Well Project GENERAL MANAGER'S RECOMMENDATION: That the Otay Water District (District)Board of Directors (Board) authorize staff to proceed with issuing a RFP for Phase 2 of the Rancho del Rey Well Project,which would include equipping the well and designing a wellhead treatment facility (see Exhibit A for project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for staff to proceed with issuing a RFP for Phase 2 of the Rancho del Rey Well Project,which would include equipping the well and designing a wellhead treatment facility. ANALYSIS: In 1997,the District purchased an existing 7-inch well and the surrounding property on Rancho del Rey Parkway (see Exhibit A)from the McMillin Company with the intent to develop it as a source of potable water.A prior study had shown that groundwater in that location would support long-term pumping of about 390 gpm,but would require a larger well to achieve that flow.It was also known that treatment would be required to remove salts and boron,among other constituents,using reverse osmosis (RO)membranes and perhaps ion exchange. In 2000,having received proposals for the design and construction of an RO treatment facility that far exceeded the allocated budget, the Board of Directors instructed staff to suspend the project until such tim~as it became economically viable. In 2009,given the rising cost of imported water and the District's interest in securing its own water source for long-term supply reliability,the project was revisited.Local ground water supply projects will allow for less reliance upon imported water,achieve a level of independence from regional wholesale water agencies,and diversify the District's water supply portfolio consistent with the District's March 2007 Integrated Water Resources Plan.Toward this end,in January 2010,the Board authorized Phase 1 of the project, the drilling and development of the Rancho del Rey Well. A new 12-inch production well was drilled 900-feet through the groundwater formation and into fractured bedrock below.It was screened with slotted,wire-wrapped stainless steel in multiple intervals to maximize production.Testing completed in September 2010,showed the long-term yield of the new well to be 450 gpm, higher than previous studies had estimated. Before proceeding with equipping the well and installing wellhead treatment,staff contracted with Separation Processes,Inc.(SPI),a well-known membrane treatment firm,to conduct a detailed economic analysis.The purpose of the study was to confirm that the annualized unit cost of the new water source was economically viable.SPI,in their November 2010 study,estimated the unit cost of water to be $1,510 per acre foot for the alternative that utilizes a seawater membrane for treating both salts and boron.The price includes all spent,committed,and projected future capital expenditures associated with the well project amortized over a 30- year useful life,plus anticipated annual operations and maintenance costs during that period.The Executive Summary of the SPI study is provided as Exhibit B. When compared with the current imported treated water rate from San Diego County Water Authority (CWA),and with the knowledge that this rate will continually increase as Metropolitan Water District (MWD) and CWA raise their rates,the Rancho del Rey Well project appears to be economically viable.Exhibit C is a graph that compares the 2 CWA rate,which is projected to increase by about 10 percent per year each of the next 5 years,to the annualized cost of the Rancho del Rey Well,which can be expected to increase by about 2 percent per year over the same 5 year period.The graph shows that the well becomes the less costly source of water by FY 2014.Therefore, staff recommends that the Board authorize the issuance of a RFP to begin Phase 2 of this project. In conjunction with the economic feasibility study,staff contracted with a local architect to prepare renderings of the proposed new treatment facility to show how it would fit on the site and be compatible with the neighborhood.The renderings were prepared based on a preliminary footprint layout prepared by SPI.The renderings and the layout are provided as Exhibit D and will also be presented via PowerPoint. FISCAL IMPACT: The total budget for CIP P2434,as approved in the FY 2011 budget, is $4,250,000.Total expenditures,plus outstanding commitments and forecast,is $2,550,223.See Attachment B for budget detail. Based on the $3.5 million Phase 2 capital expenditure estimate in the SPI Study,the Project Manager has determined that the existing CIP budget will be insufficient to support the project once it is better defined through the design process.An anticipated supplemental funding of approximately $2.0 million will be requested as part of the FY 2012 CIP budget. With the shifting of certain CIP's into later years,Finance has determined that 40%of the funding is available from the Expansion Fund and 60%of the funding is available from the Betterment Fund. STRATEGIC GOAL: This project supports the District's Mission statement,"To provide the best quality of water and wastewater services to the customers of Otay Water District,in a professional,effective,and efficient manner./I This project fulfills the District's Strategic Goals No.1 -Community and Governance,and No.5 -Potable Water,by maintaining proactive and productive relationships with the project stakeholders and by guaranteeing that the District will provide for current and future water needs. LEGAL IMPACT: None. 3 P:\~IORKING\CIP P2434\Staff Reports\BD 01-05-11,Staff Report,Phase 2 or the Rancho del Rey,(GS-RRJ .doc GS/RR:jf Attachments:Attachment A -Committee Action Attachment B -Budget Detail Exhibit A -Location Map Exhibit B -SPI Study Executive Summary Exhibit C -CWA vs.RDR Well Unit Cost Comparison Exhibit D -PowerPoint Presentation of Architectural Renderings and Building Layout 4 P2434-001101 ~111:I I -IEeT: ATTACHMENT A Authorization to Issue a RFP for the Design of Phase 2 of the Rancho del Rey Well Project COMMITTEE ACTION: The Engineering,Operations,and Water Resources this item at a meeting held on December 7,2010. supported Staff's recommendation. NOTE: Committee reviewed The Committee The "Committee Action"is written in anticipation of the Committee moving the item forward for Board approval.This report will be sent to the Board as a Committee approved item,or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. P2434-001101 C ICI ,~JECT: ATTACHMENT B Authorization to Issue a RFP for the Design of Phase 2 of the Rancho del Rey Well Project Date Updated:November 29,2010 Ou/stending ProjectadFina/Budget Commillad Expenditures Commilment&Vendor/Comments 4,250,000 CostForecast Planning Labor 308,719 308,719 308,719 Land 326,092 326,092 326,092 Permits 125 125 125 CITY OF CHULAVISTA-DEPT.OF Materials 1,348 1,348 1,348 VARIOUS Rental 159 159 159 PENHALL COMPANY Construction Costs 26,154 26,154 26,154 CHILDTIME CHILDCARE,INC. Professional Legal Fees 4,829 4,829 4,829 GARCIA CALDERON &RUIZ LLP ConsultantContracts 19,481 19,481 19,481 JONES &STOKESASSOCIATES INC 13,825 13,825 13,825 MWH CONSTRUCTORS INC 1,100 1,100 1,100 SOUTHWESTERN COLLEGE 3,065 3,065 3,065 SOUTHERN CALIFORNIASOIL 15,000 15,000 15,000 SEPARATION PROCESSES INC 6,930 6,930 6,930 VALLEY CONSTRUCTION MANAGEMENT 1,561,625 330,219 AECOM TECHNICAL SERVICES INC ._~ 1,231,406 1,561,625 Change Order NO.1 176,805 176,805 176,805 AECOM TECHNICAL SERVICES INC,C.O.#1 Service Contracts 5,100 5,100 5,100 S R BRADLEY&ASSOCIATES INC 186 186 186 SAN DIEGO DAILY TRANSCRIPT 624 624 624 UNION TRIBUNE PUBLISHING CO 399 399 399 REPROHAUS CORP 440 440 440 URBINA'S MASTER SWEEPING INC 6 6 6 COUNTYOF SAN DIEGO 134 134 134 COURIER EXPRESS,INC. 205 205 -205 USASIGN CO. 3,226 3,226 -3,226 QUALITY ASSURANCE LABORATORY 7,108 7,108 7,108 MULTIWATER SYSTEMS 1,955 1,955 1,955 BARREn CONSULTING GROUP 5,665 5,665 5,665 EARTH TECH 3,344 3,344 -3,344 CITYOF CHULAVISTA 16,714 16,714 16,714 BOYLE ENGINEERINGCORPORATION 112 112 112 MONTGOMERYWATSON LABORATORIES 2,500 2,500 2,500 ANDREWA.SMITH COMPANY 2,000 2,000 2,000 ENARTEC ENGINEERING PLANNING 35,200 35,200 -35,200 ALCEM FENCECOMPANY INC. Regulatory Agency Fees 50 50 -50 PEnY CASH CUSTODIAN Total Planning 2,550,223 2,023,099 527,124 2,550,223 GrandTolal 2,550,223 2,023,099 527,124 2,550,223 o DEL REV ¥fELL o CHILD TIME CHILDCARE, INC LOT loa CHULA VISTA TRACT NO.89-5 MAP NO.12720 I NOT 1O~ l 1,....--------------.......~I / N I :::.s~~~IiiI~~I-----......------------------------...~OTAY WATER DISTRICT ~RANCHO DEL WAY PARKWAY,CHULA VISTA,CA 2 RANCHO DEL REY GROUND WATER DEVELOPMENTJOPP24346:'--....L ..........-..J EXHIBIT A EXHIBIT B OTAYWATERDIST leT RANCHO DEL REY WELLHEAD TREATMENT PROJECT FEASIBILITY STUDY Prepared By: Kevin L.Alexander,P.E. Separation Processes,Inc. 3156 Lionshead Ave.,Suite 2 Carlsbad,CA 92010 (760)400-3660 EXECUTIVE SUMMARY The Rancho del Rey Wellhead Treatment Facility (Project)will introduce a new potable water source to the Otay Water District's Central System.This project provides the District with a local source of water to augment other available sources of water,thereby increasing water supply reliability and increasing independence from regional wholesale water agencies. The original Rancho del Rey Well,drilled in 1991,had an estimated capacity of approximately 300 gpm and was drilled in a zone of fractured sandstone.The original well water quality indicated elevated levels of TDS (2,250 mg/l),boron (2.67 mg/l), chloride (l ,200 mg/l)and turbidity (2 NTU),among others. Recently,a new well was installed on the same site,and the original well was abandoned. Initial tests indicate that the new well will have a safe yield of 450 gpm.A water quality analysis performed on water from the well in September 2010 indicates that the water quality is similar to the 1991 sample.Concentrations of key constituents include TDS (2,400 mg/l),boron (2.5 mg/I),chloride (1,100 mg/l),and silica,as Si02 (17 mg/l). Turbidity was reported at 2.7 NTU and the 15 minute silt density index (SDI)was above 5.It is expected that the turbidity level and SDI will decrease with additional pumping. The final product water quality from the facility must meet the Federal and State regulatory limits.The presence of boron in the water,a constituent that is relatively difficult to treat,drives the treatment process development. This feasibility study considered various treatment alternatives as indicated in Table ES- 1.Each of the alternatives was developed to a level sufficient to understand the differences in the overall system configuration and cost to construct,operate and maintain. TABLE ES-l-Rancho del Rey Wellhead Treatment Alternatives Final Boron Boron Blend Ion Blend Reduction Stabilization Cone.,Flow, All.Membrane Exchange Source Method Method mg/I gpm Low NaOH+ 1 Pressure No CWA Blend Blend 0.8 1000 Low NaOH + 2a Pressure Yes CWA IX +Blend Blend 0.5 382 Low NaOH + 2b Pressure Yes DesaI IX Blend 0.6 400 Membrane NaOH + 3a Seawater No CWA +Blend Blend 0.5 300 NaOH+ 3b Seawater No Desai Membrane Blend 0.6 400 Page 2 FIGURE ES-l shows schematically three ofthe alternative process designs that were considered. FIGURE ES-l-Process Diagrams for Treatment Alternatives Rancl10 del RayWell -1/Product Alternative 1 Low Pressure CWAWater RO - Rancho del Ray Well 1/1 !111!:!!!lll!llr!!! Product L I Low Pressure RO -Alternative 28 Boron Select Ion Exchange Desalinated Seawater Rancho del Ray Well ,1/Product Alternative 38 SeawaterRO Desalinated Seawater Alternative 1 utilizes a low pressure reverse osmosis (RO)membrane to remove Total Dissolved Solids (TDS),however,the membrane is not capable of significant boron removal.Boron removal would be achieved by blending the RO product water with CWA water from the distribution system,which has a low boron concentration,to achieve the desired reduction.The blend also provides stabilization for protection from corrOSIOn. Alternative 2 utilizes the same low pressure RO membranes to remove TDS and adds an Ion Exchange (IX)system for removal ofboron.In this alternative,the blend stream for corrosion stabilization may come from either CWA or from a future desalination facility in Mexico,which will likely be predominant in the distribution system once on-line. Page 3 Alternative 3 utilizes seawater membranes with higher salt rejection to remove both TDS and boron all in one step.This alternative also considers stabilizing for corrosion control with water from CWA or from the proposed desalination facility.The detailed economic feasibility study considering both operating and maintenance costs and capital costs to develop an annualized unit cost ofproducing water from the Rancho del Rey Well. Table ES-2 shows a breakdown of operations and maintenance costs expressed as an annual expenditure ($/year),as well as a unit cost ($/AF)for treatment alternatives 1,2B and 3B.Alternative 3B appears to be the least costly to operate despite the high cost of power for the high pressure seawater membrane,because it pumps a smaller blend stream than in Alternative 1 and doesn't have the higher chemical costs associated with the ion exchange unit in Alternative 2B. Table ES-2 Operations and Maintenance Costs for Treatment Alternatives Alternative 1 Alternative 28 Alternative 38 O&M Item $/yr $/AF $/yr $/AF $/yr $/AF Equipment Power $229,807 $393 $190,622 $326 $227,403 $389 Miscellaneous Enerqy $6,894 $12 $5,719 $10 $6,822 $12 Chemical Costs $10,255 $18 $44,664 $76 $11,001 $19 Concentrate Disposal $67,908 $116 $75,536 $129 $67,908 $116 Operating Labor $83,220 $142 $83,220 $142 $83,220 $142 Maintenance Labor $21,900 $37 $21,900 $37 $21,900 $37 Maintenance Materials $47,461 $81 $47,387 $81 $41,461 $71 Equipment Replacement $17,135 $29 $18,535 $32 $16,670 $28 Miscellaneous $24,229 $41 $24,379 $42 $23,819 $41 Total $508,809 $869 $511,962 $875 $500,204 $855 The estimated capital costs for Alternatives 1,2 and 3 are shown In Table ES-3.The A and B variations for Alternatives 2 and 3 do not differ from a capital cost perspective,so only one is shown.The capital costs include the complete system with well pumping, treatment processes,distribution system pumping,and building to house the facility.The building is estimated conservatively at 50 ft by 80 ft with a perimeter fence and access gates,sidewalks and a small parking area in the front of the building.The building architecture matches the architecture of the adjacent child care facility.Capital costs use various sources,including budgetary quotations for major equipment and reference data from similar recent projects in California,Utah,and Arizona. Once again,Alternative 3 appears to be the least cost alternative from a capital perspective because it doesn't have the ion exchange unit ofAlternative 2 and the product water pumping equipment is smaller and,therefore,less expensive. Page 4 TABLE ES-3 Capital Costs for Treatment Alternatives Alternative Item Unit 1 2a or 2b 3a or 3b Well Pump $82,000 $82,000 $82,000 Sulfuric Acid System $23,000 $23,000 $23,000 TI System $20,000 $20,000 $20,000 Cartridge Filter -Included in RO Train $0 $0 $0 RO Membrane Train $454,000 $454,000 $454,000 CIP System $41,000 $41,000 $41,000 Ion Exchange System $0 $167,000 $0 NaOCI System $20,000 $20,000 $20,000 Aqua Ammonia System $23,000 $23,000 $23,000 Blending System $15,000 $15,000 $15,000 NaOH System $22,000 $22,000 $22,000 Finished Water Pumping &Wetwell $321,000 $281,000 $281,000 Installation 15%$153,000 $172,000 $147,000 Mechanical Total $1,174,000 $1,320,000 $1,128,000 Building,4,000 SF $150/SF $600,000 $600,000 $600,000 Subtotal $1,774,000 $1,920,000 $1,728,000 Site Work 7%$124,000 $134,000 $121,000 Building HVAC 3%$53,000 $58,000 $52,000 Plumbing 3%$53,000 $58,000 $52,000 Electrical,I&C 15%$266,000 $288,000 $259,000 Subtotal $2,270,000 $2,458,000 $2,212,000 ContingencY 20%$454,000 $492,000 $442,000 Overhead and Profit 16%$363,000 $393,000 $354,000 Enaineering 15%$341,000 $369,000 $332,000 Total $3,428,000 $3,712,000 $3,340,000 Page 5 Table ES-4 combines the capital and O&M costs and expresses them as an annualized unit costs in terms ofdollars per acre-foot ($/AF). TABLE ES-4 Alternative Annualized Unit Costs of Producing Water from the Rancho del Rey Well Description Annualized Unit Costs,$/AF Alternative l-LP RO with CWA $1,525 Alternative 2B-LP RO with IX &DesaI $1,530 Alternative 3B-HP RO with DesaI $1,510 The unit costs are FY 2011 numbers developed based on a 3D-year useful life of the facility with a discount rate of 4.5%,chemical costs from vendor quotes and other facilities,power costs based on $0.11 per kW-hr,labor for operating and maintenance, and repair and replacement.The facility is assumed to be a base load facility and will operate 95%ofthe time. Conclusion After a thorough review ofthe treatment alternatives,including the capital,operating and maintenance costs,it is recommended that the Otay Water District consider Alternative 3B as the preferred alternative.It is the least costly,would provide high quality drinking water over the life ofthe project,and would be relatively easy to operate. Page 6 2000 1900 1800 1700 1600 Ii.~1500 iR- 1400 1300 1200 1100 1000 Exhibit C Projection of CWA vs.RDR Well Unit Cost,$/AF ----~ -'"~ ~..-- -~ .//" /'-----1 i -+-CWA Rate~i II! i _RDRWell I ~__~____________________J 2011 2012 2013 Fiscal Year 2014 2015 2016 Exhibit D Preliminary Site Plan DWf:TING IHPROVEMENT IN nus A:<Etl NOT NAPi"ED Otay Water District Rancho Del ReyWeD Head Treatment System IIII\I\I\II iI \24'·itlrDE PR[VATE UTILIn'i AND INGRESS/EGF:ESS EASEMENT GRANTED TO o~n PER PARC:::L HAP NO 18510 I~E\JER c~ I\IIII IIIII u·.. , I \ I \I\ASPHALT I\I {CONG.lrAD \,...1 {; /\.,I,"''-J l \ I\I II " N/F OTAY \VATER IlISTRICT DilL 'It 97-518037 A.P:".']93-382-43 (A.:::<:I-:..~Ii{"1~/Q; ~111...J..j~ i;.!I r--I ~..J j0/I".::z~~I,:S f ""C:/ I/, ! / / I / II l! Quality Assurance Approval Sheet Subject:Authorization to Issue a RFP for the Design of the Rancho del Rey Well Project Project No.:P2434-001101 Document Description:Staff Report for January 5,2011 Board Report Author: QA Reviewer: Date Bob Kennedy Printed Name Manager: Ron Ripperger Printed Name The above signatures attest that the attached document has been reviewed and to the best of their ability the signers verify that it meets the District quality standard by clearly and concisely conveying the intended information;being grammatically correct and free of formatting and typographical errors;accurately presenting calculated values and numerical references;and being internally consistent,legible and uniform in its presentation style. AGENDA ITEM 10 STAFF REPORT MEETING DATE:January 5,2011TYPEMEETING: SUBMITIED BY: APPROVED BY: (Chief) Regular Board Bob Kennedy ~ Associate Civil Engineer Ron Ripperger ~ Engineering Manager Rod posada~~~ Chief,Engineering W.O.lG.F.No.:00790-DIV.NO.2 090070/ 090076 APPROVED BY: (Ass!.GM) SUBJECT: ngineering and Operations Approval of Water Supp y Assessment and Verification Reports (November 2010)for the Otay Ranch Village 8 West Project and for the Otay Ranch Village 9 Project GENERAL MANAGER'S RECOMMENDATION: That the Otay Water District (District)Board of Directors (Board)approve the following Water Supply Assessments and Verification Reports (WSA&V),as required by Senate Bills 610 and 221 (SB 610 and SB 221): 1.Water Supply Assessment and Verification Report dated November 2010 for the Otay Ranch Village 8 West Project development proposal (see Exhibit A for project location),and 2.Water Supply Assessment and Verification Report dated November 2010 for the Otay Ranch Village 9 Project development proposal (see Exhibit B for project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board approval of the November 2010 WSA&V for both the Otay Ranch Village 8 West Project and the Otay Ranch Village 9 Project,as required by SB 610 and SB 221. ANALYSIS: The City of Chula Vista submitted a request for a WSA&V report to the District pursuant to SB 610 and SB 221.SB 610 and SB 221 require that,upon the request of the city or county,a water purveyor,such as the District,prepare a water supply assessment and verification report to be included in the California Environmental Quality Act (CEQA)environmental documentation.These requests were received by the District on October 19,2010. SB 610 requires a city or county to evaluate whether water supplies will be sufficient to meet the projected water demand for certain "projects"that are otherwise subject to the requirement of the CEQA.SB 610 provides its own definition of "project"in Water Code Section 10912. SB 221 requires affirmative written verification from the water purveyor of the public water system that sufficient water supplies are planned to be available for certain residential subdivisions of property prior to approval of the tentative map. The requirements of SB 610 and SB 221 are addressed by the November 2010 WSA&V Reports for both projects.The WSA&V Reports were prepared by the District in consultation with Dexter Wilson Engineering,Inc.,the San Diego County Water Authority (Water Authority),and the City of Chula Vista (City) Prior to transmittal to the City,the WSA&V Reports must be approved by the Board of Directors.An additional explanation of the intent of SB 610 and SB 221 is provided in Exhibit C,the Otay Ranch Village 8 West Project WSA&V Report is provided as Exhibit 0,and the Otay Ranch Village 9 Project WSA&V Report is provided as Exhibit E. For both the Otay Ranch Village 8 West Project and the Otay Ranch Village 9 Project,the City is the responsible land use agency that requested the SB 610 and SB 221 water supply assessment and verification report from the District.The requests for the WSA&V Reports,in compliance with SB 610 and SB 221 requirements,was made by the City because both projects meet or exceed one or both of the following SB 610 and SB 221 criteria: • A proposed residential development of more than 500 dwelling units. 2 • A proposed commercial office building employing more than 1,000 persons or having more than 250,000 square feet of floor space. • A mixed-use project that includes one or more of the land uses specified in SB 610. • A project that would demand an amount of water equivalent to,or greater than,the amount of water required by a 500 dwelling unit project. The proposed development within Village 8 West consists of 2,050 mixed density residential units,retail commercial,a middle school,an elementary school,a community purpose facility, parks,and open space.The project surrounds the City of San Diego's South San Diego Reservoir,which will remain in place. See Exhibit A for the project location. The proposed developments within Village 9 Project consists of 4,000 mixed density residential units,retail commercial,an elementary school,community purpose facilities,parks,and open space.See Exhibit B for Project Location. The request for compliance with SB 221 requirements was made by the City because both projects exceed the SB 221 criteria of a proposed residential development subdivision of more than 500 dwelling units. The Village 8 West project and the Village 9 Project are included within a land use planning document known as the Otay Ranch General Development Plan/Sub-regional Plan (Otay Ranch GDP).The County of San Diego and City of Chula vista jointly prepared and adopted the Otay Ranch GDP.Both projects are located within what is defined as the Otay River Parcel of the Otay Ranch GDP.Both projects are part of the designated 14 villages and 5 planning areas within the Otay Ranch GDP area. The Chula Vista City Council and the San Diego County Board of Supervisors adopted the Otay Ranch GDP on October 28,1993, which was accompanied by a Program Environmental Impact Report EIR-90-01 (SCH #89010154).The Otay Ranch Village 8 West Project and the Otay Ranch Village 9 Project entitlement approval are dependent on the City's eventual adoption of their Sectional Planning Area Plans (SPA).The Land Offer Agreement between the City and the Otay Land Company,per document recorded April 24,2008 as document No.2008-0218696,forms the basis for the SPA entitlement densities and intensities of development for both projects. 3 Pursuant to SB 610 and SB 221,the WSA&V Reports incorporate by reference the current Urban Water Management Plans and other water resources planning documents of the District,the Water Authority,and the Metropolitan Water District of Southern California (Metropolitan).The District prepared the WSA&V Reports in consultation with Dexter Wilson Engineering,Inc., which demonstrates and documents that sufficient water supplies are planned for and are intended to be made available over a 20- year planning horizon under normal supply conditions and in single and multiple-dry years to meet the projected demand of the Otay Ranch Village 8 West Project,the Otay Ranch Village 9 Project,and other planned development projects within the District. The expected demand for the Otay Ranch Village 8 West Project is 881 acre-feet per year.As originally included in the District's Water Resources Master Plan,dated October 2008 and approved by the District on February 2010,the projected demand for this property was 734 acre-feet per year.This is an increase of 147 acre-feet per year due to the increase in development intensity.The 2009 WRMP,updated November 2010, was revised to include this increase in demand.The projected recycled water demand for the proposed project is approximately 154 acre-feet per year,representing 17 percent of the total water demand. The expected demand for the Otay Ranch Village 9 Project is 1,507 acre-feet per year.As originally included in the District's Water Resources Master Plan,the projected demand for this property was 1,312 acre-feet per year.This is an increase of 195 acre-feet per year due to the increase in development intensity.The 2009 WRMP,updated November 2010,was revised to include this increase in demand.The projected recycled water demand for the proposed project is approximately 130 acre-feet per year,representing 8 percent of the total water demand. Metropolitan's Integrated Water Resource Plan (IRP)identifies a mix of resources (imported and local)that,when implemented, will provide 100 percent reliability for full-service demands through the attainment of regional targets set for conservation, local supplies,State Water Project supplies,Colorado River supplies,groundwater banking,and water transfers. Metropolitan's 2010 update to the IRP (2010 IRP Update)includes a planning buffer supply to mitigate against the risk associated with implementation of local and imported supply programs.The planning buffer identifies an additional increment of water that could potentially be developed if other supplies are not implemented as planned.As part of the implementation of the 4 planning buffer,Metropolitan periodically evaluates supply development to ensure that the region is not under-or over- developing supplies.If managed properly,the planning buffer, along with other alternative supplies,will help to ensure the Southern California region,including San Diego County,will have adequate supplies to meet future demands. The County Water Authority Act,Section 5,Subdivision 11, states the Water Authority,"as far as practicable,shall provide each of its member agencies with adequate supplies of water to meet their expanding and increasing needs." The intent of the SB 610 and SB 221 legislation is that the land use agencies and the water agencies are coordinating their efforts in planning for new development and thus planning for sufficient water supplies to meet the needs. As per the requirements of SB 610 and SB 221,if the water supply assessment and verification finds that the supply is sufficient,then the governing body of the water supplier (District)must approve the water supply assessment and verification report and deliver it to the lead agency (City) within 90 days. Pursuant to SB 610,if the water supply assessment finds overall supplies are insufficient,the water supplier shall provide to the lead agency "its plans for acquiring additional water supplies,setting forth measures that are being undertaken to acquire and develop those water supplies,"and the water supplier governing body must approve the assessment and deliver it to the lead agency within 90 days.If the water supplier does conclude that additional water supplies are required,the water supplier should indicate the status or stage of development of the actions identified in the plans it provides. Identification of a potential future action in such plans does not by itself indicate that a decision to approve or to proceed with the action has been made. Once either of the two actions listed above are accomplished, the District's SB 610 water supply assessment responsibilities are complete. As per the requirements of SB 221,if the water supply verification finds overall supplies are insufficient -"the lead agency may bridge any gap from verification's "insufficient" determination with additional supplies not accounted for by the water supplier,based on substantial evidence and findings on record."And the water supplier governing body must approve the 5 verification and deliver it to the lead agency within the 90 days,unless a 30 day extension is granted.In bridging any sufficiency gap,whether before of after issuance of verification,the lead agency may coordinate with others to identify and secure sources of supply.The lead agency may also place a condition on the tentative map to comply with a water supply sufficiency requirement. Once the actions listed above are accomplished the District's SB 221 water supply verification responsibilities are complete. SB 610 and SB 221 provides that if the SB 610 and SB 221 water supply assessment and verification report is not received by the lead agency from the water supplier within the prescribed 90-day period,and any requested time extension,The lead agency may seek legal relief,such as writ of mandamus. Water supply agencies throughout California continue to face climatological,environmental,legal,and other challenges that impact water source supply conditions,such as the court ruling regarding the Sacramento-San Joaquin Delta issues.Challenges such as these are always present.The regional water supply agencies,the Water Authority,Metropolitan,and the District nevertheless fully intend to have sufficient,reliable supplies to serve the Otay Ranch Village 8 West Project and the Otay Ranch Village 9 Project. With the initiation of the South Bay Water Reclamation Plant (SBWRP)recycled water supply on May 18,2007,the District has reduced the annual take of potable water from the Water Authority,once used to supplement the recycled water supply shortfall,in excess of 3,200 acre-feet per year.The District is also working on several other local water supply projects that are in various stages of development.The additional demand from both the Otay Ranch Village 8 West Project and the Otay Ranch Village 9 Project estimate of an additional 342 acre- feet per year potable water demand is about 11 percent of the potable water saved with the SBWRP supply start-up. In addition,several other planned local water supply projects could provide water to the District.The Rancho del Rey Groundwater Well is expected to provide 500 to 600 acre-feet per year.The Rosarito Ocean Desalination Project is expected to provide 24,000 to 50,000 acre-feet per year.The Otay Mesa Lot 7 Groundwater Well is expected to provide 400 to 500 acre-feet per year. 6 The WSA&V Reports demonstrate that the District,the Water Authority,and Metropolitan have all developed plans and are implementing projects,programs,and/or procedures to ensure that there will be adequate supplies to serve the proposed Otay Ranch Village 8 West Project and the Otay Ranch Village 9 Project along with existing and other planned users.In addition,the supplies necessary to serve the Otay Ranch Village 8 West Project and the Otay Ranch Village 9 Project along with existing and other projected future users have been identified in the WSA&V Reports for the Projects.The actions necessary and status to develop these supplies have also been documented in the various planning documents and in the Otay Ranch Village 8 West Project WSA&V Report and the Otay Ranch Village 9 Project WSA&V Report. FISCAL IMPACT: The District has been reimbursed $8,120 for all costs associated with the preparation of the Otay Ranch Village 8 West Project WSA&V Report and the Otay Ranch Village 9 Project WSA&V Report. The reimbursement was accomplished via a $20,000 deposit the project proponents placed with the District. STRATEGIC GOAL: The preparation and approval of the Otay Ranch Village 8 West Project and the Otay Ranch Village 9 Project WSA&V Reports supports the District Mission statement,"To provide the best quality of water and wastewater services to the customers of the Otay Water District,in a professional,effective,and efficient manner"and the District's Strategic Goal,in planning for infrastructure and supply to meet current and future potable water demands. LEGAL IMPACT: Approval of a WSA&V Reports for the Otay Ranch Village 8 West Project and the Otay Ranch Village 9 Projects in form and content satisfactory to the Board of Directors would allow the District to comply with the requirements of Senate Bill 610 and 221. 7 Otay Ranch Village 8 West & Attachments:Attachment A -Committee Action Exhibit A Location Map for the Otay Ranch Village 8 West Project Exhibit B -Location Map for Otay Ranch Village 9 Project Exhibit C -Explanation of intent of the SB 610 and SB 221 for the Otay Ranch Village 8 West Project Exhibit 0 -Explanation of intent of the SB 610 and SB 221 for the Otay Ranch Village 9 Project Exhibit E -Otay Ranch Village 9 Project WSA&V Report 8 ATTACHMENT A .........................................1 .........................1 !SUBJECT/PROJECT: D0790- 090070/090076 !Approval of Water Supply Assessment and Verificationm.j i Reports (November 2010)for the Otay Ranch Village 8 West Project and for the Otay Ranch Village 9 Project COMMITTEE ACTION: The Engineering,Operations,and Water Resources Committee reviewed this item at a meeting held on December 7,2010.The Committee supported Staff's recommendation. NOTE: The "Committee Action"is written in anticipation of the Committee moving the item forward for Board approval.This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. EXHIBIT A OTAY RANCH -VILLAGE 8 WEST LOCATION MAP / / /\~I ,- I/---- / oZ<-.J .".... >-in Ixw/'>-0:o"'-'"0: u"-« t~/'>-z«,,- 15u >-<I-o Io!(?gr---,.-------------~---...:...-...J ~/'coz ~0:o;:: /'o..'---L :::":":7"':":":=::~:__---~D~07~9~O~-~O::90~O~7~O EXHIBIT A .".. "~... ~ "MissiOl1..Boy y:e:L J"i"V1- ".... '" EXHIBIT B \ \ \ D0790-09C070 EXHIBIT C Background Information The Otay Water District (District)prepared the November 2010 Water Supply Assessment and Verification Reports (WSA&V)for both the Otay Ranch Village 8 West Project and the Otay Ranch Village 9 Prpject at the request of the City of Chula Vista (City).The District received the City's written request for both projects on October 19,2010.The Otay Land Company,th~developer of the Project,submitted an entitlement application to the City for both the Otay Ranch Village 8 West Project and the Otay Ranch Village 9 Project.The Owner of both properties is the Homefed Corporation,a Delaware Corporation and the parent company to the Otay Land Company,a Delaware Limited Liability Company. Both the Otay Ranch Village 8 West Project and the Otay Ranch Village 9 Project are located within the jurisdictions of the District,the San Diego County Water Authority (Water Authority),and the Metropolitan Water District of Southern California (Metropolitan).See Exhibit A and B for project locations.To obtain permanent imported water supply service,land areas are required to be within the jurisdictions of the District,Water Authority,and Metropolitan. Both the Village 8 West Project and the Otay Ranch Village 9 Project are included within a land use planning document known as the Otay Ranch General Development Plan/Sub-regional Plan (Otay Ranch GOP).The County of San Diego and City of Chula Vista jointly prepared and adopted the Otay Ranch GOP.Both projects are located within what is defined as the Otay River Parcel of the Otay Ranch GOP.The project is a part of the designated 14 villages and five planning areas within the Otay Ranch GOP area.Both the Otay Ranch Village 8 West Project and the Otay Ranch Village 9 Project entitlement approval are dependent on the City's eventual adoption of their Sectional Planning Area Plans (SPA).The Land Offer Agreement between the City and the Otay Land Company per document recorded April 24,2008 as document No.2008-0218696 forms the basis for the SPA entitlement densities and intensities of development for both projects. The WSA&V Reports were prepared by the District in consultation with Dexter Wilson Engineering,Inc.,the Water Authority,and the City of Chula Vista pursuant to Public Resources Code Section 21151.9 and California Water Code Sections 10631, 10656,10910,10911,10912,and 10915 referred to as Senate Bill (SB)610 and Government Code Sections 65867.5,66455.3,and 66473.7 referred to as SB 221. SB 610 and SB 221 amended state law,effective January 1,2002,intending to improve the link between information on water supply availability and certain land use decisions made by cities and counties.SB 610 requires that the water purveyor of the public water system prepare a water supply assessment to be included in the California Environmental Quality Act (CEQA)environmental documentation and approval process of certain proposed projects.SB 221 requires affirmative written EXHIBIT C Background Information The Otay Water District (District)prepared the November 2010 Water Supply Assessment and Verification Reports (WSA&V)for both the Otay Ranch Village 8 West Project and the Otay Ranch Village 9 Project at the request of the City of Chula Vista (City).The District received the City's written request for both projects on October 19,2010.The Otay Land Company,the developer of the Project,submitted an entitlement application to the City for both the Otay Ranch Village 8 West Project and the Otay Ranch Village 9 Project.The Owner of both properties is the Homefed Corporation,a Delaware Corporation and the parent company to the Otay Land Company,a Delaware Limited Liability Company. Both the Otay Ranch Village 8 West Project and the Otay Ranch Village 9 Project are located within the jurisdictions of the District,the San Diego County Water Authority (Water Authority),and the Metropolitan Water District of Southern California (Metropolitan).See Exhibit A and B for project locations.To obtain permanent imported water supply service,land areas are required to be within the jurisdictions of the District,Water Authority,and Metropolitan. Both the Village 8 West Project and the Otay Ranch Village 9 Project are included within a land use planning document known as the Otay Ranch General Development Plan/Sub-regional Plan (Otay Ranch GOP).The County of San Diego and City of Chula Vista jointly prepared and adopted the Otay Ranch GOP.Both projects are located within what is defined as the Otay River Parcel of the Otay Ranch GOP.The project is a part of the designated 14 villages and five planning areas within the Otay Ranch GOP area.Both the Otay Ranch Village 8 West Project and the Otay Ranch Village 9 Project entitlement approval are dependent on the City's eventual adoption of their Sectional Planning Area Plans (SPA).The Land Offer Agreement between the City and the Otay Land Company per document recorded April 24,2008 as document No.2008-0218696 forms the basis for the SPA entitlement densities and intensities of development for both projects. The WSA&V Reports were prepared by the District in consultation with Dexter Wilson Engineering,Inc.,the Water Authority,and the City of Chula Vista pursuant to Public Resources Code Section 21151.9 and California Water Code Sections 10631, 10656, 10910,10911, 10912,and 10915 referred to as Senate Bill (SB)610 and Government Code Sections 65867.5,66455.3,and 66473.7 referred to as SB 221. SB 610 and SB 221 amended state law,effective January 1,2002,intending to improve the link between information on water supply availability and certain land use decisions made by cities and counties.SB 610 requires that the water purveyor of the public water system prepare a water supply assessment to be included in the California Environmental Quality Act (CEQA)environmental documentation and approval process of certain proposed projects.SB 221 requires affirmative written verification from the water purveyor of the public water system that sufficient water supplies are to be available for certain residential subdivision of property prior to approval of a Tentative Map.The requirements of SB 610 and SB 221 are addressed in the November 2010 WSA&V Report for the Otay Ranch Village 8 West Project and the Village 9 Project. The Otay Ranch Village 8 West proposed development concept for the approximately 320.1 acre project consists of 2,050 mixed density residential units,retail commercial, a middle school,an elementary school,a community purpose facility,parks,and open space.The project surrounds the City of San Diego South San Diego Reservoir which will remain in place. The Otay Ranch Village 9 Project proposed development concept for the approximately 323 acre Project consists of 4,000 mixed density residential units, retail commercial,an elementary school,community purpose facilities,parks,and opens space. The expected demand for the Otay Ranch Village 8 West Project is 881 acre-feet per year.This is 147 acre-feet per year higher than the demand estimate in the District's 2009 WRMP.The expected demand for the Otay Ranch Village 9 Project is 1,507 acre-feet per year.This is 195 acre-feet per year higher than the demand estimate in the 2009 WRMP.The Otay Land Company retained PBS&J to update the 2009 WRMP to include the entitlement densities and intensities of development proposed for both projects.The District's 2009 WRMP updated November,2010 now includes the demand estimate for both projects in the District's demand projections that was forwarded to the Water Authority for inclusion in their UWMP update. SANDAG and the City of Chula Vista have also confirmed the Land Offer Agreement that forms the basis for these SPA entitlements was included in the Series 12 update that has been forwarded to both Metropolitan and the Water Authority for their future UWMP updates.The Series 12 update was also available to Metropolitan for their use in preparing the demand projections for their 2010 IRP Update. The District currently depends on the Water Authority and the Metropolitan for all of its potable water supplies and regional water resource planning.The District's Urban Water Management Plan (UWMP)relies heavily on the UWMP's and Integrated Water Resources Plans (IRPs)of the Water Authority and Metropolitan for documentation of supplies available to meet projected demands.These plans are developed to manage the uncertainties and variability of multiple supply sources and demands over the long term through preferred water resources strategy adoption and resource development target approvals for implementation. The new uncertainties that are significantly affecting California's water resources include: • A Federal Court ruling that sets operational limits on Sacramento-San Joaquin Delta pumping from December to June to protect the Delta smelt.Water 2 agencies are still trying to determine what effect the ruling will have on state water project deliveries.Actual supply curtailments for Metropolitan are contingent upon fish distribution,behavioral patterns,weather,Delta flow conditions,and how water supply reductions are divided between state and federal projects. •Extended drought conditions. These uncertainties have rightly caused concern among Southern California water supply agencies regarding the validity of the current water supply documentation. Metropolitan's 2010 IRP acknowledges that significant challenges in some resource areas will likely require changes in strategies and implementation approaches in order to reach long-term IRP water supply targets.Significant progress in program implementation is being realized in most resource areas.However,a further examination of the uncertainty of State Water Project supplies,among other uncertainties,will be required to assess the ability of achieving the long-term IRP targets. Metropolitan is currently involved in several proceedings concerning Delta operations to evaluate and address environmental concerns.In addition,at the State level,the Delta Vision and Bay-Delta Conservation Plan processes are defining long-term solutions for the Delta. Neither the Water Authority nor Metropolitan has stated that there is insufficient water for future planning in Southern California.Each agency is in the process of reassessing and reallocating their water resources. Under preferential rights,Metropolitan can allocate water without regard to historic water purchases or dependence on Metropolitan.Therefore,the Water Authority and its member agencies are taking measures to reduce dependence on Metropolitan through development of additional supplies and a water supply portfolio that would not be jeopardized by a preferential rights allocation.For Fiscal Year 2006 the Water Authority's preferential right was 16.56%of Metropolitan's supply. In the Water Authority's 2005 UWMP,they had already planned to reduce reliance on Metropolitan supplies to 372,922 acre feet per year by 2030,which is a 28% reduction from the Fiscal Year 2005 Water Authority purchase from Metropolitan. This reduction is planned to be achieved through diversification of their water supply portfolio.This reduction would more than compensate for the Metropolitan predicted reduction in water supply available from the State Water Project,which could be an overall 2%cutback in Metropolitan total supplies in 2025. The Water Authority's Drought Management Plan (May 2006)provides the Water Authority and its member agencies with a series of potential actions to engage when faced with a shortage of imported water supplies due to prolonged drought 3 conditions.Such actions help avoid or minimize impacts of shortages and ensure an equitable allocation of supplies throughout the San Diego County region. The District Board of Directors should acknowledge the ever-present challenge of balancing water supply with demand and the inherent need to possess a flexible and adaptable water supply implementation strategy that can be relied upon during normal and dry weather conditions.The responsible regional water supply agencies have,and will continue to adapt,their resource plans and strategies to meet climatological,environmental,and legal challenges so that they may continue to provide water supplies to their service areas.The regional water suppliers (Le.,the Water Authority and Metropolitan),along with the District,fully intend to maintain sufficient reliable supplies through the 20-year planning horizon under normal,single, and multiple dry year conditions to meet projected demand of the Otay Ranch Village 8 West Project and the Otay Ranch Village 9 Project,along with existing and other planned development projects within the District's service area. If the regional water suppliers determine additional water supplies will be required or in this case,that water supply portfolios need to be reassessed and redistributed with the intent to serve the existing and future water needs throughout Southern California,the agencies must indicate the status or stage of development of actions identified in the plans they provide.Metropolitan's 2010 IRP Update will then cause the Water Authority to update its IRP and UWMP,which will then provide the District with the necessary water supply documentation.Identification of a potential future action in such plans does not by itself indicate that a decision to approve or to proceed with the action has been made.The District's Board approval of the Otay Ranch Village 8 West Project WSA&V Report and the Otay Ranch Village 9 Project WSA&V Report does not in any way guarantee water supply to these projects. Alternatively,if the WSA&V Report is written to state that water supply is or will be unavailable,the District must include in the assessment,a plan to acquire additional water supplies.At this time,the District should not state there is insufficient water supply. So the best the District can do right now is to state the current water supply situation clearly,indicating intent to provide supply through reassessment and reallocation by the regional,as well as,the local water suppliers.In doing so,it is believed that the Board has met the intent of the SB 610 statute,that the land use agencies and the water agencies are coordinating their efforts in planning water supplies for new development. With District Board approval of the Otay Ranch Village 8 West Project WSA&V Report and the Otay Ranch Village 9 Project WSA&V Report,the project proponents can proceed with the draft EIR CEQA review process and water supply issues will be addressed in the EIRs,consistent with the WSA&V Report. 4 The District,as well as others,can comment on the draft EIRs with recommendations that water conservation measures and actions be employed on both projects. Some recent actions regarding water supply assessments and verification reports by entities within Southern California are as follows: •City of San Diego approved water supply assessment reports for both the La Jolla Crossings Project and the Quarry Falls Project in September 2007. •Padre Dam Municipal Water District approved a water supply assessment report for the City of Santee's Fanita Ranch development project in April 2006. In October 2007 a follow-up letter was prepared stating the current uncertainties associated with the regional water supply situation.However, the letter concludes that sufficient water exists over the long run in reliance upon the assurances,plans,and projections of the regional water suppliers (Metropolitan and Water Authority). •The District unanimously approved in July 2007 the Eastern Urban Center Water Supply and Assessment Report.The Board also approved the Judd Company Otay Crossings Commerce Park WSA Report on December 5,2007 and the Otay Ranch L.P.Otay Ranch Preserve and Resort project Water Supply Assessment and Verification Report on February 4,2009. •The District is working on a water supply assessment report for the City of San Diego -Tijuana Cross Border Facility.Staff is also working with the City of San Diego on a WSA for Scenario 3B Otay Mesa Community Plan Update. The Pio Pico Power Plant on Alta Road within the County of San Diego may also require a WSA for the temporary use of potable water to serve the power plant. Water supplies necessary to serve the demands of the proposed Otay Ranch Village 8 West Project and the Otay Ranch Village 9 Project,along with existing and other projected future users,as well as the actions necessary to develop these supplies, have been identified in the water supply planning documents of the District,the Water Authority,and Metropolitan. The WSA&V Reports includes,among other information,an identification of existing water supply entitlements,water rights,water service contracts,or agreements relevant to the identified water supply needs for each project.The WSA&V Reports demonstrates and documents that sufficient water supplies are planned and are intended to be available over a 20-year planning horizon,under normal conditions and in single-and multiple-dry years to meet the projected demand of the Otay Ranch Village 8 West Project,the Otay Ranch Village 9 Project,and the existing and other planned development projects within the District. 5 Accordingly,after approval of a WSA&V Report for the Otay Ranch Village 8 West Project and the WSA&V Report for the Otay Ranch Village 9 Project by the District's Board of Directors,the WSA&V Reports may be used to comply with the requirements of the legislation enacted by Senate Bills 610 as follows: Senate Bill (SB)610 Water Supply Assessment:The District's Board of Directors approved WSA&V Report may be incorporated into the California Environmental Quality Act (CEQA)Environmental Impact Report (EIR)compliance process for the Otay Ranch Village 8 West Project and the EIR Compliance process for the Otay Ranch Village 9 Project as a water supply assessment and verification report consistent with the requirements of the legislation enacted by SB 610.The City,as lead agency under the CEQA for the Otay Ranch Village 8 West Project EIR and the Otay Ranch Village 9 Project EIR,may cite the approved WSA&V Report as evidence that a sufficient water supply is planned and intended to be available to serve the Otay Ranch Village 8 West Project and the Otay Ranch Village 9 Project. Senate Bill (SB)221 Water Supply Verification:The District's Board of Directors approved WSA&V Report may be incorporated into the City's Tentative Map approval process for the Otay Ranch Village 8 West Project and the Otay Ranch Village 9 Project as a water supply verification report,consistent with the requirements of the legislation enacted by SB 221.The City,within their process of approving the Otay Ranch Village 8 West and Otay Ranch Village 9 Project's Tentative Maps,may cite the approved WSA&V Report as verification of intended sufficient water supply to serve the Project. 6 Quality Assurance Approval Sheet Subject:Approval of Water Supply Assessment and Verification Reports (November 2010)for the Otay Ranch Village 8 West Project and for the Otay Ranch Village 9 Project Project No.:00738-090062 Document Description:Staff Report for January 5,2011 Board Meeting Author: QA Reviewer: Signature Bob Kennedy Printed Name Daniel Kay \:z\'Z--\'\i) Date ,2..-/2-//0 Date Printed Name c Manager: Ron Ripperger Printed Name Date The above signatures attest that the attached document has been reviewed and to the best of their ability the signers verify that it meets the District quality standard by clearly and concisely conveying the intended information;being grammatically correct and free of formatting and typographical errors;accurately presenting calculated values and numerical references;and being internally consistent,legible and uniform in its presentation style. ..."'~"",~Z,'i.....-..,..~;s'\. Water Supply As,sessment &.Verification Reports for tay Ranch Village 8 West and illage 9 Projects 58 610 &.221 Compl-ance .-,,\- OTAY I.AIIDFILL 2 LOMR l.. OTAY RS8'WQR -.-'--:' I - Village 9 323 Ac.Total 4,000 Dwelling Units 1,500,000 Sq.Ft. Retail/Commercial • • f .-- Village 8 West 320 Ac.Total 2,050 Dwelling Units 300,000 Sq.Ft. Retail/Commercial • • • p. -~- [J Senate ills 610'an(l 221 became effect·e Ja uar:y 1, 2002-,w·tli the primary intent to improve the linlt between ~----,ater supply C!vailabi itY and Ian use decisions. S8 610 Water Supply A sessment (WSA): [J Requires ~ater purveyor to prepare a Water SuRll!¥ Assessment-r'ep,o,rt for inclusion in:land use agency CEQA docume tation. [J 58 22:1 Water Supply Verification: o Requires the water punteyor to prepare wr-tten ~Verification hat sufficie t water supplies are planned to Be availabte o The tay Ranch Village 8 West an Village 9 58 610 and 221 Wate upply Assessment and Verificat·on Reports (WSA&V). o Board approval requ·red for submittal of the WSA&V Reports to the City of Chula Vista.: 4 '--.,-- V (Nt:) y (Of? legend·Transect:Zone T-l:O~n Space Preserve (OP)'--.. 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""".~"CI*"~~I'h'>M"1~"':n~~",,,,,"'!'i"""''''''''''lJ'C"ll P:3Mm'l.TheforKll'll,nollrl\.~IIl~ap"""'LpUOI"rO'rut""'9r~,~.~r.l"..for«ll'lilIn,...-dt<:\to'-'le.....PJ!O'pl~'un,n Cl...~IC4'l""~nlp.;!tt~mJ.D;j.",on'4<}I1;I'1&1P'-Ojt(l'orl'~nd1oc31 lnPiJI, n,,,~05C1i>oglCl'14t Gl""",h FO",.:U.1'",,'..tJr Ih~f'r>!,t"l",n<;;l,tV~lopr..(hit;!OS(I R~"lO:d TrJf"PC'lo:u..-,P\;o.,(~T?/.""'"t,....,11""forrn lrll!<:c",,'oprNnl"~I'll:''';',"01''.r"S1 S\.Oo~in.:lblcr""""..,III~'S"~''''91(srs),~""""""""P<Ylanf ~,I"..,!tTP.I\t"(j'h<!R""J <:nil >lrl\l'ng I'l<lfll'l> ~"",,,",,nr [QHNA)pili'C.rMornl/l !'orl~~f"r.ill ns (~~"j Ie","",,,,,1?~S1~~If"\01 ?QOfl)I" "d:l~,on,tMfo<<<~trlcrmltio<>w.11bou...,t:>..~lullI'flflur.~t:lI\ial,lorINr~IOI'" sm"rt Grcill".I1lram".Pr~~m M'::lliUll;:or1 ;=1QP'!~I "'PfO~......,t",,:I """ttl"rtfCUr<'l' pl'OCY'l,ngmroughoutlh.,og.cn1t...fo;n>Q<t~rr.;>I~w'lh"l1.ppltCl1Dl••'-'luWl""<1r1fg<.Jl.1t"""~'i!:'~~:I~;.Rll',~~.on:::tRHNAfro",SBJli>""';tt>eC.>nfornl~lro",~JOf'C<>mnll\.<',,"",o",n THEM£TROPOUTAN WATERDlSTRla OFSOUTHERN CAUFORNIA DRAFT _..._......16.......-........,--..--......,..... • nt 9 -:-..- Base on..existing Clocumentation,the WSA&.V epo 5 de o-nstrate and document that 5·'Icient· ater sUPR .1.s are Ianned for and are intendeo'to e acq ·reCl.,-V';,,«'jIil'"..-,;,.~-:~ •The WSA&V"eports document the pl'anned water supp,ly projects and the actions necessary to velop the supplies. •·ate supply for the Otay Ranch Village 8 West and Village 9 Projects,and for existi 9 and tutu e developments within t e Distri for a 20-year plan ing horiz.on,under normal nd in single a d m Iti~le dry years,are planned fo and are in enCled to,-e made,available.. c~esalination,P'r'oject (24,000- •Qtay Mesa Lot 7 Groun water Well (300-400 AFY) 5,430 59,799 65,229 65,229 FY 2020 4,684 o 52,349 57,033 57,033, FY 2015 o 4,040 49,812 49,812 Water AuttroritY SURPly _ Description Recycled Water SUPPIY",.:=!ii'.ir Groundwater Supply Total Required Suppl Total Projected Demand ~ Actual Demand vs.2005 UWMP 100000 80000 60000 40000 200'00' 0, --------a- n -..:::r«2005 UWMP--~ I!I -Actual Demands -Projected Demands I I I F 2005 FY 2010 FY 2015 FY 2020 FY 2025 FY 2030 11 12 ...; ~ctions n essary to develop the identified water ~su,p~pli'es are documented. "~l' The tay Ranch Village 8 West Project and Village 9 Project WSA&V Reports demonstrate and document that sufficient water supplies are planned for and are intended to be available over the next 20 vears. ropolitan has updated -ts RP to address Delta Issues and oth r potential water supply impacts... • • " t the ar of Directors approveh'e _________ Senate Bills'~~,a d 221 Water Sup Iy ssessm :-,.',,'erification Reports dated November 2010 fo~the Otay Ranch Village 8 est Project and Village 9 Project. ..... , • AGENDA ITEM 11 STAFF REPORT TYPE MEETING:Engineering,Operations,and Water Resources Committee MEETING DATE:December 7,2010 DIV.NO.AllCIP.lG.F.NO: Various Ron Ripperger ~ Engineering Manager Rod posad~~ Chief,Engineering c::::::::--=-...~Manny Magana l"Y~.~ Assistant General~nager,Engineering and Operations Informational Item -Development of CIP Project BudgetsSUBJECT: APPROVED BY: (Chief) SUBMITTED BY: APPROVED BY: (Ass!.GM): GENERAL MANAGER'S RECOMMENDATION: That the Finance,Admin,and Communications Committee accept this Informational Item for review and receives a summary via a PowerPoint presentation (see Attachment B). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To update the Finance,Admin,and Communications Committee about the process used to develop CIP project budgets. ANALYSIS: This Staff Report was prepared as a response to Board members' inquiries about how budgets are prepared for CIP projects. For every CIP project,excluding capital purchases,the budget development process for each individual CIP starts at the Planning Phase.The Water Resources Master Plan (WRMP),the Sub Area Master Plan (SAMP),and Integrated Water Resources Plan (IRP)identify all the projects to be included in the CIP budget.At this stage,a very preliminary budget is established.The next stage in the process is the preparation of a Preliminary Design Report (PDR)which is developed to set the framework for design.Staff estimates the project budget, based on preliminary information about the project scope and industry construction data for unit costs,e.g.,cost per lineal foot of pipe or cost per square foot of building.That information is included in the CIP budget for that fiscal year's budget cycle. During the design process,the design engineer produces estimated construction costs for each CIP project at 30%,60%, 90%,and 100%design milestones.These estimates are more precise because there is a clearer picture of the size and configuration of the project and the potential challenges on issues and impacts,such as environmental,freeway crossings, major utilities,tunneling,etc.Again,these adjusted numbers are reviewed and vetted to fine-tune the number in the CIP budget.During the design phase,larger projects also go through value engineering and constructability reviews to further refine the construction cost estimate and total budget. Staff also includes contingencies in earlier budgets in the project.Contingencies are used to cover for unidentified items that occur during the planning,design,and construction phases. The industry standard for contingencies is 5-10%. When the project is 100%designed,staff performs a detailed risk analysis review and potential risks are identified and incorporated in the bid sheet as allowances.The purpose of allowances is to control budget,plus provide a mechanism to pay the contractor in the event a particular bid item is needed. Samples of allowances are:excavation of hazardous wastes or rock material,potholing for unknown utilities,crossing of unknown utilities,etc.The revised construction cost estimate, with allowances,is incorporated into the CIP project budget in the next budget cycle. After the project is bid,the contract is awarded to the lowest responsible bidder.At this point,with an actual construction contract amount known,staff again adjusts the CIP budget.If the lowest bid exceeds the estimated budget,staff would request a budget adjustment to the Board of Directors at the time of the contract award. During construction,the estimated line items are adjusted, depending on actual conditions encountered in the field. Allowances mayor may not be used during the construction 2 period.If they are used,a staff report is prepared for Board consideration.At the end of construction,a final construction contract budget reconciliation is also prepared for Board consideration. To better illustrate the process,staff selected three recent CIP projects that are at different levels of completion to show how budgets were adjusted and to reflect changes over time when construction costs were known.These budgets are compared to the actual construction costs for each project.Please note that the costs shown for each phase of a project include staff time,consultants,and contractor's costs. 1.1296-3 2MG Concrete Reservoir (P2143) This project was completed in FY 2011. Budget FY 2008 %FY 2009 %FY 2010 %FY 2011 % Planning $244,000 7%$266,000 7%$266,000 7%$276,000 8% Design $365,000 11%$398,000 11%$398,000 11%$422,000 12% Construction $2,731,000 82%$2,739,000 75%$2,739,000 75%$2,842,000 80% Contingency $0 0%$237,000 7%$237,000 7%$0 0% Total:$3,340,000 100%$3,640,000 100%$3,640,000 100%$3,540,000 100% Engineer's Estimate Preliminary 30% 60% 100% $2,700,000 $2,700,000 $3,000,000 $2,945,000 Seven construction bids:Lowest: Highest: Original Construction Contract Original Contract wlo allowances Allowances Total Contract: Actual Construction Contract Costs Bid Items Only (Construction Cost) Change Orders Credit Change Orders Allowances Credit for Allowances Actual Construction Contract Costs: 3 $2,373,220 $3,399,000 $2,198,220 $175,000 $2,373,220 $2,198,220.00 $65,680.30 ($87,067.40) $175,000.00 ($175,000.00) $2,176,832.90 93% 7% 100% 3% (4%) 8% (8%) 2.PL-36-Inch,SDCWA Otay FCF No.14 to Regulatory Site (P2009)and PL-12-Inch,978 Zone,Jamacha,Hidden Mesa,and Chase Upsize and Replacements (P2038) The construction of the project was completed in FY 2011. However,litigation remains before the project can be closed out. Budget FY 2008 %FY 2009 %FY 2010 %FY 2011 % Planning $1,660,000 8%$1,440,000 6%$2,100,000 9%$1,680,000 7% Design $1,320,000 7%$1,540,000 7%$2,080,000 8%$2,150/000 9% Construction $17,070,000 85%$20,854,000 85%$19/763,000 80%$19,557,000 84% Contingency $40,000 0%$566,000 2%$757,000 3%$0 0% Total:$20/090,000 100%$24,400,000 100%$24,700,000 100%$23,387,000 100% Engineer's Estimate Preliminary (IEC) 30%(IEC) 60%(IEC) 100%(IEC) 100%(Lee &Ro) Amended (Lee &Ro) $20,817,901 $25,187,543 $33,347,363 $32,932,034 $22,785,743 $23,125,248 Twelve construction bids:Lowest: Highest: $16,189,243 $28,798,380 Original Construction Contract Original Contract wlo allowances Allowances Total Contract: $14,490,243 $1,699,000 $16,189,243 90% 10% 100% Actual Construction Contract Costs Bid Items Only (Construction Cost) Change Orders Credit Change Orders Allowances Credit for Allowances Actual Construction Contract Costs: 4 $14,490,243.00 $148,157.09 ($521,997.93) $1,699,000.00 ($1,407,457.89) $14,407,944.27 1% (4%) 12% (10%) 3.North District -South District Interconnection System (P2511) The PDR for this project was completed in FY 2010.The Board recently awarded the design of this project in Fiscal 2011.This project is expected to be completed in FY 2015. Budget FY 2011 % Planning $1,300,000 3% - Design $3,000,000 8% Construction $33,000,000 89% Contingency $0 0% Total:$37,300,000 100% To derive an estimated budget for the CIP,staff took industry costs per lineal foot of pipe and per square feet of pump station. In addition,the engineering firm who prepared the PDR provided a preliminary cost analysis that was used in developing the budget. During design,the budget will be adjusted when more design information such as alignment,Caltrans crossings,and tunneling become available. FISCAL IMPACT: None. STRATEGIC GOAL: The CIP supports the District's Mission statement,"To provide the best quality of water and wastewater service to the customers of the Otay Water District,in a professional,effective,and efficient manner,"and the District's Strategic Goal,in planning for infrastructure and supply to meet current and future potable water demands. LEGAL IMPACT: None Gene al Manager P:\CIP\Development of Budget for Individual CIP's\Engineering Committee Meeting 12-07-10,Staff Report,Information Item - Development of elP Project Budgets,(RR-RP).doc RR/RP:j f Attachments:Attachment A -Committee Action Attachment B -Presentation 5 C::IIR I Various ATTACHMENT A Informational Item -Development of CIP Project Budgets COMMITTEE ACTION: The Engineering,Operations,and Water Resources Committee reviewed this item at a meeting held on December 7,2010. Quality Assurance Approval Sheet Subject:Informational Item -Development of CIP Project Budgets Project No.:Various Document Description:Staff Report for Engineering,Operations,and Water Resources Committee Meeting on December 7,2010 Author:104~I z/e.-/to Signature Date Ron Ripperger Printed Name QA Reviewer:si~/y {:J-./2/10 Date Daniel Kay Printed Name Manager:~~~~~n.\t-\LO Signature Date Rod Posada Printed Name The above signatures attest that the attached document has been reviewed and to the best of their ability the signers verify that it meets the District quality standard by clearly and concisely conveying the intended information; being grammatically correct and free of formatting and typographical errors;accurately presenting calculated values and numerical references;and being internally consistent,legible and uniform in its presentation style. ENGINEERING,OPERATIONS A.ND WATER RESOURCES COMMITTEE MEETING DECEMBER 7,2010 DEVELOPMENT OF:CIP PROJECT BUD:GETS ENGINEERING DEPARTMENT Project Budget D'evelopmen!t Proce,ss Planning Preliminary Budget PDR Value Engineering Construction Bid and Contract Award -------~--_._- Project Final BUdget I Construction Determined 2 I Budget Parameters I •Budgets are adjusted when nlore precise information is known. Time span is several years. •Initial estimates are based on industry construction unit cost. •There are lots of variables and unknowns that inlpact project budgets:alignment,utility crossings,freeway crossings, environmental constraints,tunneling,contan,inated/hazardous materials,and agency requirements. •Conting,encies are used to cover unidentified itelTIS during planning, design,and construction. •Allowances are incorporated through a risk analysis process and used to control bUdget. •The Board gets routinely notified about changes in the CIP budget, and every time that an authorization exceeds the General Manager's authority.3 .__._-_._--_._-_---_--.-.-.- I Sample Projects I 1296-3 2M'G Concrete Reservoir (P2143) BUDGET FY 2008 $3,340,000 CONTINGENCY 00/0 FY 2009 $3,640,000 7% FY 2010 $3,640,000 70/0 FY 2011 $3,540,000 00/0 ENGINEER'S ESTIMATES:$2,700,000 -$2,945,000 SEVEN CONSTRUCTION BIDS:$2,373,220 -$3,399,000 ACTUAL CONSTRUCTION CONTRACT COSTS Bid Items Only (Construction Cost) Change Orders Credit Change Orders Allowances Credit for Allowances Actual Construction Contract Costs: $2,198,220.00 $65,680.30 30/0 ($87,067.40)(40/0) $175,000.00 80/0 ($175,000.00)(8%) $2,176,832.90 4 I Sample Projects I PL-36-lnch,SDCWA Otay FCF No.14 to Regulatory Site (P2009)and PL-12-lnch,978 Zone,Jamacha,Hidden Me,s8, and Chase U'psize and Replacements (P2038) BUDGET CONTINGENCY FY 2008 $20,090,000 0% FY 2009 FY 2010 FY 2011 $24,400,000 $24,700,000 $23,387,000 2%3%0% ENGINEER'S ESTIMATES:$20,817,901-$23,125,248 TWELVE CONSTRUCTION BIDS:$16,189,243 -$28,798,380 A,CTUAL CONSTRUCTION CONTRACT COSTS Bid Items Only (Construction Cost) Change Orders Credit Change Orders Allowances Credit for Allowances Actual Construction Contract Costs: $14,490,243.00 $148,157.09 ($521,997.93) $1,699,000.00 ($1,407,457.89) $14,407,944.27 10k (4%) 12% (10%) 5 I Sample Projects I North District -South Distr'ict Interconnection System (P2511) BUDGET CONTINGENCY FY 2011 $37,300,000 00/0 This budget was derived from industry costs per lineal foot of pipe and per square feet of pump station. 6 ('-- enz o I-enw :J "