Agency BoardJune 20, 2013

Update on theDavis-Woodland Water Supply Project

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Discussion Topics

• Recent Activities/Accomplishments

• Upcoming Activities/Milestones

• DBO Procurement

• Project Costs

• Project Schedule

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Recent Activities/Accomplishments April - June 2013

PROGRAM MANAGEMENT•Prepared FY 2013-14 Agency Budget•Prepared Amendment to UC Davis Agreement consistent with Amended JPA•Continued pursuit of SRF Loans:

– Safe Drinking Water SRF criteria: Lost well capacity due to exceeding MCL’s (nitrate) -Woodland Consolidation of North Davis Meadows -Davis

– Submitted initial application for Clean Water SRF

$10m in State grant funding for Joint Intake included in legislature-approved State Budget

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Recent Activities/Accomplishments April - June 2013 (cont’)

ENVIRONMENTAL AND PERMITTING•Continued Section 404 Permit efforts - awaiting Biological Opinions from NMFS and USFWS•Commenced Aerosol Study:

Four 24-hour sampling events completed CDPH staff site visit on 6/3/13

•Received bids for mitigation banking•Continued work on SEIR for amendment to Water Right Permit for ASR

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Recent Activities/Accomplishments April - June 2013 (cont’)

ENVIRONMENTAL AND PERMITTING•Working with RD 2035 re: WAPA power resource base sharing at Joint Intake•Working with PG&E to define system improvements/costs to serve RWTF and Joint Intake

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Recent Activities/Accomplishments April - June 2013 (cont’)

LAND AND ROW ACQUISITIONS•Continued work on remaining easements:

Heidrick/McGinnis and Lillard for easements along Davis Finished Water Transmission Main

Sierra Northern Railroad Oates for 3 parcels near Joint Intake site and along Raw Water

Pipeline alignment Closing on Intake site & CPG easements

• Meeting with Yolo County regarding Encroachment Permit:

Road reconstruction/repair following pipeline construction

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Upcoming Activities/MilestonesJune - July 2013

PROGRAM MANAGEMENT•Continue to pursue SRF low interest loan and grant funding opportunities•Continue development of ASR Program

Preparation for injection testing, modeling, SEIR, water rights amendments

•Continue efforts to obtain WAPA power at Joint Intake•Complete Value for Money analysis

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Upcoming Activities/MilestonesJune – July 2013 (cont’)

ENVIRONMENTAL AND PERMITTING•Outstanding permits/actions:

– Biological Opinions from USFWS and NMFS– Section 404 Permit (US Army Corps of Engineers)

•Obtain Finding Of No Significant Impact (FONSI) from Bureau of Reclamation•Obtain State 401 Water Quality Certification•Continue Aerosol Study at RWTF Site•Begin negotiations for purchase of environmental mitigation credits

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Upcoming Activities/MilestonesJune – July 2013 (cont’)

LAND AND ROW ACQUISITIONS•Continue work with Yolo County regarding encroachment permits/road construction•Complete acquisition of Heidrick/McGinnis, Lillard, Turner, and Oates easements•Complete easement agreement with City of Davis•Continue eminent domain actions on 3 parcels

PLANNING, DESIGN, AND CONSTRUCTION•Receive priced DBO proposals July 30th

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DBO Contract Procurement

• Received Initial Concept Submittals (ICS)• Reviewed ICS and Proposal Phase

Procurement Plans from both DBO teams• DBO teams presented ICS proposals to FPC

and in separate meetings to CDPH

• Prepared Addendum 2 to DBO RFP– Clarified questions from individual meetings– Modified RFP to respond to common issues

raised by both DBO teams

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Follow Up to ICS Proposals• CH2M Hill

– Questions/clarifications noted in ICS letter to team– Satisfactory feedback received– Proposal Phase Procurement Plan approved

• CDM Smith– Noted deficiencies in ICS in letter to team– Deficiencies not corrected in team response or

through contacts with references– Letter to team noted ICS not in compliance– Team withdrew from competition

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DBO Procurement Process• 2.5 year, competitive process • 5 initial submittals, 3 shortlisted teams• Process worked as designed

– Field narrowed to 1 team from original shortlist– 2 bidders removed themselves from consideration

• Impacts of delays in procurement schedule

• Inability to correct deficiencies in compliance with RFP provisions

• Difficulty meeting Price Ceiling requirements

• Allows negotiations to begin ahead of schedule• Savings to Agency of approximately $500,000

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Competitive Provisions of Procurement Process

• Maximum cost ceiling to ensure competitive price – both capital and operation– Maximum capital cost ceiling is 20% less than

Engineer’s Estimate

• Open book competitive pricing for approximately 70% of work to be completed by subcontract

• Open book review of all remaining self-performed work

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June 15, 2013 Open House Ad

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Draft DBO Procurement Schedule

ACTIVITY DATE

Issue Request for Qualifications January 27, 2011

Receive Statement of Qualifications April 15, 2011

Short list three DBO teams June 2, 2011

Davis and Woodland City Council authorization to proceed with project final engineering and construction

March 2013

Issue Request for Proposals December 21, 2012

Receive Initial Concept Submittals & Proposal Phase Procurement Plans May 15, 2013

Priced proposal submittal by Proposer July 30, 2013

Board authorization to proceed with negotiations August/September 2013

Board award of service contract October 17, 2013

Updated: 06/20/13

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30 mgd Project Costs Presented at April Board Meeting

(Apr 2013 million dollars)Construction Costs(a) Capital Costs, 2009-2016

(a) Includes DBO contract design and construction costs, design-bid-build Joint Intake construction costs, and Agency design review, construction quality assurance and contract compliance, engineering services during construction, environmental construction monitoring, environmental mitigation, permitting, and incidental costs.

(b) Costs currently under discussions with RD 2035.

Cost Category Total

Agency Administration 3.56

Program Management 3.47

Water Supply 1.71

Environmental & Permitting 1.59

Land/ROW Acquisition 4.30

Pre-Design 6.18

Construction 166.91

Capital Contingency 7.79

Woodland and Davis Local Facilities 31.74

Costs Expended 2009-2011 7.49

TOTAL CAPITAL COSTS 234.75

Project Component Cost

Joint Intake (Agency Portion)(b) 14.52

Raw Water Pipeline 23.76

Regional Water Treatment Facility (RWTF)

96.7

Woodland Treated Water Pipeline 5.70

Davis Treated Water Pipelines 23.35

Permit Fees & Construction Counsel

2.89

TOTAL 166.91

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Updated 30 mgd Project Costs(April 2013 million dollars)

Construction Costs(a) Capital Costs, 2009-2016

(a) Includes DBO contract design and construction costs, design-bid-build construction costs, and Agency design review, construction management, engineering services during construction, environmental construction monitoring, and environmental mitigation, permitting and incidental costs.

Component Total Woodland Davis

Agency Administration 3.47 1.78 1.69

Program Management 4.19 2.21 2.00

Water Supply 1.69 1.23 0.46

Environmental & Permitting 1.48 0.75 0.72

Land/ROW Acquisition 4.19 2.13 2.06

Pre-Design 6.78 3.65 3.11

Construction 169.13 90.01 79.12

Capital Contingency 7.06 3.78 3.29

Woodland and Davis Local Facilities 31.74 16.75 14.99

Costs Expended Since 2009 7.49 4.01 3.48

TOTAL CAPITAL COSTS 237.22 126.31 110.91

Facility Cost

Joint Intake (Agency Portion) 16.82

Raw Water Pipeline 23.66

Regional Water Treatment Facility (RWTF)

96.32

Woodland Treated Water Pipelines 5.46

Davis Treated Water Pipeline 23.99

Permit Fees & Construction Counsel

2.89

TOTAL 169.13

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Significant Project Cost Changes• Increase in Agency allocation for Joint Intake ($2.3

million)– Allocation to Agency for 20% of “soft costs” (i.e. engineering

services during construction, CM, etc.) ($0.9 million)– Increased estimate for pipeline trenchless crossing ($1.4

million)

• Pre-design fee for DBO Procurement ($250,000)• Technical Services to Davis and Woodland ($100,000)• Raw Water Intake Agency Facilities Design ($395,000)

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Intake Bidding Schedule

ACTIVITY DATE

Receive Formal State/Federal Funding Commitment July 2013

MWH Completes 100% Design September 2013

Conduct Contractor Prequalification Process October/November 2013

Solicit Bids for Intake Project December 2013

Bids Received February 2014

Contract Awarded by RD 2035 March 2014

Updated: 06/19/13

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Task Completion By

Complete RWTF Site Fill November 2012

Obtain water rights for 10 TAF purchased from CPG November 2012

Issue Final RFP for DBO Contract December 2012

Approval of Project Final Engineering and Construction by Each City

March 2013

Obtain USACE 404 Permit July 2013

Secure Joint Intake Construction Funding July 2013

Authorization to Proceed with Bond Financing by Each City August 2013

Award DBO Contract October 2013

Advertise Joint Intake Construction Bid Documents December 2013

Joint Intake Construction Completion March 2016

DWWSP Acceptance Testing Completion September 2016

Updated: 06/20/13

Project Schedule Milestones

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Questions

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Financing Milestone ScheduleTask Date

Board Decision

City Council Decision

Plan of Finance Presentation to City of Woodland City Council Jan 2013

Plan of Finance Presentation to City of Davis City Council Jan 2013

Plan of Finance Presentations to WDCWA (Discussion of Joint vs. Individual Issuance)

Feb 2013

City of Davis Special Election, Completion of 218 Process, Approval of Project, and Approval of Water Rates

Mar 2013 X

City of Davis Receives Preliminary Rating Mar 2013

Determination re: Agency Issued Debt Apr 2013 X X*

Initial Clean Water SRF Application May 2013

Project Rating Agency Review / Selection of Preferred Bidder

Jul 2013

Ratings Available for Davis and Woodland Aug 2013

Woodland and Davis City Council Authorization to Proceed with Bond Financing

Aug 2013 X*

Information Item for Agency Board re: City Councils’ authorization to proceed with bond financing

Aug 2013

Board Award of Service Contract Oct 2013 X

Bonds Issued Oct 2013Updated: 04/17/13