Update on the
Davis-Woodland
Water Supply
Project
Agency Board
June 20, 2013
Discussion Topics
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Recent Activities/Accomplishments
Upcoming Activities/Milestones
DBO Procurement
Project Costs
Project Schedule
2
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
3
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
4
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
5
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
6
Upcoming Activities/Milestones
June - 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
7
Upcoming Activities/Milestones
June – 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
8
Upcoming Activities/Milestones
June – 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
9
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
10
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
11
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
12
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 selfperformed work
13
June 15, 2013 Open House Ad
14
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
Board award of service contract
August/September 2013
October 17, 2013
Updated: 06/20/13
15
30 mgd Project Costs
Presented at April Board Meeting
(Apr 2013 million dollars)
Construction Costs(a)
Capital Costs, 2009-2016
Project Component
Cost
Cost Category
Total
Joint Intake (Agency Portion)(b)
14.52
Agency Administration
3.56
Raw Water Pipeline
23.76
Program Management
3.47
Water Supply
1.71
Environmental & Permitting
1.59
Land/ROW Acquisition
4.30
6.18
Regional Water Treatment Facility
(RWTF)
96.7
Woodland Treated Water Pipeline
5.70
Davis Treated Water Pipelines
23.35
Pre-Design
Permit Fees & Construction
Counsel
2.89
Construction
TOTAL 166.91
(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.
166.91
Capital Contingency
7.79
Woodland and Davis Local Facilities
31.74
Costs Expended 2009-2011
7.49
TOTAL CAPITAL COSTS 234.75
16
Updated 30 mgd Project Costs
(April 2013 million dollars)
Construction Costs(a)
Capital Costs, 2009-2016
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
23.99
Pre-Design
6.78
3.65
3.11
2.89
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
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
Permit Fees & Construction
Counsel
TOTAL 169.13
(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.
TOTAL CAPITAL COSTS 237.22
17
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)
18
Intake Bidding Schedule
ACTIVITY
Receive Formal State/Federal Funding Commitment
MWH Completes 100% Design
Conduct Contractor Prequalification Process
Solicit Bids for Intake Project
Bids Received
Contract Awarded by RD 2035
DATE
July 2013
September 2013
October/November 2013
December 2013
February 2014
March 2014
Updated: 06/19/13
19
Project Schedule Milestones
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
Award DBO Contract
Advertise Joint Intake Construction Bid Documents
Joint Intake Construction Completion
DWWSP Acceptance Testing Completion
August 2013
October 2013
December 2013
March 2016
September 2016
Updated: 06/20/13
20
Questions
21
Financing Milestone Schedule
Task
Date
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
City of Davis Receives Preliminary Rating
Mar 2013
Determination re: Agency Issued Debt
Apr 2013
Initial Clean Water SRF Application
May 2013
Board
Decision
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
Information Item for Agency Board re: City Councils’ authorization
to proceed with bond financing
Aug 2013
Board Award of Service Contract
Oct 2013
Bonds Issued
OctUpdated:
2013
City Council
Decision
X
X
X*
X*
X
04/17/13
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