Approximate Meeting Time: 2-3 Hours - mnwd.com

ENGINEERING AND OPERATIONS BOARD OF DIRECTORS’ MEETING

MOULTON NIGUEL WATER DISTRICT 27500 La Paz Road, Laguna Niguel

January 16, 2012 9:00 a.m.

Approximate Meeting Time: 2-3 Hours

1. Call Meeting to Order 2. Approve the Minutes of the December 12, 2011 Engineering and Operations Board of

Directors’ Meeting

3. Public Comments Persons wishing to address the Board of Directors on matters not listed on the Agenda may do so at this time. “Request To Be Heard” forms are available at the entrance to the Board Room. Comments are limited to five minutes unless further time is granted by the Presiding Officer. Submit form to the Recording Secretary prior to the beginning of the meeting. Those wishing to address the Board of Directors on any item listed on the Agenda should submit a “Request To Be Heard” form to the Recording Secretary before the Presiding Officer announces that agenda item. Your name will be called to speak at that time.

PRESENTATION ITEMS

4. Local Water Supply Policy – Presentation on Metropolitan Water District Supply

Reliability from Karl Seckel of Municipal Water District of Orange County

DISCUSSION ITEMS (Action will be taken when appropriate for certain items at the Thursday Board Meeting) 5. Monthly Operational Status Reports

6. Monthly Construction Progress Report

7. Capital Project Budget Summary

8. Water Supply Reliability Projects’ Status Summary Report

9. Upper Chiquita Reservoir, Project 2008.032 – Additional Reservoir Capacity

10. Communications Cell Site Lease Program – Additional Expense Authorization

11. 54-inch Central Intertie Pipeline Inspection Plan, Project 2011.011 – Professional Services Agreement Approval

12. Programmable Logic Controller (PLC) Panel Replacement, Project No. 2011.016 –

Additional Expense Authorization

INFORMATION ITEMS 13. Scheduled Shutdown of the Metropolitan Water District Diemer Filtration Plant

14. Upper Salada Oxygen Generation System Start-up and Monitoring Results

15. Update of the Hazard Mitigation Plan

16. Update on SOCWA Use of the Proposition 50 Grant Funds for Aliso Creek

17. Crown Valley 16-inch Transmission Main Valve Replacement Project

18. Joint Regional Water Supply System – Board Workshop

19. Update on Chiquita Water Reclamation Plant Biosolids Project

20. Board Tour of the JB Latham Plant – January 20th

21. Late Items (Appropriate Findings to be Made)

a. Need to take immediate action; and

b. Need for action came to District’s attention after Agenda Posting [Requires 2/3 vote (5 members) or unanimous vote if less than 2/3 are present]

22. Adjournment

The Board of Directors’ Meeting Room is wheelchair accessible. If you require any special disability related accommodations (i.e., access to an amplified sound system, etc.), please contact the Moulton Niguel Water District Secretary’s office at (949) 643-2006 at least seventy-two (72) hours prior to the scheduled meeting. This agenda can be obtained in alternate format upon written request to the Moulton Niguel Water District Secretary seventy-two hours prior to the scheduled meeting. Agenda exhibits and other writings that are disclosable public records distributed to all, or a majority of, the members of the Moulton Niguel Water District Board of Directors in connection with a matter subject to discussion or consideration at an open meeting of the Board of Directors are available for public inspection at the District Office, 27500 La Paz Road, Laguna Niguel, CA (“District Office”). If such writings are distributed to members of the Board less than 72 hours prior to the meeting, they will be available in the reception area of the District Office at the same time as they are distributed, except that, if such writings are distributed immediately prior to, or during, the meeting, they will be available in the Board meeting room.

MONTHLY CONSTRUCTION PROGRESS REPORT

AS OF 01/05/12

Project : Transmission Valve Replacement

Job No. : 2010.019

Contractor : Paulus Engineering

Engineer : In House

CROWN VALLEY TRANSMISSION

VALVE REPLACEMENT

SCOPE OF WORK : Valve replacement work

within Crown Valley Parkway, including the addi-

tion of new air/vacs and blow offs.

DETAILS :

Fund 07 Replace and Refurbishment

Notice To Proceed 07/06/11

Est. Completion Date 06/30/12

Authorized Expense $ 800,000

Paid To Date $ 467,855

Percent Completed 58%

Crown Valley Parkway West of La Plata

Project : Sheep Hills Reservoir Int/Ext

Job No. : 2008.013

Contractor : Advanced Industrial Services

Engineer : Harper and Associates

SCOPE OF WORK : Recoat the interior and

exterior of the reservoir.

DETAILS :







SHEEP HILLS RESERVOIR

INT/EXT COATING

Tank Back in Service 12/23/12

NOTES : 14 of 22 valves have been installed, and

8 mainline repairs have been completed to date.

NOTES : File N.O.C 01/09/12


AS OF 01/05/12

Project : Upper Salada L.S. Oxygen Generation

Job No. : 2010.110

Contractor : S.S. Mechanical

Engineer : Tetra Tech

UPPER SALADA LIFT STATION

OXYGEN GENERATION

SCOPE OF WORK :. Replace the existing sys-

tem with a new oxygen generation system.

DETAILS :







OdaLog Reports on Niguel Road

Approx. 1/4 mile south of Crown Valley Parkway

Project: Plant 3A Effluent TM Relocation

Contract No. : 2009.039

Contractor : Sema Construction

Engineer : Design Build

SCOPE OF WORK : Plant 3A effluent

transmission main to be removed and replaced with

new pipeline as part of county contract to install

sheet piles.

DETAILS :


Notice To Proceed N/A





SAN JUAN CREEK 20” EFFLUENT

TRANSMISSION MAIN

San Juan Creek near Alipaz Street

NOTES : Oxygen system on line November 16, 2011

System calibration and monitoring is on-going.

NOTES: Phase 7 is awaiting approval by the

County. Anticipate award by the end of fiscal year

11-12.

Average = 48 ppm

Average = 1 ppm


AS OF 01/05/12

Project : Plant 3A ETM Refurbishment

Job No. : 2010.084

Contractor : Kennedy Pipeline

Engineer : N/A

PLANT 3A ETM

REFURBISHMENT

SCOPE OF WORK : Construct a 20” by-pass

line due to San Juan Creek channel wall failure.

DETAILS :







Completed Installation of New 20” Sewer Mainline.

Project : Moulton Ranch III R.W. Extension

Job No. : 2010.016

Contractor : Doty Brothers

Engineer : Psomas

SCOPE OF WORK : Install 4,000 ft of recycled

water pipeline and 13 service connections in the

City of Laguna Hills.

DETAILS :

Fund 12 Water Supply Reliability





Percent Completed 100 %

MOULTON RANCH III RECYCLED WATER

EXTENSION

Completed Project

NOTES : Replacement pipeline in service; District is

working with the H.O.A on finished surface improve-

ments.

NOTES : Filed N.O.C 01/09/12. Retention out-

standing. Retrofitting irrigation systems.


AS OF 01/05/12

Project: Seville Reservoir No. 1 & 2

Contract No. : 2011.021

Contractor : Advanced Industrial Services

Engineer : Harper & Associates

SEVILLE RESERVOIR

NO. 1 & 2

SCOPE OF WORK : Recoat the interior and

exterior of both reservoirs.

DETAILS :


Notice To Proceed N/A




Percent Completed 1.5%

Reservoir Preparation

NOTES : Mobilized 01/03/12

Project Cost

Original

MNWD Cost

Current

MNWD Cost

MNWD

Percent

Approved

Amount

MNWD

Cost to

Date

Prop 50

Grant Total

MNWD

Grant

Total

18.314 8.371 10.359 55.0% 8.543 8.279 4.424 2.528

54.500 14.671 18.590 34.1% 18.590 17.201 3.379 1.152

61.109 14.540 22.213 29.9% 5.600 1.399 0.000 0.000

$133.923 $37.582 $51.161 $32.733 $26.879 $7.803 $3.681

152.000 30.400 30.400 20.0% 0.660 0.532 1.500 0.300

$152.000 $30.400 $30.400 $0.660 $0.532 $1.500 $0.300

$285.923 $67.982 $81.561 $33.393 $27.410 $9.303 $3.981

$280.946 $67.982 $81.561 $33.393 $25.245 $9.303 $3.981

Potential Water Supply Reliability Projects:

MNWD SMWD IRWD SCWD ETWD CSJC CSC LBCWD TCWD Total

55.0% 25.0% 0.0% 3.3% 0.0% 0.0% 10.0% 6.7% 0.0% 100.0%

29.9% 29.9% 24.1% 0.0% 11.5% 0.0% 0.0% 0.0% 4.6% 100.0%

SOC Desalter 20.0% 0.0% 0.0% 20.0% 0.0% 20.0% 20.0% 20.0% 0.0% 100.0%

34.1% 41.9% 0.0% 6.1% 0.0% 6.7% 11.2% 0.0% 0.0% 100.0%

16.5 7.5 - 1.0 - - 3.0 2.0 - 30.0

13.0 13.0 10.5 - 5.0 - - - 2.0 43.5

SOC Desalter 4.6 - - 4.6 - 4.6 4.6 4.6 - 23.1

34.1 20.5 10.5 5.6 5.0 4.6 7.6 6.6 2.0 96.6

256 315 - 46 - 50 84 - - 750

256 315 - 46 - 50 84 - - 750

- Payments were made to SMWD for nearly $2.2 Million towards construction activities

- The discrepancy between the original project cost and current project cost is more accurate cost projection and adjustments from grant

funding ($8 Million) and the purchase of additional capacity (3 cfs) in the Baker Water Treatment Plant ($4 Million)

- Incorporated last month's project totals

Capacities

Upper Chiquita Res.

Supply Projects (cfs)

Supply Projects

IRWD Emg. Interconn.

Baker WTP

Storage Projects

Total Storage (af)

IRWD Emg. Interconn.

Baker WTP

Total Supply (cfs)

Storage Projects (af)

Upper Chiquita Res.

Percentages

Description

Upper Chiquita Reservoir

South Orange Coastal Desalination

Baker WTP and Pipeline

Future Projects SubTotal

Agencies' Participation in Projects

MWDOC Discussions with OCWD - First Step was Emergency Services Program

Project Concept Being Developed and Refined between MWDOC and MWD

MWD Conducting Geotechnical Evaluations with Soil Borings

Project Concept/Cost in Negotiations with Poseidon - Resolution to Support Project by MNWD Board

OCWD In-Land Well Field Project

SJBA in the Process of Developing an update to the Groundwater Management Plan previously developed in 1994

South Orange County Water Supply Reliability Projects Summary

($ Millions)

(as of January 9, 2012)

Current Projects SubTotal

Water Supply Reliability Projects Total

MWD Cross Feeder

MWD Central Pool Augmentation Project

SJBA Groundwater Recovery Project

IRWD Emergency Interconnection

Project

Huntington Beach Desalination

Previous Monthly Totals

F:Projects\Storage\WaterReliabilityProjects.xls

Moulton Niguel Water District

STAFF REPORT TO: Board of Directors MEETING DATE: January 16, 2012 FROM: Matt Collings, Director of Engineering and Operations SUBJECT: Upper Chiquita Reservoir, Project No. 2008.032 Available Reservoir Capacity Participation and Operations Agreement SUMMARY Issue: Consideration of the available capacity in the Upper Chiquita Reservoir and

approval of the revised Participation and Operations Agreement. Recommendation: Authorize the President of the Board to execute the revised

Project Agreement, dated December 16, 2011; authorize the purchase of the additional 20.9 acre-feet of capacity; and Increase the project budget and expense authorization to $20,400,000 to be funded by Bond Proceeds and/or the Capital Improvement Fund.

Fiscal Impact: Based on the recommendation above, the fiscal impact to the 10-

Year Cash Flow is approximately $3.5 Million for the additional capacity ($1.8 Million) and approved change orders ($1.7 Million) on the project as reported to the Board in November 2011.

Previously Related Action: The following is a summary of the most recent actions

taken by the Board of Directors on the subject project:

1. May 2009 – Approval of Project Expense Authorization for Construction of the Reservoir

2. June 2011 – Approved of the Participation and Operations Agreement

3. November 2011 – Approved of the increase to the Project Budget and Expense Authorization

BACKGROUND: The District has capacity rights in the Upper Chiquita Reservoir (Reservoir) totaling 255.8 acre-feet or 34.11% of the total capacity. The City of San Juan Capistrano (CSJC) is reducing their capacity rights from 76.1 acre-feet to 50 acre-feet. The remaining 26.1 acre-feet is available to the project participants, if desired. At the Engineering and Operations Committee Meeting on December 12, 2011, the District staff recommended the District acquire the entire 26.1 acre-feet of capacity in the Reservoir that was made available when the CSJC reduced its capacity rights. The South Coast Water District (SCWD) has also expressed interest in the full capacity, and the SCWD recommended an equal split of the available capacity. At the regular Board Meeting on December 15th, the Board of Directors directed staff to meet with the SCWD General Manager to discuss a proportional split between the two agencies. DISCUSSION: The primary purpose of the Reservoir is to provide additional system reliability to the project participants. Therefore, staff proposed a proportional allocation of the capacity to provide an equitable increase to the system reliability of each agency. A proposed 80/20 split of the additional capacity, with the District acquiring 20.9 acre-feet and SCWD acquiring 5.2 acre-feet, would provide an 0.4 days of system reliability to both agencies during average day demand conditions. The additional system reliability is based on the following:

• Projected demands from the 2010 Urban Water Management Plans • Current storage capacity, including existing capacity rights in the Reservoir • Current and projected supply sources (i.e. Baker Water Treatment Plant and the

SCWD Groundwater Recovery Facility) Additionally, a proposed 80/20 split is a very similar proportion between the two agencies with respect to current Reservoir capacity rights (85/15), system demands (81/19), and population (81/19). Staff met with the SCWD General Manager (GM) to review the proposal and the SCWD GM stated he could support this proposal if additional considerations were forthcoming. In lieu of the 7.8 acre-feet of capacity within the Reservoir that SCWD would not be acquiring in an equal split, SCWD would like to purchase that capacity from the District in the form of recycled water at Upper Oso Reservoir (UOR). The District owns 1,000 acre-feet of capacity in the 4,000 acre-foot UOR. The District would convey the capacity to SCWD through the Golden Lantern Reservoir, of which the District owns 2 million gallons and SCWD owns 1 million gallons. In concept, Staff is comfortable with the proposed additional considerations, but has indicated that it would be necessary to pursue an agreement to sell the recycled water system capacity separately from finalizing the allocation of the available Reservoir capacity. There are additional considerations that need to be addressed associated with the recycled water system transfer, i.e. rate of flow, operational capacity at Golden Lantern Reservoir, etc, in a subsequent agreement.

FISCAL IMPACT: At the Board’s request, District staff reviewed the impacts to the 10-year cash flow with the purchase of additional reservoir capacity. The additional fiscal impact to the 10-year cash flow includes $1.8 Million for the additional capacity and $1.7 Million for change orders on the project that were approved at the November Board Meeting. Staff addressed the additional financial impacts two ways. Staff first looked at projects that could be removed or reduced from the 10-year cash flow. In doing so, staff was able to identify $1.8 Million in projects that could be either reduced, cancelled, or will receive a reimbursement. The remaining $1.7 Million will require additional funding from Bond Proceeds and/or the Capital Improvement Fund. Staff reviewed the 10-year cash flow and looked at the incremental impact of each $1.0 Million increase on the cash flow. The analysis looked at two scenarios.

1. The first scenario analyzed the impact to the District’s cash flow without adjustments to the water rate revenue increases in the model.

2. The second scenario reviewed the necessary rate increase to maintain the same cash position as the baseline scenario at the end of the 10-year cash flow model.

The analysis concluded that there was a minimal impact to the District’s overall cash position. The resulting rate increase necessary to maintain the same cash position is a 0.35% increase to the currently suggested rate increase for each $1.0 Million of additional capital expenditures above the 10-year cash flow forecast. Initial calculations indicate that the additional $1.7 Million would cost approximately $0.22 per customer bill. Finally, as a reminder, SMWD did secure Proposition 50 grant funding for several water reliability projects, including the Reservoir, totaling $8 Million. For the Reservoir project, the District is entitled to more than $1 Million in grant reimbursements. The grant funding has not been included in the 10-year cash flow model. PARTICIPATIONS AND OPERATIONS AGREEMENT: The District approved the Agreement in June pending some non-substantive changes approved by the District’s legal counsel. Since that time, the Agreement has been modified to reflect the reduction in capacity for the City of San Juan Capistrano as well as some additional administrative changes. A copy of the Agreement has been included for review. The most significant change was the addition of Section 19, TERM. The added section allows for the Agreement to be terminated by determination of a Majority Vote on one of three conditions:

1. Continued maintenance and repair of the Reservoir is physically or financially impractical.

2. Upon the occurrence of a man-made or natural disaster that destroys or renders the Reservoir unusable.

3. As a result of regulatory mandates with which SMWD cannot comply or which

would require cost prohibitive changes to the Reservoir. RECOMMENDATION: Per the Project Agreement, Santa Margarita Water District (SMWD) can allocate the capacity at their sole discretion. Neither agency desires to put SMWD in a position to allocate the capacity between the agencies. The proposed allocation based on the 80/20 split of the available capacity provides the most equitable arrangement between the two agencies. As such, District staff is recommending the Board of Directors take the following actions at the January 16, 2012 Regular Board Meeting: 1. Authorize the President of the Board to execute the revised Project Agreement

dated December 16, 2011;

2. Authorize the purchase of the additional 20.9 acre-feet of capacity;

3. Increase the project budget and expense authorization to $20,400,000 to be funded by Bond Proceeds and/or the Capital Improvement Fund.

December 16, 2011 Final

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Upper Chiquita Emergency Storage Reservoir Participation and Operations Agreement South Orange County

December 2011

City of San Clemente City of San Juan Capistrano

Moulton Niguel Water District Santa Margarita Water District

South Coast Water District


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This Agreement is made this ___ day of _________2012, (the

“Agreement Date”) and is entered into by and among the City of San Clemente (“CSC”), City of San Juan Capistrano (“CSJC”), Moulton Niguel Water District (“MNWD”), Santa Margarita Water District (“SMWD”), and South Coast Water District (“SCWD”), hereinafter sometimes individually or collectively referred to as “Party” or the “Parties,” respectively.

WHEREAS, the Parties hereto are south Orange County agency water suppliers who presently rely on imported water used for domestic (potable) purposes, which is supplied by Metropolitan Water District of Southern California (“MWD”) through Municipal Water District of Orange County (“MWDOC”) via regional importation pipelines; and

WHEREAS, each of MWD and MWDOC has each adopted a policy that its respective member or contracting agencies shall have a minimum of seven (7) days of water supplies when imported water deliveries are curtailed during a planned or emergency shutdown; and

WHEREAS, the Parties are implementing portions of the “South Orange

County Water Reliability Study Phase 2 System Reliability Plan,” dated June, 2004, prepared by MWDOC (the “Plan,” and also known as the “Emergency Service Program”); and

WHEREAS, the Plan analyzed various risk scenarios, including planned

and emergency outages of the Diemer Filtration Plant, the Allen McColloch Pipeline and the East Orange County Feeder No. 2, and recommended a number of projects to help agencies continue to meet consumers’ water needs during outages (either planned or emergency) of key facilities; and

WHEREAS, the Plan recommended various reliability projects including: i) construction of one or more regional reservoirs, ii) pursuit of regional interconnection work iii) pursuit of emergency groundwater storage and conveyance with Orange County Water District and the groundwater producing agencies and iv) improvements by MWD, that would collectively help to improve the standard of reliability for the Parties who participate in such projects; and

WHEREAS, MNWD and SMWD entered into an agreement entitled “Water Storage Reservoirs Participation Agreement,” dated April 14, 2006 (the “MNWD Participation Agreement”) providing for participation by MNWD in the funding the design, planning and construction of the reservoirs and establishing a capacity right of 470 acre-feet (“AF”) in the Upper Chiquita and East Ortega Reservoirs; and

WHEREAS, the MNWD capacity rights defined in the MNWD Participation

Agreement reservoirs may be revised based on participation by other agencies


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and MNWD and SMWD are each willing to revise its respective capacity in order to provide capacity for the other Parties; and

WHEREAS, SMWD completed the construction of the Upper Chiquita

Domestic Water Emergency Storage Reservoir in Upper Chiquita Canyon (“Reservoir”) to address planned and emergency supply curtailment and SMWD constructed the Reservoir with sufficient capacity to accommodate participation by other South Orange County water agencies in addition to MNWD; and

WHEREAS, SMWD completed construction of an inlet/outlet pipeline and

the Upper Chiquita Reservoir Pump Station (together with the inlet/outlet pipeline, the “Pump Station”) to the South County Pipeline (“SCP”) as the source of imported water for the Reservoir; and

WHEREAS, the Parties take imported water from service connections to

the SCP per the rules and regulations governing the Operation and Maintenance of the South County Pipeline and Service Connections During Phase I and II Operation (SCP Rules and Regulations); and

WHEREAS, MWDOC is willing and able to provide administrative services

to assist with the metering and payment for water stored and delivered through the Reservoir and Pump Station (together the “Reservoir Project”) under the terms of the SCP Rules and Regulations; and

WHEREAS, the Parties desire to participate in the Reservoir Project

described herein;

NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by reference, and the mutual covenants and promises among the Parties hereinafter set forth, the Parties agree as follows:

SECTION 1. REPLACEMENT OF MNWD PARTICIPATION

AGREEMENT MNWD and SMWD hereby acknowledge this Agreement supersedes and

replaces the MNWD Participation Agreement. Parties acknowledge that MNWD cost allocations under this Agreement will incorporate MNWD’s financial participation to date in the Reservoir Project.

SECTION 2. CAPACITY RIGHTS Subject to the Capacity Rights as described herein, SMWD shall own and

operate the Reservoir Project pursuant to the terms of this Agreement. The Parties shall own a Capacity Right in the Reservoir and Pump Station as set forth below in Table 1, which includes flow rates at the minimum specified cubic feet per second (CFS). As used herein, “Capacity Right” means a Party’s undivided


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percentage ownership interest in the capacity in each of the Reservoir Project facilities including all components. The total Capacity Rights in the Reservoir Project facilities shall be deemed to equal the sum of all Parties’ Capacity Rights therein expressed as percentages totaling 100%. The Capacity Rights equate to approximate nominal storage capacity in the Reservoir and nominal flow capacity in the Pump Station, but no change in the Capacity Right percentages shall occur by reason of any variance between actual storage capacity and nominal storage capacity or actual flow rates and the nominal flow rates, or increase or decrease in the nominal storage capacity or flow rates as a result of re-rating of the capacity in the Reservoir or Pump Station or any component thereof, except by amendment of this Agreement. The Capacity Rights do not include any capacity or right in other SMWD systems or facilities including the SCP. The Capacity Right percentage of each Party is the basis for allocation of “variable costs” and “fixed operating costs”, as further provided in Section 7 hereof.

The following table summarizes the Capacity Rights allocated to each of

the Parties

TABLE 1 Summary of Capacity Rights in Reservoir Project Facilities

Agencies

Reservoir Capacity (AF)

Capacity Right Percentage

Pump Station Capacity (CFS)

City of San Clemente 83.80 11.17% 5.59

City of San Juan Capistrano 50.00 6.67% 3.33

Moulton Niguel Water District 255.80 34.11% 17.05

Santa Margarita Water District 314.7 41.96% 20.98

South Coast Water District 45.70 6.09% 3.05

Total 750.00 100.00% 50.00

SECTION 3. PROJECT COMMITTEE

A Project Committee shall be appointed, consisting of one representative

selected by each Party. Each Party shall also select an alternate representative to serve in the absence of its Project Committee representative. The primary purpose of the Project Committee shall be to facilitate communication among the members, aid in the administration of this Agreement, and review and approve the other matters specified herein. Each Party reserves its full legislative discretion with respect to all applicable implementation decisions expressly


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covered by this Agreement and decisions of the Project Committee do not override a Party’s legislative determinations.

The Project Committee shall be responsible for reviewing and approving

conceptual changes to the Upper Chiquita Reservoir and Pump Station and such other matters as provided herein. Decisions of the Project Committee shall require approval by a majority vote based on Capacity Right Percentages under Table 1 of the Project Participants (“Majority Vote” hereafter).. The Project Committee shall meet periodically as needed during implementation of the Reservoir Project operation to review and approve such items as submitted to the Project Committee. Upon implementation of said projects, the Project Committee shall meet at least once per year to review the status of the Reservoir Project facilities and operation, and shall meet upon the request of three (3) Parties within a reasonable time after delivery of the request to the Parties.

SECTION 4. PROJECT WORK AND REVIEW Subject to available funding from the Parties or other sources of funding, including but not limited to State and Federal funds, SMWD or its designee is solely responsible for overseeing and implementing all aspects of the planning, environmental documentation, land and right-of-way acquisition, permitting, design and construction of the Reservoir and Pump Station, and any applicable terms for receipt of any state or federal funding of the projects identified in this Agreement, including the procurement and award of all contracts SMWD deemed necessary for such purpose (collectively, the “Project Work”). The foregoing notwithstanding, as of the Agreement Date, upon commencement of operation of the Reservoir Project, Project Committee approval shall be required for capital enhancements, repairs, or replacements for the Reservoir Project facilities (collectively, the “Project Enhancement”) that either involves expenditures in excess of $30,000 per Project Enhancement, or that substantially alters the mode or method of operation of the project facilities, including but not limited to(1) the award of any contracts for environmental documentation, design or construction, (2) the issuance of any design contract or change variance that individually exceeds $30,000 or, when added to previously issued variances, exceeds 10% of the contract amount for the Project Enhancement and (3) the issuance of any construction change order(s) that exceed the construction contingency approved by the Project Committee. Project Committee will review design and construction schedules for the Project Work. Any changes needed in the schedule will be subject to approval by the Project Committee. All subsequent Project Work contemplated under this Agreement shall meet applicable SMWD standards and specifications. SMWD or its designee shall provide copies of requests for proposals, staff reports, design reports, and plans and specifications, including estimates for SMWD costs related to environmental documentation, design, permits, legal fees, surveying, geotechnical services, construction management services, inspection and accounting, for review by the other Parties and any regulatory agency with authority over an aspect of the


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subsequent Project Work. The Parties shall provide any comments to SMWD or its designee within seven (7) working days of receipt of any such report or other document or any updated version thereof. SMWD or its designee shall review and reasonably consider all comments. In the event of any dispute or conflicting comments with respect to the subsequent Project Work, the Project Committee shall meet and confer, and resolve such disputes prior to proceeding with the subsequent Project Work. SMWD shall provide to each of the other Parties copies of all plans, designs, bids and construction contracts within five (5) working days after each such document has been approved and/or finalized by SMWD. SECTION 5. PROJECT COSTS

Each of the Parties agrees to pay its Capacity Right percentage share of the cost to design and construct the Reservoir and Pump Station. A Party shall not reduce or increase its Capacity Right unless one or more other Parties make a corresponding increase or decrease in its/their Capacity Right(s), and the change is made in accordance with Section 8. The Parties further agree that funding received from State and/or Federal sources for the Reservoir and Pump Station shall be applied first and the remaining Project costs shall be allocated to the Parties based on their respective Capacity Rights percentage as shown in Table 1 under Section 2. SMWD or its designee will invoice the Parties for their respective shares of the completed Project Work in two parts. The first deposit installment will fund the Project cost for environmental, permitting, design and construction services identified in Exhibit A, an estimate of the total project costs. The second part will fund the remaining estimated Project Work. The first deposit shall be invoiced by SMWD upon execution of this Agreement by the parties or award of contract by SMWD Board of Directors. Progress payments shall be invoiced by SMWD upon award of contract for construction of the project components per the schedule agreed to by the Project Committee. All invoices shall be payable when mailed or delivered and shall be delinquent 45 days thereafter. A final reconciliation will be provided by SMWD or its designee upon completion of the Project Work, which may result in refunds or additional deposit invoices. From the deposits, SMWD will disburse any amounts advanced by any Party for costs of the Project Work. Funds deposited with SMWD shall earn interest for the benefit of the Party depositing the same at a rate equivalent to the average prevailing rate of earnings on SMWD’s invested funds. Funds paid in advance by SMWD for the benefit of any Party shall accrue interest at a rate equivalent to the average prevailing rate of earnings on SMWD’s invested funds.

If any Party does not make timely payment(s) as invoiced, such Party’s right to use its Capacity Right shall be deemed to be suspended, SMWD or its designee will exercise best efforts to sell or otherwise transfer the Party’s


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Capacity Right among the other Parties, and a change will be processed under Section 8. In any event, each Party shall remain financially responsible for its share of the Project based on its Capacity Right percentage, including the cost attributable to the suspended Capacity Right percentage as reallocated by SMWD among the non-suspended rights, unless and until one or more other Parties agree to acquire or use the available Capacity Right.

SECTION 6. DEMAND MANAGEMENT

SMWD shall operate the Reservoir and Pump Station to maximize the

water supply available during a planned or emergency water shortage. In the event the amount of water then available in the Reservoir Project is less than the amount specified in Table 1 in Section 2, then the available water will be allocated based on the Parties’ respective Capacity Right percentage at the time the water is made available, except in the case of a Party that through its own election previously withdrew its water held under its Capacity Right. During the operation of the Reservoir or Pump Station in either a planned or emergency water shortage, no Party shall take action to prevent the delivery to another Party of its proportionate share of available water.

In the event of an emergency or planned outage, Parties shall notify SMWD of its requested capacity and flow rate in an amount equal to or less than the Capacity Right percentage specified in Table 1. If a Party does not make a request, SMWD will continue to hold the Party’s capacity in storage.

SECTION 7. OPERATION AND MAINTENANCE COSTS SECTION 7.1. General SMWD shall operate and maintain the Reservoir and Pump Station. The

cost of operating and maintaining each facility shall be determined on the basis of specific operational criteria or limitations. SMWD will operate and use the facilities as part of the SCP operations when the facilities are not being used by the Parties for planned outage or emergency use. Operation, maintenance, repair and replacement costs shall include both fixed costs that do not vary with the quantity of water delivered by the Reservoir Project through the SCP Service Connections, and variable costs that vary with the quantity of water delivered by the Reservoir Project as shown on Exhibit B.

SECTION 7.2. Fixed Costs Annually, by February 15 of each year, SMWD shall prepare a budget for

fixed costs during the next budget year (July 1 – June 30) for approval by the Project Committee, and shall provide each Party with a copy of the budget. Fixed costs items, as defined on Exhibit B, including the cost of facilities maintenance and repair, and chemicals if required for water quality recirculation,


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shall be allocated among the Parties based on their Capacity Right percentages. The Project Committee shall review, amend, reallocate, add or deduct items, and approve Exhibit B annually based operational criteria then use it in the proposed budget. Each Party’s share of the budgeted fixed costs for the budget year shall be payable by advance deposits made quarterly in four (4) equal installments or as otherwise determined by the Project Committee, and shall be due upon presentation of invoices by SMWD. In the second and each subsequent budget year, any excess/shortfall from the preceding budget year’s deposits shall be subtracted from/added to the second quarterly deposit or otherwise addressed as determined by the Project Committee. If and for so long as the Project Committee fails to approve a budget for fixed costs, then the last budget approved by the Project Committee, increased in an amount equal to the percentage change, if any (but not less than zero), in the Consumer Price Index (All Items) for the [[Anaheim-Long Beach-Riverside]] Area, published by the United States Department of Labor, Bureau of Labor Statistics, or if the same shall no longer be published, the most nearly equivalent official index published by said Bureau or its successor or equivalent government agency (the “Index”), over the Index that was in effect at the commencement of the last approved budget, shall be used.

SECTION 7.3. Variable Costs Variable costs, including but not limited to the cost of water delivered,

chemicals and power, shall be allocated among the Parties based on the volume of water delivered to each Party. Water delivered shall be deemed MWD imported water and shall be charged by MWDOC at the applicable rate at the time water is delivered. The volume of water delivered to the Reservoir will be divided and billed to the Parties at their normal point of importation from the SCP system, based on their Capacity Right percentages, by an additive adjustment to the meter reads at the Participant’s normal point of importation from the SCP system. The Parties will be credited with the volumetric amount purchased to a “Bank”. When water is discharged from the Reservoir, the Parties receiving the discharged water will have the volumetric credit deducted from their Bank, and an equivalent volume deducted from their meter read at their normal point of importation from the SCP system. The water in the Bank is a cost accounting mechanism, and will not affect the available volume of water- ie Capacity Right percentage- for each Participant as defined in Section 2, Table 1.

SECTION 7.4 Invoices Each Party shall pay its quarterly operations invoices presented to it within

forty-five (45) days of receipt. In the event that a Party fails to pay the charges within such forty-five-day period, the Party shall be assessed and shall pay a penalty of one and one-half percent (1.5%) of the total outstanding charges each succeeding forty-five (45)day period or portion thereof that the amount remains unpaid until said charges are paid in full.


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SECTION 7.5 Overhead All design, construction and operation costs allocated to the Parties under

Section 7 and Section 5 shall include the cost of SMWD labor and equipment, on a time and materials basis, using the actual number of man-hours and equipment-hours required (including travel time to and from SMWD facilities), multiplied by the applicable rates for the crew members and equipment deployed. After-hours services (defined as between 5:00 pm on a working day and 7:00 am on the next following working day; “working day” to exclude Saturdays, Sundays and SMWD-designated holidays) for non-exempt SMWD personnel will be charged at time and a half. The equipment rates effective upon the execution of this Agreement will be those established by the SMWD Board of Directors, or if the specific labor, equipment, or materials is not covered by SMWD’s established rates, the current Caltrans published rates as periodically adjusted by the State of California as applicable which are incorporated herein by this reference, and thereafter are subject to adjustment in accordance with standard SMWD practices.

The labor rates are comprised of a direct component that is adjusted

periodically whenever SMWD’s Board of Directors approves a salary schedule adjustment (generally, one cost of living adjustment and one competitive wage adjustment each year), and an indirect (general and administrative overhead or “G&A”) component. The G&A component includes a “benefits burden” and a “contract burden.” A total benefits and contract burden rate of 78.6% shall remain in effect through June 30, 2013, and thereafter is subject to adjustment at five (5) year intervals.

Such total benefits and contract burden rate shall be applied as follows for

each crew member used: Labor Rate = base hourly salary + (base hourly salary X (total benefits and

contract burden rate)) Services contracted by SMWD to others and/or materials used shall be at

SMWD’s direct cost and shall not include an SMWD indirect (general and administrative overhead) component.

SECTION 7.6 Records SMWD shall keep appropriate records and accounts of all costs and

expenses relating to the planning, design, construction, replacement, operation, maintenance and repair of the Reservoir and Pump Station. Said records and accounts shall be provided by SMWD to the Project Committee annually, in advance of the preparation of the annual budgets, and shall be subject to reasonable inspection by any authorized representative of any Party at its expense. Further,


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said accounts and records shall be audited annually by an independent certified public accounting firm appointed by SMWD pursuant to generally accepted accounting standards as part of SMWD’s annual audit process.

SECTION 7.7 Operating and Procedures Manual to Cover Other Matters Prior to operation of the Reservoir and Pump Station, the Project Committee shall prepare and approve an Operating and Procedures Manual (“Manual”) annually, which shall include, but not be limited to the following:

A. Operational criteria including mode of operation. B. Methodology for determining operations, maintenance and

replacement expenses, including energy costs for water delivery by SMWD.

C. Procedures for operation of the Reservoir and Pump Station during normal operation, planned shutdown and emergency outage conditions contemplated herein, including the notification, coordination, monitoring and problem-resolution activities.

D. Criteria for compliance with water quality objectives. E. Development/description of operating criteria including useful service

life and criteria for replacement and refurbishment. F. Procedures for measurement (metering) and payment for water

delivered to the Parties, including the allocation and method of water delivery to the Parties, inclusive of conditions for allowing the Parties to exchange or use other Parties’ Capacity Rights not otherwise addressed under the terms of this Agreement.

SECTION 8. TRANSFER OF CAPACITY RIGHTS AMONG PARTIES, TO NON- PARTIES The Parties shall have the first right of refusal for any available Capacity Rights in the Reservoir and Pump Station if a Party determines to reduce its Capacity Right, prior to transfer of a Capacity Right to a non-party. The seller of capacity shall determine, in its sole discretion, the amount of capacity available and the purchaser if multiple Parties are interested in the Capacity Right. The Party acquiring the Capacity Right will reimburse the selling/transferring Party on the basis of the selling Party’s Capacity Right cost adjusted by the ENR Construction Cost Index for the Los Angeles area from the Notice of Completion recordation date to the date of transfer to the receiving Party, less depreciation for that same period over the expected life of the facility or facilities. In the event of transfers among the Parties, a revised Table 1 under Section 2 will be


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prepared as a ministerial matter to show the revised Capacity Rights and percentages, without the need for an amendment to this Agreement. Terms for the transfer of all or a portion of a Party’s Capacity Right to a non-party public agency (ies) shall be determined by the selling Party, and is subject to an amendment to this Agreement to add the public agency as a Party hereto and make corresponding revisions as required.

SECTION 9. EMERGENCY USE OF CAPACITY RIGHTS BY NON-PARTICIPANTS

The capacity in the Reservoir and Pump Station is reserved for the use of

the Parties, subject to the rights of the Parties to sell or transfer Capacity Rights to one another, or to non-party public agencies, as provided under Section 8. Capacity Rights may be transferred among the Parties as provided herein. The Parties shall have the first right of use of available Capacity Rights. If non-participating water providers request water during an emergency from the water provided by the Reservoir, the request will be forwarded to all Parties. In the event any Party/Parties are able and willing to make their Capacity Right(s) available for use by a non-participating water provider, a charge representing the cost for use of the Reservoir and Pump Station shall be paid by such non-participating water provider and shall include the cost of the water, operation and maintenance costs, plus a capital charge determined as follows for each time of use: 1/20 of the total current replacement capital cost of the Reservoir and

Pump Station, multiplied by the volume of water delivered to the non-participant in acre feet divided by the total volume of water available to deliver to participants and non-participants in acre feet. The current replacement cost shall be determined by escalating the original actual cost by the ENR Construction Cost Index for Los Angeles.

The proceeds of the capital charge shall be distributed proportionately to the Parties willing to make their Capacity Rights available.

SECTION 10. INDEMNIFICATION; INSURANCE SMWD shall assume the defense of, indemnify and hold harmless the

other Parties and each of their officers, employees and agents from and against any and all actions, damages, liability or claims for death, injury, loss, damage or expense to persons or property arising from or related to, or claimed to have arisen from or be related to, SMWD’s negligent acts or omissions in the design, construction, replacement, use, operation, maintenance, and/ or repair of the Reservoir and Pump Station, except to the extent such actions, damages, claims, losses, expenses or liability have arisen from or relate to the negligent acts or omissions of an indemnified Party; provided, however, SMWD assumes no liability with respect to interruptions in water deliveries, reductions in water


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deliveries, or the quality of the source water. The foregoing indemnification obligation shall not relieve the Parties’ respective obligations to pay their shares of any and all costs of the design, construction, replacement, operation, maintenance, and/ or repair of the Reservoir and Pump Station.

Liability to third parties related to the Reservoir and Pump Station and not

determined to have arisen from any Party’s negligent act or omission shall be borne by the Parties in proportion to their respective cumulative volumetric measurements of use of the Reservoir and Pump Station to which such liability is related during the time interval in which such liability accrued.

With respect to operation of the Project, SMWD shall maintain in full force

and effect appropriate public liability and property damage insurance and shall add the names of the other Parties, their officers, agents and employees to such policies as additional insureds. A proportionate amount of SMWD’s cost of insurance relative to the operation of the Reservoir Project as herein provided shall be included within each Party’s share of fixed costs.

SECTION 11. SUCCESSORS AND ASSIGNS This Agreement shall inure to and be for the benefit of the successors and assigns of the Parties hereto. SECTION 12. ATTORNEYS’ FEES In the event that an action is commenced by any Party to this Agreement to enforce or construe its rights or obligations arising hereunder, or is required to defend such an action or proceeding, the prevailing Party in such action, in addition to any other relief or recovery awarded by the court, shall be entitled to recover all statutory costs plus a reasonable amount of attorneys’ fees. SECTION 13. ENTIRE AGREEMENT; INTERPRETATION; GOVERNING LAW; EXECUTION IN COUNTERPARTS This Agreement and the Exhibits, as amended in writing from time to time, constitutes the entire agreement between the Parties hereto and supersedes all prior agreements and understandings, both written and oral, among the Parties with respect to the subject matter hereof. California law shall govern the interpretation of this Agreement. Any action or proceeding brought to enforce the Agreement or related to the Agreement, shall be brought in Orange County, California, notwithstanding the provisions of California Code of Civil Procedure Section 394. This Agreement shall be construed as if prepared by all Parties hereto. The Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.


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SECTION 14. NOTICES Any notices given pursuant to the Agreement or regarding matters contained within this Agreement shall be deemed delivered upon personal delivery or five (5) days after deposit in the United States Mail, first class, postage prepaid, addressed to the General Manager/City Manager of each Party at the address included in the signature section. SECTION 15. SEVERABILITY If any covenant, term, condition, or provision of this Agreement shall, to any extent, be invalid or unenforceable, the remainder of this Agreement shall be valid and enforceable to the fullest extent permitted by law unless that covenant, term, condition, or provision declared to be invalid is so material that its invalidity deprives any Party of the basic benefit of their bargain or renders the remainder of this Agreement meaningless. SECTION 16. NO THIRD PARTY BENEFICIARIES No customer, other person or entity other than Parties shall be deemed to be a third party beneficiary hereof, and nothing in this Agreement, either express or implied, is intended to confer upon any customer or other person or entity, other than the Parties and their respective successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement. SECTION 17. DISPUTE RESOLUTION

The Parties desire to resolve as quickly and as amicably as possible any disputes as to the meaning of any portion of this Agreement, the validity of any determination or calculation, or the rights or obligations of the Parties pursuant hereto. Therefore, prior to initiation by a Party of any litigation or other proceeding in connection with this Agreement, the Parties shall meet and make good-faith efforts to resolve any such disputes on an informal basis. The Party that first raises a claim against another Party(ies) in connection with a dispute shall be responsible for providing written notice to such other Party(ies) and thereby initiating the informal dispute resolution efforts. Such informal efforts may include mediation of the dispute if agreed by the Parties involved in the dispute. Not sooner than thirty (30) days after diligent efforts to resolve a dispute have been initiated, if the Parties have been unable to resolve the dispute on such informal basis, any Party involved in the dispute may, in its discretion and after providing written notice to the other Party(ies) that the informal dispute-resolution efforts are being terminated, proceed to take any and all such action to enforce or protect its rights as permitted by law and/or this Agreement. If a Party initiates informal dispute-resolution with respect to a dispute, any statutory limitation for filing of a court action or commencement of any other proceeding


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shall be tolled for a period of days equal to the number of days that elapsed between delivery of the notice initiating informal dispute-resolution and the notice terminating informal dispute-resolution.

SECTION 18. NOT A JOINT POWERS AUTHORITY OR PARTNERSHIP

The Parties hereby acknowledge this Agreement is not intended to create

a joint powers authority pursuant to Government Code Section 6500 et seq. Additionally, this Agreement does not form a partnership, Parties are

independent contracting Parties, and no Party is an agent of any other Party. SECTION 19. TERM

This Agreement shall terminate by determination of a Majority Vote on the earliest of one of the following events: (1) continued maintenance and repair of the Reservoir Project facilities is physically or financially impractical; (2) upon the occurrence of a man-made or natural disaster that destroys or renders unusable the Reservoir Project facilities; (3) or, as a result of regulatory mandates with which SMWD cannot comply or which would require cost prohibitive changes to the Reservoir Project,. If a termination occurs, any expenditures or proceeds of insurance, proceeds from salvage value or expenditures or proceeds from alternative use of the Reservoir Project shall be divided according to the Capacity Right Percentages. Upon termination hereunder, all Reservoir Project lands and right-of-way shall be retained by SMWD as the owner.

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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the Effective Date hereinabove written. SANTA MARGARITA WATER DISTRICT By President, Board of Directors By Secretary to the Board MOULTON NIGUEL WATER DISTRICT By President, Board of Directors By Secretary to the Board CITY OF SAN JUAN CAPISTRANO By Mayor By City Attorney CITY OF SAN CLEMENTE By Mayor By City Attorney SOUTH COAST WATER DISTRICT By President, Board of Directors By Secretary to the Board


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Exhibit “A”

Final Estimate of Capital Costs, 2011

Based on contracts encumbered to date, and including a contingency on uncompleted contracts or work, this estimate of the total projects costs may be subject to revision with the final accounting.

Type Budget Issued Purchase

Orders

Expended Through May

2011 Open

Encumbrances

Remaining Budget for Project

Prelim Design $ 252,180.62 $ 252,180.62 $ 252,180.62 $ ‐ $ ‐

Design $ 6,133,481.10 $ 5,933,481.10 $ 5,636,361.17 $ 297,119.93 $ 200,000.00

Environmental $ 679,142.37 $ 679,142.37 $ 536,631.89

$ 142,510.48 $ ‐

Permit $ 245,451.03 $ 215,451.03 $ 204,822.53 $ 10,628.50 $ 30,000.00 Construction $ 41,530,802.41 $39,440,802.41 $ 33,239,132.99 $ 6,201,669.42 $ 2,090,000.00 Mitigation $ 3,818,016.23 $ 3,318,016.23 $ 3,220,982.92 $ 97,033.31 $ 500,000.00 Site Acquisition $ 353,573.75

$ 353,573.75 $ 353,573.75 $ ‐ $ ‐

Payroll and Burden $ 662,524.39

$ 622,524.39 $ 622,524.39 $ ‐ $ 40,000.00

Grand Total $54,675,171.00 $ 50,815,171.90 $ 44,066,210.26 $ 6,748,961.64

$2,860,000.00

Agencies AF %

Agency Responsibility

(Million $) Prop 50 Budget

Potential Agency Reduced Costs

City of San Clemente 83.8 11.17% $ 6,109,039

$377,546.93

$5,731,492.27

City of San Juan Capistrano 50.0 6.67% $3,645,011 $ 225,266.67

$3,419,744.79

Moulton Niguel Water District 255.8 34.11% $18,647,879

$1,152,464.27

$17,495,414.36

Santa Margarita Water District

314.7 41.96 $22,941,702

$ 1,417,828.40

$21,523,873.73

South Coast Water District 45.7 6.09% $ 3,331,540 $205,893.73

$3,125,646.74

Total 750 100.00% $54,675,171.90 $3,379,000.00 $51,296,171.90


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Exhibit “B”

List of Fixed and Variable Costs

2011 Based on experience, changed conditions, and practical matters of operations and accounting, this list is to be revised annually by the Operations Committee.

Fixed Costs

• Labor, parts and equipment for daily, weekly, quarterly, semi-yearly and yearly maintenance activity on equipment including but not limited to:

o Pumps o Sump pumps o Generator o Cover and liner o Disinfection equipment o SCADA and security equipment

• Labor associated with Project Committee activities • Chemicals, power and labor associated with recirculation of the Reservoir,

if any, for water quality • Labor and laboratory charges for water quality testing • Major repairs for equipment pipeline failure • Annual permit fees including but not limited to Division of Safety of Dams,

Public Health and AQMD Variable Costs

• Chemicals and power associated with delivery of water • Replacement of Ultraviolet lights based on operation mode of the

Reservoir • Labor associated with delivery of water • Replacement of water in the Reservoir


STAFF REPORT TO: Board of Directors MEETING DATE: January 16, 2012 FROM: Matt Collings, Director of Engineering and Operations Eva Plajzer, Associate Engineer SUBJECT: Request for Additional Expense Authorization and Authorization of a

Professional Services Amendment for the Communication Cell Site Lease Program

SUMMARY Issue: Staff requests an amendment to professional services agreement for Telecom

Group Partners Corp., a California Corporation, d/b/a ATS Communications (ATS) and an increase in expense authorization.

Recommendation: Approve an additional expense authorization of $40,000; and

authorize the General Manager to approve an amendment to the Professional Services Agreement with ATS of $40,000 for a total agreement value of $78,357.

Fiscal Impact: The Fiscal Year 2011-2012 approved operations budget for District

consulting services in Work Center 300 has a remaining budget of $76,900 which is sufficient for this amendment.

Previously Related Action: None BACKGROUND: In the 1990s, the District approved the first communication facility to be constructed at one of the District’s facilities. As the communication industry grew, the District was repeatedly approached about use of District facilities for communication facilities. The District developed the Communications Lease Program (Program) with a primary objective to provide an economic benefit to the District’s ratepayers through a monthly lease program. The District’s first responsibility is to provide water and wastewater service to its customers, and development of the Program should not interfere with the District’s ability to provide that quality service. With those objectives in place, the District’s Board of Directors (Board) approved a Communications Lease Agreement and Lease Policy, which was implemented for many communications facilities on January 1, 2001. Since that time, the District’s Program has grown to include 56 agreements with 11 amendments on several of those agreements. These communications facilities are distributed among 17 of

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the District’s sites. The Program currently generates about $1.5 million in revenues to the District each Fiscal Year. Since the Program began in the 1990s, the District’s engineering staff has administered the development of new lease agreements and modifications to existing agreements. The administration of the Program included implementation of Board policy, point of contact with the existing or proposed cell carrier, plan check review of the construction documents, approval of new lease agreements or lease amendments, inspection of communication facility construction activities, and oversight of the monthly lease payments. As the number of leases grew, the Program required a significant time commitment from staff. In 2010, staff brought ATS on-board to assist with the administration of the Program. DISCUSSION: Staff issued a request for proposals (RFP) for On-Call Professional Services in August 2010 for assistance with the District’s Communication Cell Site Lease Program (Program). Staff received five proposals and selected ATS. The scope of the project was to be determined based on support needs for the Program. In the 2010-2011 Fiscal Year, $8,357 was expended on the ATS agreement for support services such as procedure reviews, cell site plan reviews, and other support functions. ATS the beginning of the 2011-2012 Fiscal Year staff prepared Amendment No. 1 to increase the contractual amount of the agreement to $38,357. As staff has increased the request for support services from ATS, these funds were expended by the end of the 2011 calendar year. In order to continue utilizing the on-call support services of ATS, staff has determined that $40,000 will be necessary for the remainder of this Fiscal Year. ATS is currently assisting staff in the review of numerous lease amendment requests from the cell site carriers, revision of the policies and procedures for the Program, review and approval of about 16 cell projects in plan-check stage, and day to day communication with cell site carriers. RECOMMENDATION: District staff is recommending the Board of Directors take the following actions under the consent calendar at the January 19, 2012 Regular Board Meeting:

1. Authorize the General Manager to execute the Amendment to the Professional Services Agreement with Telecom Group Partners Corp., a California Corporation, d/b/a/ ATS Communications;

2. Approve a Professional Services Amendment of $40,000 for a total contract value of

$78,357.

3. Authorize an increase in expense authorization by $40,000 for a total of $78,357 to ATS Communications.


STAFF REPORT TO: Board of Directors MEETING DATE: January 16, 2012 FROM: Matt Collings, Director of Engineering and Operations Eva Plajzer, Associate Engineer SUBJECT: Request for Proposals for Engineering Consulting Services for the

Inspection and Assessment of the 54-inch CIP Line Project No. 2011.011 SUMMARY Issue: Staff issued a Request for Proposals for Engineering Consulting Services to

perform an inspection and prepare an assessment of the District’s 54-inch CIP Line. Recommendation: Award Engineering Services Contract to CH2M HILL for an

amount not-to-exceed $235,806.00; and authorize a project expense of $285,806 for Project No. 2011.011.

Fiscal Impact: The Fiscal Year 2011-2012 approved budget in Fund 07,

Replacement and Refurbishment, for project number 2011.011 is $320,000 with an estimated project budget of $320,000.

Previously Related Action: None BACKGROUND: The Central Intertie Pipeline (CIP) connects the Moulton Niguel Water District (District) to the South County Pipeline (SCP). The CIP begins at a metering structure just west of Antonio Parkway along the south side of Oso Parkway. It travels west in and along Oso Parkway for approximately 3.1 miles to its termination at Bridlewood Drive where a major pressure regulating facility distributes the flow to the District’s various pressure zones. Figure 1 shows the location of the CIP. The SCP is a major source of water supply for the District with a metered capacity of 45 cfs. The CIP is the District’s only connection to the SCP and is a critical water delivery facility. The CIP delivered over 50 percent of the District’s potable water supplies during the 2010-11 fiscal year; and, it is anticipated that as the Upper Chiquita and Baker projects come on line, the CIP line would deliver up to 75 percent of District’s water needs.

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The CIP was constructed in four phases from 1992 through 1998. The phases, material, and length are listed in the table below.

Phase Year Installed Diameter Material LengthOAD-48-2 1992 54-inch CML&C Steel 4,354OAD-48-1 1994 54-inch CML&C Steel 7,452OAD-52 1994 54-inch Cement mortar lined

steel with various coatings in a tunnel

2,158

OAD-46/60 1998 42-inch CML&C Steel, class 300/350

2,612

This pipeline has not been inspected since its construction. As a critical water delivery facility, failure of this line would be catastrophic to District’s operations. As such, the District staff needs to understand the condition of the pipeline, future inspection requirements and what the repair and rehabilitation needs are. The staff’s goal for this project is to have a cost effective solution to maintaining the CIP in good working order to maintain uninterrupted service. DISCUSSION: Staff issued a request for proposals (RFP) for Engineering Consulting Services to perform the necessary inspection and technical assessments, and prepare a report. The RFP was mailed to five firms: Tetra Tech, Psomas, Kennedy Jenks, Brown and Caldwell and CH2M HILL. The scope of services includes preparation of an inspection plan, field inspection, analysis and preparation of a final report. The inspection plan will have an outline for completion of an internal inspection at which time the District can elect to complete the internal inspection. The field inspection will include base lining electrical tests for pipeline corrosion and preparation of a monitoring plan for pipe corrosion. Two proposals were received on December 20, 2011. The firms that submitted proposals are listed in the table below.

Firm Fee CH2M HILL $235,806

Tetra Tech, Inc.* $416,243*Tetra Tech, Inc. provided a second inspection option at $528,105.

The proposals were evaluated based on related projects experience, understanding of the project objectives and scope of work, project team experience and expertise, responsiveness to the request for proposals, unique qualifications, level of effort, and project fee. The firm that showed the best understanding of the project, had the most

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qualified team, and showed an appropriate level of effort for performing the project is CH2M HILL. RECOMMENDATION: District staff is recommending the Board of Directors take the following actions under the consent calendar at the January 19, 2012 Regular Board Meeting:

1. Award of the Engineering Services Contract to CH2M HILL for an amount not-to-exceed $235,806.00;

2. Authorize the General Manager to execute the Agreement;

3. Approve a project expense authorization of $285,806 Project No. 2011.011 Costs and Budget:

Amount Expended to

Date

Project Items Pipe Inspection/Assessment Engineering Services Contract $235,806 $0

Project Contingency $40,000 $0

District Labor $10,000 $0

Estimated Total Project Costs $285,806 $0

Project Budget

Estimated Project Amount in Current Budget $320,000

Approved FY11-12 Project Budget $320,000

Estimated Total Project Costs $285,806

Additional FY11-12 Project Budget Required $0

Expense Authorization Request $285,806


STAFF REPORT TO: Board of Directors MEETING DATE: January 16, 2012 FROM: Matt Collings, Director of Engineering and Operations Phil Lawler, Facilities Superintendent SUBJECT: Programmable Logic Controller (PLC) Panel Replacement, Project No. 2011.016 SUMMARY Issue: Staff prepared estimates for replacement of various PLC components at

various sites and requests expenditure authorization for materials purchase. Recommendation: Authorize an increase in expenditure authorization by

$137,000. Fiscal Impact: Project No. 2011.016 has an approved Fiscal Year 2011-2012

budget of $220,000 from Fund 7, Replacement and Refurbishment. This expenditure authorization will bring the total expenditure authorization to $220,000.

Previously Related Action: At the September 15, 2011, Board meeting, the

Board approved an expense authorization of $63,000 for a contract to purchase two complete new PLC control panels for Aliso Viejo Pump Station and Laguna Sur Reservoir ClorTec building. At the October 20, 2011, Board meeting, the Board approved an additional expense authorization of $20,000 to complete improvements at four additional facilities.

BACKGROUND/DISCUSSION: The District is currently in the process of installing a Wireless Network Communication System that will provide communication from the PLC panel through the SCADA System. The Wireless Network requires Ethernet ports to communicate between selected devices at these stations, and the current PLC panels do not support Ethernet communications. The existing PLC panels will be replaced by Allen Bradley Compact Logic and Control Logic PLC panels that support Ethernet port-to-port communication. Ultimately, the District will need to replace most of the existing

PLC panels based on the new equipment design and programming. The current fiscal year budget was established to support replacement of 23 of the PLC panels. At the September 15, 2011 Board meeting, the Board approved a contract with Brithinee Electric to build two panels. District staff has limited the scope of work with Brithinee Electric to construction of these two PLC panels to confirm the design and programming required to meet the District’s needs. Staff has received the two panels from Brithinee Electric and is in the process of installing and evaluating it. In addition, at the October 20, 2011, the Board provided an expense authorization to upgrade panels at four sites: Alicia Pump Station, Audubon Lift Station, Cabot Pressure Reducing Station, and Crown Valley Highlands Recycled Water Pump Station. Staff is ready to perform improvements at these additional sites:

• Aliso Hills Master Meter - $1,000 • Aliso Summit Reservoir - $10,000 • Bear Brand Reservoir - $10,000 • Del Avion Master Meter - $12,500 • El-Toro Tie In - $2,500 • ID3 Master Meter - $1,000 • La Paz Underground - $12,500 • Marguerite Reservoir - $10,000 • Mathis Pump Station - $23,000 • Northerly Takeout - $12,500 • OC-79 - $1,000 • OC-81 - $1,000 • Rancho Pump Station - $23,000 • SC2 Master Meter - $1,000 • Seville Reservoir - $10,000 • Upper Solada Lift Station - $5,000 • Via Novena Recycled Master Meter - $1,000

The value of these additional improvements is $137,000 and includes equipment purchases, district labor, and contingency. These improvements will be performed by District staff and no outside contractors will be procured. This project spans various assets in the District. In order to track expenditures by assets and assign the appropriate depreciation to these assets, the District’s Finance Department places capital expenses above $5,000 as separate project numbers. To accommodate this need to track assets within the current system, District staff has created six additional project numbers, 2011.074, 2011.075, 2011.081, 2011.082, 2011.083, and 2011.084, to track the costs separately. These six projects roll up to the 2011.016 project number. The Finance Department will assign project number as necessary to track the various additional assets that will be improved with the expense authorization.

The table below summarizes the budget and authorizations for this project.

Amount Expended to

Date

Project Items

Equipment Contract - Brithinee Electric $52,648 $0

Equipment Purchase $137,352 $0

District Labor $15,000 $0

Contingency $15,000 $0

Estimated Total Project Costs $220,000 $0

Project Budget

Estimated Project Amount in Current Budget $320,000

Approved FY11-12 Project Budget $220,000

Estimated Total Project Costs for this Fiscal Year $220,000

Additional FY11-12 Project Budget Request $0

Current Expense Authorization $83,000

Additional Expense Authorization Request $137,000

Project Total Expense Authorization $220,000

RECOMMENDATION: Staff is recommending the Board of Directors take the following actions at the January 19, 2012, Regular Board Meeting:

1. Increase the total approved project expense authorization to $220,000.

Approximate Meeting Time: 2-3 Hours - mnwd.com

Documents

Transcript of Approximate Meeting Time: 2-3 Hours - mnwd.com