CONSIDER Authorization FOR EXPENDITURE of Budgeted Funds for Drilling of Full-Scale Aquifer Storage and Recovery (ASR) Well as part of MPWMD Phase 1 ASR Project


Meeting Date:

November 20, 2006





David A. Berger,


Water Supply


General Manager

Line Item No.:

1-2-1 A. 1


Prepared By:

Joe Oliver

Cost Estimate:



General Counsel Approval:  Approved as to form.

Committee Recommendation:  The Administrative Committee considered this item on November 9, 2006 and recommended approval.

CEQA Compliance:  N/A


SUMMARY: The Board will consider approval of budgeted funds to complete construction of the second full-scale Aquifer Storage and Recovery (ASR) well as part of the Monterey Peninsula Water Management District’s (District’s) Phase 1 ASR Project.  The new ASR well (called Santa Margarita Test Injection Well [SMTIW] No. 2) will be located on a site adjacent to the existing SMTIW No. 1 on former Fort Ord property.  Three bids were received in response to the District’s Call For Bids for the SMTIW No. 2 Project.  The successful bidder was Zim Industries, Inc. (Zim) of Fresno, California, with a low bid of $935,510 for the SMTIW No. 2 drilling and well construction task.  In addition, the Call For Bids included, as an optional task, the rehabilitation of the existing SMTIW No. 1, for $73,000.  Zim’s total for both tasks is $1,008,510.  With a 5 % ($50,425) contingency proposed for unforeseen circumstances that may be encountered during construction, the total is $1,058,935.


RECOMMENDATION:   District staff recommends that the General Manager be authorized to enter into a contract with Zim Industries, Inc. for a not-to-exceed cost of $1,058,935 (includes 5 % contingency to cover District staff approved change orders for unforeseen conditions, if any), to complete drilling and construction of SMTIW No. 2 and rehabilitation of SMTIW No. 1.  The Administrative Committee reviewed this item on November 9, 2006 and voted 3 to 0 to recommend approval of an expenditure of $1,008,510.  A contingency of 5 % ($50,425) was added by staff subsequent to the Committee’s review, because of inadvertent omission from the original report.


BACKGROUND:  The District has undertaken an extensive effort over the last several years in engineering and planning studies for the Phase 1 ASR Project, culminating in the Board’s adoption of a certified Environmental Impact Report / Environmental Assessment for the project on August 21, 2006.  Subsequently, the U.S. Army granted a Right-of-Entry to the District for the Phase 1 ASR site expansion on September 19, 2006, and the City of Seaside issued a Conditional Use Permit for the site expansion on October 11, 2006.  Accordingly, a Call For Bids was distributed to prospective drilling contractors on October 13, 2006, and a Public Notice Inviting Sealed Bids was published in The Herald on October 19, 20, and 21, 2006.  At the bid opening on November 3, 2006, responses were received from three firms, as summarized below.










Zim Industries, Inc.




Maggiora Bros. Drilling, Inc.




Layne Christensen Company





The low bid for SMTIW No. 2 well drilling and construction is within the 2006 Engineer’s Estimate of $987,500.  In addition to the SMTIW No. 2 task, an optional task was added to the Call For Bids to rehabilitate SMTIW No. 1.  This task was originally budgeted for completion in Fiscal Year (FY) 2005-2006, but was not undertaken at that time when it was determined that it would be more cost effective to bid this work task in conjunction with the SMTIW No. 2 project.  The bid estimate received from Zim for this task is $13,000 above the cost estimated for this work in 2005, but is within the 2006 Engineer’s Estimate of $73,750.  Sufficient funds for this work are available in the FY 2006-2007 budget for this task, so District staff supports completion of the SMTIW No. 1 rehabilitation task as part of the SMTIW No. 2 construction project.  It should be noted that Zim was the successful bidder for the SMTIW No. 1 construction project in 2001with commendable results. This current work effort has been “fast-tracked” by District staff in response to the Board’s direction to accelerate the Phase 1 ASR Project to the extent feasible at its water supply workshop in January 2006.  Accordingly, the Phase 1 project with the new ASR well is currently scheduled to begin injection operations in early 2007, subject to final permitting and availability of excess Carmel River flows for diversion.


IMPACT TO STAFF/RESOURCES:  A significant staff effort has been expended in planning, coordinating, analyzing and overseeing work on the District’s ASR testing program in the Seaside Basin.  It is intended to expand that level of effort with the implementation of the permanent Phase 1 ASR Project during FY 2006-2007.  Budgeted amounts to complete the SMTIW No. 2 drilling and construction and SMTIW No. 1 rehabilitation are included in the District’s FY 2006-2007 budget (Goal:  Augment Water Supply, Water Supply Projects, Objective 1-2-1 A. 1. Second ASR Well, page 15 of June 22, 2006 adopted budget).  The Administrative Committee on November 9, 2006, recommended approval of this item, but without the 5 % contingency, which was added after the Committee meeting.