ADMINISTRATIVE COMMITTEE
3.	CONSIDER EXPENDITURE TO CONTRACT FOR CONSTRUCTION AND RELATED SERVICES FOR THE SLEEPY HOLLOW STEELHEAD REARING FACILITY RAW WATER INTAKE AND WATER SUPPLY SYSTEM UPGRADE PROJECT
Meeting Date:		July 10, 2018	Budgeted:	Yes
From:		David J. Stoldt, General Manager	Program/	Protect Environmental Quality
			Line Item No.:	2-3-1-F
Prepared By:		Larry Hampson	Cost Estimate:	$2,000,000
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on July 10, 2018 and recommended ____________.
CEQA Compliance: The Board certified the Final Initial Study/Mitigated Negated Declaration for this project and adopted the Mitigation and Monitoring and Reporting Plan on November 14, 2016.

SUMMARY: Staff proposes to complete an upgrade to the Sleepy Hollow Steelhead Rearing Facility (SHSRF) located on the Carmel River, about a mile downstream of the former San Clemente Dam site. The facility upgrade includes a new intake structure in the river, new pumps, a filtering system, disease control, a recirculating aquaculture system, advanced alarm systems and a power upgrade.

The District advertised for bids during the month of June 2018 and received one bid at a cost of $1,802,835 as shown in Exhibit 3-A. Additional work includes setting survey control, inspection and testing, and completing record drawings. Estimated total costs to construct the project are shown in Table 1 below. The District and the State Coastal Conservancy have entered into an agreement to reimburse the District for up to $1.8 million in expenses associated with the construction of the facility upgrade.

RECOMMENDATION: The Committee should recommend that the Board approve the following actions:

1. Authorize the General Manager to enter into a contract with Mercer-Fraser Company for construction of the Sleepy Hollow Steelhead Rearing Facility Raw Water Intake and Water Supply System Upgrade Project at a cost Not-to-Exceed $1,802,835.

2. Authorize the General Manager to approve service contracts for associated tasks for up to $30,000.

3. Authorize the General Manager to approve change orders to the construction and service contracts or for new service contracts for the Project to allow for unforeseen items up to $157,165.

DISCUSSION: An upgrade of the intake at the SHSRF was first identified in 2001 and has been a high priority project to improve management of steelhead since 2005. The National Marine Fisheries Service and the California Department of Fish and Wildlife have requested that MPWMD allow steelhead to remain longer at the facility than current operational capability allows. The upgrade project addresses three conditions that can force a shutdown of the facility: 1) extreme low flow during droughts; 2) increased sediment and debris flow since the removal of San Clemente Dam; and 3) high flows in early winter before steelhead are ready to be released.

Staff has applied for necessary permits from local, state and federal agencies. At their November 14, 2016 meeting, the Board of Directors adopted findings and certified the Initial Study/Mitigated Negative Declaration under CEQA for the Project. MPWMD has also requested an amendment to the operating agreement with California American Water to recognize construction of the new improvements. All authorizations will need to be complete before the Contractor is given a Notice to Proceed with the Project.

The low bidder for the project, Company-Mercer Company, has been involved in several heavy construction projects recently in Northern California. A breakdown of project costs is shown in Table 1 below.

Table 1 – Summary of Costs

Construction	$ 1,802,835
Sales tax	$
Survey Control	$ 10,000
Inspection/testing	$ 5,000
Record Drawings	$ 25,000
Contingency	$ 157,165
Total	$ 2,000,000

IMPACTS ON STAFF AND RESOURCES: Several District staff will be involved in the project assisting with project management, inspections, permit compliance, fish rescue, revegetation, and monitoring. The work will be performed under the direction of the District Engineer.

EXHIBIT

3-A Bid for Construction from Mercer-Fraser Company

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