Quail Valley Subarea 9, Phase 1 Sewer Award of Construction Contracts Joe Mouawad, P.E. April 27, 2017

Background Quail Valley Subarea 9, Phase 1 Sewer project will provide sewer services for 149 existing homes and 66 vacant lots. Existing septic tanks on private property will be abandoned for participating property owners. Sewer laterals on private property will be installed connecting homes to the new sewer. The District and Audie Murphy Ranch (AMR) Development collaborated to advance offsite regional facilities that support Subarea 9, Phase 1 area, as well as, future Quail Valley sewer conversion projects.

Subarea 9, Phase 1 Sewer and Regional Facilities

Summary of Bid Results Project was advertised for public bid on January 4, 2017. 7 Bids were received on February 23, 2017. Downing Construction, Inc. was the low responsive bidder with a bid in the amount of $7,308,134. Low bid 13.9% over Engineers Opinion of Costs. Potential uncertainties among bidders with rocky soil conditions and on-site work Downing Construction Inc. has successfully performed similar work for EMWD.

AMR Development Participation AMR cost participation of 46% for Reach 1 and 4 Proposed Amendment No. 1 modifying AMR Participation Agreement

Support Services During Construction Engineering support and soil testing services during construction were negotiated with Armstrong & Brooks (A&B) and Inland Foundation Engineering (IFE). A&B’s scope of services includes: Record of survey Construction staking Submittal review Design support As-built plans IFE’s scope of services include: Field observation and testing Laboratory testing Report preparation Both firms were involved with the design of the project and are familiar with the details of the project.

Reconciliation of Project Funding for SA9 and Regional Facilities Total estimated cost: $18,127,105 SA9 Phase 1 Project $10,519,816 Regional Sewer Facilities $ 7,607,289 Available funding: $17,335,789 SWRCB Grants: $8,000,000 SAWPA Gant: $1,930,000 SEP Funds: $ 455,814 City of Menifee (potential): $ 101,000 AMR Contribution: $3,746,960 Regional Oversizing(District): $3,102,015 Unfunded cost for connection fees: $ 791,316 Staff recommends funding the $791,316 with the understanding that the Santa Ana Regional Quality Water Control Board will potentially collect future SEP funds to reimburse EMWD for unfunded project costs. Proposed funding approach avoids any capital costs burden to participating property owners within SA9, Phase 1.

Quail Valley Subarea 9, Phase I - Project Schedule Final Design December 2016 (complete) Advertise construction project January 2017 (complete) Open Bids February 2017 (complete) Bid Review March 2017 (complete) Financial Reconciliation March 2017 (complete) Board Award of Construction Contract May 2017 Public Outreach (private property access agreements) May to July 2017 Award Construction Contract June 2017 Construction Mobilization September 2017 Substantial Completion December 2018

Public Outreach Information meetings scheduled for May and June 2017. Continue to collaborate with Stakeholders and Project Partners. To connect to the sewer, qualifying property owners must complete a notarized agreement with EMWD allowing access to private property for construction purposes and must agree to accept on-going sewer services from EMWD and pay the monthly service fee. Other than paying for sewer services on their monthly bill, construction for Subarea 9, Phase 1 of the Quail Valley Sewer Improvement Project will be implemented at no cost to the homeowner. EMWD is working to identify additional funding to further extend a sewering solution for the rest of the Quail Valley.

Recommendations Execution by the General Manager of the District's standard form of contract with the lowest responsive bidder, Downey Construction, Inc., in the amount of $7,308,134; Rejection of all other bids received under Specification No. 1296S, except the second lowest responsible bid; Execution by the General Manager of the District’s standard form of contract with Armstrong & Brooks Consulting Engineers, Corona, California, for engineering support during construction of Quail Valley Subarea 9, Phase 1 Sewer in the amount of $335,400; Execution by the General Manager of the District’s standard form of contract with Inland Foundation Engineering, San Jacinto, California, for soil testing services during construction of Quail Valley Subarea 9, Phase 1 Sewer in the amount of $247,385; Administrative award and execution by the General Manager of the District’s standard form of contracts with the necessary consultants and suppliers for engineering support during construction and implementation of Quail Valley Subarea 9, Phase 1 Sewer; Approve and authorize the execution by the General Manager of Amendment No. 1 to the Participation Agreement with Sutter Mitland 01 LLC for cost sharing of the construction costs for the Audie Murphy Lift Station, gravity sewer line, and force main within Parcel Map 32269; and Additional appropriation of $9,420,279, which brings the total estimated project cost to $10,519,816.

Contact Information Joe Mouawad, P.E. Assistant General Manager Planning, Engineering, and Construction (951) 928-3777 Ext. 4463 Email: mouawadj@emwd.org