1. Delta Water Supply Project
September 18, 2007
Agenda Item 8.02

2. Presentation Summary
Acceptance of the Delta Water Supply Project Cost Study
Award of the Staged Design-Build Contract with Camp Dresser & McKee (CDM Constructors, Inc.)
Declaration of Intent to Reimburse Expenditures from Future Bond Proceeds

3. Project Location
Diversion Site
Treatment Plant Site

4. Background Project Information
Delta Water Supply Project
New Supplemental Surface Water Supply Source
Intake and Pump Station
Raw Water Pipeline
Water Treatment Plant
Treated Water Pipelines
Project approved in November 2005
Led by Council Project Committee
Provides project oversight
Meets monthly and also serves as Professional Services Selection Committee

5. Finance & Accounting

6. Background Financial Activities
Cost Study
August 2006 – Contract approved with HDR to conduct Cost Study
Cost Study is one of a number of financial activities currently underway
Drawdown Schedule
Surface Water Split Analysis
Cal Water Agreement
Rate and Fee Study
Long-Term Debt
Issuance
Short Term
Financing

7. Financial Activities Schedule
Draft Cost Study Jul. 2007
Draft Surface Water Split Analysis Sep. 2007
Secure Line of Credit Nov. 2007
Conditional Agreement with Cal Water Nov. 2007
Public Utilities Commission Review (Cal Water) Nov – Mar. 2008
Approve Intake Construction Contract Apr. 2008
Proposition 218 and Public Outreach Mar – Apr. 2008

8. Financial Activities Schedule (continued)
Start Intake Construction May 2008
Adopt Rates & Fees (Public Hearing) Jun. 2008
Issue Bonds Aug. 2008
Approve Design/Build Construction Contract Sep. 2008
Start Construction of Plant and Pipeline Oct. 2008

9. Cost Study Deliverables: Capital Cost Estimate
Intake, Plant and Pipelines
Baseline Operations & Maintenance Cost
Membrane and Conventional Options
Membrane Option Most Applicable

10. Cost Study Intake & Pump Station
Design & Engineering Services $ 2,200,000
Third Party Construction Management $ 1,243,500
Construction $ 12,434,969
15% $ 1,865,245
Annual 5% $ 1,072,516
Subtotal (Intake & Pump Station) $ 18,816,230

11. Cost Study Raw & Treated Water Pipelines
Design-Build Engineering Fees $ 5,955,157
Engineering Services During Construction $ 1,488,789
Construction $ 64,729,966
15% $ 9,709,495
Annual 5% $ 5,582,960
Subtotal (Pipelines) $ 87,466,367

12. Cost Study Water Treatment Plant
Design-Build Engineering Fees $ 8,480,660
Engineering Services During Construction $ 2,826,887
Construction $ 56,537,734
10% $ 5,653,773
Annual 5% $ 4,664,363
Subtotal (Water Treatment Plant) $ 78,163,417

13. Cost Study Capital Cost Summary
Intake and Pump Station $ 18,816,230
Pipelines $ 87,466,367
Water Treatment Plant $ 78,163,417
Total Design & Construction $184,446,014

14. Cost Study Other Project Costs
$10.5 million expended to date
$4.8 million in land acquisition
$4.4 million environmental / professional services
Additional $7.6 million anticipated in indirect project costs
Project Administration
Permitting
Acquisition & Right of Way
Other Services

15. Cost Study Operations & Maintenance Cost
Operations and Maintenance (Annual Estimate):
Intake $ 260,601
Pipelines $ ,841
Water Treatment Plant $2,482,388
Total: $2,778,830
Assumes 16 full-time staff

16. Engineering & Construction

17. Treatment Plant & Pipelines
March 2007 – Request for Proposals issued for Design-Build Services
Water treatment plant and pipelines
Two proposals received
Camp Dresser & McKee (CDM Constructors, Inc.)
Black & Veatch
Interviews held May 2007
Professional Services Selection Committee recommended staff to negotiate with CDM Constructors, Inc.

18. Design-Build Contract Treatment Plant & Pipelines
Stage 1
Facility design to approximately 65 percent
Stage 2 lump sum construction cost
Stage 2
Project construction
Off Ramp Services (Optional)
(A) = Complete design and prepare bid packages
(B) = (A) + Provide Engineering Services during construction

19. Design-Build Contract Scope of Work
Water Treatment Process Selection
Pipeline Alignment Evaluation
Field Data Collection
Water Treatability Testing
Basis of Design Reports
Value Engineering / Constructability
Permitting
Stage 1 Design Packages
Stage 2 Proposal
Optional Tasks (Allowances)
Site Study (Optional Uses for City Property)
Constructability Review

20. Design-Build Contract Summary of Fees
Stage 1 Services*
Stage 2 Design and Engineering Services
Stage 2 Construction Management
Off-Ramp Services
(Design to 100%)
(Design Services During Construction)
$6,279,961
5.5% of Stage 2 price, but not lower than $8,822,785
3.7% of Stage 2 price, but not lower than $5,901,783
$4,668,150
$5,118,057
*This is the only financial obligation at this time.

21. Design-Build Contract Summary of Terms
Award of the Design-Build Contract obligates us only through Stage 1 (Stage 2 Proposal)
Stage 2 and Off-Ramp Fees are negotiable prior to amending the Contract
Insurance and Bonding is defined for all Stages

22. Reimbursement Resolution

23. Reimbursement Resolution Summary
Debt issuance not scheduled until 2008
MUD continues to use enterprise fund revenues to fund project costs
Provides ability to reimburse fund balance from future bond proceeds
Recommended by Bond Counsel
Reimbursement resolution does NOT obligate the City to spend funds or incur debt

24. Reimbursement Resolution Schedule of Costs
$5.7 million expended to date (non land acquisition related costs)
$4.5 million in indirect costs anticipated during Fiscal Year 07-08
$6.3 million for Staged Design-Build Contract with CDM
$19 million for Intake and Pump Station Facility

25. Recommendation (As Recommended by the Council Project Committee on 9/6/2007:)
Adopt a Resolution:
Accepting the Delta Water Supply Project Cost Study
Approving and authorizing the City Manager to execute a Staged Design-Build contract in the amount of $6,279,961 with CDM Constructors, Inc. for the preliminary design and development of a fixed price proposal for the water treatment plant and pipeline components of the Delta Water Supply Project
Declaring the City’s intent to reimburse certain expenditures in an amount not to exceed $36 million from future bond proceeds for the Delta Water Supply Project