Agency Board June 20, 2013 Update on the Davis-Woodland Water Supply Project

2 Discussion Topics Recent Activities/Accomplishments Upcoming Activities/Milestones DBO Procurement Project Costs Project Schedule

3 Recent Activities/Accomplishments April - June 2013 PROGRAM MANAGEMENT Prepared FY Agency Budget Prepared Amendment to UC Davis Agreement consistent with Amended JPA Continued pursuit of SRF Loans: –Safe Drinking Water SRF criteria:  Lost well capacity due to exceeding MCL’s (nitrate) -Woodland  Consolidation of North Davis Meadows -Davis –Submitted initial application for Clean Water SRF  $10m in State grant funding for Joint Intake included in legislature-approved State Budget

4 Recent Activities/Accomplishments April - June 2013 (cont’) ENVIRONMENTAL AND PERMITTING Continued Section 404 Permit efforts - awaiting Biological Opinions from NMFS and USFWS Commenced Aerosol Study:  Four 24-hour sampling events completed  CDPH staff site visit on 6/3/13 Received bids for mitigation banking Continued work on SEIR for amendment to Water Right Permit for ASR

5 Recent Activities/Accomplishments April - June 2013 (cont’) ENVIRONMENTAL AND PERMITTING Working with RD 2035 re: WAPA power resource base sharing at Joint Intake Working with PG&E to define system improvements/costs to serve RWTF and Joint Intake

6 Recent Activities/Accomplishments April - June 2013 (cont’) LAND AND ROW ACQUISITIONS Continued work on remaining easements:  Heidrick/McGinnis and Lillard for easements along Davis Finished Water Transmission Main  Sierra Northern Railroad  Oates for 3 parcels near Joint Intake site and along Raw Water Pipeline alignment  Closing on Intake site & CPG easements Meeting with Yolo County regarding Encroachment Permit:  Road reconstruction/repair following pipeline construction

7 Upcoming Activities/Milestones June - July 2013 PROGRAM MANAGEMENT Continue to pursue SRF low interest loan and grant funding opportunities Continue development of ASR Program  Preparation for injection testing, modeling, SEIR, water rights amendments Continue efforts to obtain WAPA power at Joint Intake Complete Value for Money analysis

8 Upcoming Activities/Milestones June – July 2013 (cont’) ENVIRONMENTAL AND PERMITTING Outstanding permits/actions: –Biological Opinions from USFWS and NMFS –Section 404 Permit (US Army Corps of Engineers) Obtain Finding Of No Significant Impact (FONSI) from Bureau of Reclamation Obtain State 401 Water Quality Certification Continue Aerosol Study at RWTF Site Begin negotiations for purchase of environmental mitigation credits

9 Upcoming Activities/Milestones June – July 2013 (cont’) LAND AND ROW ACQUISITIONS Continue work with Yolo County regarding encroachment permits/road construction Complete acquisition of Heidrick/McGinnis, Lillard, Turner, and Oates easements Complete easement agreement with City of Davis Continue eminent domain actions on 3 parcels PLANNING, DESIGN, AND CONSTRUCTION Receive priced DBO proposals July 30th

10 DBO Contract Procurement Received Initial Concept Submittals (ICS) Reviewed ICS and Proposal Phase Procurement Plans from both DBO teams DBO teams presented ICS proposals to FPC and in separate meetings to CDPH Prepared Addendum 2 to DBO RFP –Clarified questions from individual meetings –Modified RFP to respond to common issues raised by both DBO teams

11 Follow Up to ICS Proposals CH2M Hill –Questions/clarifications noted in ICS letter to team –Satisfactory feedback received –Proposal Phase Procurement Plan approved CDM Smith –Noted deficiencies in ICS in letter to team –Deficiencies not corrected in team response or through contacts with references –Letter to team noted ICS not in compliance –Team withdrew from competition

12 DBO Procurement Process 2.5 year, competitive process 5 initial submittals, 3 shortlisted teams Process worked as designed –Field narrowed to 1 team from original shortlist –2 bidders removed themselves from consideration Impacts of delays in procurement schedule Inability to correct deficiencies in compliance with RFP provisions Difficulty meeting Price Ceiling requirements Allows negotiations to begin ahead of schedule Savings to Agency of approximately $500,000

13 Competitive Provisions of Procurement Process Maximum cost ceiling to ensure competitive price – both capital and operation –Maximum capital cost ceiling is 20% less than Engineer’s Estimate Open book competitive pricing for approximately 70% of work to be completed by subcontract Open book review of all remaining self- performed work

14 June 15, 2013 Open House Ad

15 Draft DBO Procurement Schedule ACTIVITYDATE Issue Request for QualificationsJanuary 27, 2011 Receive Statement of QualificationsApril 15, 2011 Short list three DBO teamsJune 2, 2011 Davis and Woodland City Council authorization to proceed with project final engineering and construction March 2013 Issue Request for ProposalsDecember 21, 2012 Receive Initial Concept Submittals & Proposal Phase Procurement PlansMay 15, 2013 Priced proposal submittal by ProposerJuly 30, 2013 Board authorization to proceed with negotiationsAugust/September 2013 Board award of service contractOctober 17, 2013 Updated: 06/20/13

16 30 mgd Project Costs Presented at April Board Meeting (Apr 2013 million dollars) Construction Costs (a) Capital Costs, (a)Includes DBO contract design and construction costs, design-bid-build Joint Intake construction costs, and Agency design review, construction quality assurance and contract compliance, engineering services during construction, environmental construction monitoring, environmental mitigation, permitting, and incidental costs. (b)Costs currently under discussions with RD Cost CategoryTotal Agency Administration3.56 Program Management3.47 Water Supply1.71 Environmental & Permitting1.59 Land/ROW Acquisition4.30 Pre-Design6.18 Construction Capital Contingency7.79 Woodland and Davis Local Facilities31.74 Costs Expended TOTAL CAPITAL COSTS Project ComponentCost Joint Intake (Agency Portion) (b) Raw Water Pipeline23.76 Regional Water Treatment Facility (RWTF) 96.7 Woodland Treated Water Pipeline5.70 Davis Treated Water Pipelines23.35 Permit Fees & Construction Counsel 2.89 TOTAL166.91

17 Updated 30 mgd Project Costs (April 2013 million dollars) Construction Costs (a) Capital Costs, (a) Includes DBO contract design and construction costs, design-bid-build construction costs, and Agency design review, construction management, engineering services during construction, environmental construction monitoring, and environmental mitigation, permitting and incidental costs. ComponentTotalWoodlandDavis Agency Administration Program Management Water Supply Environmental & Permitting Land/ROW Acquisition Pre-Design Construction Capital Contingency Woodland and Davis Local Facilities Costs Expended Since TOTAL CAPITAL COSTS FacilityCost Joint Intake (Agency Portion)16.82 Raw Water Pipeline23.66 Regional Water Treatment Facility (RWTF) Woodland Treated Water Pipelines5.46 Davis Treated Water Pipeline23.99 Permit Fees & Construction Counsel 2.89 TOTAL169.13

18 Significant Project Cost Changes Increase in Agency allocation for Joint Intake ($2.3 million) –Allocation to Agency for 20% of “soft costs” (i.e. engineering services during construction, CM, etc.) ($0.9 million) –Increased estimate for pipeline trenchless crossing ($1.4 million) Pre-design fee for DBO Procurement ($250,000) Technical Services to Davis and Woodland ($100,000) Raw Water Intake Agency Facilities Design ($395,000)

19 Intake Bidding Schedule ACTIVITYDATE Receive Formal State/Federal Funding CommitmentJuly 2013 MWH Completes 100% DesignSeptember 2013 Conduct Contractor Prequalification ProcessOctober/November 2013 Solicit Bids for Intake ProjectDecember 2013 Bids ReceivedFebruary 2014 Contract Awarded by RD 2035March 2014 Updated: 06/19/13

20 TaskCompletion By Complete RWTF Site FillNovember 2012 Obtain water rights for 10 TAF purchased from CPGNovember 2012 Issue Final RFP for DBO ContractDecember 2012 Approval of Project Final Engineering and Construction by Each City March 2013 Obtain USACE 404 PermitJuly 2013 Secure Joint Intake Construction FundingJuly 2013 Authorization to Proceed with Bond Financing by Each City August 2013 Award DBO ContractOctober 2013 Advertise Joint Intake Construction Bid DocumentsDecember 2013 Joint Intake Construction CompletionMarch 2016 DWWSP Acceptance Testing Completion September 2016 Updated: 06/20/13 Project Schedule Milestones

21 Questions

22 Financing Milestone Schedule TaskDate Board Decision City Council Decision Plan of Finance Presentation to City of Woodland City CouncilJan 2013 Plan of Finance Presentation to City of Davis City CouncilJan 2013 Plan of Finance Presentations to WDCWA (Discussion of Joint vs. Individual Issuance) Feb 2013 City of Davis Special Election, Completion of 218 Process, Approval of Project, and Approval of Water Rates Mar 2013X City of Davis Receives Preliminary RatingMar 2013 Determination re: Agency Issued DebtApr 2013XX* Initial Clean Water SRF ApplicationMay 2013 Project Rating Agency Review / Selection of Preferred Bidder Jul 2013 Ratings Available for Davis and WoodlandAug 2013 Woodland and Davis City Council Authorization to Proceed with Bond Financing Aug 2013X* Information Item for Agency Board re: City Councils’ authorization to proceed with bond financing Aug 2013 Board Award of Service ContractOct 2013X Bonds IssuedOct 2013 Updated: 04/17/13