Agency Board February 20, 2014 Update on the Davis-Woodland Water Supply Project

2 Discussion Topics Recent Accomplishments Upcoming Activities/Milestones Project Cost and Schedule Update Mid-Year Budget Update

3 Recent Accomplishments January-February 2014 GRANTS & LOANS Safe Drinking Water SRF Application for Woodland Accepted: $143M for share of regional ($111M) and local facilities ($32M) Woodland has 60 days to respond to offer Woodland eligibility based on lost well capacity due to exceeding MCL’s (nitrate) Davis would be eligible upon consolidation of North Davis Meadows or issuance of Chromium VI MCL Clean Water SRF Application: $211M for the regional facilities Authority to issue 30 year loans approved by SWRCB and EPA Consideration of Application by SWRCB continuing

4 Recent Accomplishments January-February 2014 GRANTS & LOANS Continued pursuit of federal commitment for Joint Intake funding –$13.7M committed to date, additional $3M sought –Outlook positive for receipt of remaining funds - Washington DC trip confirmed for March 3 - 6, 2014 Continued pursuit of state commitment for Joint Intake funding –$10M committed to date, additional $6.7M sought –Working to have remaining funds included in FY15 State Budget

5 Recent Accomplishments January-February 2014 PLANNING, DESIGN, AND CONSTRUCTION Received and reviewed CH2M Hill deliverables: –Basis of Design Report and 30% design submittal –Early Site Work and Mass Excavation 90% design submittal –Temporary Construction Facilities submittal –Design-Build Period Insurance Certificates Received Permitting Matrix for review

6 Recent Accomplishments January-February 2014 PLANNING, DESIGN, AND CONSTRUCTION Joint Intake Project bidding underway Four contractors pre-qualified: Kiewit Balfour Beatty Overaa Syblon Reid Engineer’s Estimate: $43,163,000 Bids due March 5, 2014 Construction financing and O&M agreements approved by both WDCWA and RD2035 Began injection testing for ASR project in Woodland

7 Recent Accomplishments January-February 2014 ENVIRONMENTAL AND PERMITTING US Army Corps of Engineers 404 Permit and State 401 Water Quality Certification pending Incidental Take Permit from California Department of Fish & Wildlife (DF&G) required Updated proposals for Environmental Mitigation Credits received from: Westerveldt Wildlands Purchase of Credits required before initiation of Intake and Transmission Main construction CDPH issued Conditional Approval letter for CH2M HILL proposed design

8 Upcoming Activities/Milestones PROGRAM MANAGEMENT Continue to pursue SRF low interest loans from Clean Water Act SRF (SWRCB) Obtain federal and state commitments for remaining share of grant funds for the Joint Intake Continue efforts to secure WAPA power at Joint Intake Continue efforts with PG&E re: improvements and costs to serve RWTF and Joint Intake Complete Injection Testing for Woodland ASR Program

9 Upcoming Activities/Milestones ENVIRONMENTAL AND PERMITTING Receive Incidental Take Permit from CA DF&G Obtain 404 Permit (US ACE) and State 401 Water Quality Certification Complete negotiations for purchase of environmental mitigation credits

10 Upcoming Activities/Milestones LAND AND ROW ACQUISITIONS Finalize escrow for RWTF site purchased from City of Woodland Complete negotiations for final property easements: –SNRR for transverse easement at Joint Intake site –Lillard for Davis Finished Water Transmission Main alignment

11 Upcoming Activities/Milestones PLANNING, DESIGN, AND CONSTRUCTION Receive bids for Joint Intake Facility construction on March 5, 2014 Begin construction at Regional Water Treatment Facility on April 8, 2014 Complete plan with the Yolo County Farm Bureau for Road 22 closure coordination Continue TerraVerde work on opportunities for the use of renewable energy TerraVerde-CH2M HILL coordination regarding RWTF electricity use

12 Upcoming Activities/Milestones PLANNING, DESIGN, AND CONSTRUCTION CH2M HILL submittals for Agency Review: 100% Early Site Work and Mass Excavation design submittal (March 2014) Final Basis of Design Report (March 2014) 90% Early Concrete Structures design submittal (March 2014) 90% Process Equipment for Procurement submittal (March 2014)

13 Upcoming Activities/Milestones PUBLIC EDUCATION AND OUTREACH Groundbreaking Ceremony: April 10, 2014 at 10:00am Monthly Project Status Summary issued February 17, 2014 March/April water bill inserts prepared Construction “Hotline” card and Signage prepared

14 30 mgd Project Costs Integrating Final DBO Contract Price (Apr 2013 million dollars) Project ComponentCost DBO Contract (a) Agency Quality Assurance & Contract Compliance (b) Joint Intake15.71 TOTAL Cost CategoryTotalWoodlandDavis Agency Administration Program Management Water Supply Environmental & Permitting Land/ROW Acquisition Pre-Design Construction Capital Contingency Woodland and Davis Local Facilities Costs Expended TOTAL CAPITAL COSTS Construction Costs Capital Costs, (a)Costs do not include potential additive bid items for SRF loan compliance and additional Woodland storage and pumping at RWTF. (b)Includes Agency design review, construction quality assurance and contract compliance, submittal and RFI review, environmental construction monitoring, environmental mitigation, Agency permitting and incidental costs.

15 CH2M Hill Expenditure Projections (Add graph from CH monthly report showing cumulative billings by month. Add a bullet indicating billings to date.) Total billings through January 31, 2014: $4,325,494

16 TaskCompletion By Advertise for Construction of Joint Intake FacilityJanuary 2014 Award Joint Intake Facility Construction ContractMarch 2014 RWTF Site Work BeginsApril % Pipeline Design CompleteSeptember 2014 Pipeline/Offsite Construction BeginsOctober % RWTF Design CompleteOctober 2014 Permanent Power On-siteSeptember 2015 Commissioning of RWTF BeginsJanuary 2016 Substantial Completion of RWTF and PipelinesMay 2016 RWTF and Pipelines Acceptance Test Completion June 2016 Substantial Completion of Joint IntakeSeptember 2016 Updated: 2/19/14 Construction Milestones

17 Mid Year Budget Update FY 14 Approved Budget: $32.15M Staff review of actual expenditures through Dec 31, 2013 and projected expenditures through end of Fiscal Year

18 Mid Year Budget Update Total Budget Savings of $1.31M Primary budget items where savings were realized: –Public Outreach: $60K –DBO Procurement: $873K –Water Rights assistance: $60K –Regional Facilities Permitting: $85K –Land/ROW acquisition assistance: $66K

19 Mid Year Budget Update Total Budget “Increases” of $2.25M $1.78M of total is for accelerated CH2M Hill schedule Primary budget items for remaining $470K include: –SRF loan assistance for Woodland: $90K –Property easement purchases: $87K –100% Intake Design: $72K

20 Mid Year Budget Update CONCLUSIONS: Approved FY 14 Budget is sufficient to cover expenditures for remainder of FY –$900K of $1.86M contingency expected to be utilized Current consultant contracts sufficient for remainder of FY Agency will issue quarterly invoices to cities per original invoicing schedule