DOMESTIC WATER POLICY COMMITTEE MODESTO IRRIGATION DISTRICT 1231 Eleventh Street, Modesto, California July 14, :30 p.m.

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1 Nick Blom, Chairman, MID Dave Cogdill, Vice-Chairman, City of Modesto John Mensinger, Board Member, MID Bill Zoslocki, Councilmember, City of Modesto DOMESTIC WATER POLICY COMMITTEE MODESTO IRRIGATION DISTRICT 1231 Eleventh Street, Modesto, California July 14, :30 p.m. AGENDA ITEMS THE PUBLIC IS INVITED TO COMMENT ON ANY ITEM, WHICH IS LISTED ON THE AGENDA AT THE TIME THAT ITEM IS BEING DISCUSSED. ANY PERSON WISHING TO ADDRESS THE COMMITTEE WILL BE LIMITED TO 5 MINUTES UNLESS PRIOR ARRANGEMENTS HAVE BEEN MADE OR UPON THE CONSENT OF THE COMMITTEE CHAIR. Item No. Tab No. 1. CALL TO ORDER 2. ROLL CALL 3. PUBLIC COMMENT APPROVE MEETING MINUTES June 2, 2014 and June 9, PAT RYAN DOMESTIC WATER PROJECT UPDATE CHRIS DAVENPORT MODESTO REGIONAL WATER TREATMENT PLANT PHASE TWO EXPANSION REPAIR PROJECT UPDATE Auburn Constructors, Inc.: Repair Contract Manito Construction, Inc.: Repair Contract K.G. Walters Construction Co., Inc.: Terminal Reservoir Bypass Project 7. PAT RYAN UPDATE ON SALE OF SIEMENS S10V MEMBRANES TO THE LITTLE THOMPSON WATER DISTRICT AND POTENTIAL INDEMNITY IMPLICATIONS 8. PAT RYAN PROPOSED FUTURE POLICY COMMITTEE MEETINGS 9. ADJOURNMENT August 4, 2014, MID BOARD ROOM 1:00 P.M. 2:30 P.M. September 8, 2014, MID BOARD ROOM 1:00 P.M. 2:00 P.M. Document Number:

2 Tab No. 1 Present: Absent: Nick Blom, Chairman, MID John Mensinger, Board Member, MID Dave Cogdill, Vice-Chairman, City of Modesto Bill Zoslocki, Councilmember, City of Modesto DRAFT DOMESTIC WATER POLICY COMMITTEE Meeting Minutes June 2, 2014 Item No. 1. Call to Order Chairman Blom called the meeting to order. 2. Roll Call Roll call was taken and a quorum was present. Bill Zoslocki was absent. 3. Public Comment None 4. Approve Meeting Minutes April 7, 2014 and May 5, 2014 Chairman Blom called for a motion to approve the minutes. John Mensinger moved to approve. Vice-Chairman Cogdill seconded the motion. The motion passed unanimously. 5. Domestic Water Project Update (Presented by Pat Ryan) Pat reported the Modesto Regional Water Treatment Plant ( Plant ) is putting out seventeen million gallons per day ( MGD ). Representatives from Industrial Electric and General Electric will be on site next week to inspect the three remaining original breakers on the 800 HP pumps at the Terminal Reservoir. Plant staff is experiencing issues with the other two breakers. The representatives will determine if any of the breakers should be repaired and/or replaced. Chairman Blom asked if the Plant s regular maintenance costs (i.e. electricity and chemicals) would decline due to the reduced water allocation. Pat confirmed maintenance costs would decline due to less wear and tear on equipment, but it would be hard to quantify the exact amount. Pat noted the raw water costs will increase due to the drought surcharge, but a decrease in the variable costs of chemicals and electricity as a result of producing less water would more than cover the cost. 6. Modesto Regional Water Treatment Plant Phase Two Expansion Repair Project Update: Auburn Constructors, Inc., ( Auburn ) Repair Project, Manito Construction, Inc. ( Manito ) Repair Project, and K.G. Walters Construction Co., Inc., ( KGW ) Terminal Reservoir Bypass Project (Presented by Greg Dias and Chris Davenport) Document Number: v3

3 Tab No. 1 Greg provided an update regarding the membrane module order with Evoqua. Evoqua agreed to provide a performance bond and letter of credit. MID would still be able to make a claim against Siemens Water Technologies ( Siemens ) performance bond if Evoqua defaults on their work. MID and Evoqua staffs will continue to work together regarding submittal requirements and to determine a lead time for the membrane delivery. A discussion continued among John Mensinger, Greg and Pat regarding the transition from Siemens to Evoqua since Siemens sold the water technologies portion of their business to Evoqua. Manito mobilized back on site to complete the design deficiency corrective work. Chris highlighted the new grating in the Pilot Plant Room. The Plant s Repair Project Stage Two with Auburn is sixty-seven percent (67%) complete as measured by contract time through October 28, If the Committee approves Item No. 7, then Stage Two s projected substantial completion date will be February 10, 2015 and fifty-six percent (56%) complete as measured by contract time. December 4, 2014 is still the projected building turn over date to Western Summit Constructors, Inc. (WSCI). The final filter basin leakage test was completed this morning. Testing was performed in a checkered pattern to confirm if any divider walls were leaking. All six basins have passed this hydraulic test. There was also progress on mechanical work consisting of removing shoring and the east side scaffolding. Chris reviewed the time lapse video for work completed in May. KGW plans to start potholing and mobilizing at the Terminal Reservoir site next week. Chris discussed WSCI s work regarding defective work corrections and completing testing, start-up, training and commissioning. 7. Concur to Amend the Construction Contract with Auburn Constructors, Inc., ( Auburn ) by Issuing a Change Order to Extend the Contract Time 104 Days and Re- Assign $95,000 of Allowance Item 2 to Pay for Potential Additional On Site Supervision to Complete the Work Issued under Construction Change Order #2 ( CCO #2) Design Deficiency Corrective Work (Presented by Greg Dias) Greg recommended amending Auburn s contract in order to extend the contract time by 104 days due to CCO #2. This work includes activities associated with the new Solids Handling System which is the largest component of CCO #2. This item also includes allocating $95,000 in funds from Allowance Item 2 to any potential additional on site supervision to complete the design deficiency corrective work. The overall budget would not change. Chairman Blom called for a motion to approve Item No. 7. Vice-Chairman Cogdill moved to approve. John Mensinger seconded the motion. The motion passed unanimously. 8. Update on Sale of Siemens S10V Membranes to the Little Thompson Water District ( LTWD ) and Potential Indemnity Implications (Presented by Pat Ryan) After LTWD reviewed the contract for the sale of the membranes, LTWD indicated MID s unlimited liability clause would have to be removed. LTWD is located in Colorado, and Colorado law has a $350,000 limit for a single party event and $900,000 for any event with multiple parties towards a utility. If MID moves forward with the sale including liability, any legal costs would be considered Project costs. The Project would take on the liability of any Document Number: v3

4 Tab No. 1 issues that LTWD may have if they were sued over a problem with the membranes and MID was named as a party of the suit. LTWD has two boards and this item will be addressed at their meetings to determine if their boards want to move forward with the unlimited liability clause or take on unlimited liability. A lengthy discussion continued between Pat and the Committee. The Policy Committee agreed with the Technical Committee s recommendation from the May 30 special meeting to wait for the outcome of the decision by both of LTWD s two boards to determine if they are willing to take this liability. Those meetings are scheduled for June 12 and Proposed Future Policy Committee Meetings Monday, July 14, 2014 at 1:30 p.m. Monday, August 4, 2014 at 1:00 p.m. 10. Adjournment The meeting was adjourned at 1:50 p.m. Document Number: v3

5 Tab No. 1 Present: Absent: John Mensinger, Board Member, MID Bill Zoslocki, Councilmember, City of Modesto Garrad Marsh, Mayor, Alternate, City of Modesto Nick Blom, Chairman, MID Dave Cogdill, Vice-Chairman, City of Modesto DRAFT SPECIAL DOMESTIC WATER POLICY COMMITTEE Meeting Minutes June 9, 2014 Item No. 1. Call to Order John Mensinger called the meeting to order. 2. Roll Call Roll call was taken and a quorum was present. Chairman Blom was absent. Since Vice- Chairman Cogdill was absent, Mayor Marsh was present as the City of Modesto s alternate. 3. Public Comment None 4. Approve the Terms of the Purchase Agreement Documents that include Amendment No. 5 to the Siemens Contract and the Assignment and Consent Agreement that Confirms that Siemens has Sold its Water Group, including the Manufacturing and Sale of the New Modules, to Evoqua Water Technologies LLC and that Both Siemens and Evoqua Remain Obligated to Perform all Terms and Conditions of the Contract Documents (Presented by Greg Dias (via phone), Pat Ryan (via phone), and Tyson Shower) Greg discussed the sale of Siemens water group to Evoqua and how this affects the purchase and delivery of the new membrane modules ( new modules ). Hanson Bridgett, MID s outside legal counsel, drafted Amendment No. 5 which requires Evoqua to agree to be bound to all of the terms and contract and provide a performance bond and letter of credit. Hanson Bridgett also drafted an Assignment and Consent Agreement that indicates MID agrees to Siemens assignment of the contract to Evoqua and that Siemens still remains liable for all contractual obligations including Evoqua s performance of the contract. A delivery date of the new modules is still being determined. Due to present manufacturing and shipping durations, Evoqua estimates a delivery duration of eight and one-half months based on their current work load. Pat noted that if the 2015 water year has an allocation of zero due to another drought year, there would not be any water to commission the membranes. The new modules would not be warranted under this scenario, because we need to install them within ninety days of the date of delivery to keep the warranty intact, and with no water we can t install them. Garrad Marsh inquired if water intended for the conventional plant could be utilized by the Document Number: v3

6 Tab No. 1 membrane side. Pat indicated that would not be possible because there would be no water for the conventional plant if there would be a zero water allocation. A lengthy discussion continued regarding a possible zero water allocation scenario in John Mensinger called for a motion to approve Item No. 4. Mayor Marsh moved to approve. Bill Zoslocki seconded the motion. The motion passed unanimously. 5. Adjournment The meeting was adjourned at 11:50 a.m. Document Number: v3

7 MRWTP EXPANSION PROJECTS UPDATE DOMESTIC WATER POLICY COMMITTEE July 14, Doc #350646

8 Expansion Projects MRWTP Expansion Projects Current Projects MRWTP Repair Project Roof to Wall and Tieback Installations CCO Work MRWTP Repair Project Stage 2 Filter Basin Reconstruction MRWTP Terminal Reservoir Project Ball Valve Replacement and Bypass Installation 2

9 Expansion Projects MRWTP Expansion Projects Future Projects MRWTP Phase 2 Expansion Complete Original Contract Work Membrane Module Order Other Activities 3

10 Repair Project MRWTP Repair Project Contractor Manito Construction, Inc. Work Roof To Wall Connection - completed Lower West Wall Tie-backs - completed Design Deficiency Corrective Work In progress New Grating in the Pilot Plant Room Modifications in the Ozone Contactor and 60 FW Pipeline Motorize the Neutralization Basin Telescoping Valve Seismic Supports to UPS and Server Cabinets 4

11 Repair Project Construction Contract Status Manito Construction, Inc. Value of Final CCO Work - $138, Amount Paid to Date - $1,083, Amount Held in Retention - $57, Final Projected Contract Value - $1,278, Total Authorized Budget - $1,283,

12 Repair Project PROJECT STATUS Field Work 6

13 Repair Project Stage 2 MRWTP Repair Project Stage 2 Contractor Auburn Constructors, Inc. Work Filter Basin Reconstruction Design Deficiency Corrective Work CCO 7

14 Repair Project Stage 2 Construction Contract Cost Status Auburn Constructors, Inc. Original Contract Amount - $ 5,827, Change Orders - $ 3,771, Current Contract Amount - $ 9,598, Payments thru May $ 3,944, (Amount In Retention $185,721.08) Balance to Finish - $ 5,653, % Complete based on payments through 5/31/14-41%

15 Repair Project Stage 2 Construction Contract Schedule Status Auburn Constructors, Inc. Notice to Proceed - April 30, 2013 Contract Time Days Contract Substantial Completion Date - February 10, 2015 % Complete Contract Time through 6/30/14 65% Projected Building Turn over Date - December 4,

16 Repair Project Stage 2 PROJECT STATUS Field Work Concrete Work Evoqua (formerly Siemens) Filter Basin Inspection Mechanical Work Filter Basin Dry-Fit Up East Side Seismic Pipe Supports 10

17 Repair Project Stage 2 PROJECT STATUS Field Work 11

18 Repair Project Stage 2 PROJECT STATUS Field Work 12

19 Repair Project Stage 2 PROJECT STATUS Field Work 13

20 Repair Project Stage 2 PROJECT STATUS Field Work Video June Progress 14

21 TR Ball Valve & Bypass MRWTP Terminal Reservoir Contractor KG Walters Construction Work Replace 2-30 Ball Valves Install 48 WS Bypass Pipeline 15

22 TR Ball Valve & Bypass Construction Contract Cost Status KG Walters Construction Original Contract Amount - $ 2,423, Change Orders - $ 0.00 Current Contract Amount - $ 2,423, No Payments thru June $ 0.00 Balance to Finish - $ 2,423, % Complete based on payments through 4/30/14-0%

23 TR Ball Valve & Bypass Construction Contract Schedule Status KG Walters Construction Notice to Proceed May 20, 2014 Contract Time 330 Days Contract Substantial Completion Date - April 15, 2015 Milestone 1 February 15, 2015 % Complete Contract Time through 6/30/14 12% 17

24 TR Ball Valve & Bypass PROJECT STATUS Field Work Mobilized week of June 9 th 2014 Installed shoring at 54 Connection Point Potholed 2 of 3 Connections Placed Concrete Slab for Bypass Vault 18

25 TR Ball Valve & Bypass PROJECT STATUS Field Work 19

26 TR Ball Valve & Bypass PROJECT STATUS Field Work 20

27 Phase 2 Expansion MRWTP Phase 2 Expansion Project Contractor Western Summit Construction, Inc. (WSCI) Work Defective Work Corrections Complete Testing, Start-up, Training and Commissioning 21

28 Phase 2 Expansion PROJECT STATUS Field Work Defective Work Stainless Steel Pipe Exterior Finish - Completed Neutralization Basin re-coating - Now Roofing Repairs August 2014 Contract Work Site Meeting with WSCI July 8, 2014 Testing, Startup, Training - remobilize December

29 Phase 2 Expansion PROJECT STATUS Field Work 23

30 Phase 2 Expansion PROJECT STATUS Field Work 24

31 Expansion Projects Questions? 25