governance committee agenda packet 6-24-15

8/20/2019 Governance Committee Agenda Packet 6-24-15

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Governance Committee C/O Monterey Peninsula Water Management District P.O. Box 85 Monterey, CA 93942

831-658-5652 http://www.mpwmd.net/governancecommittee

GOVERNANCE COMMIT TEE

FOR THE

MONTEREY PENINSULA WATER SUPPLY PROJECT

California American Water Monterey County Board of Supervisors

Monterey Peninsula Regional Water Authority Monterey Peninsula Water Management District

This meeting has been

noticed according to the

Brown Act rules. This

agenda was posted on

June 19, 2015.

Governance

Committee Members:

California American

Water

Robert MacLean

Monterey Peninsula

Regional Water Authority

Jason Burnett, Chair Alt.- Bill Kampe

County of Monterey

David Potter

Alt. - Simon Salinas

Monterey Peninsula

Water Management

District

Robert S. Brower, Sr.

Vice Chair

Alt. – Jeanne Byrne

Staff Contact:

David J. Stoldt, MPWMD

Arlene Tavani, MPWMD

AGENDA

REGULAR MEETINGMonterey Peninsula Water Supply Project

Governance Committee

***************

Wednesday, June 24, 2015, 2:30 PM

Monterey Peninsula Water Management District, Conference Room,

5 Harris Court, Building G., Monterey, CA

Call to Order/Roll Call

Pledge of Allegiance

Public Comments Anyone wishing to address the Committee on matters not listed on the agenda that are within the subject

jurisdiction of the Committee, may do so during Public Comments. The public may comment on any other

items listed on the agenda at the time they are considered by the Committee . Please limit your comment

to 3 (three) minutes.

Presentations – Public Comment will be Received

1. Progress Report from California-American Water on the Monterey Peninsula

Water Supply Project Including Updates on Production from Test Slant Well;

Desalination Project Design; and Design and Procurement of Conveyance

Facilities Page 3

Action Items – Public Comment will be Received

2. Adopt Minutes of May 20, 2015 Governance Committee Meeting Page 11

3. California American Water Notification #7 - Review Draft Request for Proposals

(RFP) for Pipeline Procurement and Develop a Recommendation to California

American Water on Finalization and Distribution of the RFP Page 17

Discussion Items – Public Comment will be Received

4. Suggest Items to be Placed on Future Agendas

Adjournment

After staff reports have been distributed, if additional documents are produced

by the Governance Committee and provided to a majority of the committee

members regarding any item on the agenda, they will be available at the

Monterey Peninsula Water Management District (MPWMD) office during normal

business hours, and posted on the Governance Committee website at

1


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http://www.mpwmd.net/GovernanceCommittee/GovernanceCmte.htm.

Documents distributed at the meeting will be made available in the samemanner.

Upon request, a reasonable effort will be made to provide written agenda

materials in appropriate alternative formats, or disability-related modification or

accommodation, including auxiliary aids or services, to enable individuals with

disabilities to participate in public meetings. A reasonable effort will also be

made to provide translation services upon request. Please submit a written

request, including your name, mailing address, phone number and brief

description of the requested materials and preferred alternative format or

auxiliary aid or service by 5:00 PM on Monday, June 22, 2015. Requests should

be sent to the Board Secretary, MPWMD, P.O. Box 85, Monterey, CA, 93942.

You may also fax your request to the Administrative Services Division at 831-644-

9560, or call 831-658-5600.

U:\staff\MPWSPGovernanceCmte\2015\20150624\Agenda\Agenda20150624.docx

2

http://www.mpwmd.net/GovernanceCommittee/GovernanceCmte.htmhttp://www.mpwmd.net/GovernanceCommittee/GovernanceCmte.htmhttp://www.mpwmd.net/GovernanceCommittee/GovernanceCmte.htm


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Monterey Peninsula Water Supply Project Governance Committee

Meeting Date: June 24, 2015

Presentations

Agenda Item: 1. Progress Report from California-American Water on the

Monterey Peninsula Water Supply Project Including Updates on

Production from Test Slant Well; Desalination Project Design;

and Design and Procurement of Conveyance Facilities

Summary: Attached as Exhibit 1-A is a summary of the comments that will be

presented by California-American Water staff. No action will be taken by

the committee.

Exhibits:1-A Presentation slides prepared by California-American Water

U:\staff\MPWSPGovernanceCmte\2015\20150624\StaffNotes\Item-1.docx

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MPWSP Schedule andTest Well Update

Presented to: MPWSP Governance CommitteePresented by: Cal Am

Date: June 24, 2015


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Schedule

2 15 2 16 2 17

J

, _ A S 0 N D

J

F M A M

J J

A S 0 N D

J F M A M J J A

*

t

SWRCB Current

T

T

COO Deadline

DE

IR FEIR

PUC

Dec. 3 , 2016

Ap

ril

October

Dec

ision

Dec

ision

Feb. Mid 20 16

Construction

RFQ

/RF P

RWQCB

Approve

Application

DB Contractor

Aug.

March to May

I

I

I

Dran Water Testimony

CP

UC Evid.

c

ha

se

Ag

reement

Nov

-Dec Hearings

Q2

/

Q3

Briefings

Jan-Feb

ASR

Tanks

BPS

D

Construction Commissioning

CP

UC Proposed

Dec ision

Action

May

J

une

Start

Q3/Q4

S 0 N D

Start-up

Window

Q3 to Q4

15 Months

Compressed

Sc

h

ed

ule

2 18

J

F M A M J J A

*

A L I FO RNI

AMERIC N WA

S 0 N D

J F

24 Months

Original

Sc

h

ed

ule

2 19

M A M J

Design, Land, Permitting Contracts

truction ommissioning

----------

I

15 Months

Well Production Wells

co

mpressed

18

Months

est el eratton Slant Wells

--

Design Permitting

Construction Commissioning

Q3

e schedule is base d on

th

e infor

ma

tion and assu

mp

tions

ava

ilableatti

me

of update and is

acc

urate to +/-6

mo

nths.

wl DB Contrac tor

Start-up Window

Partial or Full

Late 2018

02

UpdatedJun e


6/90

CALIFORNIA AMERICAN WATER Monterey Peninsula Water Supply P

Test Slant Well Long Term Pumpin

10-Jun-15 GEOSCIENCE Support Service

-1

0

1

-10

0

10

2/20/2015 3/2/2015 3/12/2015 3/22/2015 4/1/2015 4/11/2015 4/21/2015 5/1/2015 5/11/2015 5/21/201

G r o u n d w a t e r E l e v a t i o n ,

f t N A V D 8 8

Groundwater Elevation in MPWSP MW-4

MW-4D Transducer

MW-4M Transducer

MW-4S Transducer

MW-4D Hand Levels

MW-4M Hand Levels

MW-4S Hand Levels

MW-4D

S t a r t o f L o n g T e r m P

u m p i n g

T e s t a t 2 2 - A p r - 1 5 1 5 : 2 0 p m

MW-4M

MW-4S

Sundays

5-Day

Constant Rate Test

Apr-3 to Apr-8

TSW Pump

Development

Mar-24 to Mar-31

9.5-hour

Step Drawdown Test

Apr-2

MW-4S Transucer Installed

MW-4M Transducer Installed

MW-4D Transducer Pulled and Reinstalled


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-15

-10

-5

0

5

10

-15

-10

-5

0

5

10

4/10/2015 4/15/2015 4/20/2015 4/25/2015 4/30/2015 5/5/2015 5/10/2015 5/15/2015 5/20/2015 5/25/2015 5/30/2015 6/4/2015 6/9/2015 6/14/2015


f t N A V D 8 8


MW-3D Transducer

MW-3M Transducer

MW-3S Transducer

MW-3D Hand Levels

MW-3M Hand Levels

MW-3S Hand Levels

MW-3D

MW-3M

MW-3S

Average ground surface elevation for cluster MW-3 = 34.44 ft NAVD88

g


u m

p i n g

T e s t a t 2 2 - A p r - 1 5 1 5 : 2 0 p m

P u m p T u r n e d O f f a t 5 - J u n - 1 5 1 2 : 0 0 p m


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GW Elevation

-1.44

GW Elevation

-1.54

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

-15

-10

-5

0

5

10

4/10/2015 4/15/2015 4/20/2015 4/25/2015 4/30/2015 5/5/2015 5/10/2015 5/15/2015 5/20/2015 5/25/2015 5/30/2015 6/4/2015 6/9/2015 6/14/2015

P r e c i p i t a t i o n i n c h e s


f t N A V D 8 8


Precipitation

MW-4D Transducer

MW-4M Transducer

MW-4S Transducer

MW-4D Hand Levels

MW-4M Hand Levels

MW-4S Hand Levels

MW-4D

MW-4M

MW-4S


F i g u r e


u m p i n g

T e s t a t 2 2 - A

p r - 1 5 , 1 5 : 2 0 p m

Weekly water quality sampling event

P u m p T u r n e d O f f a t 5 - J u n - 1 5 , 1 2 : 0 0 p m

SundaysPrecipitation data from

CIMIS Station 116: Salinas North

Flattening

Flattening


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CALIFONIA AMERICAN WATER Monterey Peninsula Water Supply P



30

31

32

33

34

35

36

37

38

39

40

30

31

32

33

34

35

36

37

38

39

40

4/10/2015 4/15/2015 4/20/2015 4/25/2015 4/30/2015 5/5/2015 5/10/2015 5/15/2015 5/20/2015 5/25/2015 5/30/2015 6/4/2015 6/9/2015 6/14/2015


f t N A V D 8 8

Groundwater Elevation in MPWSP MW-5S

MW-5S Hand Levels

MW-5S Transducer

F i g u r e 1- 3 a

MW-5S



u m p i n g T e s t a t 2 2 - A p r - 1 5 1 5 : 2 0 p m

P u m p T u r n e d

O f f a t 5 - J u n - 1 5 1 2 : 0 0 p m


10/90

CALIFONIA AMERICAN WATER Monterey Peninsula Water Supply P



-20

-15

-10

-5

0

5

-20

-15

-10

-5

0

5

4/10/2015 4/15/2015 4/20/2015 4/25/2015 4/30/2015 5/5/2015 5/10/2015 5/15/2015 5/20/2015 5/25/2015 5/30/2015 6/4/2015 6/9/2015 6/14/2015


f t N A V D 8 8

Groundwater Elevation in MPWSP MW-5M and MW-5D

MW-5D Transducer

MW-5M Transducer

MW-5D Hand Levels

MW-5M Hand Levels

MW-5D

F i g u r e 1- 3 b

MW-5M


S t a r t o f L o n

g T e r m P

u m p i n g

T e s t a t 2 2 - A p r - 1 5 1 5 : 2 0 p m

P u m p T u r n e d O f f a t 5 - J u n - 1 5 1 2 : 0 0 p m


11/90




-5

-3

-1

1

3

5

7

9

-2000 0 2000 4000 6000 8000 10000

G r o u n d w a t e r E l e v a t i o n , N A V D 8 8

Distance from TSW, ft

Water Level Profiles

3/20/201

4/21/201

5/21/201

6/5/2015

6/6/2015

6/11/201

6/17/201

M W - 1 M

T S W

M W - 3 M

M W - 4 M

M W - 5 M

During TSW pumping on

5/21/2015 and 6/5/2015, GW

Elevations measured at -31.25

and -31.12, respectively.

Date

Shortly before

cessation of pumping,

5-Jun-15

1 day after pumping

stopped, 6/6/2015

6 days after pumping

stopped, 6/11/15

12 days after pumping

stopped, 6/17/15

Water level

higher at

coast

Pumping off,

slight drop in

elevation

between 6/11

and 6/17

During

pumping

Pumping

offContinued drop

in elevation

Drop in elevation

Note: TSW static water levels are composite heads from two units

(Dune Sand and 180-FTE) and they are being compared to a single unit "M"


12/90

MPWSP

Desalination Conveyance Facilities RFPand

Source Slant Wells RFP Schedule

Presented to: MPWSP Governance Committee

Presented by: Cal Am

Date: June 24, 2015


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MPWSP Anticipated Schedule

Updated June 18, 2015

May June July Aug Sept Oct No

PWSP Conveyance Facilities Procurement Schedule

Q

ared

GC Meeting Dates

20

CAN

RFQ

12

CAN

RFP

22

RFQ Released

RFP Contracts, Spec,

Drawings Finalized

Responses

Due

July 2

Responses

Evaluated

&

Qualified Firms

Listed

RFP

ReleaseRFP’s

Due

CAN

NOA

8

VE

Session

Contr

Modific

based o

VE

Recom

24 27 24 16 21

Award

Recom

Notice of

Award &

Contract

Execution


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RFP Provisions

Diversity Provision (WMDVBE)

Local Hiring

Prevailing Wage

RFP Components


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MPWSP Anticipated Schedule

Updated May 15, 2015

May June July Aug Sept Oct No

PWSP Source Water Wells Procurement Schedule

GC Meeting Dates

2012

CAN

RFP

9

RFP Contracts, Spec, Drawings FinalizedRFP

Released

RFP’s

Due

CAN

NOA

1017 27 24 16 21

Award

Recom

N

A

C

E

16


16/90



Action Item

Agenda Item: 2. Approve Draft Minutes of May 20, 2015 Governance Committee

Meetings

Summary: Attached as Exhibit 2-A are draft minutes of the May 20, 2015,

Governance Committee meeting.

Recommendation: Review and approve the committee minutes.

Exhibits:

2-A Draft Minutes of the May 20, 2015, Committee Meeting


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GOVERNANCE COMMIT TEE

FOR THE


California American Water Monterey County Board of Supervisors

Monterey Peninsula Regional Water Authority Monterey Peninsula Water Management District

EXHIBIT 2-A

DRAFT MINUTES

Regular Meeting

Governance Committee

for the

Monterey Peninsula Water Supply Project

May 20, 2015

Call to Order: The meeting was called to order at 2 pm in the conference room of the

Monterey Peninsula Water Management District offices.

Members Present: Jeanne Byrne, representative for Monterey Peninsula Water Management

District (alternate to Robert S. Brower, Sr.)Bill Kampe, representative for Monterey Peninsula Regional Water Authority

(alternate to Jason Burnett)

Richard Svindland, representative for California-American Water (alternate to

Rob MacLean)

Members Absent: Robert S. Brower, Sr., Vice Chair, representative for Monterey Peninsula Water

Management District

Jason Burnett, Chair, representative for Monterey Peninsula Regional Water

Authority (JPA)

David Potter, representative for Monterey County Board of Supervisors

Robert MacLean, representative for California American Water

Pledge of Allegiance: The assembly recited the Pledge of Allegiance.

Public Comments: Michael Warburton, representing the Public Trust Alliance (PTA), addressed

the committee. He stated that the window was closing for positive leadership

in dealing with the Monterey County water situation; and that it was time for

thinking about the Monterey community and what it is. The same tired

arguments continued to be used decade after decade. It was time for people,

mayors especially, to invite their constituents to talk about some of the

problems facing the Monterey community as it adapts to the future and its

infrastructure is put up to serve for the next 50 to 70 years. He described thetopic of discussion at the Governance Committee meeting as “stupid and

vulnerable”, placing a risk on people who should not have risk placed on them.

Warburton stated that it was time for leadership and public discussion of

issues. He asked that the topic be placed on the agenda at some time.

Presentations

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1. Progress Report from California-American Water on the Monterey Peninsula Water Supply

Project Including Update to Test Slant Well

Ian Crooks, Engineering Manager for California American Water’s (Cal-Am) Coastal Division,

presented the report. A summary is available for review on the Governance Committee

webpage and at the Water Management District office. Crooks reported that TDS continues to

trend upward to 28,000 milligrams per liter which equates to approximately 83 to 85 percent

salinity. No inland drawdown effects have been documented. Crooks will modify the Test Well

Dashboard chart to reflect trends over the pumping period. He reviewed the draft schedule

for source water well procurement, and stated that a driller should be under contract by

November 2015.

Public Comment: Michael Warburton, PTA, was pleased with the salinity trend reported by

Crooks; however, he was disturbed by the plan to hire a drilling contractor before the CEQA

process is complete. He stated that it is possible that the project could be completed before a

decision is made on whether it is even needed. According to Warburton, the Governance

Committee was proceeding as if CEQA did not matter and was not relevant to the Monterey

community. He stated that the project has been done in a very deliberative obfuscation of

CEQA. It is important not to argue about how to get an RFP out. The project needs a CPCN,and CEQA is important. Svindland responded that the Governance Committee was established

with specific guidelines related to Cal-Am’s interaction with the member agencies. This item

was to apprise the members of the timelines. There was no attempt to avoid compliance with

CEQA.

Action Items

2. Adopt Minutes of April 27, 2015 Governance Committee Meeting

On a motion by Kampe and second of Byrne, the minutes of April 27, 2015 were adopted on a

unanimous vote of 2 – 0 by Kampe and Byrne. No comments were directed to the committee

during the public comment period on this item.

3. California-American Water Notification #6 – Review Draft Request for Qualifications (RFQ)

for Pipeline Procurement and Develop a Recommendation to California-American Water on

Finalization and Distribution of the RFQ

A summary of Crooks’ report is on file at the Water Management District office and can be

viewed on the Governance Committee webpage. He confirmed that the RFQ will provide

information needed for Cal-Am to determine which contractors are qualified to do the job.

The next step will be distribution of the RFP to a short list of 5 to 10 contractors. The cost for

this project should be approximately $70 million to $100 million.

Public Comment: Michael Warburton, PTA, stated that in Monterey County there is a belief

that litigation can stop any project; that a person can make any statement about a project; andif you can test another person they must listen to you. Warburton stated further that those

beliefs are untrue. He noted that large banks are now paying more than $1 billion in fines

because their culture was arrogant and they refused to believe that laws might apply to them.

He opined that issuing RFQs is fine in order to meet timelines, but reliance on litigation is inept.

He stated that it is time to talk about real issues.

12


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On a motion by Kampe and second of Byrne, the committee voted unanimously to submit a

letter to Cal-Am expressing support for CAW Notification #6 advising the Governance

Committee that Cal-Am intends to issue a request for qualifications for the procurement of

contracts related to desalination conveyance facilities. The motion was approved on a vote of

2 – 0 by Kampe and Byrne.

Information Item

4. California American Water Notification #5 – Execution of Agreements Related to Source

Water Infrastructure

The letter was submitted for information only. No discussion or action was required.

Discussion Items

5. Suggest Items to be Placed on Future Agendas

Crooks stated that Cal-Am will submit an RFP for review by the committee in June. The RFPs

will be due in August 2015.

Public Comment: Michael Warburton, PTA, requested a discussion of feasible alternatives.

Kamp responded that the California Regional Water Quality Control Board will review

alternatives. At this time there is no specific proposal for an alternative that Mr. Warburton

alludes to. He urged interested persons to submit a creative alternative. Byrne commented

that the Governance Committee was created specifically to address the Monterey Peninsula

Water Supply Project.

Adjournment

The meeting was adjourned at approximately 2:35 pm.

U:\staff\MPWSPGovernanceCmte\2015\20150624\StaffNotes\Item-2-Exh-A.docx

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Action Item

Agenda Item: 3. California American Water Notification #7 – Review Draft

Request for Proposals (RFP) for Pipeline Procurement and

Develop a Recommendation to California American Water on

Finalization and Distribution of the RFP

Summary: Notification Letter #7 from California-American Water and the draft

request for proposals (RFP) (Exhibit 3-A) will be submitted under

separate cover on Monday, June 22, 2015.

Recommendation: The Governance Committee will review the Notification Letter #7 anddraft RFP, receive public comment, and consider development of a

recommendation to California American Water on finalization of the RFP.

Exhibits:

3-A TO BE SUBMITTED ON JUNE 22, 2015 – California American Water Notification #7 and

Request for Proposals – Monterey Peninsula Water Supply Project Desalination

Conveyance Facilities


14


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Exhibit 3-A

*

L IFORN I

MERIC N W TER


GOVERNANCE COMMITTEE

CAL-AM NOTIFICATION 7

TO: Jason Burnett, Chair, MPWSP Governance Committee

FROM: Ian Crooks, Engineering Manager, California American Water

DATE: June

23 2015

RE: Cal-Am Notification Draft Request for Proposals- MPWSP

Desalination Conveyance Facilities

This Cal-Am Notification

is

submitted

to

you pursuant to, and in compliance with,

Section V.B.

o

the Amended and Restated Agreement to Form the Monterey Peninsula

Water Supply Project Governance Committee (the Agreement ), as revised November

5, 2013, entered into by and among the Monterey Peninsula Regional Water Authority

( MPRWA ), the Monterey Peninsula Water Management District ( MPWMD ), the

County

o

Monterey ( County ), and the California-American Water Company ( Cal

Am ). Capitalized terms used but not defined herein shall have the meaning set forth in

the Agreement.

Cal-Am intends to issue a request for proposals ( RFP ) for the procurement o one or

more Contracts, valued in excess

o

1 million, relating

to

the construction

o

the Raw

Water Pipeline, Product Water Pipeline, Terminal Reservoir Infrastructure, Brine

Discharge Infrastructure (Pipeline Only), and ASR Infrastructure (Pipeline Only).

Pursuant to Section V.D., Category

B

I. o the Agreement, the Governance Committee

may recommend qualifications and selection criteria for such Contract(s).

Cal-Am has determined this matter

is

ripe for presentation to, and recommendation by,

the Governance Committee. It is Cal-Am's current intent

to

issue the RFP described

above on or about July 15, 2015. The Governance Committee may review and make

recommendations relating to the qualifications and selection criteria to be included in the

RFP.


22/90

Pursuant to Section V.B. o the Agreement the Governance Committee shall issue its

recommendations i any to Cal-Am

no

later than July

6

2015. The recommendations

should be in writing and sent to Ian Crooks o Cal-Am at [email protected].

2


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MONTEREY PENINSULA W TER

SUPPLY PROJECT

REQUEST FOR PROPOSALS

FOR THE

CONSTRUCTION OF CONVEYANCE FACILITIES

Issue Date: July XX, 2015

Due Date: September

1

2015

LIFORNI

AM

C NW

Pacific Grove, California


24/90

Request for Proposals for California American Water



TABLE OF CONTENTS

SE TION

1 INTRODUCTION 1-4

1.1. EXECUTIVE SUMMARY ....... ..... ..... .... .. ..... .... .

...

.... .

...

.. ......

...

..... ...... .. .. ..

...

............. 1-4

1.2. PROPOSAL .............................. ... ...... ........ ................ .

..

........ ......... ... ... ... ...... ... ........... 1-5

1.3. PROPOSAL SUBMITTAL .... .. .. ... ....... .. ............... .. ..... .......... ........ .... .... .................... 1-5

SE TION

2 GENERAL INFORMATION 2-1

2.1. PURPOSE OF SOLICITATION ..... .. ...... ........ .. .... .... ... .. .. .. ..... ... ....... .... ...... .. .. .. .. .. .. ... 2-1

2.2. MPWSP BACKGROUND AND OBJECTIVES ... ..... ..................................... .. ... .. ... 2-1

2.3. PROJECT DESCRIPTION ... .. ......

..

...... .....

..

.. ..

...

...... .............. ........

..

................. .. .. .. ... 2-2

2.3.1 Generally .......................

.. .. ..

.......

..

............................... ...... .

...

.............

..

....... . 2-2

2.3.2 Conveyance Facilities ....................................... ....... ..... ....... .......... ... ........ .. . 2-3

2.3.3 Other Non-Project MPWSP Components ..

..

.....

..

....... .. .

..

....

..

.......

..

....

..

........ 2-4

2.4. AVAIL ABLE REPORTS AND MATERIALS ..... ............ ........ ........... ... .... .. .... ... ...... 2-5

2.5. ACCURACY OF RFP AND RELATED DOCUMENTS; RELIANCE ON

ORAL COMMENTS ......................................... .. ... .. .......... .. ....................... ..... .. ..... ... 2-5

2.6. PROJECT SITE

...

.. ...................... .. ................ .. ..

...

.

... ..

... .. ......... ..... ............ .

.. ...

.. ...

...

... 2-6

2.6.1 Project Site Description .... .....

..

.. ........ .. ..... .............

..

.

..

.....

..

..

..

........ .... ...

..

..

..

. 2-6

2.6.2 Project Site Preparation .. .. ........... .. .......... .. ... ......... .. .. .......... .. ... ........ .. .......... 2-6

2.6.3 Project Site Access during the Proposal Period ...... .. .... .. .... .. ....................... 2-6

2.6.4 Geotechnical Testing . .......................... ..... .... .. .....

..

.. ........

..

............

..

...... ...... 2-6

2.7. SCOPE OF WORK

.. ..

....................... .....

..

....................

..

....

..

.....

..

..... ....

..

......

...

..

......

..

..

2-6

2. 7.1 Construction Requirements .......... .. ......

..

...........

.. ..

..... .. ..... ... .... ......

..

.. ... ....... 2-6

2. 7.2 Basic Performance Requirements .............. ......

..

..

..

........

..

...........

..

.. .... .... .... . 2-7

2.7.3 Environmental Compliance .................. ........................ ... ..... .... .... .... .. .......... 2-7

2. 7.4 Construction ........................ .. .. .. ........ ........ ...... .. .......... .... ..... .... .. ......... .. ... .. .. 2-7

2.7.5 Acceptance Testing ................................ .. ..... ........... ..

...

.... .. ....... .

..

..

... ..

... ..... 2-7

2. 7.6 Quality Management ......... ............ .. ...... .. .. ........ .. .. ..... .. .............. .. .......... ...... 2-7

2.7.7 Operation and Maintenance Training . .. .. .. .......... ........... ... .......... ..... .. .......... 2-8

2.7.8 Purpose and Scope ....... ...... .... ..

..

.......... .....

..

............

... ..

....... .. .........

.. ...

......... 2-8

2.7.9 Proposed Changes to the Draft Contract................... ...... .. .. .. ....... .. ............ .. 2-8

2.8. UTILIZATION OF WOMEN, MINORITY, AND DISABLED VETERAN

OWNED BUSINESS ENTERPRISES ...............

..

..................

.. ..

..................... ..

..

..

..... 2-9

2.9. UTILIZATION OF LOCAL CONTRACTORS AND SUPPLIERS ......... .. .. ............ 2-9

2.10. LABOR COMPLIANCE AND PREY AILING WAGE .... ...... .. .... .. ....... .. ................. 2-9

2.11. EQUAL EMPLOYMENT OPPORTUNITY ....... .. ................ .. .... .. ........ .................. 2-10

2.12. LICENSING REQUIREMENTS .................. .................................................... .. ...... 2-10

2.13. EXAMINATION OF CONTRACT DOCUMENTS AND PROJECT SITE.... ....... 2-10

2.13 .1 Proposer s Responsibilities ........ ..... .... .... .......... .. .............. .. .. ...... .. ... .......... 2 1 0

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Monterey Peninsula

Water

Supply Project


2.13.2 Site Visits ...................................................................................... ........ ..... 2-11

2.14. CHANGES IN PROPOSER S ORGANIZATION .................................................. 2-11

2.15. SECURITY FOR PERFORMANCE .............................................................. .......... 2-11

2.16. PROPOSAL BOND .......................................................... ........................................

2-12

SE TION 3 DESCRIPTION OF PROCUREMENT PROCESS

3-1

3.1. PROCUREMENT PROCESS SCHEDULE ............................................................... 3 1

3 1.1 Pre-Proposal Meeting .................................................................................. 3 1

3.2. SELECTION COMMITTEE .... .................................................................................. 3-2

3.3. CAW RIGHTS AND OPTIONS ................................................................................ 3-2

3.4. EXPENSE

OF

PROPOSAL PREPARATION ........................................................... 3-3

3.5. ADDENDA TO RFP .................................................... ............................................... 3-3

3.6. COMMUNICATIONS PROTOCOL. ................................................................ ......... 3-3

3.7. USE

OF

TECHNICAL INFORMATION ................................................................. . 3-4

3.8. INFORMATION DISCLOSURE TO THIRD PARTIES .......................................... 3-4

3.9. CAW RIGHT TO EXAMINE REFERENCE FACILITIES .... .................................. 3-5

3.10. EVALUATION AND RANKING

OF

PROPOSALS ................................................ 3-5

3.11. NEGOTIATION

OF

CONTRACT ............................................................................. 3-5

SE TION 4 PROPOSAL REQUIREMENTS

4-1

4.1. OVERVIEW

OF

SUBMISSION REQUIREMENTS AND CRITERIA FOR

PROPOSALS ......................................................................................................... .... . 4 1

4.2. PROPOSAL FORMAT ................................................................... ............................

4 1

4.3. PROPOSAL SUBMISSION ......................................... ................................. ............. 4-2

4.3.1

Proposal Deadline ...................................................... ..................................

4-2

4.3.2 Number

of

Copies ........................................................................................ 4-3

4.4. PROPOSAL CONTENTS .......................................................................................... 4-3

4.4.1 Section 1.0: Executive Summary ........................................................... ...... 4-3

4.4.2 Section 2.0: Project Team Information .................................................. ...... 4-4

4.4.3 Section 3.0: Technical Proposal.. ................................................................. 4-9

4.4.4 Section 4.0: Business and Price Proposal .................................................. 4-10

4.5. PROPOSAL FORMS GENERALLY ....................................................................... 4-11

SE TION 5 EVALUATION OF PROPOSALS

5 1

5.1. EVALUATION OF PROPOSALS ............................................. ................................

5 1

5.2. EVALUATION CRITERIA ....................................................................................... 5 1

5.2 .1 Weighting of Evaluation Criteria ................................................................. 5 1

5.2.2 Technical Criteria ......................................................................................... 5-2

The Proposals shall be evaluated based on the proposed Construction

Prices ............................................................................................................ 5-2

5.2.3 Business and Financial Criteria .......... ..... ..... ................................................ 5-2

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Request for Proposals for California American

Water

Monterey Peninsula

Water

Supply Project


Terms and Conditions ......

..

...... ..... ............................ .......................... ........... ....

...

...... 5-2

Financial Qualifications ...... .... ..... ....... .................................

...

...................... ....... .

..

.... 5-3

A.

PROPOS L

FORMS

Proposal Form 1

Proposal Form 2

Proposal Form 3

Proposal Form 4

Proposal Form 5

Proposal Form 6

Proposal Form 7

Proposal Form 8

Proposal Form 9

Proposal Form 10

Proposal Form

11

Proposal Form 12

TT CHMENTS

Transmittal Letter

Non-Collusion Affidavit

Disclaimer Statement

Key Personnel

Verification

of

Statement

of

Qualifications Information

Financial Capacity Data

Surety Letter of Intent to Issue a Performance Bond

Surety Letter

of

Intent to Issue a Payment Bond

Insurance Company Letter

of

Intent

Preliminary Project Schedule Scheduled Construction Date and

Scheduled Acceptance Date

Acceptance of the Contract

Form of Proposal Bond

B.

DR FT

CONSTRUCTION CONTR CT

[TO BE ADDED

BY

ADDENDUM]

Appendix 1. Bid Schedules

1 3


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1.1. EXECUTIVE SUMMARY

Request for Proposals for California American

Water



SE TION

1

INTRODU TION

California-American Water Company ( CAW ) through this Request for Proposals ( RFP ) is

soliciting sealed Proposals from pre-qualified respondents ( Proposers ) for a contract to

construct certain conveyance facilities ( Project ) associated with the Monterey Peninsula Water

Supply Project (the MPWSP ). The solicitation

of

Proposals is the second step in a two-step

procurement process being implemented by CAW for the Project. In the first step CAW issued a

Request for Qualifications ( RFQ ) for the Project on May 28, 2015. Statements of

Qualifications ( SOQs ) were received from respondents on July

2

2015. CAW evaluated XX

SOQs in accordance with the RFQ and has pre-qualified the following XX respondents to the

RFQ

as

eligible to submit proposals in response to this RFP ( Proposals ):

[INSERT]

This Project

is

a central component ofthe MPWSP. The purpose of the MPWSP is to replace a

significant portion of the existing water supply from the Carmel River, as directed by the State

Water Resources Control Board ( SWRCB ). CAW is proposing a three-pronged approach

to

replace the water supply reductions ordered by the SWRCB. The three prongs consist of: (1)

desalination, (2) groundwater replenishment

( GWR ), and (3) aquifer storage and recovery

( ASR ). This RFP is being issued to procure Conveyance Facilities related to the desalination

portion

of

the MPWSP.

The Project will consist

of

several components including pipelines, storage reservoirs, and pump

stations as described in Section

2.

The Project will not include the source water slant wells and

desalination plant which are also described in Section

2.

CAW, the Monterey Peninsula Regional Water Authority, the Monterey Peninsula Water

Management District, and the County of Monterey have formed an oversight committee (the

Governance Committee ) to ensure efficient and effective public input into the development

and operation of the MPSWP. The Governance Committee was formed pursuant to an

agreement of the Governance Committee members dated March 8 2013 (the Governance

Committee Agreement ).

Additional information concerning the Project history, the Project Site conditions, background

technical and environmental documents, the Governance Committee Agreement, and public

outreach are available on the project website at www.watersupplyproject.org (the Project

Website ).

CAW expects to enter into one or more contracts for the Project (the Contract(s) ) with the

Proposer(s) that submit(s) the most advantageous Proposal(s)

as

determined by CAW with input

from the Governance Committee.

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Monterey Peninsula

Water

Supply Project


This RFP provides background information for the Project, a description

of

the overall

procurement process, the Proposal submission requirements, and the evaluation criteria that will

be used to select a firm to perform the Contract. A draft Contract will e added to this RFP by

addendum. Unless otherwise defined in this RFP, all capitalized words, abbreviations and terms

used herein shall have the meanings that will e set forth in the draft Contract.

1.2. PROPOSAL

IN ORDER TO BE CONSIDERED RESPONSIVE TO THIS RFP, PROPOSERS SHALL

PROVIDE ALL REQUESTED INFORMATION IN ACCORDANCE WITH THE

REQUIREMENTS

OF THIS

RFP.

CAW

is

soliciting a detailed Proposal with specific forms and textual requirements from the

Proposers. Proposals shall comply with the submittal requirements for Proposals outlined in

Section 4 of this RFP. Proposers shall provide adequate information with respect to its proposed

construction management and construction methods in order to demonstrate that: (1) the

Project

can

e

completed within the Project schedule; (2) the Project will

e

constructed in accordance

with the Contract; and (3) the completed Project will meet the standards for acceptance in

accordance with the draft Contract.

1.3. PROPOSAL SUBMITTAL

Proposals shall be submitted and received by CAW, pursuant to Section 4 of this RFP,

NO

LATER

THAN 3:00P.M. PACIFIC STANDARD TIME ( PST ), ON

SEPTEMBER

1,

2015.

All Proposals shall be submitted in sealed packages and in accordance with the

requirements

of

Section 4

of

this RFP.

By submitting a Proposal, Proposers acknowledge and agree to the following conditions:

• All Proposals submitted in response to this RFP will become the property

of

CAW and will be subject to disclosure as and to the extent provided in Section 3

of this RFP.

• CAW's selection

of

a Proposal shall not waive or limit any assumptions

of

risk,

provision

of

indemnity, or other obligations of the Contractor under the Contract,

as may e executed between a Proposer and CAW.

• Proposers shall comply with the communications protocol set forth in Section 3

of

this RFP with respect to all communications concerning this RFP.

• Proposals shall comply with all requirements of Section 4 of this RFP. Failure to

comply with Section 4 of this RFP may result in a Proposer being deemed

unresponsive by CAW.

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29/90

Request for Proposals for California American ater

Monterey Peninsula ater Supply Project


• The qualification of the Proposers to receive this RFP and provide a Proposal

does not waive or abridge CAW s right to find that any Proposer or Proposal is

non-responsive to the requirements

of

this RFP or to find that a Proposer is less

qualified than another Proposer and have their evaluation scoring reflect such

finding.

• After selection

of

a Proposal, the selected Proposer shall be required to execute

the Contract following the conclusion

of

successful negotiations with the selected

Proposer.

1 6


30/90

SECTION2

GENERAL INFORMATION

2 1 PURPOSE OF SOLICITATION

CAW

is

soliciting Proposals from the Proposers identified in Section

1.1

o

this RFP to perform

the construction work for the Project as required by the draft Contract. The services described in

this paragraph are reterred to herein as the Contract Services.

CAW intends

to

select one or more qualified Proposer(s) that provides CAW the benefits

discussed below and that best meets CAW's objectives set forth in Section 2.2 o this RFP.

CAW will select the most advantageous Proposal(s) by applying the evaluation criteria contained

in Section 5

o

this RFP

to

the Proposals.

CAW expects to contract with one or more firms that is efficient, displays that its construction

management and construction methods are cost-effective, have an optimal Project schedule, clear

assignment

o

responsibilities through a single contracting entity (for each component

o

work),

and optimal life cycle costs for the components o

this Project.

2 2 MPWSP BACKGROUND AND OBJECTIVES

CAW has served the Monterey Peninsula since it acquired properties from California Water

Telephone Company in 1966. CAW's Monterey service area is located in the semi-arid central

California coastal area that is currently entirely dependent on local rainfall for its water supply;

imported water

is

not an available option. By reason o its geography and rainfall patterns, the

area is prone to severe droughts. Wells located along the Carmel River that draw water from the

Carmel River Aquifer are the primary source o water for CAW. An additional source o water

for CAW

is

a network o eight wells located in the Seaside Basin, which CAW shares with a

number

o

users and purveyors.

The CAW Monterey service area, also known as the Monterey County District, includes six

incorporated cities, the Monterey Airport District, the unincorporated areas o Carmel Highlands,

Carmel Valley, and Pebble Beach, and other unincorporated areas in Monterey County. The

City o Marina, unincorporated Castroville, and other areas o unincorporated Monterey County

lie north

o

the CAW service area. The MPWSP is needed to replace existing supplies that are

constrained by recent legal decisions affecting the Carmel River and Seaside Groundwater Basin

water resources: SWRCB Order No. WR 95-10 ( Order 95-1 0 ) and the Monterey County

Superior Court adjudication o water rights in the Seaside Groundwater Basin. Both rulings

reduce CAW's use

o

its two primary sources o supply for the Monterey County District and

provide the most immediate impetus for the MPWSP. In addition, in October 2009, the SWRCB

issued a Cease and Desist Order ( CDO ) claiming that CAW had not complied with Order 95-

10, requiring CAW to terminate unauthorized diversions from the Carmel River, and that these

diversions constitute a trespass o water. The CDO imposed a deadline

o

December 31, 2016,

for CAW to reduce its diversion o water from the Carmel River by approximately 70%.

The MPWSP

is

the result o a multi-year planning effort that has considered several different

proposed projects and various related documents. Since 1989, several options have been

2 1


31/90

proposed that proponents have hoped would meet the water supply needs

o

the Monterey

Peninsula and address the impacts on the Carmel River underlying Order 95-10, as well

as

the

Seaside Basin adjudication. The objectives that were considered during development o the

MPWSP projects are

as

follows:

• Satisfy CAW's obligations to meet the requirements o Order 95-10;

• Diversify and create a reliable drought-proof water supply;

• Protect the Seaside Groundwater Basin for long-term reliability;

• Protect the local economy from the effects

o

an uncertain water supply;

• Minimize water rate increases by creating a diversified water supply portfolio;

• Minimize energy requirements and greenhouse gas emissions per unit o water

delivered to the extent possible;

• Provide facilities that can accommodate sea level changes;

• Explore opportunities for regional partnerships; and

• Provide flexibility to incorporate alternative water supply sources, such as GWR.

CAW submitted an application to the CPUC for the MPWSP in April 2012. As part o this

application, an Environmental Impact Report ( EIR ) will be prepared by the California Public

Utilities Commission ( CPUC ) pursuant

to

the California Environmental Quality Act

( CEQA ). The EIR will analyze and assess the potential environmental impacts o the

MPWSP. The MPWSP consists

o

several distinct components: a source water intake system

consisting o slant wells; a 9.6 mgd desalination plant; a brine discharge system; water

conveyance pipelines and storage facilities; and an ASR system.

n

addition, the Monterey

Regional Water Pollution Control Agency ( PCA ) is pursuing a 3,500 acre foot per year GWR

project that

i

implemented will reduce the size

o

the MPWSP's desalination plant from 9.6 mgd

to 6.4 mgd.

The CPUC, as the Lead Agency under CEQA, is actively working on the EIR and issued the

Draft EIR ( DEIR ) in April2015, and expects to issue the Final EIR ( FEIR ) in October 2015.

A final decision by the CPUC certifying the FEIR and approving the entire MPWSP

is

expected

in February 2016. Following approval by CPUC, CAW expects to obtain coastal development

permits by Q3/Q4 2016. With the permitting approvals progressing and the CDO date

approaching, CAW would like to have the Contractor for the Project in place

so as

to begin the

due diligence, construction planning, long lead procurement, community outreach and permitting

o the Project as soon as possible.

2.3. PROJECT DESCRIPTION

2 3 1 Generally

The Contractor will be asked to provide all necessary construction, commissioning, start-up and

testing services to bring the Project described in this section o this RFP on-line. Permits that

relate to the entire MPWSP, such as the Coastal Development Permit, will not be the

responsibility o the Contractor; however, certain information from the Contractor will be

required to assist CAW in obtaining other permits necessary to begin construction o the Project.

The permits that the Contractor will be responsible for obtaining are identified in the draft

Contract.

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32/90

2.3.2 Conveyance Facilities

The Project components are to be constructed at the respective Project Site locations, as

described below and

in

the draft Contract. The pipeline diameters and sizing provided in this

section are to identify unit costs for proposal bid schedules.

Structures and facilities that are components o this Project are expected to consist o the

following:

1)

transmission mains;

2)

terminal reservoirs; and 3) booster pump stations. The

following subsections describe in concept each o these facilities:

Transmission Mains

CAW is proposing to construct approximately twenty (20) miles o primarily 36 ductile iron

and 42 HDPE transmission main with secondary supporting mains o 3 to 16 . The 36

transmission mains will run from the desalination plant south through the cities

o

Marina,

Seaside, Monterey and terminating in Pacific Grove. The 42 HDPE transmission mains will run

from the source water wells located in the City o Marina along the coast line to the desalination

plant. The anticipated pipeline segments along with the anticipated pipe diameters include:

tem Component

Length LF)

Diameter

1A

Feedwater- Cemex

11,527'

42

Cemex Return Line

11 ,527'

8

2A

Brine Discharge

3,762' 36

Salinas Valley Return to PCA

5,679' 12

3 Transfer Pipeline

49,517' 36

4

ASR Extension 5,100' 36

(3) ASR Extension

4,300' (ea)

16

5 Monterey Pipeline

34,199'

36

The feedwater pipeline

is

needed to convey raw water to the desalination plant from the

source wells located at the CEMEX property in Marina. Proposers are responsible only for

the portion o the pipeline that is shown on the drawings included as part o the draft

Contract.

The brine discharge pipeline is needed to convey brine or concentrate from the desalination

plant to the headworks

o

the

PCA's outfall, where it will mix with effluent from the PCA's regional treatment plant and

be discharged to the ocean through the existing outfall diffusers. For this Project, Proposers

are responsible for the portion

o

the pipeline that is shown on the drawings included as part

o

the draft Contract.

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33/90

The Salinas Valley return pipeline is needed to convey desalinated water to the Salinas

Valley Groundwater Basin. For this Project, Proposers are responsible for the portion of the

pipeline that is shown on the drawings included as part of the draft Contract.

The transfer pipeline,

SR

extension pipelines, and Monterey pipeline are required to deliver

desalinated (product) water from the pumps at the desalination plant into a 36-inch diameter

product water pipeline and to deliver water to and from the ASR facilities. For this Project,

Proposers are responsible for the portion

of

the pipelines outside the fence line of the

desalination plant.

Terminal Reservoirs:

CAW is proposing to construct a terminal reservoir consisting of two (2) storage reservoirs, three

(3) million gallon (MG) each for a total storage volume

of

six (6) MG. The terminal reservoir is

located on the former Ft. Ord site. The project components include the following major

elements:

Item Component Dimensions

Diameter

Terminal Reservoir- 2 tanks and

related civil work and electrical

6

work 3 MG (ea)

130'

Inlet/Outlet Pipelines

1,711' (ea) 16

Drain Pipeline

879' 30

Booster Pump Stations:

The Booster Pump Stations component of the Project includes two (2) facilities: the Monterey

Pump Station and the Valley Greens Pump Station. These facilities include the following major

elements:

Item Component

Capacity

GPM)

Monterey Pump Station and related

7A civil work, electrical, and piping

work 6,300

Valley Greens Pump Station and

7B related civil work, electrical,

and

piping work

2,500

2.3.3 Other Non-Project MPWSP Components

Simultaneously with the implementation of the Project, CAW will separately implement

significant desalination infrastructure that is necessary for the MPWSP to operate commercially.

These improvements include development of the source water slant intake wells and construction

of

the desalination plant. CAW anticipates that construction of these improvements and the

Project will commence at the same time when all permits are issued. The Project components

2-4


34/90

are required

to

be completed prior

to

the time that the plant will be ready for acceptance testing.

An anticipated schedule for implementation

of

the MPWSP components is provided below:

Start

Finish

MPWSP PROJECT

4/23/2012

4/30/2019

File with CPUC 4/23/2012

3/31/2016

Permitting 4/23/2012

Q3-Q4 2016

Design

3/25/2013

Q4

2015 Q1

2016

CPUC Approval

4/23/2012 February 2016

Coastal Commission Approval 4/23/2012

Q3-Q4 2016

Feedwater Test Slant Well

4/23/2012 Complete

Desalination Plant Procurement 2012

Complete

Conveyance Facilities Procurement 2015

Q4 2015

Slant Well Driller Procurement Q3 2015

Q4 2015

Construction Startup Operation Q4 2016 Q4

2017

Q4 2018

2 4 AVAILABLE REPORTS AND MATERIALS

Certain Project, Project Site-related, and relevant background information are available for

review by the Proposers at the MPWSP Website. The following documents are or will be)

available for review on the MPWSP Website:

• Geotechnical Baseline Report

• Governance Committee Agreement

• MPWSP DEIR, April2015

• Project Procurement documents, drawings, specifications, and other material

2 5 ACCURACY OF RFP AND RELATED DOCUMENTS; RELIANCE ON ORAL

COMMENTS

Except

as

specifically set forth in the draft Contract, CAW neither makes any representation or

warranty with respect to nor assumes any responsibility for the appropriateness, completeness or

the accuracy of this RFP or any

of

the related documents, addenda or information provided in

connection with this RFP, including the available reports and materials provided on the MPWSP

Website. Under no circumstances shall a Proposer to this RFP rely on oral statements made on

behalf

of

CAW or any

of

their respective agents, employees, contractors, advisors or consultants.

To the best of its ability, CAW has tried to provide timely and up-to-date information; however,

CAW cannot guarantee the accuracy or completeness

of

all data provided. Thus, Proposers are

cautioned to use their best judgment in determining how to use the data and information

provided, and whether or not further independent research and due diligence is required for the

2 5


35/90

preparation

o

their Proposals and the subsequent delivery

o

the construction work under the

Contract. Except as specifically provided in the Contract no information derived from any part

o the foregoing documents this RFP or from CAW or any o their respective agents employees

contractors advisors or consultants shall relieve the Contractor from any risk or from fulfilling

all terms

o

the Contract.

2 6 PROJECT SITE

2 6 1 Project Site Description

The Project Site consists

o

multiple locations which are shown on the design drawings. Refer

to

the MPWSP website and the draft Contract for additional details and information about the

Project Site locations.

2 6 2 Project Site Preparation

CAW does not intend to perform any Project Site preparation work prior to entering into the

Contract with the Contractor.

2 6 3 Project Site Access during the Proposal Period

CAW will provide appropriate opportunities to each Proposer at its own cost and expense

to

visit the Project Site locations. Proposers may only access the Project Site locations that are

situated on private property after obtaining written authorization from CAW or the private

property owner and may be required to enter into a site access agreement with CAW or the

private property owner as a condition o such authorization.

2 6 4 Geotechnical Testing

CAW has undertaken geotechnical testing at certain Project Site locations that is set forth in the

Geotechnical Baseline Report which is available for review on the MPWSP website. Proposers

shall assume subsurface geotechnical conditions at the Project Site locations

s

reflected in the

Geotechnical Baseline Report.

2.7. SCOPE OF WORK

The required scope o work is set forth in detail in the draft Contract and is summarized below.

2 7 1 Construction Requirements

The required scope

o

work is set forth in the technical specifications and drawings included in

the draft Contract.

Bid packages for the Project are included in Appendix 1 o this RFP. For purposes o the bid

packages the Project has been divided into seven components.

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2 7 2 Basic Performance Requirements

The Contract will require the Contractor

to

provide a quality assurance and quality control

program during the construction of the Project. In performing the construction work, the

Contractor shall comply with the Contract, which includes all requirements

of applicable law.

2 7 3 Environmental Compliance

The Contractor will be required to conduct its construction activities consistent with the FEIR

and such that

no

action or inaction on the part of the Contractor will result in non-compliance

with any mitigation requirements, environmental and cultural constraints and stipulations

included in permits, easements and other grants

of

access to property owned by federal and state

governments and by private concerns. The Contractor will be required to prepare and implement

strategies to mitigate unavoidable impacts and otherwise comply with all applicable mitigation

requirements. The DEIR was issued in April 2015 and the FEIR for the MPWSP is expected in

October 2015 with certification

ofth

FEIR by February 2016. For purposes ofpreparing their

Proposals, Proposers will be required to review the mitigations in the DEIR and submit proposals

based on the applicable environmental mitigation measures set forth in the DEIR. The

environmental mitigation measures contained in the FEIR for the MPWSP will,

if

needed, be

incorporated into the Contract

as

a Change Order following issuance of the FEIR.

2 7 4 Construction

The Contractor will have full responsibility for construction

of

the Project, including safety of

the Project Site and the construction work and all means and methods of construction. All

construction work will be required to conform to the requirements set forth in the draft Contract.

The Contractor will be required to perform all Work in compliance with the Contract, including

all environmental and other stipulations, conditions and mitigation requirements set forth in the

various requirements and permits, approvals and grants of rights

to

CAW property access and

use. The Contractor will be required to provide for the observation

of

its construction work by

CAW and regulatory agencies.

2 7 5 Acceptance Testing

The Contractor will be required to successfully complete acceptance testing

of

the Project as set

forth in the draft Contract.

2 7 6 Quality Management

o help ensure that a comprehensive and effective construction quality management plan is

implemented by the Contractor to achieve CAW objectives and that the contractual requirements

pertaining to quality are met, certain minimum requirements for the construction quality

management plan are set forth in of the draft Contract. Proposers must include a construction

quality management plan meeting the minimum requirements of the draft Contract as part of

their Proposals. The selected Proposer s plan, as revised following successful negotiation

between CAW and the selected Proposer, will be incorporated into the draft Contract.

2-7


37/90

2

7

7 Operation and Maintenance Training

The Contractor will be required to train CAW employees prior to substantial completion, as

more fully described in of the draft Contract.

2 7 8 Purpose and Scope

The scope

of

work described in this section is reflected in the draft Contract included with this

RFP. The draft Contract shall serve as the intended form

of

the contract between CAW and the

Contractor. Specific information from the selected Proposal will be incorporated into the final

Contract including, but not limited to, pricing, and the Contract Times.

The Contract will contain the entire agreement between the parties with respect to the

construction work.

2 7 9 Proposed Changes to the Draft Contract

Proposers may request changes to the terms and conditions of the draft Contract (excluding

technical specifications and drawings) included with this RFP in writing during the Proposal

process. Proposers are encouraged to submit any such requests in advance

of

the pre-Proposal

meeting as described in Section 3.1.1. Following the pre-Proposal meeting, CAW may issue an

addendum which reflects any changes to the draft Contract that CAW is willing to accommodate.

CAW requests Proposers to base their Proposals on the terms and conditions set forth in the draft

Contract as amended by any addendum. Acceptance of the terms and conditions

of

the draft

Contract will be a factor in the evaluation of Proposals, as detailed under Section 5 of this RFP.

CAW recognizes, however, that Proposals may be conditioned on the mutual resolution

of

particular issues.

To the extent that a Proposer intends to condition its Proposal on particular changes to the draft

Contract, such changes shall be identified through submission of a markup version of the draft

Contract in a Microsoft Word document using track changes. Proposers are cautioned that

significant deviations from the terms and conditions set forth in the draft Contract may result in

fewer or no points being awarded to the Proposer under the business terms and conditions

evaluation criterion. In addition, to the extent that proposed changes

t

the terms and conditions

substantially change the nature

of

the transaction or the scope

of

Work, CAW may reject the

Proposal in its sole discretion as non-responsive t the requirements of this RFP.

In evaluating proposed terms and conditions, CAW will assume that the Proposer s markup

includes all suggested changes and that the Proposer accepts all terms and conditions that are not

specifically addressed in the tracked changes draft. Except with respect

t

changes in law

occurring between the Proposal date and the Effective Date of the Contract, CAW does not

intend to discuss or negotiate any issue, term or condition that is not specifically identified in the

Proposer s markup.

f

the Proposer selected for negotiations raises any such issue, term or

condition, CAW reserves the right to suspend or terminate negotiations with the selected

Proposer and to commence negotiations with the next highest ranked Proposer. The process for

the negotiation of the Contract is further described in Section 3.11

of

this RFP.

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2.8. UTILIZATION OF WOMEN MINORITY AND DISABLED VETERAN OWNED

BUSINESS ENTERPRISES

CAW acknowledges the contributions

o

women, minority and disabled veteran business

enterprises ( WMDVBE ) to California's economy, in part, through CPUC General Order 156.

In accordance with CPUC General Order 156, CAW is committed to promote and facilitate full

participation in these programs.

CAW has established a combined WMDVBE participation goal for the Project

o

twenty-five

percent (25%) o the Contract Price.

Proposers must prepare and submit a WMDVBE subcontracting commitment utilization and

reporting plan ( WMDVBE Utilization Plan ) as part o its response to this RFP. The

WMDVBE Utilization Plan is a written commitment to contract with WMDVBEs that have been

certified through the CPUC's Supplier Clearinghouse, as part o the Project.

CAW will require that the Contractor monitor and report the continued implementation

o

the

WMDVBE program goals, as stated in the WMDVBE Utilization Plan, throughout performance

o

the Contract.

2.9. UTILIZATION OF LOCAL CONTRACTORS AND SUPPLIERS

CAW acknowledges the benefit that the local community receives through utilization o local

contractors, laborers, and suppliers.

Proposers must prepare and submit a local resources utilization and reporting plan ( Local

Resources Utilization Plan )

as

part o its response to this RFP. The Local Resources Utilization

Plan

is

a written commitment

to

contract with local contractors, subcontractors, sub-consultants,

vendors, suppliers, and labor forces. The Contractor will

be

required to make a good faith effort

to employ qualified individuals who are, and have been for at least one year out

o

the three

years prior to the opening o Proposals, residents

o

Monterey County, San Benito County, or

Santa Cruz County in sufficient numbers

so

that no less than fifty percent (50%) o the

Contractor's total construction work force, including any Subcontractor work force (with

exception

o

specialty subcontractor items), measured in labor work hours, is comprised o

residents o such counties.

CAW will require that the Contractor monitor and report the continued implementation

o

the

Local Resources Utilization Plan throughout performance o the contract.

2.10. LABOR COMPLIANCE AND PREVAILING WAGE

Proposers must comply with all applicable requirements

o

the California Labor Code, the

Department o Fair Employment and Housing regulations set forth in CCR, title 2, sections

8101

et seq. Proposer Nondiscrimination and Compliance 2 CCR §§ et seq. , and with all applicable

federal labor requirements.

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CAW has the responsibility for financing the Project. CAW anticipates that a portion of the

funding will come from the State's revolving loan program. Prevailing wages must be paid on

projects receiving such funding. Proposers, therefore, will be required to pay prevailing wages.

Pursuant to Section 1773

of

the California Labor Code, the general prevailing wage rates in the

county in which the construction is to be performed is determined by the Director of the

California Department

of

Industrial Relations ( DIR ). The general prevailing wage rates for

this Project are available from the DIR's website at http:

www.dir.ca.gov, copies of which are

on file at the offices of CAW and are available to any interested party upon request. Future

effective general prevailing wage rates, which have been predetermined and are on file with the

DIR, are referenced but not printed in the general prevailing wage rates.

The Project may be subject to a statutory requirement to adopt and enforce a labor compliance

program for the monitoring and enforcement

of

prevailing wage requirements.

2.11. EQUAL EMPLOYMENT OPPORTUNITY

Proposers shall not, in connection with the RFP, the Proposal or the Contract, discriminate

against any employee or applicant for employment on the basis

of

race, color, religion, sex,

national origin, age, marital status or disability. Proposers shall take affirmative action to ensure

that neither employees nor applicants for employment are discriminated against on the basis of

race, color, religion, sex, national origin, age, marital status, ethnic group identification, sexual

orientation, residence or disability. The areas requiring such affirmative action shall include, but

not be limited to, the following: layoffs or terminations; pay rates or any other form

of

compensation; employment; job assignments; promotions; demotions; transfers; recruitment or

recruitment advertising; and selection for training, including apprenticeships, pre-apprenticeships

and on-the-job training.

2.12. LICENSING REQUIREMENTS

Proposers, including all major participants

of

a Proposer's team, shall possess all licenses

applicable to the Project at the time

of

Proposal submittal. No Proposer may propose on work

of

a kind for which Proposer is not properly licensed, and any such proposal received will be

rejected. The Proposal shall contain evidence that the Proposer, including all major participants,

is properly licensed in accordance with the laws

of

the State

of

California. Members

of

the

Proposer's team that are not major participants must be licensed no later than the time of

execution

of

a subcontract with the Contractor. All joint ventures must have a joint venture

license in compliance with Sections 7029 and 7029.1

of

the California Business and Professions

Code prior to execution of the Contract.

2.13. EXAMINATION OF CONTRACT DOCUMENTS AND PROJECT SITE

2.13.1

Proposer s Responsibilities

t is the responsibility

of

each Proposer before submitting a Proposal to:

1 Examine, with appropriate care and diligence, the RFP (including any addenda),

and material posted on the MPWSP website and inform itself with respect to any

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40/90

and all conditions that may in any way affect the amount or nature of its Proposal

or the performance of the Work, if Proposer enters into the Contract with CAW.

The Transmittal Letter (Proposal Form

1

includes an acknowledgment that

Proposer has received and reviewed all materials posted thereon. Any failure of

Proposer to

so

examine and inform itself shall be at Proposer s sole risk, and CAW

will provide no relief for any error or omission thereto;

2. Become familiar with the Project Site and the general, local or other conditions

that may affect cost, progress, performance or furnishing

of

the Work;

3. Become familiar with and satisfy all applicable law that may affect cost, progress,

performance or furnishing of the Work; and

4.

Promptly notify CAW of all conflicts, errors, ambiguities, or discrepancies that

Proposer has discovered in the RFP.

2.13.2 Site Visits

CAW will make an optional escorted visit to the key Project Site locations (reservoirs) available

to Proposers

as

set forth in Section 2.6.3. The duration

of

the Project Site visit will be between

four (4) and eight (8) hours, at the discretion of CAW. CAW will provide written notification of

the meeting location and other logistical information following a request for a visit.

During Project Site visits, Proposers may ask questions limited to those regarding the Project

Site, and CAW may provide responses. All questions shall be recorded by CAW personnel, and

written responses will be issued in an addendum to all Proposers. Only official addenda issued

by CAW are binding.

2.14. CHANGES IN PROPOSER S ORGANIZATION

For any Proposer to remain qualified to submit a Proposal after it has been qualified, the

Proposer s organization as represented in its SOQ must remain intact for the duration

of

this

procurement, unless otherwise approved in writing by CAW. Each Proposal shall include a

completed Proposal Form 6, Verification of Statement

of

Qualifications Information.

f a Proposer wishes to change the organization represented in its SOQ (by adding, removing, or

substituting an equity ownership interest, major participant or Key Personnel identified in its

SOQ, or by changing the role

of

one of these entities or individuals), Proposer must submit to

CAW a written request to change its organization.

CAW

is

under

no

obligation to approve such requests and may approve or disapprove in writing

a portion

of

the request or the entire request at its sole discretion.

2.15.

SECURITY FOR PERFORMANCE

The Contractor will be required to provide the following security for performance in connection

with the Project: Payment and performance bonds in an amount equal

to

the Contract Price.

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2 16 PROPOSAL BOND

Each Proposal shall include a cashier's check, certified check, or a bond (the Proposal Bond )

made payable to the California-American Water Company, in an amount equal to at least

twenty percent (20%) of the proposed Contract Price. CAW will not consider any Proposal

unless one

of

the forms

of

Proposer's security is enclosed therewith. f Proposer's security is a

Proposal Bond, it must be executed using Proposal Form 22.

Each Proposal Bond will be retained until the Contract has been fully executed, after which the

Proposal Bond for each unsuccessful Proposer, except those Proposal Bonds which have been

forfeited, will be returned to the respective Proposers. The Proposal Bond for the successful

Proposer shall be returned at such time as Proposer has satisfied all conditions of execution set

forth in the Contract.

The Proposal Bond shall be executed as surety by a corporation authorized to issue surety bonds

in the State of California, with a rating of A- or better and a Financial Size Category of VIII or

better by A.M. Best Company.

Proposer understands and agrees that CAW shall have the right to draw on the Proposal Bond in

its entirety if the Proposer:

1. withdraws, repudiates or otherwise indicates in writing that it will not meet all or

any part of its commitments made in its Proposal;

2

is selected for negotiation of the Contract, but fails to negotiate in good faith, or

otherwise fails to meet the conditions of award and execution as set forth in this

RFP; or

3

the occurrence of any other forfeiture event or condition set forth in the Proposal

Bond.

Each Proposer, by submittal of its Proposal, shall be deemed to have agreed to the foregoing.

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42/90

SECTION

DESCRIPTION

OF

PROCUREMENT PROCESS

3.1. PROCUREMENT PROCESS SCHEDULE

A summary schedule

of

the major activities associated with this procurement process is

presented below. This procurement schedule is based on CAW s intent to execute a Contract to

be effective by October 31, 2015. The deadline is based on CAW s objective to initiate

operation ofthe

Project

by

or as close to, September 31, 2016 as possible.

RFP Process Approximate Date

RFP and draft Contract issued to Pre- July 9, 2015

qualified Respondents

Mandatory RFP Pre-Proposal meeting

August

4

2015

Written questions and comments on RFP and August 7, 2015

draft Contract due

CAW issues addendum to RFP, and draft

August 14, 2015

Contract

if any, and distributes answers

to

written questions

Project Proposals due September

1

2015

Final draft Contract and all Proposals to September 16 2015

Governance Committee for recommendation

Selection of preferred Proposer

September 30, 2015

Contract Execution

October 31, 2015

Proposers are encouraged, but not required, to submit written questions or comments on the RFP

or draft Contract in advance of the pre-Proposal meeting with CAW in order to facilitate

discussion. Where written comments or submittals are required, all such documents shall be

submitted no later than 3 :00 p.m. PDT on the day specified. CAW reserves the right to modify

any or all

of

the above dates at its sole discretion at any time during this procurement process.

3.1.1 Pre-Proposal Meeting

As set forth in the schedule included in Section 3.1 above, CAW will hold a pre-Proposal

meeting with all qualified Proposers. This meeting

is

intended to, among other things, allow

Proposers to raise questions or comments on the RFP or draft Contract. Following the meeting,

CAW will (i) inform all Proposers

if

any changes which were discussed at the meeting will be

entertained and (ii) issue an addendum to reflect changes to the draft Contract. Proposers are

encouraged to submit information regarding any proposed changes at least three business days in

advance

of

the meeting in order to maximize the value of the discussions at the meeting.

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3 2 SELECTION COMMITTEE

The Selection Committee, which is comprised o individuals selected by CAW, will review and

evaluate the Proposals submitted and select the most advantageous Proposer(s) based upon the

criteria detailed in

Section 5

o

this RFP.

3 3 CAW RIGHTS AND OPTIONS

This RFP constitutes an invitation to the Pre-qualified Respondents to submit Proposals to CAW.

CAW reserves, holds without limitation and may exercise, in its sole discretion, the rights

as

set

forth below. Such rights are in addition to and shall not serve to limit any

o

the specific rights

and conditions set forth in this RFP. By responding to this RFP, Proposers acknowledge and

consent to the following CAW rights:

1 CAW reserves the right to waive any defect, technicality or any other minor

informality or irregularity in any Proposal.

2 CAW reserves the right to eliminate any Proposer that submits an incomplete or

inadequate response, or is not responsive to the requirements

o

this RFP, or is

otherwise deemed to

be

unqualified during any stage o the procurement process.

3. CAW reserves the right to prepare and issue such amen