TO: Members of the Governing Board
FROM: Christopher Silke, District Engineer
REPORT BY: Annamaria Martinez, Assistant Engineer
SUBJECT: Notification of $2,265,934 Funding Award from the State Clean Water State Revolving Fund, Approval of a Budget Amendment establishing appropriations in the LBRID Wastewater Ponds Groundwater Inflow Mitigation Project budget and Approval of Amendment No 1 to Agreement No 240306B with GHD, Inc. for completion of design services for the Project.
RECOMMENDATION
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Approve and authorize Amendment No. 1 to Agreement No. 240306B (LBRID) with GHD, Inc. for a new maximum of $186,071 to finalize design of the Lake Berryessa Resort Improvement District Wastewater Ponds Groundwater Inflow Mitigation Project in advance of public bid; and approve a Budget Amendment for the Project. (Fiscal Impact: $2,265,934 Expense offset by State Revenue; Lake Berryessa Resort Improvement District Fund; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
Heavy rainfall, runoff, and saturated soil conditions in the winter of 2017 caused a series of spills from Lake Berryessa Resort Improvement District (LBRID)infrastructure. The Central Valley Regional Water Quality Control Board (Regional Board) subsequently served the District with a Notice of Violation in April 2017. To address the violations, Regional Board ordered the District to complete a Revised Water Balance Evaluation and submit a Work Plan if a registered California Professional Engineer finds there is insufficient storage and/or disposal capacity. The District authorized Agreement No. 170871B with GHD, Inc. in May 2017 to provide engineering study services. The scope of the investigation centered on Water Balance Update and Calibration Model tasks executed in conformance with the Regional Board guidelines. The basis for conducting a technical review of the wastewater ponds and irrigation facilities was to assess the adequacy for storing and handling a 100-year annual return precipitation winter period. GHD, Inc. was also tasked with inspecting the original inlet piping constructed in the mid-1960s for Ponds 1 through 3. In their June 2017 Revised Water Balance Report, the engineering consultant team concluded the lack of any pond liner barrier or means to intercept groundwater flow upgradient of the ponds was responsible for large seepage inflow volume as soils became saturated in the winter of 2017. Additional drainage improvements alongside Ponds 1 through 3 would reduce surface water runoff during intense storm events.
GHD, Inc. published an Inflow / Infiltration Mitigation and Storage Expansion Work Plan as mandated by Regional Board. First initiatives recommended in the plan were to survey as-built bathymetry of storage ponds to estimate capacities, perform geotechnical exploration borings to bedrock or boulder refusal, sample soils for classification, and obtain contiguous northern perimeter surface topography adjacent to all ponds.
Amendment No. 1 to Agreement No. 170871B with GHD, Inc. was approved in March 2018 to advance the project into a technical feasibility analysis, furnish a geotechnical opinion on the suitability for constructing a groundwater cutoff wall, and mapping for future base plan design. GHD, Inc. stated in their geotechnical findings sub-report that the wastewater ponds site soils were conducive to an engineered vertical trench and drain pipe collector at the underlying bedrock interface surrounding the northerly perimeter of Ponds 1, 2, 3, 7 & 8. District staff compiled all technical project documentation and maps into a Final Feasibility Report filed with Regional Board in May 2018. Preliminary total project costs (engineering, permitting, administration and construction) to install a vertical trench drain, replace the vintage 10" tar-coated steel pond inlet pipe, re-grade drainage channels at the site and build earthen berm heights at Ponds 1 - 3 were estimated to be $1,250,000. A Clean Water State Revolving Fund (CWSRF) project application in the amount of $2,370,274 was filed with the State Water Resources Control Board, Division of Financial Assistance (DFA) in September 2018 seeking principal forgiveness to cover preliminary engineering, engineering design, permitting, administrative, and construction costs. Included with the application was LBRID Resolution 2018-05 authorizing the District Engineer to submit a principal forgiveness financial assistance application to the State Water Resources Control Board Division of Financial Assistance (DFA) and take related action to receive funding for the Project. State officials with Small Community Wastewater Grant Program oversight stated that the District would be potentially eligible for principal forgiveness if it maintains designation as a Disadvantaged Community (DAC). Rural Community Assistance Corporation (RCAC) was hired by the District to update its Median Household Income (MHI) because the DAC status had expired on December 31, 2017. RCAC household income survey methodology conforms with SWRCB standards. Certified results of the District's survey found the MHI to be $43,200 which is significantly below 80% of the statewide income average for DAC classification. Amendment No. 2 to Agreement No. 170871B with GHD, Inc. was approved in September, 2018, and expanded the scope of services to include additional design and bid-phase consulting services increasing the contract amount by $106,247 for a new maximum of $184,858.
Amendment No. 3 to Agreement No. 170871B with GHD, Inc. was approved in March 2019 to expand the scope of services for Stormwater Inflow / Infiltration Monitoring as ordered by the Central Valley Regional Water Quality Board. Engineering fees for the contract supplement added $46,488 to the budget for an adjusted total of $231,346.
Amendment No. 4 to Agreement No. 170871B with GHD, Inc. was approved in January 2020 expanding the scope of services to include a Preliminary Engineering Report in accordance with DFA Guidelines thereby increasing the consulting fees by $8,196 to a new maximum amount of $239,542.
Preliminary design plans and technical specifications for the project, including the addition of widening and raising the earthen berm height of Ponds 1 -3, were submitted to SWRCB and Central Valley RWQCB for review and comment in the fall of 2023. Upon review of the preliminary plans, DFA staff indicated that issuance of a funding agreement could be expected by the end of 2023. With an agreement promised, and with no additional project budget remaining, LBRID staff waited to amend Agreement 170871B to finalize a design and specifications packet for competitive construction bids until such time as the funding agreement was issued. Additional delays from DFA led to Agreement No. 170871B and its Amendments 1 - 4 expiring before final design could be achieved.
On March 26, 2024, DFA again indicated that issuance of a funding agreement was imminent, and staff recommended that the Board approve a new Agreement with GHD, Inc. to begin additional geotechnical design elements that would lead to preparation of final plans and specifications upon receipt and acceptance of the State Water Resources Control Board Funding Agreement. Available operations fund balance funded the new agreement and it is expected that fund balance can be reimbursed with the award expected from the CWSRF application.
In May 2024, the District Engineer received and signed the funding agreement as authorized by Resolution 2018-05, and on July 2, 2024, the fully executed funding agreement was issued by DFA.
Requested Actions:
1. Approve and authorize Amendment No. 1 to Agreement 240306B (LBRID) with GHD, Inc to increase
compensation by $125,883 for a new maximum compensation of $186,071; and
2. Approve a Budget Amendment for the following:
a. Establish appropriations of $2,265,934 in ST - Dept of Water Resources (LBRID Subdivision 5220500, Project 19007, Account 43425);
b. Increase appropriations of $125,883 to Consulting Services (LBRID Subdivision 5220500, Project 19007 Account 52310); and
c. Increase appropriations of $2,140,051 to Construction Services (LBRID Subdivision 5220500, Project 19007 Account 52360).
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
LBRID received and accepted the funding agreement as authorized by Resolution 2018-05. The Budget Amendment is necessary to increase project appropriations that will allow staff to move the project forward towards construction and ultimately compliance with Regional Board directives. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
The project will span multiple fiscal years; however, the grant award is expected to cover future project costs and reimburse LBRID for expenses incurred in prior fiscal years for design services. |
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Consequences if not approved: |
The Project will be unable to move forward and the District will beat risk of receiving additional violations from the Regional Board for not complying with prior directives. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is statutorily exempt from CEQA pursuant to
CEQA Guidelines section 15262 as a feasibility or planning study for possible future construction or repairs,
and categorically exempt from CEQA pursuant to CEQA Guidelines section 15301 as the repair, maintenance,
or minor alteration of existing public facilities involving negligible or no expansion of existing or former use.