08-07-2015 BPU RPT 14 - Laserfiche WebLink

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Wni =H t v t Ri,v i i PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum DATE: AUGUST 7, 2015 ITEM NO: 14 File ID — 15 -2463 — D SUBJECT: ADDITIONAL FUNDING AUTHORIZATION OF $1,042,113 FOR WORK ORDER 1409313 FOR WELLS RAUB 4113 AND 5113 PER WELL RELOCATION AGREEMENT BETWEEN THE CITY OF RIVERSIDE AND OSR DEVELOPMENT, LLC ISSUES: The issue for Board of Public Utilities consideration is to approve additional funding expenditure in the amount of $1,042,113 for Work Order 1409313 per Well Relocation Agreement with OSR Development, LLC, dated September 30, 2014. RECOMMENDATION: That the Board of Public Utilities approve additional funding expenditure of $1,042,113 for Work Order 1409313 per Well Relocation Agreement with OSR Development, LLC, dated September 30, 2014. BACKGROUND: In 2012, Hillwood Enterprises, L.P., succeeded by OSR Development, LLC (OSR) approached the City with a proposal to develop the 35.56 -acre site known as the Raub Tract, an area generally bounded by Waterman Avenue, Orange Show Road, the Santa Ana River and the Atchison Topeka & Santa Fe Railway in the City of San Bernardino. The Raub Tract is the current site for five of the City's active production water wells: Raub 4, Raub 5, Raub 6, Raub 7 and Raub 8. On June 18, 2013, The City Council provided guidance with direction to staff to negotiate on the development proposal. On September 20, 2013 the Board of Public Utilities approved the Well Relocation Agreement (Agreement) after staff finalized negotiations. On October 3, 2014 the Board of Public Utilities recommended that City Council approve the First Amendment to the Well Relocation Agreement with OSR Development, LLC (First Amendment), dated September 30, 2014 regarding the timing, allocation and funding for the costs of the Well Relocation Work and any upgrades requested by the City. City Council approved the First Amendment on October 21, 2014. The well relocation work under the Agreement started in June of 2014. To date, OSR has completed the drilling and construction of both Raub 4R and 5R wells, installation of 1,750 feet of 24 -inch, 400 feet of 20 -inch and 2,250 feet of 12 -inch ductile iron pipes, and abandonments of Raub 1, Raub 4 and Raub 5 wells. The new Raub 4R well was fully equipped and operating by March of 2015. OSR will continue with the final phase of construction which involves the equipping of Raub 5R well, which is scheduled to start in August 2015 and be completed in December 2015. As part of the Agreement, the City and OSR agreed that the City would be responsible for the cost of any upgrades above and beyond the $6,100,000 amount stipulated in the Agreement. The City requested that OSR undertake four major upgrades: (1) Changing the well screen material from copper- bearing steel to stainless steel; (2) Extending the depth of Raub 4 by 100 feet and that of Raub 5 well by 300 feet; (3) Installing a bypass line which will allow one or more wells to bypass the Raub Regional Treatment Facility; and