GOVERNANCE COMMITTEE

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
July 3, 2014.


Governance
Committee Members:
California American
Water
Robert MacLean
Monterey Peninsula
Regional Water Authority
Jason Burnett, Chair
Alt.- Chuck Della Sala
County of Monterey
David Potter
Alt. - Simon Salinas
Monterey Peninsula
Water Management
District
Bob Brower, Vice Chair
Alt. Jeanne Byrne



Staff Contact:
David J. Stoldt, MPWMD
Arlene Tavani, MPWMD
AGENDA
SPECIAL JOINT MEETING
Monterey Peninsula Water Supply Project
Governance Committee
and
Monterey Peninsula Regional Water Authority
***************
Thursday, July 10, 2014, 7 PM
Monterey City Council Chambers,
580 Pacific Street, Monterey, CA


Call to Order/Roll Call

Pledge of Allegiance


Public Comments

Anyone wishing to address the Governance Committee and Monterey Peninsula Regional Water Authority
on matters not listed on the agenda that are within the subject jurisdiction of the Governance Committee
and the Regional Water Authority, may do so during Public Comments. The public may comment on any
other items listed on the agenda at the time they are considered. Please limit your comment to 3 (three)
minutes.


Action Items Public Comment will be Received
1. Receive report from Value Management Strategies, Inc. Discuss and provide
direction on the Draft Preliminary Value Engineering Study of CDM's 30%
design of the California American Water Company desalination project.

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
http://www.mpwmd.net/GovernanceCommittee/GovernanceCmte.htm.
Documents distributed at the meeting will be made available in the same
manner.
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 Tuesday, July 8, 2014. 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:\Arlene\word\2014\GovernanceCommittee\Agendas\20140710\20140710B.docx


Joint Meeting of Monterey Peninsula Water Supply Project Governance Committee and
Monterey Peninsula Regional Water Authority

Meeting Date: July 10, 2014

Agenda Item: 1. Receive report from Value Management Strategies, Inc. Discuss
and provide direction on the Draft Preliminary Value
Engineering Study of CDM's 30% design of the California
American Water Company desalination project.

Summary: Attached is a staff report for your review, prepared by Jim Cullum,
Executive Director of the Monterey Peninsula Regional Water Authority.

Attachment: Staff report prepared by Jim Cullum










U:\Arlene\word\2014\GovernanceCommittee\StaffNotes\20140710\item1.docx





Monterey Peninsula Regional Water Authority
Agenda Report

Date: July 10, 2014
Item No: 1



06/12
FROM: Executive Director Cullem

SUBJECT: Receive Report from Value Management Strategies, Inc., Discuss, and Provide
Direction on the Draft Preliminary Value Engineering Study of CDM's 30% Design
of the California American Water Company Desalination Project.


RECOMMENDATION:

It is recommended that the Governance Committee and the Monterey Peninsula Regional
Water Authority receive a verbal report on the Draft Preliminary Value Engineering ( VE) Study
of the Monterey Peninsula Water Supply Project (MPWSP) at the 30% design point and receive
public input to be conveyed to Value Management Strategies (VMS) during its evaluation.


DISCUSSION:

The purpose of the VE study is to conduct a peer review of the desalination plant design
currently being performed for Cal Am by Camp Dresser McKee (CDM). VE studies routinely
suggest ways to reduce costs or improve efficiencies in the construction and operation of the
facilities. At the request of the Governance Committee (GC), the Monterey Peninsula Regional
Water Authority (MPRWA) advertised, awarded, and administers the VE contract. The VE Study
Agenda for the workshop is at Exhibit A. The 30% design documents can be found on the
MPWSP web site at www.watersupplyproject.org .
VMS conducted the VE kickoff meeting the morning of July 7 and the results of that meeting
were presented verbally to the TAC. Following the briefing, the TAC received public comments
which were conveyed to the VE team for consideration during the workshop. VMS completed
the workshop on July 10, and a Preliminary VE Study report will be provided to design team
stakeholders on July 11.
In order to keep the GC and MPRWA members informed, and to gather additional public input,
The VE team will make a verbal report on the Draft Preliminary VE Study to a joint meeting of
the Governance Committee/ Water Authority at 7:00 p.m., Thursday, July 10, 2014. A more
detailed Preliminary VE Study will be presented to CDM and Cal Am design staff at 10:00 a.m.
on Friday, 2014.


BUDGET CONSIDERATIONS:
Following negotiations between the staffs of VMS, Cal-Am, and the MPRWA, minor changes
were made to the proposal in order to reduce the cost of the VE contract from $123,977.22 to
$109,035.70, a ratepayer savings of approximately 12%. The Water Authority awarded the


contract on June 12, 2014 and also approved a contingency of not-to-exceed $11,000.00. To
date, it has not been necessary to utilize the contingency funds.

ATTACHMENTS:

Value Engineering Study Agenda











U:\Arlene\word\2014\GovernanceCommittee\StaffNotes\20140710\Attachment.doc


MONTEREY PENINSULA WATER SUPPLY DESAL PLANT

VALUE ENGINEERING STUDY AGENDA
July 7 11, 2014

Page 1 of 2


VEStudyMeetingLocation: CaliforniaAmericanWater
511ForestLodgeRd
PacificGrove,CA93950
July7 Monday
8:30 VEStudyKickoffMeeting
Welcome&Introductions
VEProcessandAgendaOverview
IdentifyVEStudyObjectives
AllProject
Stakeholder
Representatives
A/EDesignTeamsPresentationofProject

ProjectBackground
D/BRFPRequirements
DesignConceptOverview
ProjectIssues&Constraints
ProjectSchedule&ConstructionChallenges
10:30 ConclusionofVEStudyKickoffMeeting

10:30 TACMeetingProvideComments,ProjectIssues,orValue
TargetstoVETeam
TACMembers
10:45 VEPerformanceCriteriaDevelopmentandPrioritization
VETeam
11:30 VETeamAnalysisandRatingofBaselineConcept
12:00 Lunch
1:00 VETeamReviewandDiscussionofProjectDocuments
IdentifyProjectIssuesandValueTargets
VETeamReviewofCostModel
3:30 FunctionAnalysis/FastDiagram
5:00 Adjourn

July8 Tuesday
8:00 TeamBrainstormingofCreativeIdeas VETeam
12:00 Lunch
1:00 CreativeIdeaGenerationContd
2:00 EvaluationofIdeas

4:30 AssignIdeasforDevelopment
DiscussDevelopmentProcessandExpectations
5:00 Adjourn

MONTEREY PENINSULA WATER SUPPLY DESAL PLANT

VALUE ENGINEERING STUDY AGENDA
July 7 11, 2014

Page 2 of 2


July9 Wednesday
8:00
10:00
ValueAlternativeDevelopment
MidpointReviewofPreliminaryVEAlts
VETeam
ProjectStakeholderReps
12:00 Lunch

1:00 ValueAlternativeDevelopmentContd
5:00 Adjourn

July10 Thursday
8:00 ValueAlternativeDevelopmentContd VETeam
12:00 Lunch

1:00 CompleteValueAlternativeDevelopment
3:30 PrepareforVEPresentation

5:00 Adjourn

7:00 PreliminaryBriefingofVEResultstoWaterBoard

July11 Friday
8:00 FinalizePresentationPreparation VETeam

10:00 VEStudyResultsPresentation AllProjectStakeholderRepresentatives

12:00 Adjourn