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HomeMy WebLinkAbout2005031113th Response of UWI Part 1.pdfORI GINAL W' , , f'" " ' t, f, r i.- v .- t~ ' I - ~LL~ ..,-:"'\ t, J'l Dean J. Miller McDEVITT & MILLER LLP 420 West Bannock Street O. Box 2564-83701 Boise, ill 83702 Tel: 208.343.7500 Fax: 208.336.6912 ioe~mcdeviU - miller .com ~~. t\w Pt\ 3:2'Uu\! f H",n 1 , ," ,, \iitj-;tJL, UT\l\\lEsJ CO r1\SSlON Attorneys for Applicant BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF UNITED WATER IDAHO INC. FOR AUTHORITY TO INCREASE ITS RATES AND CHARGES FOR WATER SERVICE IN THE STATE OF IDAHO Case No. UWI-O4- THIRTEENTH RESPONSE OF UWID TO STAFF'S PRODUCTION REQUESTS COMES NOW United Water Idaho Inc. ("United" , " the Company ) and responds to Request Numbers 120, 130, 131 , 132 , 143 and 144 of Staffs Fourth Production Request; Number 194 of Staffs Sixth Production Request; and Numbers 199 200 and 201 of Staffs Eighth Request. Dated this day of March, 2005. McDEVITT & MILLER LLP Attorneys for United Water Idaho Inc. THIRTEENTH RESPONSE OF UWID TO STAFF'S PRODUCTION REQUESTS-1 CERTIFICATE OF SERVICE I hereby certify that on the/l)'h day of March, 2005, I caused to be served, via the methodes) indicated below, true and correct copies of the foregoing document, upon: Hand Delivered S. Mail Fax Fed. Express Email Hand Delivered S. Mail Fax Fed. Express Email Hand Delivered S. Mail Fax Fed. Express Email Brad M. Purdy Attorney for the Community Action Partnership Association of Idaho 2019 North 17th Street Boise, Idaho 83702 Fax: 208.384.8511 bm urd hotmai1.com Hand Delivered S. Mail Fax Fed. Express Email William M. Eddie Advocates for the West O. Box 1612-83701 1320 West Franklin Street Boise, Idaho 83702 Fax: 208.342.8286 Hand Delivered S. Mail Fax Fed. Express Email Bill Sedivy Idaho Rivers United O. Box 633 Boise, Idaho 83701 Fax: 208.343.9376 iru(fYiqahorivers.org Sharon Ullman 9627 West Desert Avenue Boise, Idaho 83709 Fax: 362-0843 sharon u(fYcab eone. net Chuck Mickelson Boise City Public Works O. Box 500-83701 150 North Capitol Boulevard Boise, Idaho 83702 Fax: 208.384.7841 ~son(fYcityo f.Poise. org Douglas K. Strickling Boise City Attorney s Office O. Box 500-83701 150 North Capitol Boulevard Boise, Idaho 83702 Fax: 208.384.4454 ing(fYc it yo tboi se. org Hand Delivered S. Mail Fax Fed. Express Email Scott L. Campbell Moffatt Thomas 101 South Capitol Blvd., 10th Floor O. Box 829-83701-0829 Boise, Idaho 83702 Fax: 208.385.5384 ~c(fYmoffatt.com ~af~tf ~~i:JUCTION REQUESTS-2 Hand Delivered S. Mail Fax Fed. Express Email UNITED WATER IDAHO INC. CASE UWI-04- FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Recordholder/Sponsoring Witness:Scott Rhead Telephone: 208-362-7345 Title: Managing Engineer REQUEST NO. 120: UWI stated in its response to Staff Production Request No.1 0 that it expects that the CWTP will be fully operational by the end of March 2005. However, the 1/29/04 Amendment to the COM contract includes a date of June 1 , 2005 for commencement of the 30-day facility test and a date of July 1 , 2005 for Substantial Completion. Does UWI expect that it will need treated water from the CWTP to serve customers before July 1 , 2005? If not, why did UWI agree to an early completion bonus? RESPONSE NO. 120: The specific timing of when higher water demand occurs each year is primarily affected by weather. The specific timing is difficult to predict but certainly summer demand is well underway by June. The original project schedule anticipated the CWTP would be on-line for the 2004 summer season but for reasons previously discussed this was not possible. It is also prudent management and proper engineering design to have the required additional supply from the CWTP available just ahead of the demand to ensu re that the demand can be satisfied. The Company also needed to plan for su pply redundancy in the event of a failure on one of the wells at the Ten Mile Ridge complex as is further discussed in my direct testimony on page 10, lines 1-11. Another benefit of an early completion bonus was to reduce overall costs. The Company estimates a cost of $5,000 to $6 000 per day for COM to remain on site. The net effect of providing an early completion bonus saves the project and our customers $1 500-$2,500 per day for each day of early completion. UNITED WATER IDAHO INC. CASE UWI-04- FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Recordholder/Sponsoring Witness:Scott Rhead Telephone: 208-362-7345 Title: Managing Engineer REQUEST NO. 130: Please provide a final site layout plan for the CWTP. The plan should reflect the project layout as it is actually being constructed and should clearly show all of the major facilities and processes being employed. The plan should also identify locations and space that is part of the original construction but that is designed for future expansion and will not initially be used. The plan should also identify (unbuilt) locations and space that is intended for future expansion or for processes that may need to be employed in the future. RESPONSE NO. 130: Please find attached sheets C-4 and M-2, which are responsive to this request. Future expansion of the building, backwash basin , clearwell and acquifer storage and recovery (ASR) site is identified on sheet C-4. In the Companies view it was prudent and cost effective to acquire enough land for expansion. Conditional use and zoning approvals required perimeter buffering, fencing and access that would have been very difficult to revise at a later date. Because of the industrial nature of the facility and neighborhood compatibility the county planners strongly advised the Company to get build-out approvals now and keep any future construction inside of the fence. UNITED WATER IDAHO INC. CASE UWI-W-O4- FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Aecordholder/Sponsoring Witness:Scott Ahead Telephone: 208-362-7345 Title: Managing Engineer REQUEST NO. 131: What assurance can UWI provide to its customers and to the Com mission that by using a "Design-Build, Cost plus Fixed Fee" contracting process that it obtained the best value for customers? Given that the exact project design scope was not fully agreed upon at the time proposals were submitted and that the Guaranteed Maximum Price was not determined until the design was 650/0 com plete, how can customers be assured that a different proposer could not have delivered a lower overall cost project? RESPONSE NO. 131: Speculation about the outcome or price from a different contracting process or proposer is impossible to precisely measure or even accurately predict without building the project twice. The long-term benefits and "absolute" barrier provided by membranes is the best available technology and is the right decision for the customers now and in the future as determined by the Basis of Design Study. United Water identified benefits to its customers from the Design-Build, Cost plus Fixed Fee contracting approach. These benefits were discussed in Mr. Ahead' direct testimony on page 16 , lines 14 to 23 and page 17, lines 1 to 8. The Columbia WTP development process was structured to take advantage of these benefits, while not committing United Water to the approach until the benefits were demonstrated. As a first step, a qualified design-build team was selected, with engineering and construction management rates and fixed fee established through a competitive process. Design development with United Water then proceeded, similar to a traditional design-bid-build" approach, while keeping the final construction procurement method open. With the design near completion , materials and construction bids were competitively obtained. Only when United Water was convinced that all aspects of the work (engineering, construction management, fee, materials, construction , etc.) had been obtained at the lowest responsible cost, was a final commitment to the Design-Build approach made. A Guaranteed Maximum Price was obtained from the Design-Builder to lock in these cost benefits for United Water s customers before notice to proceed with construction was given. The benefits, methodology of the process and time saved has been further discussed in responses to Request No.s 126 and 133 The prudence of this decision was also discussed in testimony provided by Witness Wallace on page 5, lines 4 through 23 and page 6, lines 1 through 14. It is the Company s position that the chosen contracting method provided the necessary experience, schedule control and price competition to provide the lowest realistic price for our customers. UNITED WATER IDAHO INC. CASE UWI-O4- FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Aecordholder/Sponsoring Witness:Scott Ahead Telephone: 208-362-7345 Title: Managing Engineer REQUEST NO. 132: Please list and describe any tests required by DEQ or others that must be passed before treated water from the CWTP can be delivered to customers. Please provide a copy of any documentation showing completion of such tests. RESPONSE NO. 132: The clearwell (treated water storage tank) was placed in service June 15, 2004. Prior to being placed in service, it was disinfected and passed bacteriological testing (see attached lab confirmation dated June 7 2004). DEQ also required that the final membrane system selected be successfully pilot tested prior to startup and production of water. This test was completed between May 20 and September23 , 2004, and the final report submitted to DEQ on Dec. 15, 2004 (see attached DEQ approval letter dated February 23, 2005). Also attached is a letter written to DEQ March 2, 2005 detailing United Water proposal to meet their requirements for the CWTP, as well as-their e-mail response dated March 3, 2005. The filtered water from the membrane system was tested for compliance with USEPA drinking water quality standards for acute primary contaminants (see attached lab confirmation dated March 4 2005). The final step is to confirm that on-line monitoring equipment is functioning properly and results e-mailed to DEQ with treated water only going into the isolated clearwell. After receiving this confirmation (see attached DEQ approval dated March 10) water can be released and delivered to customers. The full suite of normal water quality parameters samples will follow over the next two weeks. UNITED WATER IDAHO INC. CASE UWI-O4- FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Recordholder/Sponsoring Witness:Scott Rhead Telephone: 208-362-7345 Title: Managing Engineer REQUEST NO. 143: In response to Staff's Request No. 51 regarding Columbia Water Treatment Plant Costs, Witness Healy stated that "the Company routinely monitors budget to actual spending and prepares a monthly report documenting this process. Please provide a copy of each monthly report. RESPONSE NO. 143: The Production Request does not indicate the specific monthly reports to copied. The Company has assumed for purposes of the response to this Production Request that the test period reports are responsive. Please see the attached "Capital Expenditure Forecast Reports" for the period August 2003 through July 2004. UNITED WATER IDAHO INC. CASE UWI-O4- FIFTH PRODUCTION REQUEST OF THE COMMISSION STAFF Pre parer: Mark Gennari Telephone: 201 750-5726 Title: Director - Regulatory Business REQUEST NO. 144: Please provide for the parent company, Suez Lyonnaise des Eaux, a schedule showing the Cost of Capital elements (long term debt, minority interest (preferred); retained earnings) as of June 30, 2004. (See Exhibit No. 12 Schedule PMA-1 and Audit Request 4 , page 1 of 2). Please provide the schedule in an excel spreadsheet format and supply a copy of the electronic version with any and all formulas intact. RESPONSE NO. 144: The following ratio was derived from the Suez 6K at June 30, 2004 and is in millions of euro. Long Term Debt Equity Total E 13,796. 12,318. E26,115. 52.830/0 47.0/0 100.00/0 An itemized listing of debt issuances and cost rates are not readily available in . the manner presented by United Water Idaho s parent(United Waterworks), the holder of the debt that is funding United Water Idaho s capital investment. The Suez issuances are comprised of debt issues for the various Suez business lines, Le., Waste and Environmental Services, Electric and Gas, and Industrial Services. The Suez reported weighted average of its fixed rate debt is 5.10/0. UNITED WATER IDAHO INC. CASE UWI-O4- SIXTH PRODUCTION REQUEST OF THE COMMISSION STAFF -----------~ Preparer/RecordholderlSponsoring Witness:Scott Rhead Telephone: 208-362-7345 Title: Managing Engineer REQUEST NO. 194: Please provide the following for each project listed in Witness Rhead's Exhibit No. A. The cost of each project as of July 31 2004, as of December 31,2004 and as of January 31 , 2005. B. A detailed description of the need for each project. C. An accounting, construction or other report that includes all transactions posted to the project, vendor paid, dollar amount posted, transaction description, account posted and document number for each period listed in above. D. Please provide the following information not previously provided in Production Request No. 26. "Reference Exhibit 8. For each project listed, please provide the completion date, the in-service date , and the final cost. For any projects not yet completed, please provide the expected completion date and documentation of a contract for completion. RESPONSE NO. 194: A. Please see the attached revised and updated Exhibit 8 (5 pages). This document indicates the project number in the first column , a project description in the second column and the expected in-service date in the third column. Columns 4 5 and 6 show project cost as of July 31 2004 December 31 , 2004 and January 31 2005. In summary, the Company originally projected capital cost to be incurred from August 2004 through May 2005 of $29,843,202. The corresponding number on the revised and updated schedule attached is $30 155,766. B. Please see the attached document that provides a detailed description of the need for each project. C. Construction reports responsive to this request have been physically printed. Due to the Company s change of accounting software as of October, 2004 the reports are in two pieces: all expenditures to date through September 2004 and a separate report detailing expenditures from October 2004 through January 2005. Due to the voluminous nature of these documents , they are available for inspection at the Company office on Victory Road. D. As indicated in Part A above, the third column of revised Exhibit 8 indicates the actual or anticipated in-service date for each project. The updated actual or anticipated final cost of each project is indicated in the last Column. Documentation of commitment to finish projects not yet completed is attached and is summarized as follows: Project C02BO02- CWTP C03BO03- Maple Hill Treat C04CO02-Aux Power MH C05C501-SCADA C05EO01-Toluka Resv C04JO04-SCADA C04JO09- AcrView C04J011-ArcView C04J010- Lan Equip C04J011- Laptops C04K503- T&D Equip C04K304-Master Plan C04K106-Security C04D201-Mainline C05D601-Mainline C05D602-Mainline C05D701-Mainline Document Expenditure Invoice-COM $500,886 Contract-$650,000 I nvoice-$285,950 Invoices-Loprest $254 200 Invoice-WEST $ 12 531 Invoice- Clortec $ 94,230 Contract- JUB Contract BRS- Architects PO- Software Spectrum 082 REQ-MicroAge 721 Est- Gem State 13,387 Contract-Columbian 51,798 REQ-OPTO 22 572 Invoice-Power Eng 735 Invoice- Power Eng 115 PO- Gemini Digital 000 PO-IBM 10,836 Quotes-Various Agreement-SPF Eng Agreement-McMillen 30,000 Agreement-Idaho Econ 000 REQ-OPTO 22 Proposal-ADT 38,907 Quote- Auto Elec 13,389 Proposal-Anvil Fence 525 Proposal-Owyhee 216,640 Proposal-Owyhee 114 439 Proposal-Owyhee 61 ,947 Proposal-Owyhee 135,361 UNITED WATER IDAHO INC. CASE UWI-W-O4- EIGHTH PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Recordholder/Sponsoring Witness:Scott Rhead Telephone: 208-362-7345 Title: Managing Engineer REQUEST NO. 199: Please provide a listing of projects, if any, that have been suspended as of December 31 2004. Please include within your response: The project number. The project description. The project's costs included within rate base by account. RESPONSE NO. 199: Please refer to the Response to Production Request No. 194. Several projects that were included in the original Exhibit 8 filed in Mr. Rheads testimony have been canceled. These projects are C04K301 , a letter opener for $1 800 and C04K302 , a folder/inserter, for $8,400 included under the "General Plant" heading on the 5th and last page of revised Exhibit 8. UNITED WATER IDAHO INC. CASE UWI-04- EIGHTH PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/RecordholderlSponsoring Witness:Scott Rhead Telephone: 208-362-7345 Title: Managing Engineer REQUEST NO. 200: Please identify all projects (by project number) on Witness Rhead's Exhibit No. which had not been started (with no expenditures for items other than such things as preliminary engineering costs, for example) as of December 31,2004. RESPONSE NO. 200: Please refer to the Response to Production Request No. 194. Projects with no dollars spent under the column entitled "Capital Expenditures As Of: Dec 31, 2004" meet the above criteria. These projects are: C05A 104; C04B503; C04B504; C04B505; C05C501; C04CO05; C05CO01; C04C505; C04D201 C05D601; C05D602;C05D701; C05E501; C04J 01; C04K108; C04K503; C04K107 and C04K109. These projects have cumulative anticipated expenditures of $772 453. UNITED WATER IDAHO INC. CASE UWI-04- EIGHTH PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Recordholder/Sponsoring Witness:Greg Wyatt Telephone: 208-362-7327 Title:General Manager REQUEST NO. 201 Reference Witness Wyatt's testimony on page 18 regarding Order No. 29625 (Case No. UWI-04-3, Carriage Hill Subdivision). In response to the Commission s directive to the Company ... to book the $28,138 amount originally proposed as a risk premium distribution to United Waterworks as regulated revenue to be passed through to customers in the Company s upcoming general rate case" Mr. Wyatt states that amount of revenue will not be fully known until sometime in December. Please provide an accounting of the transaction at closing including how the Company recalculated the risk premium RESPONSE NO. 201: Please see the attached letter from United Water s counselor, Dean J. Miller, to the Secretary of the Idaho Public Utilities Commission, Ms. Jean Jewell dated January 26 , 2005. As required by Order No. 29625 , the Company provided the Commission with a final accounting of the proceeds received by United Water Idaho in conjunction with the transfer. The regulated revenue originally estimated to be $28,138 was reduced to $9,277 by the time the final accounting was completed. The reason for the reduction of the regulated revenue is a combination of three factors: higher than anticipated legal costs, additional interest accrued and paid to United Waterworks due to a later than anticipated closing date and higher than anticipated advance refunds to Carriage Hills due to new connects prior to closing. UNITED WATER IDAHO INC. CASE NO. UWI-04- FOURTH PRODUCTION REQUEST IPUC STAFF TT A C H MEN T RESPONSE TO REQUEST NO. 130 SEE CASE FILE FOR MAP(S) UNITED WATER IDAHO INC. CASE NO. UWI-O4-04 FOURTH PRODUCTION REQUEST IPUC STAFF TT A C H MEN T RESPONSE TO REQUEST NO. 132 - ...- j: TYPE S - Rou~ine Sample ANALYTICAL LABORATORIES. INC. P - Repeat sample (at originaltal:J)IDOO020 E ~ Enforcement (chain of custody)1804 N- 33rd Str99t U . Upstream repeat Boise. Idaho 83703 D - Downstream repeat 800.574-5773 X -Other Repe.d W - Untte~ted 208-342-5515 V ~ Invalid,Jlted by Lab Public Water Supply Private Water Supply Other C - Construction SDecial NAME OF WATER SYSTEM COUNTY PWS DATE RECEIVED Sn12004 DAVE BASERMAN TIME RECEIVED MORSE CONSTRUCTION GRP 12A5 5500 S FIRST AVE DATE ANALyZED (6/7/2004 EVERETT, WA 98203 TIM E ANALYZED 13. SEND ADDITIONAL COPIES TO:F RETEST ORIGINAL SAMPLE DATE Phone (425) 258-2350 IExt 127 IFax (425) 259.6355 email ICHILLED 10 C II YES COLLECTED BY: T STADLER TRANSPORTED BY;T 8T ADLER SAMPLE COLLECTION Sampling LocatIon CI fes TOTAL COLI FORMS FECAL COLI FORMS E. COLI HPC TYPE DA TErrlME 8M 9221 8M 9221 SM 9221 SM 9215 12. LAB# 0418118 UWID COLUMBIA WATE TREATMENT PLANT ~ 6056 E 6/7/2004 REMARKS;"ANAL YST:RLV ANAL YfIt:AL MI:THODS Analytical Laboratories. Inc;:. Total Coliforms Ci11 CoJiforms SM 9222 Membrane Fill$f TechniqlJe, Parta 909 and Membrane FUlo;Ir T~hniq!.l~, P'1II1s 9OBC. 909A, 5tljl,nc;lerd Methods.. 1$\h IiId.,1955 ~~nd;ard ~:!I....16Ihed.,1985 8M 9221 Muliple TubS! F8rmS!nllll(ion , P;aris 908 :and Membrane Filler Technique, P~rt9 Sl09 and 90BA, and 9O6B, Standard Melhods....,6th 9O$A, Sl~ndlill'l:f Ml2I.hads..16(h ed.,1985 MMO-MUG Tliist Per 40 CFR1 11.21 (f)(3)(1V) MUG T~t P'ilr 141.~14(.x)(7) ;and 40 CFR 141.21 (f)(B)(III)Laboratory SupetVisor Pour Plats, Part ern, Standan:! Methods. ., 16th ed., 1 STATE OF IDAHO DEPARTMENT OF ENVIRONMENTAL QUALITY -_._'-----~~."-"-'-'---"'-'-" -'----'-------""----"'-----' ,"'.--- -- -----"",_.-,---,-----.,, --,_-.,,---,-- ------.--'--, "----,"'---,--' --r- -_--,__,MQ,C-- ----,, ------ '--."-----'- --"--'-------"--"----'---'-'--'~'--"'--"- 1445 North Orchard.Boise, Idaho 83706-2239 . (208) 373-0550~3~ Mr. Greg Wyatt, President United Water Idaho Inc. O. Box 190420 Boise, ill 83719-0420 RECEIVED FEB 2 8 2005 UNITED WATER Dirk Kempthorne, Governor C. Stephen Allred, Director RE: UWI - PWS# 3140076 Columbia Water Treatment Plant ~y Report Dear Mr. Wyatt: The above referenced Pilot Study Report appears to meet State of Idaho standards and is conditionally approved according to the Final Recommendations of the Report. Those recommendations are rephrased and augmented below: The plant capacity is currently rated at 6.0 mgd. Monitor the Disinfectant By-Product formation and limit both chlorine, chlorine residual and residence time to levels typical for the UWill system to prevent formation of THM:s and HAAs within the distribution system. At the same time, both chlorine and residual and residence time must equal or exceed what is required to provide 0.5 log of Giardia inactivation, based on tracer test results to be conducted soon after the plant begins initial full scale operation. Based on the manufacturer s test data, the initial efficiency of the chlorine contactor has been assumed to be 60%. Use daily pressure decay test (a maximum decay rate of 0.8 to 1.0 psi/minute) to assure membrane integrity, backed by online particle counters and individual skid turbidimeters as appropriate. Please call Monty Marchus with any questions at (208) 373-0560 or via e-mail mmarchus~deq.idaho.gov Sincerely,c~ Vi ~ Charles W. Ariss, P . ,Regional Engineering Manager MGM/ve H:\UWID\Columbia water treatment plant\AL-Pilot Test Report 1-12-05.doc cc: Greg Wetterau, P., Camp Dresser & McKee Inc., 541 NE 20th Avenue, Suite 103 Portland, OR 97232 Monty G. Marchus, P., DEQ Reading File, Source File #1 Unlted 117ater ~)-vv. ! , J!Y ~ ;1 ,CID United Water Idaho Inc. 8248 W. Victory Road O. Box 190420 Boise, 10 83719-0420 telephone 208 362 7300 facsimile 208 362 3858 Mr. Monty Marchus Department of Environmental Quality State of Idaho 1445 North Orchard Boise, Idaho 83706-2239 WUI - PWS#314007 Columbia Water Treatment Plant Water Quality Testing Re: Dear Mr. Marchus In order to comply with DEQ regulations and to ensure that safe and reliable water is provided to our customers , we are proposing preliminary water quality testing on the membrane permeate which will ensure that all acute toxicity contaminant test results have been received and submitted for your review prior to water leaving our new facilities. These contaminants include nitrate, nitrite, and total coliforms. In addition, we will provide a report containing particle counts and turbidity for the raw water and membrane permeate, along with results of pressure hold integrity tests for each membrane skid and treated water pH and chlorine residual. All of these parameters will be confirmed to be within both regulated limits and the limits identified in previous DEQ approval letters for this water treatment plant. Water quality samples for the remainder of the regulated and monitored primary and secondary parameters will be taken for the treated water within 24 hours of startup and will be sent off for analysis at an outside laboratory. Historical water quality results from the Boise River taken at our Marden Lane water treatment plant, indicate that none of these chronic toxicity parameters exceed DEQ drinking water regulations in the untreated sourcewater. For this reason, we do not feel it is necessary to confirm measurements of these parameters on the treated water prior to serving the public. Water quality results for these parameters will be reported to DEQ within two weeks of startup, after full analysis has been completed at the testing laboratory. Please note that the membrane treatment process does not employ chemical addition and will have no impact and any of these water quality parameters, with the exception r of particulate iron and manganese, which will be removed by the membranes. We are proposing this staggered reporting of test results in order to allow start-up of the facility in a single day and to avoid wasting large quantities of treated water while the testing samples are being analyzed. Note that we currently have no means of wasting large quantities of water, other than through our stormwater system. Please confirm whether this testing and reporting approach will be acceptable for DEQ. If we will need to modify this approach in any :,, .I ONDEO~o Services www.unitedwater.com way, please let us know as soon as possible, as we are still planning to begin preliminary plant operation on March 7 or 8. We appreciate your time in reviewing this request, and look forward to continuing to work with you during the plant startup and operation. Sincerely, Scott Rhead Managing Engineer cc: Bill Carr Camille Cegnar Ahead, Scott From: Sent: To: Cc: Subject: MONTY MARCH US (MMARCHUS~deq.idaho.gov Thursday, March 03, 2005 3:54 PM W etterauG D~ cdm .com; scott.rhead ~ unitedwater.com CHARLES ARISS; MONTY MARCH US; STEPHEN RAE Columbia WTP - water quality and performance testing Hello Scott and Greg, Chas and I reviewed your March 2, 2005 letter in which you offered a justification and request to deviate from DEQ I S normal procedure of having test results for all regulated contaminants from a new source prior to serving the public. We will approve the request with the following conditions. All parties should respond immediately if I have not captured the sequence events correctly. We have no problem with a delayed schedule required so long as the same intent is met. March 5. The membrane filters will be functional and a relatively small volume will be run through them and discharged to the backwash basins. Samples for the acute contaminants of nitrate, nitrite, and coliforms will be sent to a certified lab and the results sent to our office for approval prior to serving the public. March 9. The plant is expected to be fully operational, including all on-line monitoring equipment (turbidity, particle counters, ORP, pH, etc.). The plant will be run long enough (approximately 1/2 the clearwell) to verify that the membrane filters are fully functional and have passed the USFilter integrity test protocol. Turbidity and particle count information will be emailed to our office for acceptance before the plant is allowed to begin permanent operation and water is released to the public. Similar to permanent operation, the plant run will be modified or terminated if online testing shows that water quali ty is not ready to be served to the public, including initial, partial filling of the clearwell. The full suite of chemical tests will be taken during the initial run, sent to a certified lab, and the results sent to our office for approval as soon as possible. As discussed with Greg today, the performance and integrity testing information should be emailed to both Steve Rae and me. If I am unavailable to review and approve the data on the night of the 9th, Steve Rae will do it first thing in the morning on the 10th. His number is 373-0162. Please also leave both of us voice mails when the data is sent addi tional notification that the information is ready for review. Please call with any questions. Monty G. Marchus, P. Staff Engineer 208-373-0560 Direct 208-373-0287 Fax mmarchusgdeq. idaho. gov Rhead, Scott From: Wetterau, Greg (WetterauGD(g)CDM.com) Sent: Sunday, March 06,2005 1 :00 AM To: Stringer, Peter; Perry, Theodore; Lindstadt, Gregory; Laakso, Gary; Sweet, Thomas; Rhead, Scott Cc: Brown, Camille Subject: FW: NO2-N, NO3-N and TC Results. The acute sampling results came back below detection limits for all three parameters. I will forward these to Monty on Wednesday with the other data from the online analyzers; Greg --r From: Cleve Ouellette (mailto:cleveouellette(9)analyticallaboratories.com) -p- Sent: Saturday, March OS, 2005 1:02 To: Wetterau, Greg Subject: NO2-, NO3-N and TC Results. Greg here are the membrane permeate reults: NO2-N = ..::0.1 mg/L NO3-N = ..::0.2 mg/L Total Coliform = Absence Can email reports on Monday morning. Regards - Cleve 3/8/2005 Analytical Laboratories, Inc. 1804 No 33rd Street Boise, Idaho 83703 Phone (208) 342-5515 Attnz CAMILLE BROWN UNITED WATER IDAHO 8248 W VICTORY RD POBOX 190420 BOISE, ID 83719-0420 CoU~ted By~ Submitted By:G WETIERA U ' .." ""---.... SO'D.tc'e of Sample: - . PROJECT: COLUMBIA WTP MEMBRANE PERMEATE ( /-..-- .--...........--"",. .... '.....---..'----,--..----.........,...--....--......-..".. Time of Collection: Date of Collection: 1620 3/4/2005 3/4/2005 31712005 Date Received: Report Date: PWS:4010016 Laboratory Analysis Report Sample Number: 0505887 Test Requested MCL Analysis Result Units l\ID L Method - Date ' ---===~lco:mPlet --.---- Nitrate (as N) Nitrite (as N)1..00 ~0. ~.. mgIL mg/L EPA 300,3/4/2005 3/5/2005EPA 353.2 ':-Max3muJ;I;\ C':m~mi.tl.ation ~d- MDl.. = McthodlMbUmum DeWCtion UmltUR - ~gu~ted.n_, ~=- Th8Dk you fur ehO08ing ~!41 L-;sbo",,~nl:$ for yuur ~1W& ~eed$. If you have any qu~1,i,o.oo CODC!:rn.11J; thi!O repoJ't. please OOl\tacot: CJeve Ouellette: Page: 1 of 1 MAR-11-2005 FRI 10:19 TEL: 208-362-3858 NAME:UNITED WATER CS I CS I An a l y t i c a l L a b o r a t o r i e s , I n e . 18 0 4 N . 3 3 r d S t r e e t Bo i s e , I d a h o 8 3 7 0 3 Ph l m e ( 2 0 8 ) 3 4 2 - 55 1 5 GO M P L J A N C E S A M P L E (R I Y E S 0 N O I R E P L A C E M E N T SA M P L E D 3/ 4 / 2 0 0 5 I CO L L E C T I O N T I M E ; (2 4 h o u r c l o c k ) AM P L E T YP E : 0 C O - c o n f t r m al I o n RP - r e p e a t l'F l RT - r o u 1 I n & du p l f c at e 0 SP - s p e c i a l Ot h e r PW S # ; 40 1 0 0 1 6 PW S N A M E . 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'" f. . . . l 2 Si g n a t u r e o f L a b o r a l n r y S u p e r . i s o r Da t e Ahead, Scott From: Sent: To: Cc: STEPHEN RAE (SRAE(g)deq.idaho.gov) Thursday, March 10, 2005 10:00 AM WetterauGD(g)CDM.com; MONTY MARCH US LaaksoGL(g)cdm.com; LindstadtGL(g)cdm.com; CHARLES ARISS; Bill.Carr(g) UnitedWater.com; scott.rhead (g) unitedwater.com Re: Testing resultsSubject: Mr. Wet terau, Per our phone conversation this morning, the initial monitoring equirements and you may serve the public. Congratulations! Stephen H. Rae, P. E. Staf f Engineer Idaho Department 1445 N. Orchard St.Boise, ID 83706 Environmental Quality Phone: 208) 373 - 0162Fax: (208) 373-0287 mail: srae~deq. idaho. gov :;:.:;:.:;:. " Wetterau, Greg " -c::WetterauGD~CDM.com:;:. 03/10/05 09:29AM :;:.:;:.:;:. Monty, Attached are the initial test results, provided using the new IDEQ reporting spreadsheet. We have also listed all of the water quality resul ts below. The plant was operated for just over 1 hour last night at 1,000 gpm. Water will remain in the clearwell until we receive final approval from DEQ. Please note that the pressures listed under Transmembrane Pressure on the DEQ form are actually the inlet and outlet pressure to the skid with the highest transmembrane pressure. The actual transmembrane pressure is the inlet pressure minus the outletpressure. Note also that we have left the contact time space blank on the CT form, since the water has not yet been released from the clearwell. The minimum contact time during 6 mgd plant operation and minimum clearwell levels is 119 minutes. Here are the water quality resul ts : Raw water particles: 8, 556 particles /mL (2 -15 um range) Membrane Permeate particles: 7 particles/mL (2-15 urn range) Log removal: 3 . 1 Raw water turbidity: 4.2 ntu Membrane permeate turbidity: 0.03 ntu Treated water chlorine residual: 0.8 mg/L Treated water temperature: 10.deg CTreated water pH: 7. Membrane Permeate NO2-N Membrane Permeate NO3 - N Membrane Permeate Total -c:: 0 . 1 mg / L -c:: 0 . 2 mg / L Coliform = Absence This water quality meets all State and Federal regulations and is in compliance with our condi tional approval for plant startup. United Water would like to serve the public with this water by late morningtoday. please let us know if this will be acceptable, per the requirements identified in your March 3 email titled "Columbia WTP water quality and performance testing. Greg Wet terau -c::-C::Columbia WTP - initial test results . xIs:;:.:;:. UNITED WATER IDAHO INC. CASE NO. UWI-O4- FOURTH PRODUCTION REQUEST IPUC STAFF ATTACHMENT TO RESPONSE TO REQUEST NO. 143 SEE CASE FILE FOR SPREADSHEE TS UNITED WATER IDAHO INC. CASE NO. UWI-O4- SIXTH PRODUCTION REQUEST IPUC STAFF TT A C H MEN T RESPONSE TO REQUEST NO. 194 SEE CASE FILE FO SPREADSHEETS Response No. 194. Source of Supply Project No. C01 AO07 Cullen Monitoring Well Drill Cullen monitoring well. Data from this site is important for tracking water level changes in the upper end of the Barber service area. The monitoring well is an important resource for checking water level changes at an area where recharge occurs for the down gradient aquifers. It is part of the network of monitoring wells used to define the general health of the aquifer system. Project No. C02AO08 Maple Hills Well This project is proposed for the drilling and equipping of a new well in the First Bench Service Level with a projected capacity of 0.72 MGD. This additional capacity is needed to meet increases in peak season demands resulting from new customer growth and prevent deterioration in customer service pressures and fire protection capacities in that area of the system. This well will be located on the site of the existing Maple Hills Well Project No. C02A102 Initial Butte Water Rights This project is for the purchase of 9 248 acre-feet of the Initial Butte Snake River water right. The addition of this water right, in combination with the previously acquired Wilson right, will supply both the Marden and Columbia water treatment plants with sufficient raw water to operate for 50 -70 days during peak season at the maximum rate of 46. cfs (11 cfs - Wilson, 35.2 cfs - Initial Butte). Project No. C03A101 Vault for Monitor Wells This project is for the installation of vaults over two United Water monitoring wells at the corner of State Street and N. Linder road. This work will involve cutting the casing to allow below grade access and remove the above ground tripping hazard in the corner of the soccer field were the wells are located. Project No. C04D102 Surface Water Rights This project is intended for the purchase of water rights, including natural flow rights, shares in canal companies and storage water. Also included are the efforts necessary to preserve, defend, and perfect existing water rights. Project No. C05D104 Rehabilitate Ranney Collector #1 This project is for the recovery of capacity in Ranney Collector #1. The collector laterals will be rehabilitated. The anticipated recovery of capacity is 350 GPM. The Ranney Collectors provide riverbank filtration for river water entering the Marden WTP. The Collectors provide an important, low-turbidity buffer during spring and early summer high turbidity events on the Boise River. Treatment Project No. C98BOO1 Iron & Manganese Removal This project is proposed for the construction of an Iron & Manganese removal pilot plant. The costs cover design, construction, and consultant fees associated with the development of operation procedures. Once the pilot plant is fully operational we intend to perform the operations and analysis with company personal. Project No. CO2BOO2 Columbia WTP This project is for the construction of the Columbia Water Treatment Plant, which is needed to supply customer demands in southeast Boise. It is projected that this plant will ultimately serve up to 15,000 customers within the southeast Boise service area. Analyses have shown that local groundwater supplies are not sufficient to supply the area and that "importing" water from areas with more plentiful supplies is not viable. The treatment plant will receive its raw water supply from the Boise River. A river intake and pump station was constructed in 1998 in conjunction with Micron Technology, Inc. and the J.R. Simplot Company to supply the plant. Project No. CO2BOO8 Bali Hai Well- Water Treatment This project is needed to construct a treatment facility at the Bali Hai well. The treatment facility will consist of chlorine generation equipment to neutralize high levels of ammonia in the well. Then a manganese green sand filter will be added to remove high levels of iron and manganese. The remainder of the project is needed to complete building modifications for the new equipment and to construct a storage tank for the backwash water. The backwash water will eventually go to the Boise City sewer system but at much slower rates than the back wash cycle rates. Project No. CO3BOO3 Maple Hills #1 Treatment This project is for the design and construction of a treatment facility at the Maple Hill Well. This well has the capacity to produce 1800 gpm. However, due to water quality problems it typically runs at approximately 800 gpm. This proposed treatment facility would allow us to take advantage of the additional 1 ,000 gpm which is needed to meet peak season demands resulting from new customer growth and to prevent deterioration in customer service pressures and fire protection capacities. This well has high levels of ammonia and requires large doses of chlorine to neutralize it. However , the chlorine causes the precipitation of iron and manganese, which results in customer complaints due to discolored water and staining. A pilot study has shown that break point chlorination along with a manganese greensand filter can be used to neutralize the ammonia and remove the iron and manganese. Project No. C038004 Safety Showers This project is proposed to install safety showers in six (6) facilities. During a recent safety audit several locations were identified as requiring safety showers. Project No. C048002 Raw Water Pump Station This project will install underground piping and pumps into the existing raw water pump station to provide surface water source supply to the Columbia Water Treatment Plant. Project No. C048004 30" Raw Water Pipe Line This project is for the installation of approximately 7350 ft of 30 in. raw water line between the Raw Water Pump Station and the Columbia Water Treatment Plant. This line will transport Boise River water to the new plant. There are two segments, Surprise Valley-1440 ft and the Power Line segment-591 0 ft. The Columbia Water Treatment Plant is needed to supply customer demands in southeast Boise (See C02BO02 - Columbia Water Treatment Plant). Project No. CO48006 Chlorine Code Compliance This project is for the installation of 8 liquid sodium hypochlorite feed systems. These systems will constitute the next phase of a program to remove chlorine gas from all of our well houses and will be completed in 2005. Project No. CO48501 Replace Chlorination Equipment This project is for the replacement of disinfection equipment that has reached the end of its useful life. Project No. C048502 Marden Filter #2 Repair This project is for the repair of Filter #2 at the Marden WTP. The work includes removal , clean storage and replacement of existing filter media and support media from filter #2. It also involves the purchase and addition of new media to replace lost media, investigation of the cause of the media loss, and repairs to the 101 Monoflor system. Project No. CO48007 Marden WTP Chlorine Generator This project is for the removal of the existing gas chlorination system and scrubber at the Marden WTP, and installation of one 300 pounds per day chlorine generation unit. Replacing hazardous chlorine gas with non-hazardous 0./0 sodium hypochlorite reduces the handling risks for employees and risks to the public in the event of a leak. This project will also eliminate the need to "harden" the chlorine room walls, doors and windows at Marden to meet the recommendations of United Water s EPA vulnerability asse ss m e nt. During the EPA vulnerability assessment, United Water s consultant encouraged the transition from the use of gaseous chlorine in ton cylinders to the use of a chlorine generator, as proposed in this project. The generator significantly reduces the potential exposure of United Water to the public in the event a determined and knowledgeable adversary attacks the facility. Project No. CO48503 Replace CI2 Residual Analyzers This project is for the replacement of two older chlorine residual analysis units that have reached the end of their useful life. It is difficult and expensive to get repair parts. The new units match existing CL-17 units in the system. Project No. CO48504 Production General Plant Marden Replace control room carpet and generator room louver controls. Purchase small compressor. Project No. CO48505 Replace Chlorination Equipment This project is for the purchase of equipment for the 30 ClorTec systems currently operating in the United Water Idaho well field and treatment plants. The equipment will provide redundancy for our widely distributed disinfection system. Project No. CO58506 Turbidimeters Replace 5 online turbidimeters at Marden WTP. The meters being replaced were originally installed in 1993 and have reached the end of their useful life. Pumping Plant Project No. CO3C504 Replace Control Equipment This project is proposed to provide replacement of control equipment (transducers, meter heads, RTU', radios, etc.) that have failed, been damaged or that cannot be calibrated within accepted tolerances. Project No. CO4CO01 Pump Station Cooling System This project is for providing central cooling to facilities that are currently too hot for optimal equipment operation. The heat load at many facilities has increased with the addition of variable frequency drives and chlorine generation equipment. This has led to equipment failure and breaker switches tripping out due to excess heat. These cooling systems will also reduce dust intrusion to facilities and reduce noise for the neighbors, as the windows will remain closed. We have identified twenty facilities in need of cooling. We intend to include design costs for 10 facilities in 2004, and completion of systems at Hidden Valley #2, Ten Mile, Pleasant Valley, and Pioneer wells, Hillcrest and Floating Feather well and booster stations and Roger Heights booster station. Project No. CO4CO02 Auxiliary Power - Pleasant Valley Well This project is for the relocation of a 500 KW auxiliary power generator originally sited at the Marden WTP to supply the 500 HP pump at the Pleasant Valley well in the event of a power outage. Included in this project are the construction of a suitable structure to house it, the purchase and installation of an automatic transfer switch and other electrical panels, and conduits and wiring. The vulnerability assessment completed in March 2003 recommends that United Water increase its standby power generating capacity. This project will help to achieve that goal by taking advantage of the existing generator that was removed from Marden when a new 1 000 KW generator was installed in 2002. The Pleasant Valley well is located in the Columbia Bench Service level , at the high end of the system. Water from this facility can support much of the easterly side of the water system by gravity feed through the various pipeline interties during a major power outage. Project No. C04CO03 First Bench Split Pump Improvements This project is for upgrades to five wells in conjunction with the First Bench Service level split. The five wells will be pulled and retrofitted with additional pump bowls to increase pressure. In addition Taggart #1 will get a new pump and Taggart #2 will get a new higher capacity starter. Project No. C04C101 Install Motor Savers This project will equip 66 facilities with motor saver units that will protect facility equipment from voltage spikes and phase failures. United Water has lost more than three motors each year due to phase failure and/or voltage spikes. The loss of motors during peak production periods causes service deficiencies. Project No. CO4C103 Highland View Booster Upgrade Purchase and install three new pumps to replace the existing units. The pumping units consist of 2-600 gpm pumps and 1-1200 gpm pump. The existing starters for the smaller pumps will also be replaced with a new VFD/Starter that can alternate operation of the pumps to balance wear and tear and operate either pump under VFD control. Project No. C04C104 Braemere Booster Upgrade Purchase and install a new 600 gpm pump to replace the existing domestic pump and a new, higher capacity, impeller to replace the existing unit in the fire pump. Project No. C04C106 Sunview 7.5 HP, 120 gpm Pump This project is proposed to purchase and install a small domestic pump to serve the Sunview area, which will handle low demand rates more efficiently than the existing pump. Project No. C04C107 Pioneer Well Shafts & Spider Bearings This project is for the removal of the Pioneer well pump equipment, including broken spiders and bent shafts , purchase of new equipment, and resetting of the pump equipment. Project No. C04C108 Hillcrest Booster 200A Breaker Replace defective 200 amp main disconnect for Hillcrest Booster Project No. C04C109 Goddard Well 150 HP Motor This project is proposed to replace a burned up motor at Goddard Well. Project No. C0411 0 Replace Starter Panels This project is for the replacement of pump starter panels, fuse blocks and disconnects at Frontier, Five Mile #12, Country Club, and Arctic wells and Harvard booster that are too small for the current application. Thermographic inspection has revealed that these facilities produce excess heat when under load and must be replaced to prevent unplanned service interruptions and damage to other equipment. Project No. C04C201 Landscaping Well Sites This project is proposed for landscaping at well , booster and reservoir sites. Landscaping provides a pleasing appearance and helps to reduce unsightly weeds and code enforcement actions. The locations included for this year are Highland View Lower Danmor, Cartwright Booster, Gowen Reservoir , Toluka Reservoir and BIF Well. Project No. CO4C503 Reconstruct Pumping Facilities This project is for upgrading pumping facility structures. It is proposed to work on Veterans Well, Vista Well , Lower and Upper Danmor Booster Stations. The older facilities are in need of new roofs, windows and siding. This work is done to provide for a more secure facility as well as an attractive appearance for the community. Project No. CO4C501 Control Equipment This project is proposed to provide replacement of control equipment (transducers meter heads, RTU's, radios, etc.) That have failed, been damaged or that cannot be calibrated within accepted tolerances. Project No. CO4C502 Valmet RTU Replacement This project is proposed for replacing four Valmet RTU's with new Opto22 RTU's over the next two years. All of these Valmet RTU's were purchased in the 1980's and do not provide United Water with the flexibility and functionality of the new Opto RTU's. Three of the proposed replacements, Cole PRV, Sunview Booster and Quail Booster have control deficiencies, i.e. needed set point controls , pump/valve controls via remote sensors, multiple remote sites via one RTU. In addition, one unit will provide United Water with a limited spare equipment capacity that will allow for the immediate resumption of communications and control to a facility instead of having to wait several days for shipment of replacement parts. Project No. CO5C501 SCADA Replacement Replace SCADA computers and upgrade software to current version of Intellution at Victory Rd. and Marden WTP. The hardware and software providers no longer support the existing systems. Project No. CO4COO4 Pump Station Cooling System This project is to provide central cooling to facilities that are currently too hot for optimal equipment operation. This is year two of a four year project (see CO4CO01). This year we plan to install cooling at Sunset West, Hope , Broadway, Ten Mile, Hidden Valley #1 and Floating Feather pump stations/wells. Project No. CO4COO5 VFD Installations - Efficiency Purchase and install VFD's at Bluff, Sunview and Stone Creek booster stations. These VFD's will provide more efficient operation at these facilities that must operate continuously in order to maintain service. Project No. CO5COO1 Auxiliary Power Upgrades This project is proposed for the purchase and installation of auxiliary power generation equipment needed to provide water service at the Danskin Well facility in the event of extended power outages or a civil emergency. This capability is needed to comply with guidelines established by the Idaho Department of Environmental Quality for stand- power capability at water system sources of supply. Project No. CO4C505 Valmet RTU Replacement 2 This project is proposed to replace three of United Water s Valmet RTUs at Willow Lane, Harrison , and the Bluffs Booster and purchase two spare Opt022 RTUs. All of these Valmet RTU's were purchased in the 1980's and do not provide United Water with the flexibility and functionality of the new Opto RTU' Main Lines Project No. C..DOO2 New Short Mains & Valves The primary purpose of this item is the elimination of small gaps in the distribution system, installation of new valves where insufficient system control is presently available, and installation of blow offs where line flushing capabilities are inadequate. Project No. CO3D104 16" Treated Water Line From Columbia WTP This project is proposed to install 5,230 feet of class 165 C-905 PVC water line and all necessary appurtenances to supply domestic water from the Columbia Water Treatment Plant to customers in the Columbia service area. Project No. CO4DO03 Operational Control Equipment - PRV' This project is proposed to install data gathering and operational control at the Blackeagle , Ustick and Hobble Creek PRY interties, by installing meters, psi transducers, and setpoint controller. The Blackeagle PRY upgrades are critical for the operation of the wells and the new south Five Mile reservoir and booster. The Ustick and Hobble Creek PRV's feed west of Cloverdale and north of Fairview. These upgrades will provide valuable information to the SCADA as to the effectiveness of the operations in this area. This will also provide critical information for engineering to use in the system model. Project No. CO4DO04 First Bench Service Level Split - Mains This project will implement the critical distribution system improvements needed to resolve the low pressure problems experienced on the east end of the First Bench Service Level during peak summer demand periods. These improvements create a hydraulic boundary, splitting the First Bench into two pressure zones along Roosevelt Street. The First Bench is a continuous nine-mile long pressure zone from Federal Way Cloverdale Road. There is an approximate 150-foot drop in ground elevation from east to west, which equates to about a 65 psi water pressure difference. As pressures are increased to improve service to customers at the east end, the water, in essence, runs down-hill and overloads the service pressures to customers on the west end. Splitting this system into two pressure zones will enable increased pressures for the east end without adversely affecting the customers in the west. It will also improve fire protection capabilities throughout the east end with the higher operating pressures. Project No. C04D101 Hilton Street (Grover to Ponder) This project is for the installation of 465 feet of 12" PVC water main in Hilton Street with a crossing under the Ridenbaugh canal. The proposed work will complete a tie-in of two 12" water mains north and south of the canal. This will improve water quality, fire protection, and transmission capability to this area and the Franklin road area to the north. Project No. C04D103 Am ity Road This project is for the installation of 205 feet of 12" PVC water main in Amity road. The work is being done in conjunction with the new southwest Boise tank. It will improve fire protection to subdivisions north of Amity Road and is also proposed as one of the main extensions to facilitate the pressure zone change when the tank is complete. Project No. C04D104 Banbury PRV Installation of one pressure reducing station which will enable United Water Idaho to transmit water from the West First Bench Service Level to the Island Woods service area, that is not currently integrated with our system. The pressure station will be equipped with controls tied into United Water s SCADA system and will enable the Production Department to monitor and control the flow and total volume of water imported to the Island Wood wells zone. It will improve fire protection and maintain domestic service and fire protection to approximately 800 customers during local power outages. Project No. C04D106 Thomas Street PRV This project is for the installation of a new PRV on Thomas Street south of Franklin Road. This work is being done in conjunction with the SW Boise Booster and Reservoir project. The PRV is being installed at the north end of the South County Service Level and will provide back up fire flow support to the First Bench. This will also relocate the north boundary of the South County area to the south and tie the Pilgrim Cove subdivision into the First Bench Service Level. Project No. C04D107 Candleridge Dr Check Valve This project is proposed for the installation of an 8" check valve at the intersection of Candleridge and Knights drive. We have had low-pressure calls between Knights drive and Candleridge Court on Candleridge Drive. This should alleviate the low-pressure problems by moving these customers to the high-pressure side by way of opening one valve at Knights Drive and closing a valve at Candle ridge Court. This check valve is being installed to maintain fire protection to the area from the low-pressure side. Project No. CO4D603 Tanglewood PRV This project is for the installation of a PRY near the intersection of Tanglewood Drive and Ravenswood Street. This work is being done in conjunction with the Southwest Boise Reservoir and Booster Station and will replace the La Grange PRY to better serve the south end of the South County Service Level. Project No. CO4D604 Edgecliff Terrace This project is for the installation of 460 feet of 4" PVC water main in Edgecliff Terrace. This will replace 460 feet of 2-1/2" GIP water main installed in the 1960's. We have experienced numerous water quality calls from this street over the last five years. Project No. CO4D605 Cloverdale Rd (Railroad to Franklin) This project is for the installation of 915 feet of 12" PVC water main and a 70 foot bore under the Union Pacific Railroad in Cloverdale Road. This will replace 665 feet of 8" PVC water main installed in 1993 by South County Water for fire protection to the commercial property on the south side of the street. The difference in footage is in crossing the railroad right of way and connecting into the First Bench Service Level. This, along with the Thomas Street PRY, will allow the reconfiguration of the west Gowen Service Level in conjunction with the SW Boise Booster Station and Reservoir project. Project No. CO4D606 Desert Avenue PRV This project is for the installation of a new PRY on Desert Avenue, replacing the existing facility. This is being done in conjunction with the SW Boise Booster Station and Reservoir. The new PRY vault will have telemetry, metering, exhaust venting, and better access than the existing vault. This will provide better control and data for managing these interties between the West Gowen Service Level and the South County Service Level. Project No. CO4D607 Woodlawn/Pleasanton/Ross/29th This project is for the installation of 3,375 feet of new 8-inch and 6-inch mains in the Woodlawn and 29th Streets vicinity. The project will replace 2 970 feet of 2-inch galvanized iron pipe and 550 feet of 6-inch cast iron pipe installed between 1920 and 1950. This is part of our annual commitment to the City of Boise for improvements in fire protection capabilities as a part of our franchise agreement. It also isin conformance with our main replacement goals of focusing on the replacement of small galvanized iron pipe and aged cast iron pipe. Project No. CO4D701 Cloverdale Road (1-84 to Camas) This project is for the installation of 585 feet of 12" water main and 100 feet if 10" water main in Cloverdale road. This will replace 645 feet of 10" AC water main installed in 1996. This work is necessary due to conflicts with the installation of a new sewer main. Boise City Public Works will be responsible for all costs in this project. Therefore the addition indicated a cost of $0. It was included on Exhibit 8 for retirement purposes only. Project No. CO4D702 Cole Rd (Victor to Century) This project is for the installation of 150 feet of 12" 01 and 70 feet of 12" PVC water main in Cole Road. This will replace 145 feet of 12" AC and PVC water main. Ada County Highway district is rebuilding this portion of Cole Road and our facilities are in conflict with new storm sewer and irrigation work. Project No. CO4D704 Franklin Street (17th to 13th This project is for the installation of 370 feet of 8" PVC and 20 feet of 6" PVC water main in Franklin Street. This will replace 380 feet of 6" KAL installed in 1912. Ada County Highway district is rebuilding this section of street. Project No. CO4D705 Washington Street (10th to 15th This project is for the installation of 715 feet of 16" and 320 feet of 8" PVC watef main in Franklin Street. This will replace 1 040 feet of 16" MJ dipped and wrapped (d&w) water main installed in 1912. Ada County Highway district is rebuilding this section of street. Project No. CO4D706 Pleasanton (21 st to 22nd This project is for the installation of 325 feet of 8" and 20 feet of 6" water main in Pleasanton Street. This will replace 330 feet of 2" GIP installed in 1941. Ada County Highway district is rebuilding this section of Pleasanton Street. Project No. C04D108 New Floating Feather 16" Main This project is for the installation of approximately 8,600 feet of 16-inch main in Floating Feather Road. United Water currently has an agreement with the City of Eagle to use a 12-inch city owned main to move water from the Floating Feather Booster Station to the West Main Service Level where it is needed to serve the existing customers and growth in that area. The volume of water that can be moved to the West Main is limited by the capacity of the 12-inch main. This project will install 16-inch main that will allow transmission of an additional 500 gpm to the West Main service level and end reliance on the city s water main. Project No. CO4D201 Cloverdale (Camas-Overland) This project is for the installation of 3 120 feet of 12" water main in Cloverdale Road and Overland Road and will replace 1 450 feet of 10" water main install by South County Water. The 10" water main is in conflict with the new road sub grade, storm drain, and new bridge structure. The additional footage of 12" water main will connect an existing 12" water main south of Overland to an existing 12" main just south of 1-84 providing a much needed second connection to the north end of the South County Service Level. At the present time there is only one 6" main to feed north of Overland. Project No. CO5D601 Pond & Rose Hill This project is for the installation of 620 feet of 4" PVC and 785 feet of 6" PVC in Rose Hill and Grover Street and 845 feet of 8" PVC in Pond and Grover Streets. This will replace 630 feet of 2" GIP installed in 1929 675 feet of 2" GIP installed in 1947 , and 585 feet of 2" GIP installed in 1950. This work is part of our annual main replacement program to increase flow, fire protection , and improve water quality. Project No. CO5D602 Edson & Pond This project is for the installation of 930 feet of 8" PVC and 150 feet of 2" PVC water main in Edson, Pond and Stanley Streets. This will replace 1135 feet of 2" GIP water mains installed in the early 19501s. This work is part of our annual main replacement program to increase flow, fire protection , and improve water quality. Project No. CO5D701 Latah (Targee-Overland) This project is for the installation of 80 feet of 12" PVC, 1 ,945 feet of 8" PVC, and 140 feet of 6" PVC water main in Latah Street. This will replace 75 feet of 12" AC and 1 ,845 feet of 6" AC installed in the 19601s. Ada County Highway District is rebuilding the section of road and United Water s facilities are in conflict with the new sub grade and new storm drain system. Storage Project No. CO3EOO1 Columbia WTP Clearwell This project is proposed to install a 1.2 mg reservoir that will immediately provide additional capacity to the Columbia service area to meet peak demand needs and, in the future, serve as the Clearwell for the Columbia Water Treatment Plant. Project No. CO3EOO2 Southwest Boise Storage This project is for the construction of a 2.5 million gallon reservoir and booster station for the South County Service Level and to make system modifications required for optimal tank operation. This project is needed to provide fire protection and peaking storage in one of the fastest growing areas of our system. Currently there is no storage in this part of our system. Project No. CO5E501 Replace Toluka Reservoir This project is for the installation of a new 100,000 gallon bolted steel tank at the Toluka Booster/Reservoir site in the Warm Springs Service Area. This will replace two existing reservoirs, one a 16 000 gallon and the other 76 000 gallon. These are tanks purchased with the Warm Springs water system in the 1990's. They were found to be in such bad shape in 2003 during routine maintenance that the maintenance was halted over concerns of damaging the tanks to the point of inoperability. This reservoir is critical to the operation of this foothill community. Service and Meters Project No. C.F Services Company funded new and replacement services. The new services are installed in isolated areas at the customer s request. The replacement service project installs new services to replace existing ones that have failed due to leaks, water quality or excessive pressure loss. Project No. C..G Meters Company funded new and replacement meters. The new meters are needed to provide service to new customers and the replacement meter project installs new meters to replace units that no longer provide reliable readings. Information Technology Project No. CO4JOO1 Hydraulic Modeling Software This project is for the purchase of the hardware and software necessary to develop and maintain a water distribution model. The model will support studies ranging from long range master planning to daily operations. The software was selected based on the results of an evaluation performed in conjunction with an engineering consultant. The software integrates modeling and GIS, utilizing their functionality simultaneously to provide an innovative level of efficiency and power. The hardware is necessary to meet the recommended software requirements. Project No. CO4JOO2 UPS Wiring Install new wiring from United Water s Uninterruptible Power Supply (UPS) to the phone/LAN room. The existing wiring no longer adequate for the critical LAN , WAN and telephone systems. Project No. C04JO04 SCADA Offsite Backup The purchase of an Opt022 controller and associated equipment to be used as an offsite SCADA communications and control system. This is to provide a backup facility at the Columbia WTP needed in the event of a failure of the Victory Road SCADA system. Project No. C04JO05 Production Reporting Equipment Purchase hardware and software to allow United Water s production reporting process to be run on a stand-alone system basis. Currently, the system has a limited archive ability, which allows an inadequate volume of data for reporting and analysis purposes. Project No. C04JO07 Computer Replacement Project The purpose of this project is to replace all of United Water s existing PC's and laptops with new systems as the existing hardware and software were no longer supported by the manufacturers. Additionally, new software would not function correctly on the old operating system. Project No.C04J1 01 Fleet Management Software This project is for the purchase of Omni Fleet Shop software to track preventative maintenance and maintenance performed on the vehicle fleet and construction equipment. The People Soft 8.4 project listed in Exhibit 8 is comprised of the following two projects: Project No. C03J901 People Soft 8. This project is intended to upgrade the existing financial system to the current PeopleSoft 8.4 version. The current software is eight years old and is no longer supported by PeopleSoft. All financial systems of United Water are managed through this software including general ledger, asset management, construction accounting and payroll. Project No. C03J902 IS Infrastructure This CEA is for United Water Idaho s portion of the costs associated with the Corporate IS Infrastructure project. The project is done to enable basic IS services to all business units and company-wide standardization of hardware, software and operating systems. Project No. CO4JOO8 Managed Desktop Server This project is proposed to purchase a PC server to be used as a central repository for managing hardware and software on local user s PCs. Project No. CO4JOO9 ArcView Upgrades This project is proposed to upgrade fifteen of United Water s GIS ArcView 3.2 software licenses to a newer 8.3 version. The functionality of 3.2 did not meet current needs of the GIS users. Project No. CO4JO10 LAN Equipment The purpose of this project is to purchase two LAN switches for connecting additional PCs, laptops, printers, etc. to United Water s existing LAN. The LAN is currently capacity. Project No. C04J501 Replace Production Field Laptops The purpose of this project is to replace five laptops that are utilized by the Production Department on-call and supervisory personnel. The current units do not support the new SCADA software and are no longer supported by the manufacturer. Project No. CO4J011 T & D New Field Laptops The purpose of this project is to purchase seven new laptops and GIS ArcView software to be utilized by field crews. This is needed to extend GIS capability to T&D field crews. Project No. CO4J502 Voice Radio Upgrade The purpose of this project is to upgrade United Water s voice mobile and base radio system. The current system has frequent interference problems, which the upgrade will resolve. General Plant Project No. CO4K101 Safety Flashers This project is for the purchase and installation of strobe lights for the top of four meter reader vehicles. The need to be highly visible while performing the duties of meter reading is very important. Various weather conditions such as fog, winter storms, and twilight hours can create poor visibility. Meter readers will use the lights to bring attention to other vehicles and pedestrian traffic to create a safe work site. Project No. C04K102 Security Upgrades - Vulnerability This project installs facility upgrades targeted at critical facilities identified during the Vulnerability Assessment phase of the project. Implementation of this work will reduce facility vulnerability to terrorist attack and vandalism. Project No. C04K301 Letter Opener CANCELLED Project No. C04K302 Folder/Inserter CANCELLED Project No. C04K304 UW Idaho Master Plan This project is intended to update the existing master plan and develop a hydraulic model for the distribution system. The existing plan is over 5 years old and needs to be updated in order to plan, prepare and implement system improvements needed to meet customer demand. Also as a part of the project a computer model will be developed to enable engineering analysis and decision making related to current system operation and future system changes. The hydraulic model will interface with the existing GIS system in order to be continually updated as completed mainline projects are digitized and electronically downloaded into the database. The master plan update will look at areas of growth, supply, storage etc. and outline options to be considered for the next 20 year planning horizon. Project No. C04K701 Victory Office Wall Cabinets This project is for the installation of 12 feet of wall storage cabinets in the Engineering Department. This will replace the existing cabinets installed in the early 1980's. One of the existing cabinets has come loose from the wall. In addition , the other cabinet needs to be removed and replaced. Project No. C04K108 Flushing Diffusers This project is for the purchase of four flow diffusers for the flushing program. The diffusers control the flow of large volumes of water from fire hydrants. The diffusers reduce the potential of flooding and damage to asphalt and landscaping. Project No. C04K503 Replace T&D Equipment This project is for the purchase of 2 pipe saws, 4 12 volt electric pumps, 2 soil compactors, 1 hydraulic pavement breaker, 2 pneumatic pavement breakers, and confined space tripod/winch rescue unit. The pipe saws, electric pumps, soil compactors, and pavement breaker are used daily by construction and maintenance crews. The existing equipment is requiring more frequent maintenance, causing down time by the crews and needs to be replaced. The current confined space tripod and winch is tall and allows only one person to be connected. The new model is 91 tall and can be used on larger openings to vaults and allow more space in the A-frame. It equipped with two winches to allow two people to be connected when working in permit spaces. Project No~ C04K107 New Construction Signs and Stands This project is for the purchase of additional signs required by the Ada County Highway district to work within the road right of way. Project No. C04K1 09 New York Station Furniture This project is for the purchase and installation of office workstations for the cross connection control specialist and the automated systems specialist. The existing work area for the cross connection control specialist is very small. This workstation will provide a more efficient work environment. The automated systems specialist' workstation is for a new office. Project No. C04K106 Security Upgrades - Vulnerability This project reduces facility vulnerability to terrorist attack and vandalism. Facility upgrades are currently targeted at critical facilities identified during the Vulnerability Assessment phase of the project. Project No. C04K104 Automated External Defibrillator Purchase Automated External Defibrillator as a basic first aid device, for installation atthe Victory Road office. .. . . . - TO O W N E R : FR O M C O N T R A C T O R : Un i t e d W a t e r I d a h o CD M C o n s t r u c t o r s I n c . 11 8 1 1 N E 1 s t S t r e e t , S u i t e 2 0 1 Be l l e v u e , W A 9 8 0 0 5 Co l u m b i a W a t e r T r e a t m e n t P l a n t CO N T R A C T F O R : AP P L I C A T I O N N O : PE R I O D T O : CD M P R O J E C T # 28 - 60 0 0 4 4 8 7 26 - Fe b - 40 3 1 8 DI S T R I B U T I O N T O : CD M , C C I Un i t e d W a t e r I d a h o Ap p l i c a t i o n D a t e : Ma r - CO N T R A C T O R ' S A P P L I C A T I O N F O R P A Y M E N T Ap p l i c a t i o n i s m a d e f o r p a y m e n t , a s s h o w n b e l o w i n c o n n e c t i o n w i t h t h e C o n t r a c t Co n t i n u a t i o n S h e e t , f r o m A l A D o c u m e n t G 7 0 3 , i s a t t a c h e d . 1. 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C O N T R A C T S U M T O D A T E 06 7 , 71 2 15 , 77 6 , 78 6 16 , 84 4 49 8 (L i n e 1 +1 - Li n e 2 ) TO T A L C O M P L E T E D T O D A T E : 15 , 65 9 , 81 6 TO T A L P R E V I O U S L Y P A I D : 20 3 , 93 1 TO T A L R E T A I N A G E nl a TO T A L D U E -1 i 4 5 5 . 88 8 $" V C I 3- e : . 18 4 68 2 TO T A L R E M A I N I N G AM E N D M E N T S U M M A R Y Am e n d m e n t s a p p r o v e d i n AD D I T I O N S DE D U C T I O N S pr e v i o u s m o n t h s b y O w n e r TO T A L 15 , 77 6 78 6 Pr e v i o u s l v A p p r o v e d Nu m b e r Da t e A p p r o v e d WO 2 18 - 0c t - 64 3 , 20 0 WO 3 20 - De c - 20 7 96 0 WO 4 25 - Ju l - 12 1 00 0 WO 5 26 - Se p - 70 0 , 00 0 WO 6 Fe b - 10 , 10 4 62 6 TO T A L S Ne t C h a n c e b v A m e n d m e n t s 15 , 77 6 , 78 6 CO N T R A C T O R ' S C e r t i f i c a t i o n : Th e u n d e r s i g n e d C O N T R A C T O R c e r t i f i e s t h a t ( 1 ) a l l p r e v i o u s p r o g r e s s p a y m e n t s re c e i v e d f r o m OW N E R o n a c c o u n t o f W o r k d o n e u n d e r t h e C o n t r a c t r e f e r r e d t o a b o v e h a v e b e e n a p p l i e d o n ac c o u n t t o d i s c h a r g e C O N T R A C T O R ' s l e g i t i m a t e o b l i g a t i o n s i n c u r r e d i n c o n n e c t i o n w i t h W o r k co v e r e d b y p r i o r A p p l i c a t i o n s f o r P a y m e n t n u m b e r e d 1 t h r o u g h 2 7 i n c l u s i v e ; ( 2 ) t i t l e o f a l l W o r k ma t e r i a l s a n d e q u i p m e n t i n c o r p o r a t e d i n s a i d W o r k o r o t h e r w i s e l i s t e d i n o r c o v e r e d b y t h i s Ap p l i c a t i o n f o r P a y m e n t w i l l p a s s t o O W N E R a t t i m e o f p a y m e n t f r e e a n d c l e a r o f a l l L i e n s , s e c u r i t y in t e r e s t s a n d e n c u m b r a n c e s ( e x c e p t s u c h a s a r e c o v e r e d b y a B o n d a c c e p t a b l e t o O W N E R in d e m n i f y i n g O W N E R a g a i n s t a n y s u c h L i e n , s e c u r i t y i n t e r e s t o r e n c u m b r a n c e ) ; a n d ( 3 ) a l l W o r k co v e r e d b y t h i s A p p l i c a t i o n f o r P a y m e n t s i s i A a c c o r d a n c e w i t h t h e C o n t r a c t Do c u m e n t s a n d n o t de f e c t i v e . '- " " - ", - , . . " , . , " " - " ' " - - . . - . . " , - - " , 0 " ' , , ", " . . " /. . " . " . . " /'c ? 73 Q , 1'" : ' 1') 1 , 1 ; / / CO N T R A C T ' ', v v " " /1 ! r By : \, , ' " . ' Pl e a s e R e m i t T o : CD M C o n s t r u c t o r s I n c . FI L E 4 1 0 0 5 Lo s A n g e l e s , C A 9 0 0 7 4 - 10 0 5 Da t e : 3/ l( /0 : 5 Pa y m e n t o f t h e a b o v e A M O U N T D U E T H I S A P P L I C A T I O N i s a p p r o v e d . (' , Da t e d : Un i t e d W a t e r I d a h o ~- C; ' - J By : ~lG . ~. ~( O /I :: : : : - , -1 ' c - ~ 5 :: f - - ~ United Water ~~C 0& (B) N~~ October 27, 2004 Jim Cox JC Constructors, Inc. 1305 E. Columbia Road Meridian, Idaho 83642 SUBJECT:Maple Hill Well Treatment System Notice Of Award Dear Jim Thank you for your recent participation in bidding the proposed Maple Hill Well Treatment System. After reviewing the prices your Company has been selected as the contractor for this project. Prior to commencing with the actual fieldwork for this project, a Construction Agreement must be signed. We look forward to working with you on this project and if you have any questions please feel free to contact me. Sincerely, Scott Rhead, P . Managing Engineer Cc:Greg Wyatt Doug Schaefer www.unitedwater.com Constructors, Inc. October 11 , 2004 creating success through teamwork Mr. Doug Schaefer United Water Idaho 8248 West Victory Road Boise, 10 83709 -.0 RE:Maple Hills Filtration Pump Station ..- IJ"')0..Dear Mr. Schaefer Thank you for inviting us to participate in submitting our qualifications for the above project coming up. Below is our proposal for constructing the Maple Hills Pump Station in accordance with the RFP dated October 4th and the drawings provided by UWID. L.1.As you know, the staff at JC Constructors, Inc. has enjoyed a long and productive relationship with UWID , dating back to pre-design prior to the second phase of Marden WTP. We have appreciated the opportunity to work with United Water' staff as a team through ten separate contracts, ranging from $10,000 to $4 miUion. All parties involved have benefited from the openness and trust grown through these projects. We look forward to another with the same team and similar results. IJ"') ..- IJ"')0.. As you also are aware, JC Constructors ' consistent, professional, local presence has produced great benefit, both to its own success and to JC Constructors' growing list of clients. JCC has doubled in size and capacity in the last two years , while continuing to employ arguably the most qualified men in the valley. Skilled craftsmen throughout the area continue to, in their words, "check here first" for an employment home. The result is efficient crews performing superior quality work. Local suppliers and subcontractors work hard to ensure our projects are successful. We have a strong relationship with local building authorities, built over time with a spirit of cooperation. We have successfully built a 'long haul' reputation that brings positive thoughts to most in our industry. -.0 .J:. Our ability to work efficiently, to work affordably and to control the schedule is another significant advantage for JC Constructors and its clients. Our ability to self-perform the work required for Maple Hills is difficult for our competition to match. We intend to perform the excavation , the concrete, miscellaneous metals, the architectural work, the mechanical work, take the lead throughout start-up and dress up the site. Procurement of materials in ,. each of these areas is included as well. With this self perform mindset, significant additional margins are eliminated , which otherwise would be paid by UWID for subcontracted work and procurement packages. Adding to efficiency, with a self perform concept, UWID can be assured both of quality control and schedule success once major Owner Furnished Equipment packages arrives. a::: IJ"')In addition, JC Constructors has continued to grow in experience since our last project with UWID. We recently completed two filtration pump stations for Garden City, very identical in process and scope to the proposed Maple Hills project. Garden City Public Works would ..- .... gladly schedule a tour with you of those projects as you review our proposal. Since completing those two pump stations, we also completed a $3.6 million Water Treatment Facility for the City of Weiser before starting the West Boise project. The City of Boise Public Works would love to show their new West Boise Wastewater Treatment Plant addition , as we approach the 80% mark of their new $7.3 million upgrade. The project is nearing the first major milestone , and should be complete 4 months ahead of contract completion. A list of our recent projects is attached. In short, the above are four major reasons why UWID would benefit by selecting JC Constructors to construct the Maple Hills project. We have a long standing relationship with UWID built on trust, we have built a solid reputation in this local market, we self perform a majority of the work for better-control and cost savings to benefit the client, and we have strong recent experience in the Maple Hills project scope of work. Again , we thank you for the invitation to demonstrate to UWID our qualifications. We look forward to the chance to work with you on this project. Proposal Requirements Section 1 & 2 - Team Qualifications Company Name: JC Constructors, Inc. 1305 E. Columbia Rd. Meridian, 10 83642 (208) 895-8105 (208) 895-8106 fax PW License # 14336-AAA- JC Constructors Inc. was started in May, 1999 by Jim Cox, as a small self-perform general contractor working primarily in engineered mechanical and structural construction. Most of its contracts to date have been connected to the Water and Wastewater industry in some form. Jim Cox, as president and senior project manager will be involved in varying degrees of oversight throughout the project. Tim f=oley has -been the project manager on many of these projects and will be designated as the project manager on the Maple Hills Filtration Pump Station. Both resumes are attached along with a list of past projects and current references. Both Jim Cox and Tim Foley have a strong background in working through the remaining portion of the design requirements. In addition , the company has developed many relationships in the consulting sector to effectively solicit proper design support as needed. JC Constructors has grown steadily financially in its five year history. From a first bonded project of $790 000 to current bondable work program of over $10 million, corporate finances are those of a very strong and stable contractor with no debt. The balance sheet of the company currently reflects $600 000 in working capital with equity of $750,000. Section 3 - Project Approach Budgeting of the project will continue immediately upon notice of award. Materials and competitive subcontractor bids will solicited for those areas not yet bid. The current budget will be updated against current costs weekly, so that budget control will be continuous. e-- Fencing, landscaping, masonry, painting and the electrical work will be subcontracted. All other work will be performed by JCC'screws. Scheduling will be maintained utilizing Primavera Suretrack for overall project critical path schedule. A detailed baseline schedule will be completed immediately following notice of award. JC Constructors will update, plot and circulate a revision monthly. In addition, short term scheduling will be updated weekly using a four week look-ahead schedule to coordinate and communicate details of weekly construction. QAlQC will be first performed by JC Constructors' staff daily. MTI will be the anticipated named outside testing agency on an hourly basis to meet local building codes. A cost allowance of $5,000 is included. Permitting and procurementwill receive immediate attention following notice of award. Procurement will be ongoing well into the construction period , generally from local sources. Construction will begin around November 1st with building underground. The new building should be weather tight around mid January as a milestone, leaving three months for process, control and commissioning. Acceptance testing and substantial completion will be complete by April 15, 2004. Section 4 - Price Proposal As far as cost, we expect the cost of this project to total approximately $1 050,000, not including sales tax on Owner Furnished Equipment. This is a fairly detailed budget, based upon plans received to date and based upon our recent project costs Garden City, JC Constructors' portion of that is $650 000, which is intended to be an all-inclusive package. Included in this package is engineering, foreseeable permits, testing, taxes , bonds, insurance , temporary jobsite facilities, demolition, a CIP baffled tank allowance, a $2500 utility allowance, Farmers Lateral fencing, and a fixed management fee of $70 000. Direct costs will be easy to assess, as costs on the project site will be direct. Constructors will forward no indirect costs from the corporate office. Costs specific to this project will be the only costs UWID will absorb. Project management costs are currently at $1 ,200/week while production I,abor varies from $14/hr to $23/hr. Benefits are above industry standard costs and include vacation and sick pay, family health insurance, an allowance for training. JC Constructors' workmen s compensation, unemployment and liability insurance are well below industry standard costs. Detailed hourly cost rates will be forwarded immediately upon request. The draft Design-Build Agreement is adequate and fair for all parties. If liquidated damages are desired , JC Constructors will gladly concur, assuming an early completion bonus is also involved. Possible alternative wording might include a $5,000 incentive for ten days early completion along with a $5,000 penalty for ten days late completion. Please call if you have further questions for clarification. We look forward to hearing from you. Sincerely, (I tf)! Jim C ,President JC Constructors, Inc. D B I DESIGN-BUILD fNSTIlUTE OF AMERICA Standard Form of Agreement Between Owner and Design-Builder Cost Plus Fee with an Option for a Guaranteed Maximum Price This AGREEMENT is made as of the 8th day of November in the year of 2004 , by and between the following parties, for services in connection with the Project identified below: OWNER: United Water Idaho Inc. 8248 West Victory Rd. O. Box 190420 Boise, Idaho 83719-0420 DESIGN-BUILDER: JC Constructors, Inc. 1305 E. Colum bia Road Meridian, Idaho 83642 PROJECT: Construct Maple Hill Well Treatment System In consideration of the mutual covenants and obligations contained herein, Owner and Design-Builder agree as set forth herein. DBIA Document No. 530 $ Standard Form of Agreement Between Page 1 Owner and Design-Builder c Cost Plus Fee with an Option for a Guaranteed Maximum Price 8 1998 Design-Build Institute of America Article 1 Scope of Work 1 Design-Builder shall perform all design and construction services, and provide all material, equipment tools and labor, necessary to complete the Work described in and reasonably inferable from the Contract Documents. Page 2 Article 2 Contract Documents The Contract Documents are comprised of the following: All written modifications, amendments (including, as applicable, the GMP Exhibit referenced in Section 6.1 hereof or the GMP Proposal accepted by Owner in accordance with Section 6.2 hereof) and change orders to this Agreement issued in accordance with DBIA Document No. 535, Standard Form of General Conditions of Contract Between Owner and Design-Builder(1998 Edition) ("General Conditions of Contracf'), as modified and attached to this Contract; This Agreement, including all exhibits (but excluding, if applicable, the GMP Exhibit) and attachments; The General Conditions of Contract; Construction Documents prepared and approved in accordance with Section 2.4 of the General Conditions of Contract; Owner s Project Criteria as identified in the Request for Proposal dated October 4, 2004 and attached hereto and made a part hereof; and The following other documents, if any: Design-Builder s proposal dated October 11 , 2004 DBIA Document No. 530 $ Standard Form of Agreement Between Owner and Design-Builder c Cost Plus Fee with an Option for a Guaranteed Maximum Price 8 1998 Design-Build Institute of America Article 3 Interpretation and Intent The Contract Documents are intended to permit the parties to complete the Work and all obligations required by the Contract Documents within the Contract Time(s) for the Contract Price. The Contract Documents are intended to be complementary and interpreted in harmony so as to avoid conflict, with words and phrases interpreted in a manner consistent with construction and design industry standards. In the event of any inconsistency, conflict, or ambiguity between or among the Contract Documents, the Contract Documents shall take precedence in the order in which they are listed in Section 2.1 hereof. Terms, words and phrases used in the Contract Documents, including this Agreement, shall have the meanings given them in the General Conditions of Contract. The Contract Documents form the entire agreement between Owner and Design-Builder and by incorporation herein are as fully binding on the parties as if repeated herein. No oral representations or other agreements have been made by the parties except as specifically stated in the Contract Documents. Article 4 Ownership of Work Product Work Product. All drawings, specifications and other documents and electronic data furnished by Design-Builder to Owner under this Agreement ("Work Producf') are deemed to be instruments of service and Design-Builder shall retain the ownership and property interests therein , including the copyrights thereto. Owner, its employees, contractors and agents shall have a limited license to utilize the Work Product for purposes of this Project. 2 Owner s Limited License Upon Payment in Full. Upon Owner s payment in full for all Work performed under the Contract Documents, Design-Builder shall grant Owner, its employees, contractors, and agents a limited license to use the Work Product in connection with Owner s completion and occupancy of the Project, conditioned on Owner s express understanding that its use of the Work Product is at Owners sole risk and without liability or legal exposure to Design-Builder or anyone working by or through Design-Builder including Design Consultants of any tier (collectively the "Indemnified Parties 3 Owner s Limited License Upon Owner s Termination for Convenience or Design-Suilder Election to Terminate. If Owner terminates the Project for its convenience as set forth in Article 8 hereof, or if Design-Builder elects to terminate this Agreement in accordance with Section 11.4 of the General Conditions of Contract, Design-Builder shall, upon Owner s payment in full of the amounts due Design-Builder under the Contract Documents, grant Owner, its employees, contractors and agents a limited license to use the Work Product to complete the Project and subsequently occupy the Project, conditioned on the following: Use of the Work Product is at Owner s sole risk without liability or legal exposure to any Indemnified Party; and 4 Owner s Limited License Upon Design-Suilder s Default. If this Agreement is terminated due to Design-Builder s default pursuant to Section 11.2 of the General Conditions of Contract and (i) it is determined that Design-Builder was in default and (ii) Owner has fully satisfied all of its obligations under the Contract Documents, Design-Builder shall grant Owner, its employees, contractors and agents a limited license to use the Work Product in connection with DBIA Document No. 530 $ Standard Form of Agreement Between Page 3 Owner and Design-Builder c Cost Plus Fee with an Option for a Guaranteed Maximum Price 8 1998 Design-Build Institute of America Owner s completion and occupancy of the Project. This limited license is conditioned on Owner s express understanding that its use of the Work Product is at Owner s sole risk and without liability or legal exposure to any Indemnified Party. 5 Owner s Indemnification for Use of Work Product. If Owner uses the Work Product under any of the circumstances identified in this Article 4, Owner shall defend, indemnify and hold harmless the Indemnified Parties from and against any and all claims, damages, liabilities, losses and expenses, including attorneys fees, arising out of or resulting from the use of the Work Product. Article 5 Contract Time Date of Commencement. The Work shall commence within five (5) days of Design-Builder s receipt of Owner s Notice to Proceed ("Date of Commencement") unless the parties mutually agree otherwise in writing. Substantial Completion and Final Completion Substantial Completion of the entire Work shall be achieved no later than April 22, 2005(IIScheduled Substantial Completion Date Interim milestones and/or Substantial Completion of identified portions of the Work shall be achieved as follows Final Completion of the Work or identified portions of the Work shall be achieved as expeditiously as reasonably practicable. All of the dates set forth in this Article 5 ("Contract Time(s)") shall be subject to adjustment in accordance with the General Conditions of Contract. Time is of the Essence. Owner and Design-Builder mutually agree that time is of the essence with respect to the dates and times set forth in the Contract Documents. Liquidated Damages. Design-Builder understands that if Substantial Completion is not attained by the Scheduled Substantial Completion Date, Owner will suffer damages which are difficult to determine and accurately specify. Design-Builder agrees that if Substantial Completion is not attained by April 22. 2005the Scheduled Substantial Completion Date ( and the "LD Date ), Design-Builder shall pay Owner One Thousand Dollars ($ 1 ,000.00) as liquidated damages for each day that Substantial Completion extends beyond the LD Date. The liquidated damages provided herein shall be in lieu of all liability for any and all extra costs, losses , expenses, claims, penalties and any other damages, whether special or consequential, and of whatsoever nature incurred by Owner which are occasioned by any delay in achieving Substantial Completion. Early Completion Bonus. If Substantial Completion is attain~d on or before April 22. 2005 (the Bonus Date ), Owner shall pay Design-Builder at the time of Final Payment under Section 7.3 hereof an early completion bonus of One Thousand Dollars ($ 1,000.00) for each day that Substantial Completion is attained earlier than the Bonus Date not to exceed 15 days. Page 4 DBIA Document No. 530 $ Standard Form of Agreement Between Owner and Design-Builder c Cost Plus Fee with an Option for a Guaranteed Maximum Price 8 1998 Design-Build Institute of America Article 6 Contract Price Contract Price Owner shall pay Design-Builder in accordance with Article 6 of the General Conditions of Contract a contract price ("Contract Price ) equal to Design-Builder s Fee (as defined in Section 6.2 hereof) plus the Cost of the Work (as defined in Section 6.3 hereof), subject to any GMP established in Section 6.5 hereof and any adjustments made in accordance with the General Conditions of Contract For the specific Work set forth below, Owner agrees to pay Design-Builder, as part of the Contract Price, on the following basis: Design-Builder s Fee Design-Builder s Fee shall be: Seventy Thousand Dollars ($ ~70.000.), as adjusted in accordance with Section 6.2 below. This fee will be billed to Owner in proportion to the costs authorized in each incremental release until the full scope of the design and construction has been released. At this point the fee will continue to be billed in proportion to the costs incurred until the project is substantially complete whereupon the full fee will be due. This fixed fee is the total fee to be paid to design-builder for the base scope. Design-Builder s Fee will be adjusted as follows for any changes in the Work: No changes in scope are anticipated. Cost of the Work. The term Cost of the Work shall mean costs reasonably incurred by Design- Builder in the proper performance of the Work. The Cost of the Work shall include only the following: Wages and overhead as described in Section 6.5 of direct employees of Design-Builder performing the Work at the Site or, with Owner s agreement, at locations off the Site, provided, however, that the costs for those employees of Design-Builder performing design services shall be calculated on the basis of those rates set forth in Design-Builder s proposal which is an exhibit to this Agreement Wages or salaries as described in Section 6.5 and overhead of Design-Builder supervisory and administrative personnel engaged in the performance of the Work and who are located at the Site or working off-Site to assist in the production or transportation of material and equipment necessary for the Work at those rates set forth in Design-Builder proposal which is an exhibit to this agreement Wages or salaries as described in Section 6.5 and overhead of Design-Builder s personnel stationed at Design-Builder s principal or branch offices and performing work directly on the project at those rates set forth in Design-Builder s proposal which is an exhibit to this agreement) DBIA Document No. 530 $ Standard Form of Agreement Between Page 5 Owner and Design-Builder c Cost Plus Fee with an Option for a Guaranteed Maximum Price 8 1998 Design-Build Institute of America Page 6 Wages and overhead as described in Section 6.3.5 of Design-Builder s construction craft personnel engaged in the performance of the Work and who are located at the Site or working off-Site to assist in the production or transportation of material and equipment necessary for the Work at those rates set forth in Design-Builder proposal which is an exhibit to this agreement. Costs incurred by Design-Builder for employee benefits premiums, taxes, insurance contributions and assessments required by law, collective bargaining agreements, or which are customarily paid by Design-Builder, to the extent such costs are based on wages and salaries paid to employees of Design-Builder covered under Sections 6.1 through 6. hereof. The reasonable portion of the cost of travel, accommodations and meals for Design-Builders personnel necessarily and directly incurred in connection with the performance of the Work. Payments properly made by Design-Builder to Subcontractors and Design Consultants for performance of portions of the Work, including any insurance and bond premiums incurred by Subcontractors and Design Consultants. Costs incurred by Design-Builder in repairing or correcting defective, damaged or nonconforming Work, provided that such defective, damaged or nonconforming Work was beyond the reasonable control of Design-Builder, or caused by the ordinary mistakes or inadvertence, and not the negligence, of Design-Builder or those working by or through Design-Builder. If the costs associated with such defective, damaged or nonconforming Work are recoverable from insurance, Subcontractors or Design Consultants, Design-Builder shall exercise best efforts to obtain recovery from the appropriate source and credit Owner if recovery is obtained. Costs, including transportation, inspection, testing, storage and handling, of materials, equipment and supplies incorporated or reasonably used in completing the Work. Costs less salvage value of materials, supplies, temporary facilities, machinery, equipment and hand tools not customarily owned by the workers that are not fully consumed in the performance of the Work and which remain the property of Design-Builder, including the costs of transporting, inspecting, testing, handling, installing, maintaining, dismantling and removing such items. Costs of removal of debris and waste from the Site. The reasonable costs and expenses incurred in establishing, operating and demobilizing the Site office, including the cost of facsimile transmissions, long-distance telephone calls postage and express delivery charges, telephone service. , ' Photocopying and reasonable petty cash expenses. Rental charges and the costs of transportation, installation, minor repairs and replacements, dismantling and removal of temporary facilities, machinery, equipment and hand tools not customarily owned by the workers, which are provided by Design-Builder at the Site, whether rented from Design-Builder or others, and incurred in the performance of the Work. Premiums for insurance and bonds required by this Agreement or the performance of the Work. DBIA Document No. 530 $ Standard Form of Agreement Between Owner and Design-Builder c Cost Plus Fee with an Option for a Guaranteed Maximum Price 8 1998 Design-Build Institute of America