Santa Clara County Grand Jury • 2008-2009

2008-2009 Santa Clara County Civil Grand Jury Report Santa Clara Valley Water District – Part 2 New Water Quality

Published: September 22, 2008 14 pages
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Findings and Recommendations 12 findings

F1
Building costs for the Water Quality Lab were initially estimated at $8.1 million. When the bids were submitted by contractors in February 2004, the low bid was $11,344,921. The District reported that the Water Quality Lab Building was completed November 2008 at a cost of $ 17,895,000. When the cost figures for the District Labor Design Phase, Consultant Design Fees and Consultant Engineering Support during Construction and the actual lab construction contract costs are factored in, the total cost for the Water Quality Lab Building is $ 21,195,666. The building was paid for through water sales and ground water replenishment taxes.
Related Recommendations (2)
R1
Final Board approval before a project is put out for bidding must be based upon current independent cost justification.
R2
Retain the services of a qualified consultant to assess the proposed plans for any future major capital investments including, but not limited to, Rinconada Water Treatment Plant, to ensure they are necessary and are not over-designed. Solicit and follow the advice of independent experts regarding the costs and benefits of all substantial capital expenditures.
F2
The Rinconada Water Treatment Plant short-term and long-term plans call for improvements amounting to $81,816,000 (through 2013) and $195,438,000 (through 2019), respectively, totaling $ 277, 254,000.
Related Recommendations (1)
R2
Retain the services of a qualified consultant to assess the proposed plans for any future major capital investments including, but not limited to, Rinconada Water Treatment Plant, to ensure they are necessary and are not over-designed. Solicit and follow the advice of independent experts regarding the costs and benefits of all substantial capital expenditures.
F3a
The Water Quality Lab occupies the entire building but actually utilizes about half its square footage. 6
No recommendations for this finding
F3b
District interviewees have stated that due to its current layout, the excess lab office space could not be leased out to another county agency or governmental group. However, in the view of the Grand Jury, the office area, composed primarily of cubicles formed by movable partitions could easily be converted to other uses. Laboratory space is sufficiently large to accommodate individual staff offices.
No recommendations for this finding
F3c
Several members of the Board of Directors who were asked about the building were not able to justify the size of building and did not know that the building was constructed as an essential facility. The Board was remiss in its duty to oversee the scope and cost of the project.
No recommendations for this finding
F4
Most testing in the Water Quality Lab is for drinking water from water treatment plants. It occasionally provides free ground water testing to private well owners. The Water Quality Lab does not sample or test river, stream or creek waters which are subject to urban water contamination problems, particularly nitrates and mercury.
No recommendations for this finding
F5
The Water Quality Lab has well documented processes and is audited regularly by the State of California. It has received positive comments in recent ISO assessments.
No recommendations for this finding
F6
The Water Quality Lab is not operating at full capacity and is looking at the possibility of using its spare capacity by analyzing samples from various other sources to generate extra revenue. While the subject is still under discussion, District officials have noted that they may only be able to sell services to municipal retailers. The estimated additional revenue is in the range of $500K-$720K.
No recommendations for this finding
F7
Water Quality Lab staff acknowledged that salaries at the District may be too high to be price-competitive against private labs, and they believe that their quality level justifies it.
No recommendations for this finding
F8a
The new Water Quality Lab Building was constructed as an “essential facility” with extensive seismic reinforcements, including a failsafe power system for total uninterrupted power.
No recommendations for this finding
F8b
The District justifies building the Water Quality Lab Building as an essential facility by saying that “it is consistent with the design of water treatment plants and facilities that support their operation. The basis is that water facilities need to operate reliably on a continuous basis and need to be designed to withstand loss of power, earthquakes, and other hazards.”
No recommendations for this finding
F8c
The Water Quality Lab building is not required by statute to be an essential service facility within the meaning of California Seismic Health and Safety Code §16007: "Essential services building" means any building, including buildings designed and constructed, for public agencies used, or designed to be used, or any building a portion of which is used or designed to be used, as a fire station, police station, emergency operations center, California Highway Patrol office, sheriff's office, or emergency communication dispatch center.”
No recommendations for this finding

Additional Recommendations 3

These recommendations are not explicitly linked to specific findings.

No Responses Found 2

Government entities assigned to respond to this report. No response documents have been linked in our database.

County of Santa Clara Agency
Lions Gate Community Services District Special District