Harvest Water program nears delivery milestones; pipeline 90% complete, on‑farm reimbursement plan proposed

District staff on Sept. 24 told the Sacramento Area Sewer District that the Harvest Water capital program has reached major construction milestones, provided a budget update and signaled upcoming board actions on a customer reimbursement framework for on‑farm connections.

Mike Crooks, Harvest Water capital program manager, and Joe Fobor, manager of the APMO program, presented construction progress, program finances and community‑engagement efforts. Crooks said the pipeline network reached about 90% installed and that the program will ultimately include roughly 41 miles of pipeline, a pumping station rated at 105 million gallons per day, and about 120 planned service connections.

Construction progress and local impacts: Crooks showed photos and said 19 miles of roads have been resurfaced to date and 80 culverts replaced as crews complete the pipeline work south of the city of Elk Grove. Key construction milestones included a completed tunnel under a railroad at Sims Road and arrival of vertical turbine pump components and "pump cans" that were fabricated off‑site; Crooks said the pump‑can deliveries faced manufacturer quality‑control delays but began arriving this week.

Crooks said the on‑farm connections program (phase 1) has started construction; he said improvements that allow growers to connect district recycled water to existing irrigation systems will be performed by the growers themselves or contractors and that the district intends to reimburse those costs. District staff said they will use the U.S. Department of Agriculture Natural Resources Conservation Service pricing framework (the Environmental Quality Incentives Program, EQIP) to set reimbursement limits, and staff estimated the program’s reimbursement commitment at roughly $14,000,000. Crooks said staff were seeking guidance from the California Department of Industrial Relations about whether prevailing‑wage rules apply to work paid from public funds; staff told the board prevailing‑wage application would determine reimbursement assumptions.

Program budget and funding: Crooks said the Harvest Water program’s total project value remains $597,200,000. Staff reported potential funding in hand or committed of about $416,300,000 and said they are continuing to seek additional state and federal grants to close the gap. Crooks noted a capital‑budget revision presented to the board: staff proposed reducing the capital delivery budget by about $24,000,000 from a previously carried amount of roughly $501,000,000 to a new figure of about $477,000,000 based on current contract and consultant cost projections.

APMO and eco‑plan costs: Joe Fobor described administrative and ecological obligations tied to the program’s eco plan and "CAPBs" (conservation agreements). He said the district is the first agency in the state to negotiate certain ecological‑benefit contracts with state regulators and that those commitments — for example, crane habitat and riparian features — carry federal benchmark costs that have risen since 2022. Fobor said the APMO (administration and program management) budget would be adjusted upward by about $24,000,000 from earlier 2022 estimates to reflect inflationary increases in land and practice costs and that staff expect some of that increase could be offset by savings in design and construction or by securing additional grants tied to ecological points.

Community outreach and operations: staff emphasized ongoing coordination with local growers, residents and event operators to reduce construction impacts. Directors pressed staff on field issues Crooks said were being monitored: settlement around valve boxes at on‑farm connection points, warranty and retention practices, and ensuring access for seasonal businesses such as a pumpkin patch and school field trips. Crooks said valve‑box settlement would typically be handled as a warranty item and that contractor warranties extend for a year; retention is generally released at contract completion while warranty obligations remain in force.

Program metrics and next steps: Crooks reported the change‑order rate across active construction contracts at about 3.1% (staff target 5%). Joe Fobor said the district has executed 56 off‑take agreements for recycled water service — representing about 68% of the program’s summer irrigation demand goal — and that upcoming board items will include a customer reimbursement framework for on‑farm improvements, several consultant contract amendments, and eco‑plan procurement activities. Staff asked the board to receive and file the quarterly report; there was no vote on items specific to the report at the meeting.