HomeMy WebLinkAbout09 AWARD CONTRACT FOR BENETA WELL NO. 2DocuSign Envelope ID: 89AB5F7E-7024-41 E5-8A70-595E64F5D32A
Agenda Item ®S
AGENDA REPORT Reviewed. -
City Manager _
Finance Director
MEETING DATE: NOVEMBER 16, 2021
TO: MATTHEW S. WEST, CITY MANAGER
FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
SUBJECT: AWARD CONTRACT FOR THE BENETA WELL NO. 2 — PHASE 1 DRILLING
PROJECT (CIP NO. 60151)
SUMMARY
Staff is requesting the City Council award the construction contract to the lowest
responsive/responsible bidder, South West Pump & Drilling, Inc., for the Beneta Well No. 2 — Phase
1 Drilling Project (CIP No. 60151), and authorize the Mayor and the City Clerk to execute the contract
documents on behalf of the City.
RECOMMENDATION
It is recommended that the City Council award a construction contract to the lowest
responsive/responsible bidder, South West Pump & Drilling, Inc. in the amount of $1,973,336 for the
Beneta Well No. 2 — Phase 1 Drilling Project (CIP No. 60151) and authorize the Mayor and the City
Clerk to execute the contract documents on behalf of the City.
FISCAL IMPACT
Funding in the amount of $4,575,140, including the SARCCUP / OCWD grant in the amount of
$1,575,140, has been budgeted in the Capital Improvement Program for Fiscal Year 2021-22 for
construction of both the drilling and equipping phases of the project. The preliminary engineers
estimate for the Phase I — Drilling Project was $1.5 million. Due to the current high volume of drilling
work across the state, a limited number of qualified contractors available to performed the specialized
nature of the work, and recent escalations in construction materials and fuel costs have resulted in
a challenging bidding environment.
CORRELATION TO THE STRATEGIC PLAN
The project contributes to the fulfillment of the City's Strategic Plan Goal B: Public Safety and
Protection of Assets. Specifically, the project implements Strategy 1, which among other items, is to
ensure continuous maintenance and improvement of public facilities. In addition, Goal D: Foster
strong relationships within the community, specifically, Strategy 2, enhance collaborative efforts with
agencies within and outside Tustin on issues of mutual interest and concern.
DISCUSSON
The Orange County Water District (OCWD), in partnership with Santa Ana Watershed Project
Authority (SAWPA), was awarded $7,875,000 in Proposition 84 grant funds from the Department of
Water Resources (DWR) for the Santa Ana River Conservation and Conjunctive Use Program
(SARCCUP). These grant funds have been dedicated to construct five additional groundwater wells
within the OCWD service boundaries. Tustin was selected as one of five Orange County water
agencies to receive $1,575,140 in matching funds to assist in the construction of a new groundwater
well. On February 2, 2021, the City Council approved a contract entitled "Contract Between Orange
DocuSign Envelope ID: 89AB5F7E-7024-41 E5-8A70-595E64F5D32A
Beneta Well No. 2 — Phase 1 Drilling Project (CIP No. 60151)
November 16, 2021
Page 2
County Water District and the City of Tustin Regarding Construction of Wells for Santa Ana River
Conservation and Conjunctive Use Program (SARCCUP) Water Bank".
The project will be implemented in two phases: Phase I Drilling, and Phase II Construction/Equipping.
The scope of work of the drilling phase includes site preparation, borehole drilling, geophysical
logging, isolated aquifer zone testing, borehole reaming, casing installation, gravel envelope
installation, annular seal installation, well development, and completion of the well head. The
proposed well will be drilled in two passes (i.e. pilot borehole and reamed borehole) using the fluid
reverse circulation rotary drilling method with installation of a gravel envelope to stabilize the
formation materials. A 17.5 -inch diameter pilot borehole will be drilled to an estimated total depth of
1,030 feet.
Formal bids were submitted electronically and publicly opened on October 26, 2021 and reviewed
by Public Works. One (1) bid was received:
South West Pump & Drilling, Inc ..................................................... $1,973,336.00
In recent discussions with the Orange County Water District, local administrator for the SARCCUP
grant program, and the City of Orange, and East Orange County Water District as participants in the
SARCCUP program have seen similar challenges in the well drilling and construction environment
with bids exceeding engineers estimates. In April 2021, the City of Orange awarded a well drilling
contract of similar depth at the cost of $2.1 M, included construction contingencies, and currently has
a second well out to bid with an engineer's estimate of $2.5M.
In 2013, South West Pump & Drilling completed the Phase 1 drilling of the City's Edinger Well. All
work was completed to the satisfaction of the City Engineer with final projects costs $181,369 below
the contract amount of $1,527,233, primarily due to decreased depth of the well. Staff has reviewed
the references and the State Contractor's License for South West Pump & Drilling, Inc. and has
determined that they are appropriate for the subject project.
It is recommended that the City Council award the construction contract to the lowest
responsive/responsible bidder, South West Pump & Drilling, Inc., for the Beneta Well No. 2 — Phase
1 Drilling Project (CIP No. 60151), and authorize the Mayor and the City Clerk to execute the contract
documents on behalf of the City.
S. tack, P. E.
Public Works/City Engineer
Attachment: Location Map
DocuSign Envelope ID: 89AB5F7E-7024-41 E5-8A70-595E64F5D32A
ATTACHMENT
Location Map
DocuSign Envelope ID: 89AB5F7E-7024-41 E5-8A70-595E64F5D32A
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