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SR - AGR-6089 - WELL NO 27AGENDA ITEM April 8, 2014 TO: Honorable Mayor and Members of the City Council THRU: John W. Sibley City Manager FROM: Joe DeFrancesco Public Works Di ector ReviewedNerif B City Manager Finance Direct r To Be Presente : Joe a rancesco X Cons Calendar V City Mgr Rpts Council Rpts Legal Affairs Boards /Crates Public Hrgs Admin Rpts Plan /Environ 1. SUBJECT Award of Contract - Bid No. 134-20; Well No. 27 Drilling (W -660) 2. SUMMARY One (1) bid for Well No. 27 Drilling (W -660) was received and opened on March 20, 2014. The apparent low bidder is Southwest Pump & Drilling, Inc. for $1,303,340.00. 3. RECOMMENDED ACTION Award a contract in the amount of $1,303,340.00 to Southwest Pump & Drilling, Inc. and authorize the Mayor and City Clerk to execute the necessary documents on behalf of the City. 4. FISCAL IMPACT Funds are budgeted and are available in the following accounts: 600.8011.56411.18119 Well 27 Construction $2,568,025.00 5. STRATEGIC PLAN GOAL(S) lb) Provide for a safe community — Provide and maintain infrastructure necessary to ensure the safety of the public. 2d) Be a fiscally healthy community - Effectively manage and develop City assets. 4b) Provide outstanding public service - Provide facilities and services to meet customer expectations. 6. GENERAL PLAN IMPLEMENTATION Infrastructure Element Goal 6.0: Ensure water, sewer, and storm drain systems that meet the needs of residents and businesses. Policy 1.1: Provide sufficient levels of water, sewer, and storm drain service throughout the community. ITEM 4/08/14 1 Economic Development Element Goal 6.0: Provide sufficient infrastructure to support anticipated economic development and growth. Policy 6.1: Provide public improvements to support commercial, industrial and institutional uses. 7. DISCUSSION and BACKGROUND The City Council previously approved the advertisement for bids on February 11, 2014. Four bid packages were sold. The City received a letter from Layne Company declining to bid due to a severe drought situation, which has tied up all their drilling rigs elsewhere. Other companies did not submit a bid due to their busy schedule. One bid was received and opened on March 20, 2014. The result is as follows: CONTRACTOR AMOUNT Southwest Pump & Drilling, Inc. $1,303,304.00 The Engineer's estimate for this project is $1,200,000.00. Staff conducted reference checks with other agencies including the cities of Tustin and La Habra, and California Water Service Company. All agencies contacted gave good reviews on the performance of Southwest Pump & Drilling, Inc. They cited innovative approach in sound proofing, ability to complete project on schedule, and effective drilling methods which result in a good production well as their reasons for their good rating. Therefore, staff recommends that Southwest Pump & Drilling, Inc. be awarded the contract in the amount of $1,303,340.00 for the Well No. 27 Drilling project. The proposed Well No. 27 is located at 140 S. Jameson Street, adjacent to the Water Division parking lot. The site was part of the former OCFA site. Well No. 27 will replace existing wells 4, 5 and 14 located nearby. These existing wells have reached the end of their useful life and are failing. The scope of work for this project includes the demolition of existing Well No. 14, drilling and installation of approximately 950 feet of 20" stainless steel casing and louver, installation of all accessory tubing, gravel pack, sanitary seal, conduct test pumping, final well development, and disinfection. The drilling operation for the project will last approximately 30 days and require some 24 -hour operational working periods. Prior to the project starting, staff will conduct an outreach to the neighborhood that could be affected by the construction. While the contractor will install 24 foot high sound attenuation walls around the project site for the duration of the project, staff will closely monitor all work and sound generation emanating from the project. Construction is anticipated to begin in April 2014 and to be completed within 180 calendar days. 8. ATTACHMENTS Bid Results ITEM 4/08/14 2