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SR-502-001-05 (6) EPWM: H:\Staff Reports In Process\9_27\Flouridation.doc Council Meeting: October 11, 2005 Santa Monica, California To: Mayor and City Council From: City Staff Subject: Award of Construction Contract for the Fluoridation of Santa Monica Well #1 Introduction This report recommends that the City Council award a contract to Pascal and Ludwig Constructors, the best bidder, in the amount of $423,869 and authorize $42,386 in . contingency funds for the construction of the Santa Monica Well #1 Fluoridation Project Background On October 23, 2001, City Council approved fluoridation of the City's water supply and directed staff to include the project and appropriate funding in capital and operating budgets. Following an extensive design process, including review by the City?s Environmental Task Force, staff presented to Council a summary of bids received for the construction of fluoridation facilities on December 14, 2004. Bids substantially exceeded the capital budget for the project, and Council approved the staff recommendation to reject all bids and directed the City Manager to negotiate the prices on the open market. 1 Community water fluoridation entails an adjustment of the natural fluoride concentration in water up to the level recommended for optimal dental health (approximately 0.8 parts per million (ppm), as recommended by the Centers for Disease Control. Natural fluoride levels in drinking water normally fall below this level. In Santa Monica, the water supply presently contains a natural fluoride level of between 0.2 and 0.4 ppm. Regionally, the City?s principal supplier of water, the Metropolitan Water District of Southern California (MWD), has proceeded with plans to upgrade its water treatment facilities in order to supply fluoridated water to its member agencies in 2006. Currently, MWD supplies approximately 90% of the City?s water, which is processed through the City?s Arcadia Water Treatment Plant. It is anticipated that this will continue until approximately 2009 or 2010, at which time a treatment plant for recovery of the Charnock wells will be completed, and the city can return to a water supply mix comprised primarily of local resources. A fluoridation system for the water wells that are currently shut-down due to MtBE contamination will be designed as a part of the treatment plant project. Since the fluoridation system will be paid for by the City and not the settling oil companies, staff will return to Council with proposed construction costs and project approval once bids are received for the treatment plant project in approximately two to three years. Once all wells are in production, about 80% of the City?s water will come from local groundwater and the balance from MWD. Given the imminent MWD supply of fluoridated water, staff solicited construction bids for stand-alone fluoridation facilities at Santa Monica Well #1 only. This well is unique in 2 that it is the only well that delivers water directly into the distribution system without going through the Arcadia Water Treatment Plant. This stand alone facility will first operate in tandem with the MWD water deliveries in order for the overall fluoridation levels to reach the recommended range of .8 ppm and subsequently with water produced at the City?s MtBE treatment plant to the same end. Discussion Following Council authorization to negotiate on the open market, staff sent bidding documents to five companies. The City received two bids: Pascal and Ludwig Constructors $423,869 Pacific Mechanical Corporation $500,000 Engineer?s estimate $365,000 The best bidder, Pascal and Ludwig Constructors, supplied the City with the names of recent projects. These projects included: ION Exchange Facility at Plant No. 12, in the City of Upland, CA; Irvine Desalter ? Portable Treatment Plant and Irvine Desalter ? Well 76, 77 & 110, Irvine Ranch Water District; and Platz Reservoir Pump Station Expansion, Laguna Beach County Water District. Staff contacted representatives of the agencies and companies representing these projects, and they responded that the Contractor?s work was very good. The California Contractor?s License Board verified the contractors? licenses are active and in good standing. City staff also contacted the center for Contract Compliance which reported that Pascal and Ludwig Constructors file is 3 currently clear of compliance violations. Budget/Financial Impact FUNDS REQUIRED: Contract $423,869 Contingency $ 42,386 Total Required $466,255 Funds in the amount of $466,255 are available in account C250786.589000, ?Fluoridation Facility Construction.? A grant in the amount of $440,000 from the Fluoridation 2010 Work Group has been approved for the construction of the required facilities on a reimbursement basis and revenue account 25671.403650 has been established to receive the reimbursements. Fluoridation 2010 is a collaboration of the California Department of Health Services, the California Dental Association, California Dental Association Foundation, and the Dental Health Foundation. Recommendation Staff recommends that the City Council: 1. Award a contract for the construction of the SM Well #1 Fluoridation Project to Pascal and Ludwig Constructors, the best bidder, in the amount of $423,869 and approve $42,386 in contingency funds for this contract; and 2. Authorize the City Engineer to issue any necessary change orders to complete additional work within budget authority. 4 Prepared by: Craig Perkins, Director, Environmental and Public Works Management Anthony Antich, P.E., City Engineer Gil Borboa, Water Resources Manager Susan Lowell, P.E. Water Resources Engineer Dave Britton, P.E., Principal Civil Engineer Spiros A. Lazaris, P.E., Civil Engineer Reference Contract No. 8518 (CCS). 5