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SR-04-22-1980-6N6/V Santa Monica, California, April 15, 1980 To: Mayor and City Council From: City Staff Subject: RECOMMENDATION TO AWARD A CONTRACT FOR CONSTRUCTION OF FOUR WATER (JELLS Introduction This report discusses the results of recently received bids for constructing water wells and recommends award of a contract to a water well drilling company. Background The cost of water produced from local city wells approximates three quarters of the cost of purchasing imported water from the Metropolitan Water District of Southern California (MWD). Santa Monica produced only 31% of its total water requirements for the City from its groundwater wells in fiscal year 1978 -79. The production of this water from local wells has been declining over the past three years culminating in the loss of two of the nine city wells due to corrosion and sanding problems. These two wells were at the Charnock Well field where high corrosivity of the soil exists, and exhaustive investigation and attempts to rehabilitate the wells were unsuccessful. Additionally, a third well has been out of service for nearly four months. The four new wells are needed regardless of the resolution of the above noted well. To maximize local water production, staff prepared specifications for five water wells, and advertised for bidders. C/o 6 / APR 2 2 1980 � To: Mayor and City Council - 2 - April 15, 1980 Bids were opened on March 3, 1980, and the results were as follows: Engineers Estimate Beylik Drilling Company La Habra, California Bakersfield Well & Pump Company Bakersfield, California $549,000.00 $889,905.00 $1,166,145.00 After reviewing the bids, it was determined the inclusion in the specifications of special stainless steel casings, and inflationary factors since original estimate for the wells, were the reasons for the relatively high bids. Staff has discussed this with the low bidder and determined that if only four wells are drilled and only one of the wells (the one to be drilled at Charnock), uses the special stainless steel casing, the contract price can be reduced to $506,361. Location of the other three wells is as follows: Montana Avenue and Harvard Avenue La Mesa Drive at 26th Street 1,000 feet west of Santa Monica Well #3. If sub - strata investigations of the area indicate the presence of possible TCE traces, then the alternative location will be San Vicente Boulevard at 7th Street The drilling of additional local wells to minimize the purchase of imported water is economically desireable, as each well will have a payback period of less than 5 years. $105,000 had been budgeted for new well construction in 1977 -78, and $90,000 additionally in 1978 -79. Due to staff time limitations, neither of these wells was constructed, and the budgeted amounts reverted to the Water Operating Fund. To: Mayor and City Council - 3 - April 15, 1980 Since only $105,000 is budgeted for well construction in the current fiscal year, appropriation (or re- appropriation) of an additional $401,361 from the Water Fund is needed to fund the $506,361 required for the construction of the four wells. Recommendation It is recommended the City Council appropriate an additional $401,361 from the Water Operating Fund and award a contract to Beylik Drilling Company, for drilling one stainless steel well and casing and three copper bearing steel wells and casings in the amount of $50x1;361. Prepared by: Stan Scholl Ed Lash Agenda Item 6 -N: Presented for consideration at this time was a contract for award (SP 903) for construction of four water wells to Beylik Drilling Co. in the total amount of $506,361 and a request for appropria- tion of $40.1,361 from the Water Operating Fund. Discussion followed. Councilmember Reed moved approval of staff recommendation, i.e. awarding Contract No. 3474 CCS to Beylik Drilling Company in the total amount of $506,361 and approving an appropriation of $401,361 from the Water Operating Fund. Second by Councilmember Rhoden and approved as follows: Council Vote: Unanimously approved 7 -0 CITY COUNCIL MEETING - April 29, 1980