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SR 07-11-2017 3N Ci ty Council Report City Council Meeting : July 11, 2017 Agenda Item: 3.N 1 of 6 To: Mayor and City Council From: Susan Cline, Director , Public Works, Water Resources Subject: Award Construction Contract for Three Coastal Sub Basin Exploratory Borings/Wells and Destruction and Replacement of City Groundwater Supply Well SM -7 Recomme nded Action Staff recommends that the City Council: 1. Award Bid #SP2455 to Yellow Jacket Drilling Services, an Arizona -based company, for the drilling of three exploratory borings/wells and to plug and replace the City’s existing SM -7 groundwater supply wel l ; 2. Authorize the City Manager to negotiate and execute agreement contract with Yellow Jacket Drilling Services, in an amount not to exceed $4,197,842 (including a $547,545 contingency). 3. Authorize budget changes as outlined in the Financial I mpacts & Budget Actions section of this report. Executive Summary The City of Santa Monica (“City”) has solicited bids from California licensed well drilling contractor s to drill three deep (~600 f oot ) exploratory borings, and to plug and replace the City’s existing SM -7 groundwater supply well. The borings will be located at various locations in the coastal sub -basin, where the City has not previously developed water production wells. The locations include the Colorado Maintenance Yard, the Santa Monica Airport, and on a City -owned parcel on 19 th Street. The SM -7 replacement well will be located along Olympic Boulevard. The dual goals of this project are to obtain subsurface data in order to understand the hydrogeological conditions in the Coastal sub -basin , and to incr ease groundwater production from the City’s Olympic Wellfield by replacing an ineffectual existing well. In April 2017, the City solicited competitive bids for such services. After reviewing the four (4) bids received, s taff recommends awarding the contr act to Yellow Jacket Drilling Services in an amount not to exceed $4,197,842 (including a $547,545 contingency). 2 of 6 Background O n October 28, 201 4 , the Santa Monica City Council adopted the City’s Sustainable Water Master Plan (SWMP) (Attachment A). The SWMP entailed a multi -faceted approach address ing the City’s goal of achieving water self -sufficiency by the year 2020. To work towards achieving this goal, the City’s strategy relies upon a combination of continued water conservation, the conjunctive reuse of nonconventional resources such as brackish/saline impaired groundwater, recycled municipal wastewater, dry and wet weather runoff, and additional local groundwater production. Data gathered by the drilling of the exploratory borings would assist the City with its sustainable water strategy by providing important hydrogeologic al information the City can utilize to refine its assessment of aquifer sustainable yield volumes, and lay the foundation for a detailed numerical hydrogeologic al model of the City’s a quifers and available groundwater resources. Discussion The dual objectives of this project are to drill exploratory borings to obtain subsurface data in order to provide for a refined assessment of local hydrogeologic al conditions and to replace a less than effective City water supply well (SM -7) in the Olympic Wellfield. Based on hydrogeologic al information obtained from the exploratory borings, the City may also complete one of the exploratory borings as an aquifer recharge well in support of the City ’s Sustainable Water Infrastructure Project (SWIP). The SWIP is a multi - faceted water resources enhancement project , which takes an integrated approach to treating stormwater runoff, brackish groundwater, and municipal wastewater for beneficial reuse. Det ails of SWIP were presented to Council on September 27, 2016 and can be found in Attachment B . The exploratory boring site s would be located at the Santa Monica Airport, the Colorado Yards , and on a vacant City -owned parcel on 19 th Street near Santa Moni ca College. The Olympic Wellfield boring would be located in a median on Olympic Boulevard near Stewart Street. Specific information regarding each location is provide d below. 3 of 6  The Airport boring would be located at the Santa Monica Airport, 3223 Donald Dou glas Loop S outh , approximately 430 f eet southeast of the intersection of Ashland Avenue and Clover Street.  The Colorado Yard s boring would be located in the staff parking lot of the City’s Colorado Yard s at 1601 14 th Street. If the geology is favorable thi s boring w ould be completed as an aquifer recharge well in support of the City’s S WIP.  The City -owned parcel boring would be located at 2018 19 th St reet , approximately 290 f eet northwest of the intersection of Pic o Boulevard and 19th Street. If the geology is determined to be favorable, the City Water Resources Division w ould work to obtain this parcel from the City Housing and Economic Development Department .  The Olympic Wellfield replacement supply well would be located in a center median parkway along Ol ympic B oulevard , approximately 300 feet southwest of its intersection with Stewart Street. The new well w ould be located approximately 50 f eet southwest of the existing well SM -7, which w ould also be plugged as part of this contract . The proposed location s for the Santa Monica Airport, Colorado Yards, City Parcel, and Olympic Wellfield sites are shown in Attachment C , “Proposed Well Location s ”. Work is expected to commence in late summer 2017 and be completed by early winter 2017. In order to expedite work and minimize the potential for protracted inconvenience to the community, the drilling contractor w ould be required to operate two drill rigs simultaneously. In advance of the drilling wo r k, informational notices in English and Spanish w ould be mailed to residents and businesses within a 500 -foot radius of each drilling site. As part of the contract agreement, the drilling contractor is required to abide by the specific noise requirements and policies for construction activities set forth in the City of S anta Monica Municipal Code Article 4, Chapter 4.12. Noise abate ment panels would be utilized at all locations except at the Olympic Wellfield, which is located in an industrial 4 of 6 corridor, bounded by the Metro Expo Line and an active construction site, and h as limited available safe workspace as it is located in the Olympic Boulevard traffic median . Noise suppression shall be practiced at all times to mini mize disturbance s to persons living or working nearby, and to the gen eral pub lic. In addition, due to the proximity of residents to the City -owned parcel s ite, construction activities w ould be restricted to daylight hours, with the possible exception of test pumping activities related to aquifer zone testing and constant rate pump testing, which require c ontinuous water flow over 24 hours or longer for reliable data. Vendor Selection On April 17, 2017, the City published Notices Inviting Bids to furnish and provide drilling and well construction work in accordance with City specifications. The bid was po sted on the City's on line bidding web site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. A mandatory job walk was held on Thursday, May 4, 2017. A total of five (5) vendors att ended. These vendors were:  BC 2 Environmental  Cascade Drilling  Layne Christensen Company  Southwest Pump and Drilling  Yellow Jacket Drilling Services A total of four b ids were received and publicly opened on May 19, 2017. Bid results are as follows (no t i ncluding a 15 % contingency): Bidders Base Bid Yellow Jacket Drilling Services $3,614,297.00 Southwest Pump and Drilling $4,199,614.00* Layne Christensen Company $4,409,684.12 Cascade Drilling $5,283,726.00 *Includes $79,150 cost for plugging of wel l SM -7 not included in base bid. 5 of 6 Bids were evaluated based on the criteria in SMMC 2.24.072, including price, previous experience, ability to deliver, quality of product, and compliance with City specifications. Staff contacted references that were pro vided by Yellow Jacket Drilling Services . Reference agencies reported that Yellow Jacket Drilling Services’ work was produced in a timely and cost -efficient manner where quality was maintained throughout. Staff also verified that Yellow Jacket Drilling Ser vices contractor license is active and in good standing. Based on these criteria, Yellow Jacket Drilling Services , the lowest bidder, is recommended as the best bidder. Project Funding The cost of this project would not exceed $4,197,842 including Yellow Jacket Drilling Services’ base bid, well abandonment or closure at the City Parcel location (19 th Street) after completion of the exploratory drilling ($36,000), and 15% contingency. Actual costs would be lowered if conditions found do not permit full pr oduction well construction at any of the four proposed sites (e.g. insufficient water or poor water quality). To offset some of these costs, staff reviewed existing Water Fund Capital Improvement Program budgets and identified approximately $1.88M in savi ngs would be re -purposed due to bids coming in under budget and savings from completed projects. The remaining project cost would be funded by the Water Fund. Financial Impacts and Budget Actions The contract to be awarded to Yellow Jacket Drilling Serv ices is for an amount not to exceed $4,197,842 . Award of the contract requires an appropriation of $4,197,842 from the Water Fund to account C259213.589000 in the FY 2017 -18 Capital Improvement Program Budget . 6 of 6 Prepared By: Thomas Watson, Water Resources Protection Programs Coordinator Approved Forwarded to Council Attachments: A. Attachment A - October 28, 2014 Staff Report B. Attachment B - September 27, 2016 Staff Report C. Attachment C - Proposed Well Locations D. Attachment D - Oaks Initiative Disclosure City Parcel Site 2018 19 th Street, Santa Monica, CA 90404 Airport Site 3223 Donald Douglas Loop S, Santa Monica, CA 90405 Proposed Well Location Colorado Yard Well Site 1601 14 th Street, Santa Monica, CA 90404 Olympic Wellfield SM -7R Well 2800 Block of Olympic Boulevard, Santa Monica, CA 90404 Proposed SM -7R Well Site Existing Well SM -7 REFERENCE:    Agreement  No. 10499   (CCS)