SR 10-15-2019 3B
City Council
Report
City Council Meeting: October 15, 2019
Agenda Item: 3.B
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Water Resources
Subject: Award Bid and enter into agreements with Yellow Jacket Drilling Services,
LLC, and General Pump Company, Inc., for Construction, Rehabilitation and
Abandonment of City Groundwater Supply Wells
Recommended Action
Staff recommends that the City Council:
1. Award Bid #SP 2606 with Yellow Jacket Drilling Services, LLC, an Arizona-based
company, for the drilling of two exploratory borings/wells, and General Pump
Company, Inc., a California-based company, for well destruction and
rehabilitation for the Public Works Department.
2. Authorize the City Manager to negotiate and execute an agreement with Yellow
Jacket Drilling Services, LLC, in an amount not to exceed $2,700,205 (including
a $404,374 contingency).
3. Authorize the City Manager to negotiate and execute an agreement with General
Pump Company, Inc., in an amount not to exceed $396,221 (including a $51,681
contingency).
4. Authorize the Director of Public Works to issue any necessary change orders to
complete additional work within contract authority.
Summary
The City of Santa Monica aims to achieve water self-sufficiency by 2023, which will lead
to long-term cost benefits for ratepayers, establishment of a diverse and drought-
resilient local water supply, and a reduction in the City’s water supply energy footprint.
Staff recently updated the Sustainable Water Master Plan (SWMP), which outline s key
projects including supplementing the local groundwater basin with purified water from
an advanced water purification facility and a replacement well to increase groundwater
production. To implement these projects, staff solicited bids for the drilling of two
exploratory borings/wells, abandonment of an existing well, and as-needed well
rehabilitation. Staff recommends awarding bid #SP2606 to Yellow Jacket Drilling
Services, LLC to drill the exploratory borings/wells and General Pump Company Inc. to
perform the well abandonment and rehabilitation.
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Discussion
Water Resources staff presented the City Council with an updated SWMP, which
includes a proposed refined pathway to reach water self-sufficiency by 2023
(Attachment A). The refined pathway includes the following three components:
• Component 1 - continuing and increasing water conservation efforts to
permanently reduce water demand;
• Component 2 - developing sustainable and drought-resilient alternative water
supplies; and
• Component 3 - expanding local groundwater production within sustainable yield
limits.
The agreement with Yellow Jacket Drilling Services, LLC would include the drilling of
two exploratory borings and the installation of well casing, as needed. Based on the
hydrogeological findings of the exploratory borings, the City may complete one of the
borings as a groundwater injection well. The proposed injection of advanced purified
water into the local groundwater basin is an element of Component 2 of the SWMP. The
second boring may be completed as a replacement groundwater production well to be
identified as Santa Monica Well #9 (SM-9). SM-9 would replace an ineffectual existing
groundwater production well (SM-3), which has lost production capacity over time. SM-3
would be subsequently abandoned once the new replacement well is constructed and
equipped for production. The agreement with General Pump Company Inc. would
include the abandonment of SM-3. The replacement of SM-3 is an element of
Component 3 of the SWMP.
A groundwater injection well and a replacement well would assist the City in achieving
water self-sufficiency by helping to sustain local groundwater resources and maximize
groundwater pumping within sustainable yield limits. The wells would be located along
the Olympic Boulevard median. The recharge well would be located west of 26th Street,
and the replacement well would be located east of Stewart Street.
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Past Council Actions
11/27/2018
(Attachment A) Council directed staff to proceed with water self-sufficiency
components.
Public Outreach and Impacts
The Water Resources and Public Landscape divisions worked closely together
throughout the development of this project to minimize impacts to Coral trees
surrounding the proposed construction sites. Due to the size of the construction
equipment required to drill 600-feet-deep wells, two Coral trees in the Olympic
Boulevard median would be removed and replaced in kind, subject to any changes in
tree species authorized by future amendments to the 2010 Land Use and Circulation
Element and Bergamot Area Plan (collectively, “Plans”). As a mitigation measure, the
Water Resources Division would fund 33 replacement trees based on the Public
Landscape Division’s tree replacement evaluation and recommendations. Water
Resources staff presented the project at the Urban Forest Task Force meeting on
September 25, 2019. Public outreach would also include distribution of notifications
about the project scope, potential impacts, and project schedule to adjacent properties
and the surrounding community.
During construction, temporary lane closures would be required to move equipment to
the work site. To minimize traffic impacts, temporary lane closures would be prohibited
westbound on Olympic Boulevard between 7 -9:30 a.m. and eastbound on Olympic
Boulevard between 3:30-8:00 p.m.
Environmental Analysis
The project is exempt from California Environmental Quality Act (CEQA) pursuant to
Section 15262 (feasibility or planning studies) as well as Section 15304 (Class 4 –
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Minor Alterations to Land) and Section 15306 (information collection) of the CEQA
Guidelines.
The project involves the exploratory drilling of wells within an existing street median to
determine hydrogeological conditions and feasibility of installing permanent wells in the
future. Therefore, the project meets all three above CEQA exemptions. In addition, none
of the exceptions specified in Section 15300.2 of CEQA Guidelines would apply that
would preclude the use of this CEQA exemption.
Vendor Selection
Bids were solicited for: 1) Exploratory Borings/Wells and 2) Well Abandonment and
Rehabilitation Services.
1. Exploratory Borings/Wells
Bidder Recommendation
Best Bidder Yellow Jacket Drilling Services, LLC
Evaluation Criteria
Price; the ability, capacity and skill of the bidder to perform
the services; judgment, training, experience and efficiency of
the bidder; the ability of the bidder.
Municipal Code SMMC 2.24.180
Bid Data
Date
Posted Posted On
Advertise In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
6/13/2019 City’s Online
Bidding Site
Santa Monica Daily
Press 61 8/1/19
Best Bidder Justification
Staff evaluated bids based on the criteria in SMMC 2.24.180, including price, previous
Submittals Received
Pacific Coast Well
Drilling, Inc. $2,555,501 Yellow Jacket Drilling
Services, LLC $2,295,831
Zim Industries, Inc. $3,160,523 Best Drilling and Pump,
Inc. $2,740,760
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experience, ability to deliver, quality of product, and compliance with City
specifications. Reference agencies reported that Yellow Jacket Drilling Services’ work
was produced in a timely and cost-efficient manner where quality was maintained
throughout. Yellow Jacket Drilling Services also successfully completed the Coastal
Exploratory Boring Program for the City in 2018. Based on these criteria, Yellow
Jacket Drilling Services, the lowest monetary bidder, is recommended as the best
bidder. The proposed contingency amount of $404,374 includes $60,000 to account
for sound curtains that may be needed in case of noise concerns from neighbors,
even if noise requirements are being met.
2. Well Abandonment and Rehabilitation
Bidder Recommendation
Best Bidder General Pump Company Inc.
Evaluation Criteria
Price; the ability, capacity and skill of the bidder to perform
the services; judgment, training, experience and efficiency of
the bidder; the ability of the bidder.
Municipal Code SMMC 2.24.180
Bid Data
Date
Posted Posted On
Advertise In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
6/13/2019 City’s Online
Bidding Site
Santa Monica Daily
Press 48 8/1/19
Best Bidder Justification
Staff found that General Pump Company, Inc. was able to meet all the evaluation
criteria. General Pump Company, Inc. also currently provides services to repair and
maintain booster pumps and water wells for the City and provides emergency and after-
hours response. Other prospective bidders were contacted to inquire why bids were not
submitted for this project. They cited the timeline for the work (circa spring 2021) as the
reason. Staff selected General Pump Company, Inc. based on their previous
experience, ability to deliver, cost, and compliance with City specifications.
Submittals Received
General Pump
Company, Inc. $344,540 Zim Industries, Inc. $479,150
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Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Water and Wastewater funds to award
agreements with Yellow Jacket Drilling Services, LLC for two exploratory borings/wells
and General Pump Company, Inc. for well abandonment and rehabilitation.
Exploratory Borings/Wells
Agreement Request
Request Amount
FY 2019-20 Budget
CIP Account #
Total Contract
Amount
$500,000 C5007260.689410 $500,000
$700,205 C5007260.689000 $700,205
$1,500,000 C5107330.689000 $1,500,000
$2,700,205 Total $2,700,205
Well Abandonment and Rehabilitation
Agreement/Purchase Request
Request Amount
FY 2019-20 Budget
CIP Account #
Total Contract
Amount
$249,795 C5007260.689000 $249,795
$146,426 C5007760.689000 $146,426
$396,221 Total $396,221
Prepared By: Chris Aguillon, Water Resources Protection Specialist
Approved
Forwarded to Council
Attachments:
A. November 27, 2018 Staff Report (Web Link)
B. General Pump Company Inc. Oaks Initiative Disclosure Form
C. Yellow Jacket Drilling Services, LLC Oaks Initiative Disclosure Form
REFERENCE:
Contract No. 10946
(CCS)
&
Contract No. 10947
(CCS)