Item 18 - New Water Well Drilling at Washington Site

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Public Works Agency www.santa-ana.org/public-works Item # 18 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report July 18, 2023 TOPIC: New Water Well Drilling at Washington Site AGENDA TITLE Award a Construction Contract to Best Drilling and Pump, Inc. in the Amount of $2,978,524 for the Washington Well Improvements: Well Drilling (Phase 1), with an Estimated Project Delivery Cost of $3,432,274 (Project No. 19-6423) (Non -General Fund) RECOMMENDED ACTION 1. Award a construction contract to Best Drilling and Pump Inc., the lowest responsible bidder, in accordance with the base bid in the amount of $2,978,524, subject to change orders (not -to -exceed 25% of the base bid) in accordance with the Greenbook: Standard Specifications for Public works Construction, for construction of the Washington Well Improvements: Well Drilling (Phase 1) Project, for the term beginning July 18, 2023, and ending upon project completion, and authorize the City Manager to execute the contract subject to non -substantive changes approved by the City Manager and the City Attorney. 2. Approve the Project Cost Analysis for a total estimated construction delivery cost of $3,432,274 which includes $2,978,524 for the construction contract, $100,000 for contract administration, inspection, and testing, and a $353,750 project contingency for unanticipated or unforeseen work. DISCUSSION The ultimate Washington Well Site Improvements Project includes the construction of a new groundwater well, including piping and electrical equipment, a well building, and a chemical storage building located at the intersection of Washington Avenue and Penn Way (Exhibit 1). The project creates an additional local water supply, which improves the City' s long-term resilience, and closes the projected gap between future demand and available supply by adding over 4,000 acre-feet per year to the City's pumping capacity. This promotes less reliance on imported water, which, in turn, reduces wholesale water costs. The project will also address low-pressure deficiencies, improve reliability, and increase flexibility within the City' s water system.