Agenda Report
Fullerton City Council
MEETING DATE: june 18, 2024
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: stephen bise, p.e., public works director PREPARED BY: DAVID GRANTHAM, P.E., CITY ENGINEER
richard armendariz, assistant director of public works - maintenance gar huang, associate engineer
SUBJECT: CONTRACT WITH KINGMEN CONSTRUCTION, INC FOR WATER WELL 7A EQUIPPING
SUMMARY
Award $2,826,000 construction contract to Kingmen Construction, Inc for Well 7A Equipping Project.
PROPOSED MOTION
Approve plans and specifications for the Well 7A Equipping Project.
Approve $1,900,008 Water Funds (Fund 44) budget appropriation from Fund Balance to Project 53005 Water Well Replacement Program within the Water Fund (Fund 44). $2,826,000 construction contract for Well 7A Equipping Project to Kingmen Construction, Inc. and authorize City Manager, or designee, to execute and administer contract, in a form approved by the City Attorney.
Authorize Public Works Director, or designee, to approve any change orders for construction and professional engineering construction support services within the approved project budget.
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Reject all bids and rebid
Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
The City Manager recommends approval of award of $2,826,000 construction contract to Kingmen Construction.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Infrastructure and City Assets.
FISCAL IMPACT
The Fiscal Year 2023-24 Adopted Capital Improvement Program (CIP) Budget does not have sufficient funding for the project. Staff recommends a $1,900,008 Water Fund (Fund 44) budget appropriation from Fund Balance to Project 53005 Water Well Replacement Program.
Staff attached a budget Data Sheet / Summary of Bids and the Contractor Bid Schedule for reference (Attachments 1 and 2).
BACKGROUND AND DISCUSSION
The City water system relies upon imported water and groundwater wells to supply residents and businesses. The Orange County Water District (OCWD) manages the City and region groundwater basin whereas the City purchases water from the Metropolitan Water District. The City prefers to pump groundwater for the City water supply because groundwater costs approximately half as much as imported water. This project is part of the OCWD conjunctive use well program and would reduce City reliance on imported water.
The City owns and operates the Main Plant water production site located in the City of Anaheim. Main Plant consists of four active water wells and one offline well, in addition to Well 7, which has remained offline since April 2014 due to poor water quality and production. The City destroyed Well 7 in 2021. The City plans to construct a new, deep water well to replace Well 7 and increase groundwater supply.
City Council contracted with Hazen and Sawyer, for professional hydrogeological and engineering services on September 18, 2018 to include Well 7 destruction and preliminary design for new Well 7A installation.
The City awarded a construction contract to Best Drilling and Pump, Inc. on December 15, 2020 to destroy Well 7 and drill a Well 7A. Work included drilling a 1,400-foot-deep well, installing a well casing, profiling soil composition and assessing potential water production and quality. The contractor drilled and capped Well 7A in December 2021. Testing results provided data for the engineering Basis of Design Report (BODR) prepared by Hazen and Sawyer. The BODR also included the design criteria for the well equipping.
City Council awarded a consultant contract to Hazen and Sawyer on November 1, 2022 to provide final engineering design services for Well 7A equipping. These services included plans, specifications and estimates (PS&E) preparation to construct a new well, in addition to bid assistance and construction support.
Hazen and Sawyer completed engineering plans for Well 7A in February 2024. The project would equip the new well with a vertical turbine pump, motor, associated valves, piping, electrical and instrumentation and provide a structural foundation and sound enclosure. Well 7A would have a variable frequency drive for operational flexibility and a portable generator connection for emergency preparedness. Groundwater from Well 7A would connect to the new Main Plant PFAS Water Treatment Plant that began operating in May 2024.
The California Department of Water Resources Santa Ana River Conservation and Conjunctive Use Program (SARCCUP) funding and a grant from the US Bureau of Reclamation (BOR) partially fund this project. The SARCCUP grant provides $1.5 million and the BOR grant provides $300,00. Both require a 50 / 50 match obligating the City to spend at least $1.8 million of City Water Funds on the project to match the grant funding.
The City received seven bids on June 5, 2024. Kingmen Construction, Inc. of Chino Hills submitted a $2,826,000 lowest responsible base bid. The low bid submitted totals approximately 22% lower than the Engineer estimate of $3.63 million.
Staff expects several pieces of equipment to have a lead time of up to ten months. Construction would tentatively start summer 2025 with anticipated project completion in fall 2025. Staff would notify residents and businesses of upcoming project construction and potential impacts.
Staff prepared an environmental assessment in accordance with California Environmental Quality Act Guidelines and determined that the project is categorically exempt.
Attachments:
Attachment 1 – Budget Data / Summary of Bids
Attachment 2 – Bid Schedule
Attachment 3 – Project Location Map
Attachment 4 – Draft Agreement
cc: City Manager Eric J. Levitt
Contract with Kingmen Construction, Inc for Water Well 7A Equipping June 18, 2024 - Page 2