CITY COUNCIL STAFF REPORT
DATE: MAY 27, 2026 CONSENT CALENDAR
SUBJECT: AWARD OF A CONSTRUCTION AGREEMENT TO MALCOLM DRILLING COMPANY, INC. IN THE AMOUNT OF $319,512.50 FOR NEW
MONITORING WELLS, AIRPORT PROJECT PSP 26-043
FROM: Scott C. Stiles, City Manager
BY: Department of Aviation
SUMMARY:
Upon award of this Construction Agreement (Agreement) and approval of the task order, the City will be authorized to proceed with the construction phase of the New Monitoring Wells (Project).
RECOMMENDATION:
1. Award a Construction Agreement to Malcolm Drilling Company, Inc., in the amount of $319,512.50 for New Monitoring Wells, Airport Project PSP 26-043.
2. Direct staff to report all contract change orders to City Council.
3. Authorize the City Manager or his designee to execute all necessary documents subject to such changes/revisions agreeable to the City Manager and City Attorney.
BUSINESS PRINCIPAL DISCLOSURE:
According to the Public Integrity Disclosure form (Attachment B) submitted on March 16, 2026, Malcolm Drilling Company, Inc. is registered in California.
BACKGROUND:
On March 20, 2019, and pursuant to California Water Code Section 13267, the State of California Water Resources Control Board (Water Board) issued Board Order WO 2019- 0005-DWQ (Board Order) to 31 airports throughout the state of California requiring airport owners and operators to investigate and report on the presence of per- and polyfluoroalkyl
City Council Staff Report
May 27, 2026 – Page 2
Award of A Construction Agreement To Malcolm Drilling Company, Inc. (PFAS) chemicals on airport property. A copy of the Board Order is included as Attachment C.
As described in the Board Order, PFAS is a family of more than 3,000 man-made and mostly unregulated chemicals that have been produced since the mid-1900s. These chemicals are manufactured globally and have been used in the production of a wide range of industrial and household products, and in Aqueous Firefighting Foams (AFFF).
Prior to 2019, the Federal Aviation Administration (FAA) required all airports to use AFFF for aircraft firefighting. The Water Board identified that the discharge of AFFF has the potential of contaminating the groundwater.
A requirement of the Board Order was for airports to prepare and submit a work plan for a preliminary site investigation of PFAS impacts to the Colorado River Regional Water Quality Control Board (the “Regional Board”). Staff coordinated with its on-call environmental consulting services firm RS&H California, Inc. (RS&H) to complete the required work plan for the Airport’s preliminary site investigation of PFAS impacts. On November 21, 2019, the Regional Board accepted the work plan to construct the original three monitoring wells at the Airport which are depicted in Figure 1 – Site Vicinity Map.
On June 5, 2024, the Regional Board requested a work plan for an additional assessment.
Staff continued to coordinate with its on-call environmental consulting services firm RS&H, and the supplemental site investigation work plan was submitted to the Regional Board on August 30, 2024. The supplemental work plan included the drilling of five additional monitoring wells as depicted in Figures 1 and 2 Site Vicinity Maps. On December 27, 2024, the Regional Board approved the supplemental work plan; see Attachment D. The approval of this item will allow the Airport to continue monitoring for PFAS.
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May 27, 2026 – Page 3
Award of A Construction Agreement To Malcolm Drilling Company, Inc.
City Council Staff Report
May 27, 2026 – Page 4
Award of A Construction Agreement To Malcolm Drilling Company, Inc.
Figure 2 – Site Vicinity Map
On January 28, 2026, City Council approved the plans, specifications and estimate, and authorized staff to advertise and solicit bids for the Airport five New Monitoring Wells.
STAFF ANALYSIS:
The Project was advertised for bidding in The Desert Sun, industry plan rooms, and the PlanetBids™ electronic bid system on February 4, 2026, and on March 17, 2026, six (6) bids were received from the following contractors:
Company Location Bid Amount
BC2 Environmental LLC (Non-
Responsive) Orange, CA $275,000.00
Malcolm Drilling Co, Inc Baldwin Park, CA $319,512.50
ABC Liovin Drilling, Inc. Signal Hill, CA $321,060.00
Yellow Jacket Drilling Services, LLC Rancho Cucamonga, CA $328,450.00 J and H Drilling Co Santa Fe Springs, CA $329,000.00
Gregg Drilling LLC Signal Hill, CA $465,781.00
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May 27, 2026 – Page 5
Award of A Construction Agreement To Malcolm Drilling Company, Inc.
Non-Responsive Submissions
One bid was received that was a lower bid amount than the recommended contractor; however, the bid was determined to be non-responsive due to an incomplete bid submission. Specifically, BC2 Environmental did not acknowledge all addendums as outlined in the bid specifications. In accordance with the City’s procurement requirements, incomplete bid packages are deemed non-responsive and are not eligible for award consideration.
Local Business Preference Compliance
Section 7.09.030 of the Palm Springs Municipal Code (“PSMC”), “Local Business Preference Program”, requires prime contractors to use good faith efforts to sub-contract the supply of materials and equipment to local business enterprises and to sub-contract services to businesses whose workforce resides within the Coachella Valley. Malcolm Drilling Company is not considered a local business but has demonstrated sufficient evidence of good faith efforts to subcontract the supply of materials to local businesses.
Bid Analysis
The bid documents submitted were reviewed and it was determined that Malcolm Drilling Company, Inc. (“the Contractor”) complied with the instructions to bidders and has submitted the lowest responsive and responsible bid. Staff recommend the City Council award a construction agreement to Malcolm Drilling Company, Inc.
The Project is scheduled for completion within forty (40) working days following issuance of the Notice to Proceed. Working days are defined as Monday through Friday, excluding weekends and City-recognized holidays.
ENVIRONMENTAL ASSESSMENT:
In accordance with the California Environmental Quality Act (“CEQA”) Guidelines Section 15303 “New Construction or Conversion of Small Structures”, Class 3 projects consist of construction and location of limited numbers of new, small facilities or structures; installation of a small structures from one use to another where only minor modifications are made in the exterior of the structure. Therefore, Staff has determined that the Airport New Monitoring Wells, Airport Project No. 26-043, is considered categorically exempt from CEQA.
ALIGNMENT WITH STRATEGIC PLANNING:
Approval of this action supports the City of Palm Springs’ Strategic Plan Broad Goals of Infrastructure and Facilities and also supports the Airport’s 2025-2029 Strategic Plan’s Strategic Priorities for Infrastructure.
FISCAL IMPACT:
City Council Staff Report
May 27, 2026 – Page 6
Award of A Construction Agreement To Malcolm Drilling Company, Inc.
The costs associated with Project design, construction administration, and inspection are presented in Table 1 below. A task order was issued to RS&H California, Inc. to provide these services.
Table 1
Design and Construction Admin / Inspection Costs Amount Project Design $20,000
Project Administration $20,000
Construction Administration / Inspection $80,000
Total $120,000
The estimated construction costs to complete the Project are shown in Table 2 below.
Table 2
Table of Construction Costs Amount
Construction Contract $319,512.50
Contingency (10%) $31,900
Total $351,412.50
Sufficient funds are budgeted in Fiscal Year 2025-2026 in the Department of Aviation, Airport Capital Projects – Other Equipment Account 4167065-60015.
REVIEWED BY:
Assistant Airport Director: Victoria Carpenter
Procurement Manager: Tabitha Richards
City Attorney: Geremy Holm
City Manager: Scott Stiles
ATTACHMENTS:
A. Construction Agreement
B. Public Integrity Disclosure
C. Board Order
D. Regional Board Approval of Supplemental Work Plan