COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: July 1, 2025
SUBJECT: Adoption of a Resolution Awarding a Bid to South Valley Companies, Inc. and Approving an Agreement for Construction of Well 15 Drilling Project, Bid No. 2025-03
Description:
The City Council will consider approving the award of Bid No. 2025 -03 to South Valley Companies, Inc. for the construction of the Well 15 Drilling Project. The work to be performed under this contract consists of drilling a new ±1,800 -foot municipal supply water well, designated as Well No. 15. The ultimate design capacity of the new well is approximately 2,300 gallons per minute (gpm).
Environmental Notice: Environmental Review for this project was completed through the preparation of an Initial Study/Mitigated Negative Declaration for the City of Santa Maria Well 15 Special Project (SCH# 2024061097) pursuant to the California Environmental Quality Act State Guidelines.
RECOMMENDATION:
Adopt a Resolution awarding a bid to South Valley Companies, Inc., and approving an agreement for the construction of the Well 15 Drilling Project, Bid No. 2025 -03, in the amount of $2,382,450.
BACKGROUND:
The 2012 Utilities Capacity Study identified a critical need to increase water production capacity to meet future Maximum Day Demand (MDD) projections and to enhance system resiliency in the event of an outage of the State Water Project supply.
In response, the City Utilities Department commissioned Cannon Corporation to design a new municipal water supply well. This project entails drilling an approximately ±1,800 - foot deep well, designated as Well 15, located approximately 1,800 feet southeast of existing Well 14.
Once completed, Well 15 will be co nnected to the existing header line that serves the City’s water wells west of the airport. The water extracted will be conveyed to the City’s Blending & Disinfection Facility at Fairway Drive, ensuring continued reliability and water quality for the community.
2 DISCUSSION:
The project was issued and advertised through the City’s e -Procurement Portal, PlanetBids. The City received six bids, which were opened on June 23, 2025. A summary of the bids submitted are as follows:
Bidder Bid Amount
South Valley Companies, Inc. $2,382,450.00
Zim Industries, Inc. dba Bakersfield Well & Pump Company $2,425,220.00 Well Industries, Inc. $2,470,390.00
Layne Christensen Company $2,927,760.00
Pacific Coast Well Drilling, Inc. $2,962,010.00
Nor-Cal Pump & Well Drilling, Inc. $3,218,476.00
A detailed tabulation of the bids received is attached (Attachment B). Signed proposals and bid bond forms are available for viewing in the office of the Director of Public Works located at 110 South Pine Street, Suite 221, Santa Maria, CA 93458.
The lowest responsive, responsible bid was submitted by South Valley Companies, Inc., in the amount of $2,382,450.
South Valley Companies, Inc. from Bakersfield, CA has performed and successfully completed similar work for many cit ies throughout the Central Valley. In addition, they have submitted references for their work history. City staff has checked the firm’s references and are comfortable with the ability of the contractor to perform the work successfully. Therefore, the reco mmended action is to award the bid to South Valley Companies, Inc., in the amount of $2,382,450.
Following the completion of this well -drilling phase, the well -equipping phase will be procured through a separate construction contract. This contract will be presented to the City Council for approval later in the 2025-26 fiscal year. At that time, it is anticipated that an additional budget appropriation will be required to fund the construction contract.
Alternative(s)
The alternative to the recommended action would be to reject all bids.
3 Fiscal Considerations
Funding for this project is supported by the following two accounts:
Available Budget Account Amount
002-011-080-52-54 - WATER SUPPLY WELL $1,233,000.00
027-011-080-52-02 - WATER WELL DEVELOPMENT OR
REHABILITATION
$4,267,000.00
Estimated Expenditures Amount
Award Contingency (20%) – Fund 002
Award Contingency (20%) – Fund 027
$2,382,450.00
$ 476,490.00
Inspection, Testing, Staff Time (10%) $ 100,000.00
Total $2,958,940.00
Impact to the Community
The construction of Well No. 15 will serve as a vital addition to the City's water supply infrastructure, enhancing long -term reliability and resiliency for both residents and businesses in Santa Maria. This new well will help ensur e continued access to safe and sustainable water, particularly during periods of high demand or emergency conditions, including decreased State Water allocations or deliveries.
ATTACHMENT(S)
A. Resolution
B. Detailed Bid Results
C. Agreement