COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: October 21, 2025
SUBJECT: Adoption of a Resolution Awarding a Bid to Hartzell General Engineering Contractor, Inc. and Approving an Agreement for Construction of Well 15 Equipping Project, Bid No. 2025-04
Description:
The City Council will consider approving the award of Bid No. 2025-04 to Hartzell General Engineering Contractor, Inc. for the construction of the Well 15 Equipping Project. The work to be performed under this contract consists of furnishing the necessary labor, materials, equipment, tools, and guarantees thereof to construct and equip Santa Maria Water Supply Well No. 15.
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:
1. Adopt a Resolution awarding a bid to Hartzell General Engineering Contractor, Inc., and approving an agreement for the construction of the Well 15 Equipping Project, Bid No. 2025-04, in the amount of $4,343,870; and
2. Authorize the City Manager, or designee, to execute the agreement.
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 improve system resiliency in the event of an interrup tion to the State Water Project supply. To address this need, the City Utilities Department commissioned Cannon Corporation (the “Design Engineer”) to design a new municipal water supply well, Well 15.
The new well is sited within an easement obtained from the Santa Maria Airport District.
This project involves drilling and equipping a new ±1,600 -foot deep well, located approximately 1,800 feet southeast of the City’s existing Well 14. Once completed, We ll 15 will connect to the City’s existing header line west of the airport and convey water to the Blending & Disinfection Facility, improving both the reliability and quality of the City's water supply.
2 The Well 15 project includes two primary construction contracts, one to drill the well and the other to equip it. The construction contract to drill Well 15 was awarded at the July 1, 2025, City Council Meeting. Equipping the well includes construction of the well facility, related appurtenances, pipelines, valves, pump-to-waste discharge infrastructure, surge protection, sand separation equipment, pump and motor assemblies, automated control systems (SCADA), emergency power, and an access roadway. Well 15 is designed to deliver a minimum of 2,000 gallons per minute (gpm) and will be equipped with related appurtenances, pipelines, valves, pump -to-waste discharge infrastructure, surge protection, sand separation equipment, pump and motor assemblies, automated control systems (SCADA), and emergency power.
The Design Engineer has prepared the equipping design, which includes civil site development (grading and drainage), structural (building, equipment pads, and ancillary structures), mechanical, electrical, SCADA systems, along with detailed construction drawings and specifications.
Once completed, Well 15 will be connected 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, ensuring continued reliability and water quality for the community.
DISCUSSION:
The project was issued and advertised through the City’s e -Procurement Portal, PlanetBids. The City received seven bids, which were opened on September 18, 2025. A summary of the bids submitted are as follows:
Bidder Bid Amount
Hartzell General Engineering Contractor, Inc. $4,343,870.00 Brough Construction, Inc. $4,998,760.00
W. M. Lyles Co $5,191,070.00
The J. F. Will Company, Inc. $5,242,954.12
Spiess Construction Co., Inc. $5,990,120.05
HPS Mechanical, Inc. $6,068,996.10
Canyon Springs Enterprises $6,872,370.00
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 Hartzell General Engineering Contractor, Inc., in the amount of $4,343,870.00.
Hartzell General Engineering Contractor, Inc. from Cayucos, CA has performed and successfully completed similar work for many cities throughout the Central Coast. In addition, they have submitted references for their work history. City staff have checked the firm’s references and are comfortable with the ability of the contractor to perform the 3 work successfully. Therefore, the recommended action is to award the bid to Hartzell General Engineering Contractor, Inc., in the amount of $4,343,870, alo ng with a 10% contingency.
Alternative(s)
The alternative to the recommended action would be to reject all bids. However, doing so would likely delay the project and increase costs.
Fiscal Considerations
Contract Award Funding: Staff are requesting appropriation of $3,064,028 from the Water Fund to support the construction contract award and related equipping costs. The additional appropriation will be fully funded through existing water rates and growth mitigation fees. There is no impact on the General Fund.
Project Budget Overview: The original budget authorized in FY 2022 –23 for the Well 15 project was $5,500,000, funded through growth mitigation and water funds. Based on current cost estimates, the budget is insufficient to complete the project, including construction and contingency; construction management and inspection; and environmental services. Upon approval of the additional appropriation requested above, total project funding will increase to $8,564,027, ensuring all necessar y work can be completed to bring the Well 15 project to completion. A detailed breakdown of project costs is provided below.
Amount
Approved Project Budget FY 22/23 1 5,500,000
Expenditures To-Date (370,703)
Reserved - Well 15 Drilling Project (Underway) (2,697,355) Current Available Budget 2,431,942$
Amount
Construction Award 4,343,870
Construction Award - Contingency 10% 434,387
Contract Administration & Inspection 627,465
Contract Administration & Inspection - Contingency 10% 62,747 Environmental Services 25,000
Environmental Services - Contingency 10% 2,500
Projected Well 15 Equipping Project Costs 5,495,969$
Amount
Projected Well 15 Equipping Project Costs 5,495,969
Remaining Authorized Budget (2,431,942)
(10/21/2025 Request) Additional Appropriation 2 3,064,027$ Total Project Cost (1+2) 8,564,027$
4 Impact on the Community
Construction of Well 15 will support the City’s ability to meet current water demand needs, 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