City Council
Report
City Council Meeting: June 12, 2018
Agenda Item: 3.F
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Water Resources Subject: Contract Award and Modification for Water Well and Pump Maintenance Recommended Action
Staff recommends that the City Council:
1. Award Bid #4332 to General Pump Company, a California-based company, for water well and booster pump maintenance and repair services;
2. Authorize the City Manager to negotiate and execute a contract with General Pump Company, in an amount not to exceed $2,180,000 over a five-year period, including 2.5% annual price increases, with future year funding contingent on Council budget approval.
3. Authorize the City Manager to negotiate and execute a first modification to agreement #10084 with General Pump Company, in an amount not to exceed $155,000 for emergency repair of water well Charnock-13 and additional well and booster pump services through June 30, 2018. This will result in an amended agreement with a new total amount not to exceed $683,000.
Executive Summary
To ensure the delivery of safe and reliable potable water, the City contracts out maintenance, repair and installation services for water wells and booster pumps used in the production, treatment and distribution of potable water to Santa Monica customers.
Staff recommends awarding a contract to service and maintain the City’s inventory of wells and booster pumps to General Pump Company in an amount not to exceed $2,180,000 over a five-year period. To cover emergency repair costs for water production well Charnock-13, staff also recommends increasing the current General Pump Company agreement #10084 by $155,000, for a new total amount not to exceed $683,000 for services through June 30, 2018.
Background
The City currently has an inventory of 10 water production wells and 38 booster pumps used in the production, treatment and distribution of potable water sourced from the 2 of 5
Santa Monica Groundwater Basin and provided to approximately 18,000 Santa Monica residential, commercial and institutional water accounts. Of Santa Monica’s annual water usage of approximately 11,500 acre-feet, 65% is currently produced locally with the remainder imported from the Metropolitan Water District of Southern California (MWD) at a cost of $1,015 per acre-foot (one acre-foot = 325,851 gallons). The majority of the City’s wells and booster pumps are located at the Arcadia Water Plant and Charnock Well Field sites located in West Los Angeles, with other equipment located in Santa Monica, including reservoirs and pump stations.
Discussion
The Water Resources Division requires water well and booster pump maintenance, installation and repair services to keep City potable water production, treatment and distribution operations running smoothly on a 24/7 basis. City water wells pump groundwater from the Santa Monica Basin for treatment and require a variety of services including chemical treatments, jetting, nylon/wire brush services to remove well debris, video logging, and repairs to motors, casings and controls. Booster pumps help maintain adequate system water pressure and move water from wells to treatment and storage sites, and then to end users through the City’s 205-mile network of water mains and fire hydrants. Booster pumps require periodic replacement and repairs including fabrication of custom parts including wear rings, line shafts and bowl assemblies.
The City requires that the selected contractor have a machine shop capable of fabricating custom well and pump parts, supplying and installing new equipment as needed, providing pump rigs, cranes, service trucks, and responding to urgent service requests within 24 hours of notice on a 24/7 basis.
In each of the last three years, a Charnock production well has been out of service due to repairs for at least three months. This has resulted in the City’s importing an additional 300- to 750 acre-feet of water per year from the Metropolitan Water District of Southern California (MWD), costing approximately $300,000 to $750,000 per year.
Water Resources Division staff have determined that preventive service visits would minimize or eliminate future prolonged well production stoppages. Beginning in July 3 of 5
2018, the division plans to begin preventive service including semiannual vibration analysis and annual alignment checks / realignment service on all wells and booster pumps.
To achieve the City’s goal of 100% water self-sufficiency (no imported water from MWD), it is anticipated that the City’s inventory of water production wells would be expanded or partially replaced in the next few years, requiring additional well and pump maintenance and installation services. Staff will return to Council in Summer 2018 with a Sustainable Water Master Plan Update, which will include the timeline and estimated costs for the City to achieve water self-sufficiency.
Vendor Selection
On March 21, 2018, the City published Notices Inviting Bids to furnish labor and materials for water well and booster pump maintenance and repair services in accordance with City specifications. The bid was posted on the City’s on-line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. A total of 29 vendors downloaded the bid.
One bid was received and publicly opened on April 16, 2018 per Attachment A.
Procurement staff conducted additional outreach to vendors who downloaded the bid to see why they did not submit a bid. Three responses were received; one vendor indicated they did not have the required contractor’s license classifications, another declined to bid due to the number of sick days required by the City, and the third vendor declined to bid for unspecified reasons.
The bid was evaluated based on the criteria in SMMC 2.24.072, including price, previous experience, ability to deliver and compliance with City specifications. General Pump Company has provided similar services satisfactorily since 1999 with Council approval obtained for the past six years on September 11, 2012 and June 23, 2015 (Attachments B and C). General Pump Company can respond to emergency repair requests within 24 hours on a 24/7 basis and operates a machine shop capable of fabricating water well and booster pump parts. General Pump Company also maintains a fleet of trucks, cranes and pump rigs capable of servicing Santa Monica’s well and 4 of 5
booster pump equipment. Reasonable 2.5% annual pricing increases are offered for contract years two to five. Staff verified that General Pump Company’s contractor’s license (General Engineering “A”, Well Drilling C-57 and Machinery and Pumps D-21 classifications) is active and in good standing. Based on these criteria, General Pump Company is recommended as the best bidder.
Water Production Well Charnock-13 Urgent Repairs
On November 29, 2017, the City’s top producing water well, Charnock-13, failed due to a worn-out pump bowl assembly (last replaced in 2010) and an injection line. An investigation revealed red iron incrustations and sludge through the entire pump/column pipe. Prior to starting the work for Charnock-13 the City had already expended $409,925 out of the $528,000 (authorized by Council on June 23, 2015 for a three-year contract. Water Resources staff had primary contractor General Pump Company perform pump/motor repairs and chemical rehabilitation on Charnock-13 to return the well to operational status in June 2018 at a cost of $233,969. Added to the $409,925 previously expended under General Pump Company contract #10084 since July 2015, total contract expenditures of $643,894 exceeded the $528,000 amount authorized by Council on June 23, 2015 by $115,894. Staff recommends Council approve a first modification to contract #10084 in the amount of $155,000, for a new total not to exceed amount of $683,000, to cover the Charnock-13 urgent repair cost and additional well and booster pump repair services through June 30, 2018.
Financial Impacts and Budget Actions
1. The contract to be awarded to General Pump Company is for an amount not to exceed $2,180,000. Funds in the amount of $400,000 are available in the Proposed FY 2018-19 Budget in the Public Works Department. The contract will be charged to the following accounts:
25671.555010 / 50500001-550010 $125,000
25672.555010 / 50500002-550010 $225,000
25673.555010 / 50500003-550010 $ 50,000
TOTAL $400,000
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Future year funding is contingent on Council budget approval.
2. The contract modification to be awarded to General Pump Company (#10084) is $155,000 for an amended contract total not to exceed $683,000. Funds are available in the FY 2017-18 budget in the Public Works Department. The contract will be charged to account 25672.555010.
Prepared By: Kevin Nagata, Senior Administrative Analyst Approved Forwarded to Council
Attachments:
A. Bid Results - Pump & Water Well Repairs - 4332
B. September 11, 2012 Staff Report - Bid Award for Citywide Water Well Repair and Maintenance Services (Web Link)
C. June 23, 2015 Staff Report - Contractual Services Agreements for Booster Pump and Well Maintenance (Web Link)
D. Oaks Initiative Disclosure Form - General Pump Company