City Council
Report
City Council Meeting: March 10, 2026
Agenda Item: 4.B
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Water Resources Subject: Award Bid SP#2773 to Yellow Jacket Drilling Services, LLC, for the Construction of Replacement Groundwater Supply Well SM-14 Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15302 of the California Environmental Quality Act (CEQA) Guidelines
(Replacement/Reconstruction);
2. Award Bid #SP2773 to Yellow Jacket Drilling Services, LLC for the drilling of replacement groundwater supply well SM-14 for the Public Works Department; and
3. Authorize the City Manager to negotiate and execute an agreement with Yellow Jacket Drilling Services, LLC, in an amount not to exceed $2,100,000 (including a $281,325 contingency).
Summary
The Olympic Well Field is the City of Santa Monica’s (City) second largest well field and a critical source of local groundwater. It includes three production wells that help supply water to the community. Two out of the three production wells were replaced recently as part of the Olympic Well Field Restoration Project and the last well, Santa Monica Well 4 (SM-4), is now scheduled to be replaced to ensure a reliable local water supply and strengthen the City’s long-term water resiliency.
The new replacement well (SM-14) will also help contain and clean up groundwater affected by historical industrial contamination over the Olympic Well Field. Water pumped from the well will be treated at the recently completed Olympic Advanced Water Treatment Facility that is co-located at the City’s Arcadia Water Treatment Plant 2 of 5
before being delivered to customers. Together, these improvements will help protect the groundwater basin and ensure the continued delivery of safe, clean drinking water for the community. Staff recommends awarding Bid #SP2773 to Yellow Jacket Drilling Services, LLC for the drilling of replacement groundwater supply well SM-14 in an amount not to exceed $2,100,000 (including a $281,325 contingency).
Discussion
The Olympic Well Field is the City’s second-largest source of groundwater and an important part of Santa Monica’s local water supply. In the past, this area was affected by contamination from historical industrial activities. To protect public health, the Los Angeles Regional Water Quality Control Board requires the City to closely monitor groundwater quality to ensure the contamination is safely captured and the groundwater is cleaned through a multi-barrier treatment system to meet drinking water standards.
Restoring the Olympic Well Field is also a key part of the City’s goal to increase local water reliability and reduce reliance on imported water supplies.
Santa Monica Well 4 was built in 1982 and is now more than 40 years old. Over time, the well has experienced frequent maintenance issues as it has reached the end of its asset life and now produces less than half the water it once did. Replacing this aging well would help increase local groundwater production, reinforce the City’s water supply, and reduce the need to purchase imported water, which historically costs about 30 percent more than local groundwater.
Vendor Selection
Bidder Recommendation
Best Bidder Yellow Jacket Drilling Services, LLC
Evaluation Criteria
Price; the ability, capacity and skill of the bidder to perform the services; judgment, training, experience and efficiency of the bidder; the ability of the bidder.
Municipal Code SMMC 2.24.180
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Bid Data
Date
Posted Posted On Advertise In (City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
12/02/2025 City's Online
Bidding Site Santa Monica Daily Press 56 01/19/2026
Best Bidder Justification
Staff reviewed bids using criteria in SMMC 2.24.180, which include price, quality, bidder capability, financial resources, reputation, and ability to provide future maintenance. Reference checks confirmed that Yellow Jacket Drilling Services, LLC delivers timely, cost-efficient, and high-quality work. The company has successfully built three groundwater wells in the Olympic Well Field since 2018. Based on these factors and being the lowest bidder, Yellow Jacket Drilling Services, LLC is recommended as the best bidder.
Environmental Review
The contract to replace the existing well is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302 (Class 2 – Replacement/Reconstruction), which provides exemptions for the replacement or reconstruction of existing facilities, including the replacement of existing utility systems involving negligible or no capacity expansion. The replacement well would be designed to the original design capacity of SM-4 and would not represent an increase in the City’s groundwater production capacity. In addition, none of the exceptions specified in Section 15300.2 of the CEQA Guidelines would apply that would preclude the use of this CEQA exemption. The site is not located in a sensitive environment, would not have a significant effect on the environment, would not damage scenic resources, would not Submittals Received
Best Drilling and Pump,
Inc.
$2,731,205.00 Yellow Jacket Drilling
Services, LLC
$1,818,675.00
Nor-Cal Pump & Well
Drilling, Inc.
$2,377,380.00
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be located on a hazardous waste site, and would not cause a change to historical resources.
Past Council Actions
Meeting Date Description
12/17/2019
(attachment A)
Award Request for Proposal and enter into Agreement with Walsh Construction Co. ll, LLC for Design-Builder Services for the Olympic Well Field Restoration and Arcadia Water Treatment Plant Expansion Project
05/11/2021
(attachment B)
Award Request for Proposal #286 and Enter into Agreement with ICF International for Olympic Well Field Groundwater Monitoring Professional Services
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Water Fund to award a contract with Yellow Jacket Drilling Services, LLC for drilling and construction of groundwater production well SM-14.
Contract Request
FY 2025-26
Request
Amount
Future Years CIP Account # Total Contract
Amount
$700,000 $1,400,000 C5009050.689000 $2,100,000
Future year funding is contingent on Council budget approval.
Prepared By: Sunny Wang, Water Resources Manager
Approved Forwarded to Council
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Attachments:
A. December 17, 2019 Staff Report (web link)
B. May 11, 2021 Staff Report (web link)
C. FY 25-26 Oaks Initiative (Yellow Jacket Drilling, LLC) D. FY 25-26 Levine Act (Yellow Jacket Drilling, LLC)