CITY OF SIGNAL HILL
STAFF REPORT
2175 Cherry Avenue • Signal
Hill, California 90755-3799
5/9/2023
AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: THOMAS BEKELE
PUBLIC WORKS DIRECTOR
SUBJECT:
RESOLUTION DECLARING FINAL ACCEPTANCE OF WELL NO. 8 DEMOLITION AND WELL NO. 10 CONSTRUCTION (PROJECT NO. 95.18011) PURSUANT TO
THE PUBLIC WORKS CONTRACT WITH PASCAL & LUDWIG CONSTRUCTORS, INC. (P&L)
Summary:
Pascal & Ludwig (P&L) completed the work for the Well No. 8 Demolition and Well No. 10 Construction (Project No. 95.18011) to the satisfaction of the Public Works Department and in accordance with the project plans and specifications. Final cost of the construction was $3,143,765.15. Well 10 will be operational once the State Water Board issues a permit, anticipated after Summer 2023. Staff is recommending final acceptance of the work performed by P&L and issuance of final payment.
Recommendation:
Adopt a resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA,
DECLARING WORK TO BE COMPLETED IN CONFORMANCE WITH THE PLANS AND SPECIFICATIONS FOR THE WELL NO. 8 DEMOLITION AND WELL NO. 10 CONSTRUCTION (PROJECT NO. 95.18011) IN THE CITY OF LONG BEACH, IN ACCORDANCE WITH THE CONTRACT ENTERED INTO BETWEEN PASCAL & LUDWIG CONSTRUCTORS, INC. AND THE
CITY OF SIGNAL HILL
Fiscal Impact:
The Capital Improvement Program Budget for Project No. 95.18011 was $4,430,882.00. The construction contract award amount for the project was $3,514,091.00 plus a 5% contingency of CITY OF SIGNAL HILL Page 1 of 3 Printed on 5/5/2023
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$175,705 if authorized by the Project Manager.
Actual costs for this construction contract totaled $3,143,765.15, which is $370,325.85 under the base contract amount. After award of the construction contract, City staff and P&L conducted a value engineering review of the project and negotiated certain material and equipment substitutions in order to generate cost savings and ensure that the project would be completed within budget.
The Project utilized funds from a loan from the Water Replenishment District of Southern California (WRD), Water Enterprise Fund, and Water Development Impact Fee Fund as designated in the FY 2022-23 Capital Improvement Program budget.
Table 1: Well 10 Construction Project Costs
Strategic Plan Objective:
Goal No. 4: Maintain and improve the public infrastructure.
Background and Analysis:
The City’s water supply can be provided from two sources: groundwater pumped from among three City-owned wells or water purchased from the Metropolitan Water District (MWD). As stated in the 2019 Water Rate Study, the City can achieve full redundancy of its groundwater sources and eliminate the need to rely on costly imported water from MWD when all three wells are operational.
The need to replace Well No. 8 to ensure maximum capacity, reliability, and cost-effectiveness of the water system was identified in the City’s 2015-2019 Strategic Plan, the 2015-2019 Water System Master Plan, and the 2019 Water Rate Study. Well No. 8 was in operation for 40 years and began experiencing operational issues due to a structural breakdown of the main well casing.
On January 28, 2020, the City Council Authorized the execution of a loan agreement between the City and WRD for $1,500,000 with a ten-year term at zero-percent (0%) interest to help finance the replacement of Well No. 8. On January 12, 2021, City Council approved a public works contract with P&L to complete the Well No. 8 Demolition and Well No. 10 Construction project. The scope of work included demolition and removal of Well No. 8 and construction of Well No. 10, within the same lot located at 6065 Cherry Avenue, Long Beach. Construction of Well No. 10 included installation of a new 18-inch diameter stainless steel well to an approximate depth of 1,050 feet. The new facility consists of a new 125-horsepower vertical turbine pump, motor, discharge head, well pump base, valves, piping, and appurtenances. Site improvements associated with the construction of Well No. 10 included a concrete masonry unit wall and replacement of concrete and asphalt pavement in the parking lot. P&L completed all field activities on March 10, 2023, and the City received Title 22 lab test results of the well water April 14, 2023. P&L completed the contract scope of work per the approved plans and specifications to the satisfaction of the Public Works Department. Staff is CITY OF SIGNAL HILL Page 2 of 3 Printed on 5/5/2023
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recommending adoption of the proposed Resolution declaring final acceptance of the project.
Two items remain on the overall project scope outside of P&L’s contract scope. The City needs to acquire a permit from the California State Water Resources Control Board’s Division of Drinking Water (DDW) before it can begin pumping water from Well No. 10 to the City’s potable water distribution system. As of the time of this staff report, the required Title 22 lab test results have been submitted to DDW and the permit is now pending. Additionally, staff must finish integration of the well pump controls with the City’s Supervisory Control and Data Acquisition (SCADA) system, which will enable the automated operation and monitoring of the well pump. An additional component must be installed to complete the SCADA integration, which has been ordered but will not be delivered until August 2023. Installation of this component is not part of P&L’s contract scope. After the well is permitted by DDW, the well pump will be controlled manually until the SCADA control part arrives and is installed. Staff anticipates the remaining project budget will be sufficient to fund completion of these remaining activities.
Reviewed:
_________________________
Sharon del Rosario
Approved:
_________________________
Carlo Tomaino
Attachment:
A. Resolution
CITY OF SIGNAL HILL Page 3 of 3 Printed on 5/5/2023
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