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HomeMy WebLinkAboutItem 09k - Goldring Well Drilling ProjectSTAFF REPORT PUBLIC WORKS SERVICES DEPARTMENT DATE: October 6, 2026 TO: Honorable Mayor and City Council FROM: Paul Cranmer, Assistant City Manager/Public Works Services Director By: Tiffany Lee, Principal Civil Engineer SUBJECT: CONTRACT WITH SOUTH WEST PUMP & DRILLING, INC. FOR THE GOLDRING WELL DRILLING PROJECT IN THE AMOUNT OF $2,274,647, WITH A 10% CONTINGENCY CEQA: Mitigated Negative Declaration / Notice of Determination Filed Recommendation: Approve SUMMARY To enhance the existing water supply infrastructure, Arcadia is partnering with the City of Sierra Madre to construct a new water supply well within the Arcadia Public Works Services Department Yard. To ensure the City is receiving the most competitive prices and quality service for this work, the Public Works Services Department (“PWSD”) conducted a formal bid process. South West Pump & Drilling, Inc. submitted the lowest responsive bid. It is recommended that the City Council approve, authorize, and direct the City Manager to execute a contract with South West Pump & Drilling, Inc. for the Goldring Well Drilling Project in the amount of $2,274,647, with a 10% contingency. BACKGROUND The City provides water to over 57,000 residents, primarily with water pumped from the Main San Gabriel Basin, West Raymond Basin, and the East Raymond Basin. To enhance the existing water supply infrastructure, Arcadia is partnering with the City of Sierra Madre to construct a new water supply well (Goldring Well) in the Main San Gabriel Basin. Award Goldring Well Drilling Project October 6, 2026 Page 2 of 5 On November 17, 2020, the Arcadia City Council approved a New Joint Groundwater Production Well Agreement between the Cities of Arcadia and Sierra Madre to jointly design, construct, operate, and maintain a groundwater production well in the Main San Gabriel Basin. Per the terms of the Joint Agreement, Arcadia and Sierra Madre are each responsible for 50% of the cost of all matters related to the new well. In March 2023, in response to increased concern over Per- and polyfluoroalkyl substances (“PFAS”), also known as “forever chemicals”, the Environmental Protection Agency published proposed regulations that would set Maximum Contaminant Levels for select PFAS contaminants. PFAS can be found in products such as food packaging and commercial and household products, which often end up in groundwater and are toxic at relatively low concentrations, thus, presenting a danger to both human health and the environment. On June 20, 2023, the City Council approved an amendment to the agreement to include treatment for the new well to address PFAS that had been detected in other groundwater sources within the vicinity of the Goldring Well. The Goldring Well and PFAS Treatment Project consists of constructing a new groundwater production well, PFAS treatment plant, 30,000-gallon backwash tank with a 4-inch diameter sewer pipeline, 12-inch diameter ductile iron water main, and a 30-inch diameter Reinforced Concrete Pipe (“RCP”) pump-to-waste storm drain pipeline. To minimize project costs and mitigate the extended lead time associated with procuring Ion Exchange (“IX”) adsorption systems, PWSD staff elected to procure the IX adsorption treatment system separately and provide the equipment to the installation contractor. On December 2, 2025, the City Council approved a Professional Services Agreement with AqueoUSVETS LLC for the purchase of IX adsorption treatment vessels. The water, sewer, and storm drain pipelines have been constructed. This phase of the project consists of drilling the Goldring Well. Installation of the well equipment and PFAS treatment system will be performed through a separate contract. To ensure the City is receiving the most competitive prices and quality service for this work, the PWSD conducted a formal bid process. Award Goldring Well Drilling Project October 6, 2026 Page 3 of 5 DISCUSSION A Notice Inviting Bids was published in accordance with City Council Resolution No. 7483, and bid packages were distributed to contractors that perform this type of work. On September 1, 2026, the City Clerk received five sealed bids with the following results: Bidder Location Bid Amount South West Pump & Drilling, Inc. Coachella, CA $ 2,274,647 Best Drilling and Pump, Inc. Colton, CA $ 2,348,497 Layne Christensen Company Redlands, CA $ 2,414,604 Zim Industries, Inc. Bakersfield, CA $ 2,849,396 Nor-Cal Pump & Well Drilling, Inc. Yuba City, CA $ 2,868,550 Bid documents and the contractor’s background were investigated. Based on that review, it has been determined that South West Pump & Drilling, Inc. is the lowest responsive bidder for this work and is qualified to complete the project as defined in the bid documents. South West Pump & Drilling, Inc. has successfully completed similar projects for the Cities of Orange, Tustin, and Big Bear Lake, and the Western Municipal Water District, Rancho California Water District, and Beaumont-Cherry Valley Water District. ENVIRONMENTAL ANALYSIS Pursuant to the provisions of the California Environmental Quality Act (“CEQA”), an Initial Study/Mitigated Negative Declaration (“IS/MND”) was prepared to evaluate the potential environmental effects associated with the implementation of the Goldring Well and PFAS Treatment Project. The IS/MND found that there would be either no impact or less than significant impact on all resources, with the exceptions of Air Quality, Hazards and Hazardous Materials, Noise, and Tribal Cultural Resources. These four resource categories were found to have “Less than significant Impact with Mitigation Incorporated.” Award Goldring Well Drilling Project October 6, 2026 Page 4 of 5 For 30 days, from February 10, 2025, to March 11, 2025, the Draft IS/MND was circulated for public review and comments. On April 1, 2025, the City Council adopted the IS/MND for the Project, approved the Mitigation Monitoring and Reporting Program, and authorized the execution of the Notice of Determination. On April 3, 2025, the Mitigated Negative Declaration/Notice of Determination was filed with the Los Angeles County Clerk and was published with the State Clearing House. The CEQA process has, therefore, been completed. FISCAL IMPACT Funds in the amount of $7.0 million have been budgeted in the Fiscal Year 2024-25 Capital Improvement Program for the construction of the new Goldring Well and Treatment System. On December 2, 2025, the City Council approved a Professional Services Agreement with AqueoUSVETS LLC for the purchase of IX adsorption treatment vessels in the amount of $1,010,801.95. Following this expenditure, $5,989,198.05 remains available in the CIP budget for the construction phases of the project. The total cost for the Project is $2,274,647, and with a 10% contingency, the total project cost is $2,502,111.70. The City of Arcadia’s cost share, including the contingency, is $1,251,055.85. RECOMMENDATION It is recommended that the City Council determine that the California Environmental Quality Act (“CEQA”) process for the Goldring Well and PFAS Treatment Project has been completed in accordance with CEQA; and approve, authorize, and direct the City Manager to execute a contract with South West Pump & Drilling, Inc. for the Goldring Well Drilling Project in the amount of $2,274,647, with a 10% contingency. Award Goldring Well Drilling Project October 6, 2026 Page 5 of 5 Attachments: Exhibit “A” - Project Location Map Proposed Contract CITY OF ARCADIA CONSTRUCTION OF GOLDRING WELL PROJECT PROJECT NO. 72862625 BETWEEN CITY OF ARCADIA AND SOUTH WEST PUMP & DRILLING, INC. CONTRACT Contract - 1 CONTRACT FOR THE CITY OF ARCADIA This CONTRACT, No. ________ is made and entered into this ____ day of _______, ______, by and between City of Arcadia, sometimes hereinafter called “City,” and South West Pump & Drilling, Inc., sometimes hereinafter called “Contractor.” WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows: A. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project: Construction of Goldring Well Project Project No. 72862625 The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation. B. TIME FOR COMPLETION. Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within ONE HUNDRED AND FORTY (140) CALENDAR DAYS calendar days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work. C. CONTRACT PRICE. The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of TWO MILLION, TWO HUNDRED SEVENTY-FOUR THOUSAND, SIX HUNDRED FORTY-SEVEN DOLLARS AND NO CENTS ($2,274,647.00). Payment shall be made as set forth in the General Conditions. D. LIQUIDATED DAMAGES. In accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum set forth in Special Conditions, Article 1.11 for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents. E. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following: Notice Inviting Bids Instructions to Bidders Bid Form Bid Bond Designation of Subcontractors Information Required of Bidders Non-Collusion Declaration Form Iran Contracting Act Certification Contract - 2 Public Works Contractor Registration Certification Performance Bond Payment (Labor and Materials) Bond General Conditions Special Conditions Technical Specifications Addenda Plans and Drawings Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9 Applicable Local Agency Standards and Specifications, as last revised Approved and fully executed change orders Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents. All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. This Contract shall supersede any prior agreement of the parties. F. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work. G. INDEMNIFICATION. Contractor shall provide indemnification and defense as set forth in the General Conditions. H. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Administrative Office or may be obtained online at dir.ca.gov and which must be posted at the job site. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] Contract - 3 IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written. CITY OF ARCADIA By: Dominic Lazzaretto City Manager SOUTH WEST PUMP & DRILLING, INC. By: Signature Print Name and Title Attest: By: City Clerk By: Signature Print Name and Title Approved as to Form: Michael J. Maurer City Attorney (CONTRACTOR’S SIGNATURES MUST BE NOTARIZED AND CORPORATE SEAL AFFIXED) Contract - 4 Notary Acknowledgment A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF ______________ On , 20___, before me, _______________________________, Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above Contract - 5 Notary Acknowledgment A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF ______________ On , 20___, before me, _______________________________, Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above