City Council Meeting - FINAL


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  6.C.       
Meeting Date: 10/06/2020  
Co-Submitter: Erin Young From: Justin Emerick, Project Manager, Water Services

Information
TITLE:
Consideration and Approval of Construction Contract with Boart Longyear Company in the amount of $1,858,419. for the services of drilling well #2 at Fort Tuthill.
STAFF RECOMMENDED ACTION:
  1. Approve the construction contract with Boart Longyear Company in the amount of $1,858,419, and a contract time period of 365 calendar days; and
  2. Authorize the City Manager to execute the necessary documents.
Executive Summary:
Council approval will allow the execution of a contract with Boart Longyear Company to perform well-drilling services for Fort Tuthill Well #2. The project was bid on September 16, 2020, and Boart Longyear was the lowest responsive responsible bidder.
Financial Impact:
The Ft Tuthill Well #2 project is funded by the total appropriation of $1,858,419. Funds for this project are budgeted in the Water Services New Well Capital account #  202-08-370-3350-0-4464.
Policy Impact:
There are no policy impacts with this contractual agreement.
Connection to PBB Key Community Priorities/Objectives & Regional Plan:
Priority Based Budget Key Community Priorities and Objectives
Priority: Sustainable, Innovative Infrastructure Objectives: Deliver outstanding services to residents through a healthy, well maintained infrastructure system; Utilize existing long-range plan(s) that identify the community's future infrastructure needs and all associated costs

Regional Plan
Regional Plan WR2.2 Maintain and develop facilities to provide reliable, safe, and cost-effective water, wastewater and reclaimed water services.
Has There Been Previous Council Decision on This:
Council has previously approved the FY 2018-2019 Capital Improvement 5-Year Plan and authorized the FY 2018-2019 budget for this project in the amount of $1,800,000. On April 7, 2020, this Council approved the Amended and Restated Permanent Easement for Wells, Drainage, Sewer, and Water Pipelines (for Fort Tuthill and surrounding area development) with Coconino County.
Options and Alternatives:
1.  Approve the award as recommended. This would allow the project to be constructed in 2020/2021.
2.  Reject all bids. This option would delay the construction start and possibly cause the work to be
deferred until 2022.
Background/History:
Additional well resources are needed to provide for growth and system redundancy in order to achieve a reliable and cost-effective balance of water supplies utilizing ground water and surface water supplies sources. Water Services used a sophisticated ground structure probing technique called Controlled Source Audio Frequency Magnetotellurics (CSAMT). This technique provides the City with a visual “picture” of the underground structures beneath promising areas that indicate whether or not the rock porosity is generous enough to allow adequate flow into the fault structures where water is most apt to be withdrawn.
 
Because of the challenging drilling conditions in the Flagstaff area, a special type of drilling technique called the Dual-Rotary method was chosen for the development of this well.  This drilling technique advances well casing along with the drill bit during drilling of the borehole, which mitigates issues many previously used methods have had in maintaining the circulation of drilling fluids during the drilling process. This is important because it provides a larger margin of safety in not losing the well hole to collapse prior to the installation of the well casing. The Dual Rotary method was successfully used in drilling the last three City wells at Fort Tuthill Well site #1, Sinagua Well, and McAllister Well in 2008. 

 ATC Group Services were hired to design the well and develop the scope of services and drilling specifications. This information defines project protocols and guides the drilling contractor through the challenging drilling conditions found in the Flagstaff area. ATC Group Services will see the project through to ensure that the proper protocols are followed and the final well meets the City's specifications.

Well development services include: drilling the well to 2,500 feet, verifying well alignment and deviation during the drilling process, installing well casing, screen and gravel pack, performing restoration activities to the disturbed area to pre-drilling conditions (grading, reseeding).

Purchasing staff published an Invitation for Bids (IFB) solicitation for Well Drilling Project in the Arizona Daily Sun on August 30th and September 6th, 2020, and posted the solicitation to the City of Flagstaff’s PlanetBids Website on August 25th, 2020. On September 16th, 2020, the City received three Bids from Well Drilling contractors. Upon a review from Water Services and the Procurement team, Boart Longyear Company was determined to be the lowest responsive bidder of the three bids received in this bidding process. The following are the dollar amounts of the bids received for IFB #2021-19 Well Drilling Project:
 
  • Boart Longyear $1,858,419.00 (base bid $1,843,219.00 + Add Alternate Gravel Package $15,200)
  • Yellow Jacket Drilling $1,943,241.00
  • Weber Water $2,709,313.00

 

Key Considerations:
Approval of this contract will mark the start of the third of a four-phase process to bring another groundwater well online: 1) completion of a Well Siting Study Report (April, 2018), 2) hiring a consultant to locate a final well site, develop a well design and drilling specifications, and provide the City guidance and oversee the well drilling process (September, 2018), 3) hiring a well drilling firm to drill and construct the new water supply well, and 4) equipping the well with a pump house for disinfection and delivery into the public water distribution system.

The need for a new water well is based upon maintaining a certain percentage of system redundancy to ensure a reliable water supply to our customers, as explained in the City’s Water Policies (City Council Resolution #2014-13) for F2 Water System Capacity Allocation.

The City has an agreement with the County that allows a second well at Fort Tuthill, titled Permanent Easement for Wells, Drainage, Sewer, and Water Pipelines (Fort Tuthill), dated March 24, 2020. 
Community Benefits and Considerations:
City customers will benefit by having adequate capacity in our water production system as per the City's Water Policy F2 Water System Capacity Allocation. .
Attachments
Well Drilling Contract
Fort Tuthill Well #2 Location
Fort Tuthill Permanent Easement Agreement 2009
Fort Tuthill 2020 Easement


    

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