Agenda Item Wording:
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Water Reclamation Facility well replacement - Authorize the City Manager to award an agreement to Living Water Industries, in the amount of $325,000 for the replacement of Well No. 1 at the Water Reclamation Facility (WRF), and appropriate $243,410 from Wastewater Fund.
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Agenda Date: 11/02/2026
Prepared by:
Rehana Lustyan, Senior Project Manager, Rehana.Lustyan@visalia.gov - 559-713‑4176
Ben Litwack, Public Works Manager, Ben.Litwack@visalia.gov - 559-713-4671
Department Recommendation:
Staff recommends that the City Council authorize the City Manager to award an agreement for a well replacement project at Visalia Water Reclamation Facility (WRF), to Living Water Industries LLC dba Living Water Well Drilling of Merced, CA, in an amount of $325,000, and appropriate $243,410 from Wastewater Fund 431.
Summary:
The City’s Well No. 1 at the WRF has structurally failed and is no longer operational. To maintain required water supply and system reliability, a new replacement well is required. However, to install a new well, the existing well must also be destroyed per State and County standards. The proposed scope of work includes the destruction of the existing well, and the construction and development of a new well.
This project originally began as an evaluation of whether the existing Well No. 1 could be rehabilitated by deepening the borehole and installing new casing. After soliciting quotes and engaging Thomas Harder & Co. Groundwater Consulting for a technical assessment, staff determined, based on Thomas Harder & Co’s findings, that rehabilitation was not feasible or cost‑effective. They recommended that the City design and construct a completely new 400‑foot replacement well. This recommendation was accepted, and the City proceeded with bidding the new well construction rather than a well‑deepening rehab project.
This well is not currently intended to be utilized for potable water supply and will be used to support the industrial operations of the WRF. As a City capital project, the contract is subject to different standards and requirements than a comparable private sector project, such as an agricultural well. The project requires prevailing wage compensation, applicable fringe benefits, certified payroll reporting, as well as the typical insurance and bonding requirements seen on most City-wide public contracts. These are added expenses that are not typically seen on the construction of private agricultural wells, and therefore these increase the overall cost of the City’s project. It is also important to note that the scope of this project includes both the installation of a new well, but also the destruction of the existing Well 1, as required by State and County requirements to avoid safety hazards and potential contamination to the aquifer. This represents a separate construction operation requiring additional equipment, labor, materials, and mobilization.
On September 16, 2026, four bids were received and publicly opened, with Living Water Industries submitting the lowest responsive and responsible bid of $325,000.
Bids were publicly opened on September 16, 2026.
Four bids were received:
|
Bidder |
Location |
Total Bid |
|
Living Water Industries |
Merced, CA |
$325,000 |
|
Bakersfield Well & Pump / Zim Industries |
Bakersfield, CA |
$374,799 |
|
S.A. Camp Pump Company |
Bakersfield, CA |
$448,085 |
|
Arsenal Well Drilling |
Visalia, CA |
$465,275 |
Living Water Industries is the lowest responsive and responsible bidder.
Project Cost and Complexity Justification
While the contract amount exceeds the City's original planning budget, Living Water Industries’ bid of $325,000 was competitive, and comes in $75,000 under the Engineer’s Estimate of $400,000. Municipal water supply wells naturally cost more than standard private wells due to strict public contracting laws and unique on-site challenges:
• Statutory Public Works & Operational Constraints: As a regulated public works contract, pricing reflects state-mandated prevailing wage rates, certified payroll reporting to the DIR, and 100% Performance/Payment and 15% Maintenance bonding premiums. Logistically, working inside an active wastewater plant requires strict oversight and specialized, slower construction methods to safeguard the facility’s complex grid of underground electrical lines, chemical piping, and automated SCADA networks.
• Two-Part Engineering Scope: The contract encompasses two separate construction operations combined under a single agreement. First, Base Bid A ($60,725.00) covers the complete destruction and environmental sealing of the failed well cavity to meet County health mandates. Second, Base Bid B ($264,275.00) handles the actual drilling, construction, and development of the new well.
• Project Specifications: To protect the City's investment and guarantee the reliability, efficiency, and longevity of the WRF industrial operations, the project specifications developed by Thomas Harder & Co. Groundwater Consulting included the following:
o Conductor Casing: The project requires the installation of a conductor casing. As an additional construction component, the conductor casing prevents surface collapse while drilling the well, holding back loose, unconsolidated near-surface soil, sand, gravel and clay, keeping the borehole from caving in. It also blocks shallow contamination, sealing out shallow surface water, rain infiltration, and surface run-off. This is important in ensuring the efficient and successful operation of the project.
o Mechanical Well Development: The project requires a slightly more extensive mechanical development process. While not always utilized for agricultural wells, for example, it is recommended for optimal water well performance, longevity, and ongoing operational cost efficiency. The additional development procedures require specialized equipment, additional crew time, and extended field operations. With the investment of this project, the reliability and longevity of the well is important to the operations of the WRF.
o Pump Testing: The project includes pump testing and associated performance evaluation requirements. A pump test measures a well's flow rate (Gallons Per Minute or GPM), water level, and recovery rate to ensure the aquifer and pump can handle the intended demand. These operations require additional equipment, personnel, setup, and testing time, but provide important verification information to ensure the new well’s performance and longevity.
Staff completed the mandatory verification process, and determined Living Water Industries satisfies all City and State requirements.
The current construction contract provides a complete, turnkey well structure, including conductor casing, PVC casing and screen, filter pack, annular seals, and full mechanical development, along with mandatory test pumping using a temporary pump. However, permanent well equipping (pump, column assembly, motor, discharge head, electrical conduit, and controls) was intentionally excluded from the current contract scope of work because proper pump selection must be based on the new well’s measured yield and water‑level data. This phased approach serves as a safeguard against over-designing and over-purchasing a permanent pump that is larger than necessary, matching hardware capacity exactly to the well's verified specific capacity. Furthermore, doing initial test-pumping with a temporary rig flushes out early sand and drilling debris, entirely protecting the future permanent asset from premature wear. The physical installation of the permanent pump remains a separate operation under a future contract.
Staff reached out to several local pump companies and provided the specifications for the new 400 foot well along with the performance characteristics of the former 60 HP turbine pump, which produced 500 to 600 GPM with a setting depth of approximately 285 feet. Based on these reviews, preliminary vendor estimates indicate that a new pump and motor suitable for the deeper replacement well is expected to cost approximately $140,000 to $160,000. This estimate may change depending on economic conditions at the time the future equipping contract is awarded and based on actual well performance once construction and test pumping are completed. A separate staff report will be brought forward for the pump installation phase once final testing results and vendor pricing are available.
Staff verified CSLB licensing, DIR registration, subcontractor registrations, addenda acknowledgments, bid completeness, and conducted reference checks. Living Water Industries successfully completed all documents, licenses, and compliance requirements.
Fiscal impact including annual maintenance and operating costs:
Project Budget Summary
• Original Budget (CP0730): $130,000
• Design Agreement (Thomas Harder & Co., P04168): $15,910
• Project Budget Balance after design: $114,090
Construction Costs
• Construction Agreement: $325,000
• 10% Contingency: $32,500
Total Estimated Costs: $357,500
Budget Shortfall: ($243,410)
Current appropriation needed from Wastewater Fund 431: $243,410
Adequate funding is available in Wastewater Fund 431 to support the required appropriation for this phase of the well replacement project
Future Estimated Costs (Future Pump Equipping Phase):
• Permanent pump procurement (placeholder): $140,000-$160,000
• Electrical conduit and controls reconnection: $35,000
The current appropriation requested in this staff report ($243,410) supports the drilling and construction phase only. A separate future appropriation request will be brought to Council for the permanent pump and electrical equipping once the well is constructed and performance data is obtained in the via the testing phase with a temporary pump, and thus final vendor pricing can be obtained.
Prior Council Action:
None
Alternatives:
Reject all bids and re‑advertise the project - Not recommended; competitive and responsive bids were received, and delays have the ability to affect operational reliability.
Recommended Motion (and alternative motions if expected):
recommendation
I move to authorize the City Manager to award a well replacement project agreement to Living Water Industries in the amount of $325,000, and appropriate $243,410 from Wastewater Fund 431.
Environmental Assessment Status:
N/A
California Environmental Quality Act (CEQA) Review:
This action does not constitute a project under CEQA pursuant to PRC §21065 and CEQA Guidelines §15378.
The destruction of an existing well and construction of a replacement well at the same facility is categorically exempt under CEQA Guidelines §§15301 and 15302 (maintenance and replacement of existing facilities).
No further environmental review is required.
Deadline for Action: 11/02/2026
Attachments:
1. RFB-25-26-25 with all Exhibits and Addenda (Nos. 1-4)
2. Bid Tabulation Summary for RFB-25-26-25
3. Living Water Industries Bid Packet (including signed addenda)
4. Project Agreement
5. Consultant Disclosure Form
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Select all that apply.
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□  Economic Vitality |
□  Organizational Excellence |
□  Fiscal Strength |
■  Infrastructure & Growth |
□  Quality of Life |