SUBJECT
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Approve Contract Amendment with Youngquist Brothers Drilling, Inc. for Construction of the Southeast Wellfield Injection Well #1 (Action)
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DESCRIPTION
On September 21, 2022, the PRWC Project Board authorized staff to publish an advertisement for a qualified well driller to construct Southeast Injection Well 1 (SEIW-1) in support of the Southeast Wellfield Project. Subsequently, the Polk County Procurement Division (on behalf of the PRWC) advertised SEIW-1 for bid on November 7, 2022. On December 14, 2022, one (1) bid was received from Youngquist Brothers, Inc. in the amount of $18,888,000. Youngquist Brothers, Inc. was subsequently determined to be responsive and qualified to construct the SEIW-1. A contract agreement was approved by the PRWC Board of Directors at the March 22, 2023 Board meeting.
Construction of SEIW-1 is now concluding with final testing occurring in August and September of 2024. The well was constructed to a cased depth of 3,300’ with a total depth of 8,050’. Preliminary testing has indicated that the well will be able to accept the full amount of concentrate water from Phase 1 of the project.
The contract between the PRWC and Youngquist Brother Drilling anticipated the possible need for a second injection well at the Southeast site; therefore, the contract was written in a manner to allow for a second well at or near the water production facility site. Because the contract allowed for a second well and this has been determined not to be needed for Phase One of the Southeast Wellfield Project, staff would like to utilize the existing contract to drill the second well at the West Polk facility. In discussions with Polk County procurement and the PRWC General Counsel, it has been determined that this can be accomplished through a contract amendment with Youngquist.
There are numerous advantages in proceeding with the contract amendment to move the location of the second well including:
1) Youngquist Brothers Drilling was the only qualified drilling firm to respond on the initial procurement request for Southeast and it is anticipated they are the only qualified firm for West Polk Injection Well 1 (WPIW-1). This will save the PRWC time and money on another bid solicitation.
2) Youngquist Brothers Drilling has agreed to maintain unit pricing from the SEIW-1 construction to the WPIW-1. Staff anticipate if the project was re-bid, pricing would be higher.
3) Youngquist Brothers Drilling has agreed to move directly from the Southeast site to the West Polk site. Given the significant demand for injection well drilling in the state of Florida, this schedule will best accommodate the schedule being developed for the West Polk Project.
Under this item presented on the consent agenda, staff are requesting approval of the contract amendment to allow for the location change of the injection well. A second related item will be presented to the West Polk Board of Directors at the July 24, 2024 Board of Directors meeting to request a change order to the contract to increase the contract amount and schedule duration for the construction of WPIW-1.
RECOMMENDATION
Approve the contract amendment with Youngquist Brothers Drilling, Inc. to add the construction of West Polk Injection Well 1
FISCAL IMPACT
There is no fiscal impact associated with the change in location of the injection well requested as a part of this contract amendment. However, the West Polk Board of Directors will be requested to approve the cost and time increase as a separate agenda item presented at the July 24, 2024 Board of Directors meeting. The following cost information will be considered by the West Polk Board of Directors:
The WPIW-1 is anticipated to cost $18,762,600 (inclusive of stand-by time and contingency, well acidification, and final demobilization costs) and the dual zone monitor well is anticipated to cost $4,586,710 for a total price of $23,349,310. This overall cost of WPIW-1 is higher due to the need to construct a dual zone monitor well at the West Polk site. The Southeast site also required appropriate monitor wells, but those wells were constructed as a part of Test Well #2 under a separate drilling contract. Southwest Florida Water Management District grant funds and the Water Infrastructure Finance and Innovation Act (WIFIA) loan have and will be utilized to fund the construction of both injection wells.
CONTACT INFORMATION
Eric DeHaven
Mark Addison
Tom Mattiacci