Discussion and possible action to approve Phase 2 of this project through a design contract amendment and construction agreement in the amount of $8,722,579 with Archer Western Construction, LLC for Guaranteed Maximum Price to provide design, long lead procurement and well drilling construction services for the Central Arizona Project/Lake Pleasant Parkway Intersection Wellfield project, in accordance with budget authority previously approved by Council.

The City’s Council-approved ten year Capital Improvement Program (CIP) includes the CAP/LPP Intersection Wellfield (UT00523) project and provides funding for the addition of up to five new potable water wells and associated pipelines needed to transport the water to a central treatment facility.

Staff identified this project as part of an overall plan to address possible water supply challenges associated with uncertainty on the Colorado River. The proposed wells will increase access to water previously stored underground and ground water. Should significant cuts to the City’s Central Arizona Project (CAP) direct supply occur, access to these other water sources will be required to ensure Water Services can reliably meet community demands. These wells are identified as needs in the City’s Integrated Water Utility Master Plan (IWUMP), but recent events on the Colorado River have increased the urgency to complete the project.

The City’s ten year Capital Improvement Plan (CIP) also includes a companion project, UT00526 Zone 6E Reservoir & Booster Pump Station, which consists of a regional storage reservoir, a booster pump station, and associated water treatment and pipeline systems.  These two combined projects, UT00523 and UT00526, will supply all of the infrastructure necessary to convey water from the five new wells to the existing Peoria water supply system. These two projects are being designed and constructed concurrently to meet the aggressive project schedule.  UT00526 is not the subject of this proposed Council action and this background information is intended to give a full picture of the overall effort to provide this redundant water supply.

Water Services is utilizing a ‘Design Build’ project delivery method to complete the CAP/LPP Intersection Wellfield (UT00523) project.  Staff conducted a competitive selection process in September 2022 to hire an experienced Design Builder, which resulted in the selection of the Archer Western team.  Peoria is delivering the project via a phased approach, with the anticipated phasing summarized below:

·  Phase 1 - Pre-Design Services (Original Contract) – Included exploratory drilling and land acquisition related tasks.  City Council approved this contract in November 2022 and the work is nearly complete.

·  Phase 2 - Design Services/Early Procurement/Well Drilling (GMP 1) – This phase is the subject of this proposed Council Action and includes drilling of two permanent water wells, design for the entire project, and early procurement of long-lead electrical items.  Early purchase of these items will reduce risk of delays from potential procurement issues and allow the project to meet the aggressive project schedule.

·  Phase 3 - Well Drilling (GMP 2) – This future phase is expected to include drilling of the remaining three wells located on State Land property and possibly additional long lead procurement items and pipeline construction.

·  Phase 4 - Construction (GMP 3) – This future phase includes construction services for any remaining pipeline and the equipping of all five wells.

Costs and anticipated timing for each phase are listed in the table below.

Staff is requesting approval at this time of only GMP Phase 2A and 2B.  We will return to Mayor and Council for approval of all future phases (GMP 2 and GMP 3).

Mayor and Council previously approved ‘Phase 1’ for this project on November 15, 2022 for pre-design services. 

Staff recommends approval of the contract design amendment and construction agreement with Archer Western Construction, LLC in accordance with budget authority previously approved by Mayor and Council.