Consideration and Approval of Contract:  Hydrogeological Services Contract with ATC Group Services, LLC, to oversee a water supply well drilling project

Staff recommends Council approves the contract with ATC Group Services, LLC (ATC), formerly known as HydroSystems, for a time-and-materials not-to-exceed total of $408,795. Approval of this contract will authorize the City Manager to execute the necessary documents and will authorize the City to work with ATC to refine the next water supply well location, develop a conceptual well design and specifications, assist the City with developing well drilling specifications, selecting a well driller, and work on behalf of the City to oversee the well drilling and construction phase of the project.

The Council-approved Capital Improvements Project (CIP) plan includes five new water supply wells in the next ten years with $3,000,000 budgeted to cover the cost to drill and equip each well. This contract authorizes staff to execute the second phase of a three-phase process. The first phase was the completion of a Well Siting Study with Clear Creek Associates. This study helped to narrow down areas within and adjacent to Flagstaff with favorable groundwater development potential. The next phase involves hiring the expertise of hydro-geological consultants, and the third phase will involve contracting with a well drilling company to drill and construct the actual well. The proposed contract with ATC allows staff to begin the second phase of the well drilling process. The firm will begin by refining a well location within one of the areas defined in phase 1. ATC will serve an advisory roll to the City, providing expertise on well design and drilling specifications, selection of the drilling firm, and providing drilling oversight. Hiring a firm to provide these oversight services is standard in the industry, and has been mostly standard in Flagstaff since the 1950's when the City first began drilling for water from the C-aquifer.  ATC, then known as HydroSystems, was the firm selected to provide these hydro-geological services during the last three (3) water supply wells which were drilled and constructed by the City between 2006-2008.

The amount of $2,792,144.00 is available in the water capital improvements budget in the New Well & Pumphouse Program (202-08-370-3350-0-4466).

On April 11, 2018, Purchasing staff advertised and posted a Request for Statements of Qualifications (RSOQ) for Professional Design Services on the City of Flagstaff’s electronic bid website, and published an advertisement for the solicitation in the Arizona Daily Sun on April 15th and April 22nd, 2018. On May 8, 2018, the City received three (3) Statements of Qualifications (SOQs) from hydrogeology consulting firms. A five (5) member selection committee reviewed and evaluated the written SOQs submitted in phase 1 and based on the scoring results, two (2) of the firms (HydroSystems and Matrix New World) were shortlisted and advanced to phase 2 of the evaluation scoring process, which involved interviews and presentations. Based upon the aggregate numerical scoring in both phase 1 and phase 2 of the overall evaluation of the SOQs, the evaluation committee determined HydroSystems, Inc. to be the most qualified firm for recommendation of a contract award.  City staff negotiated a final scope of work and fee schedule with HydroSystems, Inc. and is bringing a recommendation to Council for consideration and approval to award the contract.   Below, are the aggregate scores and ranking for the two (2) shortlisted Firms:

RSOQ Written Responses (Phase 1):
                             HydroSystems (ATC)       Matrix New World    
Subtotal:                    1730                                   1755
Ranking:                      2                                             1

RSOQ Interview Questions/Presentations (Phase 2):

                             HydroSystems (ATC)       Matrix New World    
Subtotal:                    1860                                      1740
Ranking:                       1                                             2

Aggregate Score:      3590                                      3495
Ranking:                       1                                            2
 

1) This project consists of three phases: 1) completion of a Well Siting Study Report (April, 2018), 2) hiring a hydrogeological services consultant to provide the City guidance through the well drilling process, and 3) hiring a well drilling firm to drill and construct the new water supply well.

2) The City utilizes surface water from Upper Lake Mary as much as possible, however, surface water levels fluctuate annually and this source does not provide the reliability a municipality is expected to provide. The C-aquifer serves as a large groundwater "storage account" that the City withdraws from, as well as recharges, as Flagstaff grows. Staff closely monitor water levels in the aquifer and develop new wells in areas that are favorable, hydrologically (e.g. along faults), in areas around or within the City that are nearest to where natural recharge rates to the aquifer are the greatest, or in areas that are not developed with wells (therefore having no information on recharge rates). 

3) Further development of the C-aquifer by the City is deemed to be within "safe yield" for the Flagstaff area. This analysis was provided by the Arizona Department of Water Resources in their Designation of Adequate Water Supply granted to the City in 2013. To achieve the Designation, the City had to commission a groundwater modeling study that assessed possible long-term impacts to the C-aquifer by the City Flagstaff pumping water from it for 100 years.  The Designation grants the City to pump 9,913 acre-feet per year while remaining in safe yield. The City's withdrawals from the C-aquifer have been as little as 3,000 acre-feet in a year to as much as about 8,000 acre-feet in a year, depending on how much water is available in Upper Lake Mary.

The City will benefit by having more reliable water supplies.