REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 1 to the Agreement with Kyle Groundwater, Inc. for Well Condition Assessment and Engineering Services Within the Previously Authorized Maximum Amount of $1,007,880
Report
BACKGROUND
On September 27, 2022, the City Council approved RTC No. 22-889, authorizing the City Manager to execute an agreement with Kyle Groundwater, Inc. to provide well condition assessment and engineering services for six inactive City groundwater wells. These services support the City’s evaluation of the wells’ conditions and help determine whether they can be rehabilitated and returned to service, thereby strengthening the City’s groundwater supply portfolio.
The wells identified for evaluation under the agreement are Wells 5-02, 16-02, 21, 26, 32, and 34. Condition assessments and engineering evaluations have since been completed for all six wells. Based on the results of that work, five of the six wells were deemed feasible for rehabilitation. Well 21 was recommended for abandonment due to structural deficiencies identified in the well casing.
As part of the City’s ongoing groundwater system planning, Well 26, an inactive well at 802 Laurie Avenue, has been identified as the next well to be rehabilitated. During staff’s review of historical water quality data for Well 26, elevated concentrations of aluminum and iron were identified relative to other wells in the City’s groundwater system. To further evaluate these conditions, additional well-condition assessment and engineering services are needed to conduct zone-specific water-quality sampling and flow profiling. These services will help determine whether these constituents are entering the well at specific depths. If the source is isolated to particular intervals, those sections may be sealed as part of the rehabilitation strategy to improve the water quality produced by the well.
DISCUSSION
The agreement with Kyle Groundwater, Inc., expired on August 31, 2025, following completion of the pre-construction condition assessments. During planning for the next phase of work, staff identified the need for additional zone-specific water-quality sampling and flow-profiling services to properly evaluate the rehabilitation needs for Well 26 and to further investigate the elevated aluminum and iron concentrations in the well.
These services were included in the original scope of services for Well 32 but were not originally identified for Well 26. Because the same services are now necessary to complete the evaluation of Well 26, staff has determined that reinstating the agreement and extending the term is necessary to support the continued assessment and rehabilitation planning efforts for the well.
If authorized, Amendment No. 1 will reinstate the agreement under its original terms and conditions and extend the term through December 31, 2026. The amendment will also revise the scope of services to include zone-specific water-quality sampling and flow profiling services for Well 26, enabling a more comprehensive evaluation of the sources of elevated aluminum and iron concentrations. This scope revision is directly related to the well condition assessment and engineering services for Wells 5-02, 16-02, 21, 26, 32, and 34, which were originally solicited and awarded to Kyle Groundwater. Because the additional services build upon work already performed under the agreement, utilizing the same consultant will support continuity and evaluation of Well 26.
The additional services for Well 26, estimated at $195,681, will be funded under the existing agreement authorization by reallocating unused funds among identified tasks. Funding for the zone-specific water-quality sampling and flow-profiling work will be provided from unexpended funds originally allocated to Well 21 that were not fully utilized because the well was recommended for abandonment. As a result, Amendment No. 1 does not increase the agreement’s maximum compensation, which will remain at $1,007,880.
ENVIRONMENTAL REVIEW
The action being considered is exempt from formal environmental review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301(b) (Class 1 - “Existing Facilities”) as the activity consists of the operation, repair, and maintenance of existing public structures, facilities, and mechanical equipment, including publicly owned utilities, involving negligible or no expansion of the existing use.
FISCAL IMPACT
There is no change to the previously approved total contract compensation under the agreement. Funding for this work is available in the New and Replacement Wells project in the Water Utility Capital Fund.
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220 or via email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to execute Amendment No. 1 to the agreement with Kyle Groundwater, Inc. to reinstate the agreement, extend the term through December 31, 2026, and revise the scope of services to add zone-specific water quality sampling and flow profiling for Well 26, within the previously authorized maximum compensation of $1,007,880, subject to the appropriation of funds and the review and approval as to form by the City Attorney; and
2. Authorize the City Manager or designee to take all actions necessary to implement and administer the agreement with Kyle Groundwater, Inc., including negotiating and executing future amendment(s) to add or delete services associated with the scope of services, extend the term to allow completion of work, and make de minimis changes, provided that the total maximum compensation is not exceeded, subject to review and approval as to form by the City Attorney.
Staff
Reviewed by: John Ramirez, Director, Water & Sewer Utilities
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Agreement - Kyle Groundwater, Inc.
2. RTC# 22-889 KYLE Groundwater
3. Amendment No. 1 - Kyle Groundwater, Inc.