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Council awards $1.0 million single‑bid contract to drill Source 6 production well amid requirement to perfect water rights
Summary
The council awarded contract PW2024‑01 to Holt Services Inc. for $1,001,122.20 to drill a production well needed to perfect Source 6 water rights by 2030. Staff said only one qualified cable‑tool driller bid; council members expressed concern about having a single bidder but voted to proceed because of timing urgency.
LACEY, Wash. — The Lacey City Council voted unanimously to award a contract for a production well at the recently purchased Source 6 parcel after staff said only one qualified bid was received.
Utility engineer Gagan Braar said staff recommends awarding PW2024‑01 — Source 6 water rights production well — to Holt Services Inc., the low and only bidder, at $1,001,122.20. "The low bid came out to be $1,001,122.20. The engineer's estimate was $864,929.65," Braar told the council.
Why it matters: The well is intended to perfect water rights tied to Source 6 — staff said the city must perfect approximately 967 acre‑feet annually at a 600 GPM rate and that the deadline is currently 2030. Staff described the drilling as a cable‑tool operation that will place a 16‑inch well to depths up to 500 feet. Exploratory monitoring wells have been drilled; a production well is required for full testing and perfection of the right.
Single‑bid concerns: Multiple council members pressed staff on why only one bid was received. Braar said cable‑tool drilling is a highly specialized technique and two major local firms had recently retired; Holt had acquired equipment and capability from a retired company. One council member said the lack of competition made them "hesitant," but members acknowledged an urgency tied to the statutory/permitting deadline and ultimately approved the award.
Contract details and schedule: - Contract: PW2024‑01 (Source 6 production well) - Awarded to: Holt Services Inc. - Award amount: $1,001,122.20 (one bidder) - Engineer's estimate: $864,929.65 - Anticipated start: around March (staff estimate) - Working days: 120
Motion and outcome: A motion to award the contract to Holt Services Inc. at the amount presented was moved and seconded; the motion carried unanimously.
Next steps: Staff will coordinate preconstruction steps with Holt Services, perform production testing once the well is drilled and proceed with any treatment or wellhouse work required by water quality results. Staff said they will continue communication with the Washington State Department of Ecology regarding permit perfection and any potential extension requests.
