Board accepts completion of Well 4‑3, approves contracts and budget increase to equip Well 50

The Tulare Board of Public Utilities on Dec. 4 accepted a notice of completion for a newly drilled well and pipeline and approved contracts and a budget revision needed to equip a second new well, city staff reported.

Dylan, a project manager in the city’s project management and engineering division, told the board the notice of completion for Well 4‑3 and about 2,800 feet of 12‑inch pipeline has been prepared after work by contractor WM Lyles of Fresno was finished in accordance with the plans. He said the board awarded that contract on May 4, 2023, for $5,497,222 and that the total construction contract was $5,213,345.50. Staff recommended the city engineer sign the notice of completion and the city clerk file it with the county recorder.

City staff also presented a notice of completion for the drilling portion of Well 50, which staff described as a replacement for Well 1. Dylan said the drilling reached a depth of 610 feet and that the board awarded a $589,300 contract to South Valley Companies of Bakersfield on April 3, 2025; he reported the drilling portion’s total construction cost as $623,614.23. Staff recommended filing the notice of completion for Well 50 with the Tulare County Recorder’s office.

During discussion, Trisha, a city staff member, explained the city’s retention and warranty practice: the city holds a 5% retention during construction and will not release those funds until 30 days after a notice of completion is filed to allow subcontractors to submit claims. She said the city also requires a maintenance bond equal to 10% of the final contract amount that functions as a one‑year warranty and provides a mechanism to compel corrective work if necessary. "We hold a 5% retention throughout the course of the project ... we don't release that money until 30 days after the notice of completion is filed," Trisha said.

On the equipping phase for Well 50, staff said bids were opened from four firms and that Unified Field Services of Bakersfield submitted the lowest apparent bid. The engineer’s estimate for construction was about $5,000,000; the project’s original budget was $2,585,200, and staff said an additional appropriation of $3,048,340 from Fund 407 (Water CIB) is required to complete the work. Staff asked the board to authorize the city manager to sign equipping contracts, approve change orders up to 10% per contract, and approve the revised budget.

Board members asked about contractor experience and the record shows a question on Unified Field Services; Dylan said this is the first time the firm has been used for the city and that they appear qualified based on their bid package. The board moved, seconded and approved each staff recommendation by voice vote.

Next steps: the city engineer will sign the notices of completion and the city clerk will file them with the county recorder; the city manager is authorized to execute equipping contracts and approve limited change orders to complete Well 50’s equipping phase.