200 S. Anaheim Blvd.
Suite #276
Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: NOVEMBER 4, 2025
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: FINANCIAL ASSISTANCE APPLICATION AND AGREEMENT
WITH THE STATE WATER RESOURCES CONTROL BOARD
FOR THE GROUNDWATER TREATMENT PLANTS PHASE C
PROJECT AND AWARD OF CONSTRUCTION AGREEMENT
TO GENERAL PUMP COMPANY, INC. FOR THE
GROUNDWATER TREATMENT PHASE C WELL
REHABILITATION
ATTACHMENT (Y/N): YES ITEM # 15
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council:
1) By Resolution, authorize the Public Utilities General Manager to serve as the City of Anaheim’s authorized representative in seeking financial assistance for the City of Anaheim Wells 48 and 53 PFAS Treatment Systems (also referred to as “Groundwater Treatment Plants, Phase C-1”), taking action and executing documents necessary to apply for, accept, and receive financial assistance, and, if awarded, accepting such financial assistance on behalf of the City, and amending the Anaheim Public Utilities budget for the fiscal years in which the financial assistance is awarded; and
2) By Resolution, authorize the Public Utilities General Manager to serve as the City of Anaheim’s authorized representative in seeking financial assistance for the City of Anaheim Wells 39 and 47 PFAS Treatment Systems (also referred to as “Groundwater Treatment Plants, Phase C-2”), taking action and executing documents necessary to apply for, accept, and receive financial assistance, and, if awarded, accepting such financial assistance on behalf of the City, and amending the Anaheim Public Utilities budget for the fiscal years in which the financial assistance is awarded; and
3) By Motion, determine that Phase C-1 and Phase C-2 are categorically exempt from the California Environmental Quality Act (CEQA) pursuant to sections 15301(b), 15302(c), and 15303 of Title 14 of the California Code of Regulations; and
4) By Motion, award a construction contract to the lowest responsible bidder, General Pump Company, Inc., in the amount of $6,598,689, plus a 10% contingency, for the Groundwater Treatment Plants Phase C Well Financial Assistance Application and Agreement with the State Water Resources Control Board for the Groundwater Treatment Plants Phase C Project and Award of Construction Agreement for the Groundwater Treatment Plants Phase C Well Rehabilitation November 4, 2025
Rehabilitation; authorize and direct the Director of Public Works, on behalf of the City, to execute the contract and related documents, including any cost- neutral amendments of the contract and any documents contemplated by the contract, and to take such actions as are necessary, required, or advisable to implement and administer the contract; and authorize and direct the Finance Director to execute the Escrow Agreement pertaining to contract retentions; and
5) By Motion, amend Anaheim Public Utilities’ Fiscal Year 2025/26 Water Capital Improvement Program budget by $3,600,000.
DISCUSSION:
Anaheim Public Utilities (APU) has an ongoing Groundwater Treatment Program to address synthetic chemicals (per- and polyfluoroalkyl substances or PFAS) used in the manufacturing of consumer and industrial products that have made their way into the Orange County groundwater basin. The first two phases (Phases A and B) were completed in 2024, which included 14 wells at 9 locations, in compliance with state regulations. APU is currently coordinating with the Orange County Water District (OCWD) to install the same treatment systems at four additional well sites, which are included as Phase C.
APU was successful in receiving $10 million in a grant for Phases A and B from the State Water Resources Control Board, and additional funding is available. The Phase C well sites are being separated into Phase C-1 (Wells 48 and 53) and Phase C-2 (Wells 39 and 47) to maximize the ability to apply for additional state grants. Subject to a previously approved reimbursement agreement with OCWD in 2020, capital funding for groundwater treatment is provided by OCWD, and applicable grants reduce their overall costs that are recovered through wholesale water supplies.
A budget amendment of $3.6M is being requested as the project was initially budgeted across multiple fiscal years; however, due to the grant opportunity, staff is requesting to issue one award to include all four wells in two grant applications.
Prior to the construction of the treatment plants, the four groundwater production wells will be rehabilitated to upgrade aging facilities, improve flow capacity, and increase their lifespan. This work will be administered by the City, and bids for the well rehabilitation are summarized as follows:
1. General Pump Company, Inc., San Dimas, CA..........................................$6,598,689
2. Best Drilling and Pump, Inc., Colton, CA ..................................................$7,277,227 Two (2) bids were received for the Phase C-1 and C-2 well rehabilitations, and the lowest responsive bidder is General Pump Company, Inc. The bid price from General Pump Company, Inc. is higher than the engineer’s estimate due to high demand for well drilling in California and recent material price escalations. The bids appear to be reasonable compared to recent bids by other water agencies. Following the bid due date, the City received one bid protest by the second-lowest bidder.
The City reviewed the protest letter, along with the rebuttal from the lowest bidder, and found no merit to the protest.
Financial Assistance Application and Agreement with the State Water Resources Control Board for the Groundwater Treatment Plants Phase C Project and Award of Construction Agreement for the Groundwater Treatment Plants Phase C Well Rehabilitation November 4, 2025
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Construction is scheduled to begin in late 2025/early 2026 and is expected to be completed by summer 2027. Liquidated damages are set at $800 per day.
This project supports the City’s Strategic Plan, Goal C – Invest in Infrastructure and Amenities, Strategy 13 – Address deferred and ongoing maintenance needs.
COMMUNITY WORKFORCE
AGREEMENT (CWA):
This Project is covered “Project Work” as defined in the CWA the City entered into with the Los Angeles / Orange Counties Building and Construction Trades Council and the Signatory Craft Councils and Local Unions.
ENVIRONMENTAL DETERMINATION:
Staff recommends that the City Council determine that the Project is categorically exempt from CEQA pursuant to sections 15301(b),15302(c), and 15303 of Title 14 of the California Code of Regulations. The Project will involve rehabilitation, construction of treatment systems, and minor modifications to existing water supply wells, which do not have the potential to create a significant effect on the environment. None of the exceptions to the use of categorical exemptions under CEQA guidelines section 15300.2 apply.
IMPACT ON BUDGET:
Council action will amend APU’s FY 2025/26 restricted Water Capital Improvement Program expenditure budget by $3,600,000.
Respectfully submitted, Concurred by,
Rudy Emami Dukku Lee
Director of Public Works Public Utilities General Manager Attachments:
1. Resolution – Wells 48 and 53
2. Resolution – Wells 39 and 47
3. Exhibit A
4. Vicinity Map