June 9, 2026
4:00 p.m.
In Chambers
Council Chambers
99 E. Ramsey Street
Banning, CA 92220
1. CALL TO ORDER
2. WORKSHOP
2.1 Wastewater Treatment Plant and Recycled Water Upgrades Project Update and Next Steps AGENDA
CITY COUNCIL - SPECIAL MEETING (WORKSHOP)
CITY OF BANNING, CALIFORNIA
The following information comprises the agenda for the special meeting of the Banning City Council, a joint meeting of the City Council and Banning Utility Authority, and the Banning City Council sitting in its capacity as the Banning Successor Agency Board.
This meeting is being held via Zoom so that members of the public may observe and participate in this meeting electronically. If you participate in this meeting via Zoom, you are agreeing to abide by the City's Zoom Community Standards for Public Meetings (provided in full on the last page of the agenda). Esta reunión se lleva a cabo en la Cámara y a través de Video/Teleconferencia en Zoom para que los miembros del público puedan observar y participar en esta reunión de manera electrónica. Si elige participar en esta reunión a través de Zoom, acepta cumplir con los Estándares comunitarios de Zoom para reuniones públicas de la ciudad (que se proporcionan en su totalidad en la última página de la agenda).
To observe and participate in the online video portion of the meeting through your personal computer or device, follow this link:
https://us02web.zoom.us/j/82012644588?pwd=GwdLNir0X6fHkhlgVjAjRUQf1C6yoz.1 Dial in: +1 669 900 9128
Meeting ID: 820 1264 4588
Password: 1913-92220
Per the City of Banning Manual of Procedural Guidelines, matters taken up by the Council before 10 p.m. may be concluded, but no new matters shall be taken up except upon a majority vote of the council members present and voting. Such an extension shall only be valid for one hour and each hour thereafter shall require a renewed action for the meeting to continue.
Recommendation: It is recommended that the City Council:
Receive a presentation and update on the Wastewater Treatment Plant and Recycled Water Upgrades Project;
Review the work completed to date, current project cost estimates, and available options for moving the project forward; and
Provide direction to staff to proceed with Option B.3: Terminate the current Progressive City Council - Special Meeting (Workshop) Agenda
June 9, 2026
1 3. PUBLIC COMMENTS - Agenda Items Only
4. ADJOURNMENT
Design-Build Contract and develop/implement a funding strategy for the original scope of work split into two phases: Phase I - Conventional Wastewater Treatment Plant Improvements; and Phase II - Reverse Osmosis and Brine Management.
Zoom Community Standards for Public Meetings
By participating in this meeting on Zoom, you are agreeing to abide by the City of Banning’s Community Standards for Public Meetings. Zoom attendees that fail to adhere to these standards may be removed from the meeting room.
Your microphone must remain on mute, and you may only unmute your microphone when/if you are recognized by the Mayor.
Your camera must be turned off unless/until you are recognized by the Mayor.
To indicate a desire to make Public Comment, you must use the Raise Hand function. The Mayor will not recognize those who have not used the Raise Hand function.
Public Comment from Zoom attendees will immediately follow in-person comment from members of the public in Council Chambers.
If you fail to adhere to these community guidelines, you may be removed for disrupting the meeting occurring in Council Chambers. You may rejoin the meeting but may be removed for each violation of these community standards.
The chat function will be disabled for all City Council meetings on Zoom.
Estándares comunitarios de Zoom para Reuniones Públicas Al participar en esta reunión en Zoom, usted acepta cumplir con los Estándares Comunitarios para Reuniones Públicas de la ciudad de Banning. Los que atienden por Zoom que no cumplan con estos estándares pueden ser retirados de la sala de reuniones.
Su micrófono debe permanecer en silencio, y solo puede reactivar su micrófono cuando / si es reconocido por el alcalde.
Su cámara debe estar apagada a menos que sea reconocido por el alcalde.
Para indicar el deseo de hacer un Comentario Público, debe utilizar la función Levantar la mano. El alcalde no reconocerá a quienes no hayan utilizado la función Levantar la mano.
Los comentarios públicos de lo que atienden por Zoom seguirán inmediatamente los comentarios en persona de los miembros del público en las Cámaras del Consejo.
Si no cumple con estas pautas de la comunidad, es posible que lo destituyan por interrumpir la reunión que tiene lugar en las Cámaras del Consejo. Puede volver a unirse a la reunión, pero es posible que lo eliminen por cada violación de estos estándares de la comunidad.
La función de chat estará deshabilitada para todas las Reuniones del Ayuntamiento en Zoom.
AFFIDAVIT • DECLARACIÓN JURADA
IT IS HEREBY CERTIFIED under the laws of the State of California that the above agenda was posted on the City's website (www.banningca.gov) as well as the Bulletin Board at Banning City Hall, located at 99 E Ramsey Street, Banning, CA 92220, at least 24 hours in advance of the meeting.
_________________________
Vickie Sellers, Elected City Clerk
Secretaria Municipal Electa
City Council - Special Meeting (Workshop) Agenda
June 9, 2026
2 PUBLIC NOTICE • NOTICIA PÚBLICA
Meeting Agendas and Notices
Interested in receiving email and/or text notifications of upcoming City Council meetings? Sign up for meeting notifications through the City's website. Pursuant to amended Government Code §54957.5(b), staff reports and other public records related to open session agenda items are available on the City's website (www.banningca.gov/).
Public Comment
Agenda Items
Any member of the public may address this meeting of the City Council on any item appearing on the agenda. A five-minute limitation shall apply to each member of the public and no member of the public shall be permitted to share their time with any other person.
Non-Agenda Items
Any member of the public may address this meeting of the City Council on any item which does not appear on the regular meeting agenda but is of interest to the general public and is an item upon which the City Council may act. A three-minute limitation shall apply to each member of the public and no member shall be permitted to share their time with any other person. No action shall be taken, nor discussion held by the City Council, on any item which does not appear on the agenda, unless the action is otherwise authorized in accordance with the provisions of subdivision (b) of §54954.2 of the Government Code.
Special Assistance/Accessibility Requests
In compliance with the Americans with Disabilities Act, any member of the public may request that the agenda and agenda packet be mailed to them. If you need special assistance to participate in this meeting (such as translation services), please contact the City Clerk's Office. Advanced notification of at least 48 hours prior to the meeting will allow the city to make arrangements to ensure your accessibility.
¿Necesita servicios de traducción para participar? Contacto Oficina del Secretario de la Ciudad.
CONTACT • CONTACTO
City Clerk's Office | 951-922-3102 | [email protected] 99 East Ramsey Street, Banning, California 92220
City Council - Special Meeting (Workshop) Agenda
June 9, 2026
3 CITY OF BANNING
STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Art Vela, Director of Public Works
MEETING DATE: June 9, 2026
SUBJECT: Wastewater Treatment Plant and Recycled Water Upgrades Project Update and Next Steps
STAFF RECOMMENDATION:
It is recommended that the City Council:
Receive a presentation and update on the Wastewater Treatment Plant and Recycled Water Upgrades Project;
Review the work completed to date, current project cost estimates, and available options for moving the project forward; and
Provide direction to staff to proceed with Option B.3: Terminate the current Progressive DesignBuild Contract and develop/implement a funding strategy for the original scope of work split into two phases: Phase I - Conventional Wastewater Treatment Plant Improvements; and Phase II - Reverse Osmosis and Brine Management.
BACKGROUND:
The City of Banning Wastewater Treatment Plant (WWTP), also known as the Water Reclamation Facility, provides for the collection, treatment, and disposal of municipal sewage. The facility has been in operation since 1925, with major improvements occurring through the early 2000s. The current treatment process includes preliminary, primary, and secondary treatment, with sludge disposal. Disinfection is part of the plant process but is currently not in use.
The WWTP has a design treatment capacity of 3.6 million gallons per day (MGD). Current average daily flows are approximately 2.0 MGD to 2.1 MGD, which are discharged into 10 unlined evaporation/percolation ponds. The treated effluent then percolates into the groundwater of the San Gorgonio Hydraulic Unit, which is used for municipal and industrial purposes.
The WWTP and Recycled Water Upgrades Project has been identified as a high priority due to several key factors:
Aging infrastructure and major assets that are nearing the end of their useful life; Regulatory requirements related to nitrogen, coliforms, total dissolved solids, and groundwater protection;
The need to plan for future wastewater capacity;
The City’s long-standing objective to develop a Title 22-compliant recycled water supply; and The need to reduce long-term reliance on imported water supplies.
The City’s recently approved Strategic Plan, “Banning 2030 - Designing the Future TODAY,” further reinforces the importance of this project. The Strategic Plan includes Strategic Goal 1 - Ensuring Public 4 Safety, which identifies Strategic Initiative 2c: Complete Wastewater Treatment Plant & Recycled Water Upgrades as a Tier 1 High Priority Initiative.
The purpose of this workshop is to provide the City Council and the public with an update on progress made toward this goal, review the available options for moving the project forward, and receive direction on next steps.
REGULATORY AND PLANNING DRIVERS
2016 Regional Water Quality Control Board Order
On June 30, 2016, the California Regional Water Quality Control Board, Colorado River Basin Region, adopted Board Order R7-2016-0015, which established Waste Discharge Requirements and other operating requirements for the City’s WWTP.
The Board Order requires the WWTP to remove constituents that present risks to groundwater quality, including nitrogen, coliforms, and total dissolved solids. The future nitrogen limit identified in the Board Order is 10 mg/L. Current average nitrogen concentrations in the WWTP effluent are approximately 29 mg-N/L, which exceeds the future limit. As a result, the City completed a Nitrogen Removal Feasibility Study in 2020.
The Board Order also requires the City to submit a capacity improvement plan once the WWTP reaches 80% of its design capacity, or 2.88 MGD.
2018 Integrated Master Plan
The 2018 Integrated Master Plan evaluated the City’s water, wastewater, and recycled water systems.
The plan identified needed capital improvements to support existing customers, future growth, and system performance through buildout. The plan also identified that many WWTP assets are aging and nearing the end of their useful life, requiring replacement. 2020 Urban Water Management Plan
On June 8, 2021, the City Council adopted the 2020 Urban Water Management Plan. The plan evaluates the City’s water supply and demand over a 20-year planning horizon and includes recycled water as part of the City’s future water supply portfolio. City staff is currently developing the 2025 Urban Water Management Plan, which is anticipated to continue identifying recycled water as an important future water supply source.
2022 Water and Wastewater Rate Increase
On November 8, 2022 City Council approved an increase to Water and Wastewater rates to support operation and maintenance expenses, water purchases, wastewater treatment, debt service requirements, and capital improvements. One major capital improvement identified in the 2022 Water/Wastewater Rate Study is the upgrades to the WWTP, which was planned as a $60M project which would be funded with rate revenue, existing fund balance and $25M in debt financing.
WORK COMPLETED TO DATE
N2W Engineering - Owner Advisor Services
On December 13, 2022, the City Council approved an agreement with N2W Engineering to provide Owner Advisor services and preliminary engineering for the project in a not-to-exceed amount of $1,576,430. To date, approximately $1,235,259 has been spent against the N2W contract.
N2W has assisted the City with:
Evaluation of available treatment technologies;
Confirmation that membrane bioreactor treatment is the preferred approach; Preparation of a feasibility report;
5 Preparation of grant applications;
Securing $300,000 in grant funding for feasibility and preliminary engineering work; Securing $16,194,576 in Bureau of Reclamation construction grant funding; Development of 10% engineering design;
Development of the RFQ scope of work;
Preparation of procurement documents for a Progressive Design-Build delivery approach; and Technical assistance throughout the Progressive Design-Build process.
Kimley-Horn - Environmental Services
On May 14, 2024, the City Council approved an agreement with Kimley-Horn to provide environmental services for the WWTP Upgrades Project. These services include preparation of California Environmental Quality Act compliance documents. Kimley-Horn has completed several environmental surveys and reports and has started preparation of the Initial Study/Mitigated Negative Declaration. To date, approximately $210,037 has been spent from the environmental services contract.
AECOM-Lyles - Progressive Design-Build Contract
On February 25, 2025, the City Council awarded a Progressive Design-Build Agreement for Phase 1 of the WWTP and Recycled Water Upgrades Project to AECOM-Lyles JV in the amount of $3,998,627, with a 10% contingency, for a total project budget of $4,398,490.
The Phase 1 scope includes advancing the 10% design prepared by N2W through additional design development and preparation of a Guaranteed Maximum Price. The Guaranteed Maximum Price would be used to award Phase 2, which would include equipment procurement, construction, engineering support during construction, construction management, commissioning, and acceptance testing.
To date, approximately $1,452,010 has been spent under the AECOM-Lyles contract. Work completed or underway under the
Progressive Design-Build process includes:
Preliminary Design Report;
Progress toward 30% design;
Baseline cost modeling and cost estimate updates;
Technical workshops with staff;
Regular progress meetings;
Engineering surveys;
Geotechnical investigation;
Hydraulic analysis; and
Review of alternative design approaches.
UPDATED COST ESTIMATES
During the Phase 1 Progressive Design-Build process, AECOM-Lyles provided multiple updated cost estimates:
October 17, 2025: Initial construction cost estimate of approximately $110.9 million.
November 16, 2025: Revised estimate after value engineering of approximately $94.3 million.
February 26, 2026: Revised estimate of approximately $72.2 million for a conventional WWTP after removing reverse osmosis and brine management.
April 22, 2026: Revised estimate of approximately $66 million for a hybrid WWTP consisting of cast-in-place aeration basins followed by packaged membrane bioreactor treatment trains, without reverse osmosis or brine management.
The original project budget was approximately $60 million. The updated estimates indicate that the project, as originally envisioned, is significantly more expensive than anticipated.
During the design process, it was also determined that the project could be delivered in two phases without jeopardizing the Bureau of Reclamation grant:
Phase I: Plant replacement with membrane bioreactor treatment and ultraviolet disinfection. 6 Phase II: Addition of reverse osmosis and brine management.
Phase I would replace the aging WWTP and produce tertiary-treated Title 22 recycled water. However, without reverse osmosis and brine management, the recycled water would not meet Beaumont Basin requirements. This is important because the City’s largest anticipated recycled water customer, Sun Lakes Country Club, overlies the Beaumont Basin. Phase II would add reverse osmosis and brine management at an estimated cost of approximately $21.9 million (today’s cost).
PACKAGED MBR TREATMENT CONSIDERATIONS
As part of the value engineering process, AECOM-Lyles presented a lower-cost hybrid treatment concept that includes packaged membrane bioreactor (MBR) treatment trains.
While packaged treatment systems may be appropriate in some applications and can reduce construction costs, staff has concerns with using this approach for the City’s primary wastewater treatment facility. The WWTP is core public infrastructure that is expected to serve the community for decades.
Staff concerns include:
Long-term durability and service life;
Operational complexity;
Maintenance risks;
Long-term lifecycle costs;
Reliance on less conventional treatment infrastructure for the City’s primary plant; and Potential impacts to future operations and expansion.
For these reasons, staff believes the City should continue prioritizing a conventional WWTP approach rather than relying on a hybrid-packaged treatment system.
OPTIONS FOR MOVING FORWARD
Option A: Continue Forward with the Current Progressive Design-Build Contract Benefits:
Fastest path to project delivery;
No risk of losing the Bureau of Reclamation grant;
Potential ability to use available fund balance;
Potential ability to borrow more than originally anticipated.
Meets WWTP regulatory requirements.
Risks:
Current proposal is over budget;
Final project cost could increase further;
Rate revenue impacts are not yet fully understood;
The lowest-cost scope includes a hybrid-packaged plant, which raises concerns regarding longterm durability, maintenance, and operations.
Option B.1: Terminate the PDB Contract and Repackage the Hybrid-Packaged System Benefits:
Provides competitive bids rather than continuing negotiations with one design-build team; Low risk of losing the Bureau of Reclamation grant;
Could allow use of additional available fund balance or borrowing; Could be completed relatively quickly as an interim market test before proceeding to another option.
7 Meets WWTP regulatory requirements.
Risks:
Project could still exceed the $60 million budget;
Hybrid-packaged plant remains less conventional for the City’s primary WWTP; Rate revenue impacts remain uncertain.
Loss of time if City decided to not move forward because of costs exceeding budget.
Option B.2: Terminate the PDB Contract and Develop a Funding Strategy for the Full Original Scope Benefits:
Provides time to seek additional funding sources;
Allows the City to complete a new rate study and evaluate revenue needs; Supports a conventional plant rather than a hybrid-packaged system; Produces recycled water that meets Beaumont Basin discharge requirements.
Meets WWTP regulatory requirements.
Risks:
Project cost could approach nearly double the original budget; A new rate study would likely identify the need for significant rate increases; Delays may result in additional cost escalation;
Low to medium risk of losing the Bureau of Reclamation grant; Continued reliance on aging infrastructure during the delay.
Option B.3: Terminate the PDB Contract and Develop a Funding Strategy for the Original Scope in Two Phases
Benefits:
Allows the City to prioritize replacement of the aging WWTP; Provides a conventional treatment plant approach rather than a hybrid-packaged system; Helps keep near-term rates lower than funding both phases at the same time; Recognizes that Phase II is not immediately needed due to the City’s current water supply portfolio and available annual supply capacity;
Provides time to seek additional funding sources, including potential grant opportunities; Provides time to evaluate brine management options, including potential discharge agreements with SAWPA, Beaumont, and other regional partners;3
Allows a new rate study to provide an updated and holistic review of revenue needs; Phase I produces recycled water that will serve users within the City outside of the Beaumont Basin;
Allows staff to analyze whether Phase I recycled water can be blended with potable well water to meet Beaumont Basin requirements.
Meets WWTP regulatory requirements.
Risks:
Delays may result in additional cost escalation;
Low to medium risk of losing the Bureau of Reclamation grant; Continued reliance on aging infrastructure during the transition period; Additional investment may be needed to maintain the existing plant while the project is restructured.
Option C: No Project
Benefits:
May save money in the short term.
No demand on staff resources, in the short term.
Risks:
Loss of the Bureau of Reclamation grant;
8 Continued reliance on aging infrastructure;
Increased risk of system failures, sewer overflows, and emergency repairs; Future non-compliance with effluent discharge requirements; No recycled water supply development;
Increased reliance on imported water;
Capacity limitations as development continues;
Likely higher project costs in the future due to escalation.
Staff recommends that City Council consider providing staff direction to move forward with Option B.3. If provide, staff will proceed with the following next steps:
Begin the process to terminate or off-ramp the current Progressive Design-Build contract; Coordinate with the Bureau of Reclamation regarding the $16.2 million grant and determine options to preserve grant eligibility;
Continue coordination with the Regional Water Quality Control Board regarding regulatory requirements and schedule expectations;
Initiate an updated water/wastewater rate study;
Initiate the 100% completion of plans for a traditions Design-Bid-Build in order to meet BOR grant timelines;
Develop a funding strategy for Phase I of the project;
Evaluate additional funding opportunities, including state and federal grant programs for the construction phase of Phase I;
Continue evaluating brine management options for Phase II; Analyze whether Phase I recycled water can be blended with potable well water to meet Beaumont Basin requirements;
Continue environmental review and determine whether adjustments are needed based on the revised project phasing.
JUSTIFICATION:
Staff recommends Option B.3 because it provides the most balanced and practical path forward.
The City needs to replace aging WWTP infrastructure and meet future regulatory requirements. At the same time, updated cost estimates show that proceeding immediately with the full original project scope may require significant rate increases and place additional pressure on the City’s wastewater utility and broader financial recovery efforts.
Option B.3 allows the City to focus first on the highest priority need: replacing the aging WWTP with a conventional treatment plant that can meet core regulatory and operational requirements. It also preserves the City’s long-term recycled water objectives by keeping reverse osmosis and brine management as a future second phase.
This phased approach is appropriate for several reasons:
It advances the highest-priority infrastructure improvements first; It avoids committing the City to a hybrid-packaged treatment system for its primary WWTP; It helps manage near-term rate impacts;
It allows time to pursue additional grant funding and financing options; It provides time to further evaluate brine management solutions; It allows the City to reassess revenue needs through a new rate study; It preserves the City’s ability to implement reverse osmosis and brine management when financially and operationally appropriate.
An important consideration is that Phase II is not immediately needed to meet the City’s current water supply demands. The City currently has a healthy water portfolio, and water demands are within the City’s annual supply capacity. This provides the City with time to evaluate the best approach to reverse osmosis and brine management without delaying the more urgent need to replace the aging WWTP. 9 Staff will also analyze whether recycled water produced from Phase I can be blended with potable well water to determine whether the final product could meet Beaumont Basin requirements.
Based on this analysis, Option B.3 provides the best balance of regulatory compliance, infrastructure reliability, financial responsibility, and long-term recycled water planning.
FISCAL IMPACT:
There is no immediate fiscal impact associated with receiving this workshop update.
If the City Council provides direction to proceed with Option B.3, future fiscal impacts may include:
Additional consultant costs for rate study updates, funding strategy development, grant support, and technical review;
Potential interim repair and maintenance costs to keep the existing WWTP operational; Future debt financing or loan obligations;
Future design, construction, and environmental compliance costs.
ATTACHMENTS:
1. 12.13.22 Reso 2022-14UA N2W.pdf
2. 5.14.24 Reso 2024-70 Kimley Horn CEQA.pdf
3. 2.25.25 Reso 2025-30 AECOM-Lyles.pdf
10 CITY OF BANNING
STAFF REPORT
TO: CITY COUNCIL
FROM: Douglas Schulze, City Manager
PREPARED BY: Art Vela, Director of Public Works
MEETING DATE: December 13, 2022
SUBJECT: Consideration of Resolution 2022-14UA, Awarding a Professional Services Agreement to N2W Engineering to
Provide Owner Advisor Services and Preliminary Engineering for the Wastewater Treatment Plant Improvement Project in a Not-to-Exceed Amount of $1,576,430
RECOMMENDATION:
Staff recommend that the City Council adopt Resolution 2022-14UA:
1. Awarding a Professional Services Agreement to N2W Engineering to provide Owner Advisor services for the Wastewater Treatment Plant Improvement project in the “not-to-exceed” amount of $1,576,430.
2. Authorizing the City Manager or his designee to make necessary budget adjustments, appropriations and transfers related to the Professional Services Agreement with N2W Engineering for Owner Advisor services.
3. Authorizing the City Manager or his designee to execute the Professional Services Agreement with N2W Engineering of Irvine, California in the “not to exceed” amount of $1,576,430.
BACKGROUND:
Wastewater Treatment Plant
The City of Banning Wastewater Treatment Plant (WWTP), also known as the Water Reclamation Facility, provides for the collection, treatment, and disposal of municipal sewage. The WWTP dates back to 1925 and began to see significant additions beginning in 1950’s and the last major renovation occurring in the early 2000’s. Currently, the WWTP treatment process consists of preliminary, primary, secondary, disinfection (currently not in use), and sludge disposal.
The WWTP has a design treatment capacity of 3.6 million gallons per day (MGD) and typical average daily discharges range from 2.0 MGD to 2.1 MGD into 10 unlined evaporation/percolation ponds. The treated effluent then percolates into the groundwater of the San Gorgonio Hydraulic Unit. Groundwater from this basin is used for municipal and industrial applications.
64 11
Staff Report: Resolution 2022-14UA Owner Advisor Services December 13, 2022
In 2007, the City contracted Parsons to evaluate treatment technologies for a 1.5 MGD water reclamation facility (WRF) for the production of recycled water. Treatment alternatives investigated included oxidation ditch (OD), conventional activated sludge (CAS), and membrane bioreactor (MBR). The purpose of the evaluation was to determine the best option to comply with future Title 22 requirements for the beneficial reuse of recycled water. Parsons determined an MBR system was the best treatment option and completed a 90% design package of the WRF. Unfortunately, the project never reached 100% design and was terminated for various reasons.
2016 Regional Water Quality Control Board Order
On June 30, 2016, the California Regional Water Quality Control Board, Colorado River Basin Region (RWQCB) adopted Board Order R7-2016-0015 (Board Order), which describes the Waste Discharge Requirements (WDRs) and other terms and conditions of operation for the City’s WWTP. The Board Order requires the WWTP to remove constituents that present the greatest risk to groundwater quality such as nitrogen, coliforms, and total dissolved solids (TDS).
According to the United States Environmental Protection Agency (US EPA), the maximum contaminant level (MCL) for Nitrate as Nitrogen (TN) is 10 mg/L. Currently, the average TN concentration in the WWTP’s effluent is 29 mg-N/L, well above the future TN limit of 10 mg-N/L specified in the Board Order.
As a result, the Board Order required the City to conduct a nitrogen removal analysis and to summarize the findings in a technical report that includes a tentative work plan and time schedule for the installation and implementation of nitrogen removal treatment alternatives. The final technical report (Nitrogen Removal Feasibility Study), attached hereto, was completed and submitted to the RWQCB by the due date of June 30, 2020.
The City has had plans for the development of a Title 22 compliant recycled water source dating back to the early 2000’s and for this reason, the scope of the Nitrogen Removal Feasibility Study was expanded beyond complying with TN limits and included discharge requirements related to the use of recycled water.
Additionally, the Board Order requires that the City submit a plan for capacity improvements to the RWQCB once the WWTP reaches 80% of its design capacity, or
2.88 MGD.
2018 Integrated Master Plan
In 2016 the Public Works Department set out to develop new master plans for the City’s water, wastewater and future recycled water systems, which were previously updated in 2006. The final document resulted in a combined plan titled the Integrated Master Plan (IMP). The objective of the IMP was to develop capital improvement plans that would guide the City in the planning and development of water, wastewater and recycled water system facilities to meet system performance for existing customers as well as to support anticipated demands through the City’s buildout.
65 12
Staff Report: Resolution 2022-14UA Owner Advisor Services December 13, 2022
The IMP projected that the City would reach 80% capacity by 2025 (although could be later if development slows down) and have a buildout wastewater flow of 6.35 MGD. 2020 UWMP
On June 8, 2021 the City Council approved Resolution 2021-50, adopting the 2020 Urban Water Management Plan (UWMP). The UWMP is a planning document with a 20-year planning horizon that assess the water supply and water demand for the City. As part of the assessment all current water supplies and in the future water supplies are include as part of the City’s water supply portfolio, which includes the use of recycled water to supplement potable demands (i.e. irrigation demands) and for groundwater recharge.
Owner Advisor
Staff determined that to comply with the Board Order; to increase treatment capacity at the WWTP to support development; and to add to the City’s water supply portfolio by developing a recycled water source, the City would need to move forward with major improvements to the WWTP. Current staffing levels would make it challenging to successfully complete such a large capital project in a timely manner. For that reason, staff developed a Request for Qualifications to hire an Owner Advisor (OA) which would be dedicated to the project.
An OA is typically a design and/or construction consultant or consulting firm that has extensive knowledge in the specific type of project being represented. The OA, generally, is responsible for project execution including the management of communications, time, cost, quality, risk, procurement, design, construction, and acceptance.
On July 21, 2022 the City released the attached RFQ on the OpenGov ProcureNow platform as well as sent to several qualified consulting firms. Qualification submittals were due on August 15, 2022. The RFQ was downloaded 30 times from ProcureNow. As a result of the of the RFQ solicitation the City received only one submittal from N2W Engineering. An evaluation committee reviewed the qualifications of N2W Engineering and agreed that they were qualified and experienced and subsequently an interview was conducted on October 4, 2022.
Following the interview staff worked with N2W Engineering to define the scope of work and negotiated a fee for said scope, attached hereto.
It is staff’s recommendation that City Council award a Professional Services Agreement to N2W Engineering, based on qualifications and fee statement. If approved, the term of the Professional Services Agreement is estimated to extend to fiscal year 2026/2027.
JUSTIFICATION:
Based on current and future wastewater regulatory requirements, implementation of the Integrated Master Plan and the City’s strategy for developing a robust water supply portfolio, it is necessary to move forward with the improvements to the City’s WWTP. Due 66 13
Staff Report: Resolution 2022-14UA Owner Advisor Services December 13, 2022
to current staff resource and size and complexity of the WWTP project, it is recommended by staff to hire an Owner Advisor to move the WWTP project forward.
City staff evaluated N2W Engineering’s experience and qualifications and interviewed the firm for the WWTP project and subsequently have found them as a qualified firm to represent the City as its Owner Advisor.
FISCAL IMPACT:
The negotiated fee for the identified scope of work is in the amount of $1,576,430.
The funding for this project was programmed in the approved 5-year Capital Improvement Plan (CIP) as follows:
Account Project Desc. FY 2023 FY 2024 FY 2025
680-8000-454.90-10 WWTP Owner Advisor $100,000 $100,000 $100,000 680-8000-454.95-12 WWTP Upgrades $130,000 $130,000 $130,000 681-8000-454.95-12 WWTP Upgrades $130,000 $650,000 $650,000 Total $360,000 $880,000 $880,000
An appropriation from Fund 680 (Wastewater Fund) and Fund 681 (Wastewater Capital Facilty Fund) fund balances will be required to allocate the needed funds in FY 2023. The appropriation would be offset by reducing/eliminating the expenditures in FY 2024 and FY 2025 as shown in the table above. The revised CIP table will be as follows:
Account Project Desc. FY 2023 FY 2024 FY 2025
680-8000-454.90-10 WWTP Owner Advisor $300,000 $0 $0
680-8000-454.95-12 WWTP Upgrades $390,000 $0 $0
681-8000-454.95-12 WWTP Upgrades $886,430 $0 $543,570
Total $1,576,430 $0 $543,570
In summary, appropriations in the amount of $460,000 from Fund 680 and $756,430 from Fund 681 are required to fund the Professional Services Agreement with N2W Engineering.
ALTERNATIVES:
1. Approve as presented.
2. Approve with modifications.
3. Do not approve Resolution 2022-14UA and provide alternate direction to staff.
ATTACHMENTS:
1. Resolution 2022-14UA
https://banningca.gov/DocumentCenter/View/11872/Att-1-Resolution-2022-14-UAOA-WWTP 67 14
Staff Report: Resolution 2022-14UA Owner Advisor Services December 13, 2022
2. Nitrogen Removal Feasibility Study
https://banningca.gov/DocumentCenter/View/11873/Att-2-Banning-Nitrogen-RemovalFeasibility-Study-FINAL-REV-1-STAMPED
3. Request for Qualifications
https://banningca.gov/DocumentCenter/View/11874/Att-3-RFQ-22-019-OwnerAdvisor-COB-WaterWasterwater
4. Statement of Qualifications
https://banningca.gov/DocumentCenter/View/11868/Att-4-Statement_of_Qualifications
5. Scope of Services
https://banningca.gov/DocumentCenter/View/11869/Att-5-Scope_of_Services-11-22- 2022
6. Fee Statement
https://banningca.gov/DocumentCenter/View/11870/Att-6-Fee-11-22-2022
7. Draft Professional Services Agreement
https://banningca.gov/DocumentCenter/View/11871/Att-7-C00778-N2W-EngineeringInc Approved by:
Douglas Schulze
City Manager
68 15
CITY OF BANNING
STAFF REPORT
TO: CITY COUNCIL
FROM: Douglas Schulze, City Manager
PREPARED BY: Art Vela, Public Works Director
MEETING DATE: May 14, 2024
SUBJECT: Consideration of Resolution 2024-70, Approving a Professional Services Agreement with Kimley-Horn for Environmental Services for the Wastewater Treatment Plant Upgrades in an Amount Not-To-Exceed $212,181
RECOMMENDATION:
Adopt Resolution 2024-70.
BACKGROUND:
The City of Banning Wastewater Treatment Plant (WWTP), also known as the Water Reclamation Facility, provides for the collection, treatment, and disposal of municipal sewage. The City has recognized that the WWTP is in need of capacity and treatment improvements in order to keep up with the City’s growth as well as to produce a recycled water supply to bolster it’s water supply portfolio and to meet impending wastewater effluent discharge quality permit requirements.
On December 13, 2022, the City Council approved Resolution 2022-14UA, “Awarding a Professional Services Agreement to N2W Engineering to Provide Owner Advisor Services and Preliminary Engineering for the Wastewater Treatment Plant Improvement Project in a “Not-to-Exceed” amount of $1,576,430.
The City has plans to deliver the project utilizing a Progressive-Design-Build (PDB) approach and recently released a Request for Qualifications which will result in a shortlist of vendors who the City will then solicit proposals from.
The City will have to comply with California Environmental Quality Act requirements and since the project may receive federal funding, it is staff's recommendation that the City prepare an environmental clearance document that meets both State and Federal (National Environmental Protection Act; NEPA) requirements.
As a result, on February 22, 2024, staff released a Request for Proposals to vendors on the City’s approved list for On-Call Environmental and Engineering Consultant Services. In response, one proposal was received by Kimley-Horn. After evaluation of the proposal, staff recommends the award of a Professional Services Agreement to Kimley-Horn in the amount of $192,892 and to include a ten percent contingency for a total not-to-exceed amount of $212,181.
JUSTIFICATION:
The upgrades at the WWTP is considered a Project under CEQA and must comply with it's requirements. Compliance with NEPA will ensure that the City is positioned to receive Federal funding. 16 Kimley-Horn has submitted a proposal as a result of the City's RFP. The proposal was evaluated and found to be acceptable and the fee found to be in line with other projects of similar scope. Kimley-Horn is a reputable company that is capable of completing the scope of work.
FISCAL IMPACT:
The total cost of the Professional Services Agreement (PSA) with Kimley-Horn is for a "not-to-exceed" amount of $212,181, which includes a 10% contingency. The PSA will be funded by Account No. 680- 8000-454.95-12 (Treatment Plant Improv), which has an unused budget of $450,000 for the current fiscal year.
ALTERNATIVES:
Do not approve Resolution 2024-70. The WWTP upgrade and improvement project will not be able to move forward without compliance with CEQA and possibly NEPA (depending on funding sources).
ATTACHMENTS:
1. Resolution 2024-70, Kimley Horn WWTP.docx
2. Kimley-Horn Proposal_Banning WWTP_RFP 23-058.pdf
3. Kimley-Horn Fee.pdf
4. Draft Agreement WWTP Env. Compliance Kimley Horn.pdf 17 CITY OF BANNING
STAFF REPORT
TO: CITY COUNCIL
FROM: Robert Fisher, Acting City Manager
PREPARED BY: Shah Nawaz, Deputy Water/Wastewater Director Art Vela, Director of Public Works
MEETING DATE: February 25, 2025
SUBJECT: Consideration of Resolution 2025-30, Awarding a Progressive DesignBuild Agreement for Phase 1 to AECOM Lyles JV for Project No. 2022- 01W “Wastewater Treatment Plant and Recycled Water Upgrades” in the Amount of $3,998,627, and Approving a 10% Contingency for a Total Project Budget of $4,398,490
RECOMMENDATION:
Adopt Resolution 2025-30.
BACKGROUND:
Wastewater Treatment Plant
The City of Banning Wastewater Treatment Plant (WWTP), also known as the Water Reclamation Facility, provides for the collection, treatment, and disposal of municipal sewage. The WWTP dates back to 1925 and began to see significant additions beginning in 1950’s and the last major renovation occurring in the early 2000’s. Currently, the WWTP treatment process consists of preliminary, primary, secondary, disinfection (currently not in use), and sludge disposal.
The WWTP has a design treatment capacity of 3.6 million gallons per day (MGD) and typical average daily discharges range from 2.0 MGD to 2.1 MGD into 10 unlined evaporation/percolation ponds. The treated effluent then percolates into the groundwater of the San Gorgonio Hydraulic Unit. Groundwater from this basin is used for municipal and industrial applications.
In 2007, the City contracted Parsons to evaluate treatment technologies for a 1.5 MGD water reclamation facility (WRF) for the production of recycled water. Treatment alternatives investigated included oxidation ditch (OD), conventional activated sludge (CAS), and membrane bioreactor (MBR).
The purpose of the evaluation was to determine the best option to comply with future Title 22 requirements for the beneficial reuse of recycled water. Parsons determined an MBR system was the best treatment option and completed a 90% design package of the WRF. Unfortunately, the project never reached 100% design and was terminated for various reasons. 2016 Regional Water Quality Control Board Order
On June 30, 2016, the California Regional Water Quality Control Board, Colorado River Basin Region (RWQCB) adopted Board Order R7-2016-0015 (Board Order), which describes the Waste Discharge Requirements (WDRs) and other terms and conditions of operation for the City’s WWTP. The Board Order requires the WWTP to remove constituents that present the greatest risk to groundwater quality such as nitrogen, coliforms, and total dissolved solids (TDS). 18 According to the United States Environmental Protection Agency (US EPA), the maximum contaminant level (MCL) for Nitrate as Nitrogen (TN) is 10 mg/L. Currently, the average TN concentration in the WWTP’s effluent is 29 mg-N/L, well above the future TN limit of 10 mg-N/L specified in the Board Order.
As a result, the Board Order required the City to conduct a nitrogen removal analysis and to summarize the findings in a technical report that includes a tentative work plan and time schedule for the installation and implementation of nitrogen removal treatment alternatives. The final technical report (Nitrogen Removal Feasibility Study), attached hereto, was completed and submitted to the RWQCB by the due date of June 30, 2020.
The City has had plans for the development of a Title 22 compliant recycled water source dating back to the early 2000’s and for this reason, the scope of the Nitrogen Removal Feasibility Study was expanded beyond complying with TN limits and included discharge requirements related to the use of recycled water.
Additionally, the Board Order requires that the City submit a plan for capacity improvements to the RWQCB once the WWTP reaches 80% of its design capacity, or 2.88 MGD, which is fast approaching due to increased development activity within the City.
2018 Integrated Master Plan
In 2016 the Public Works Department set out to develop new master plans for the City’s water, wastewater and future recycled water systems, which were previously updated in 2006. The final document resulted in a combined plan titled the Integrated Master Plan (IMP). The objective of the IMP was to develop capital improvement plans that would guide the City in the planning and development of water, wastewater and recycled water system facilities to meet system performance for existing customers as well as to support anticipated demands through the City’s buildout.
The IMP projected that the City would reach 80% capacity by 2025 (although could be later if development slows down) and have a buildout wastewater flow of 6.35 MGD. 2020 UWMP
On June 8, 2021 the City Council approved Resolution 2021-50, adopting the 2020 Urban Water Management Plan (UWMP). The UWMP is a planning document with a 20-year planning horizon that assess the water supply and water demand for the City. As part of the assessment all current water supplies and in the future water supplies are include as part of the City’s water supply portfolio, which includes the use of “recycled water” to supplement potable demands (i.e. irrigation demands) and for groundwater recharge.
Owner Advisor
On December 13, 2022, City Council adopted Resolution 2022-14UA, awarding a Professional Services Agreement to N2W Engineering ("N2W") to provide Owner Advisor ("OA") services for the Wastewater Treatment Plant Improvement project.
N2W has assisted the City in further review of available technologies and confirmed through a Feasibility Report that an MBR system would be the best solution for the City. Additionally, they prepared two grant applications for the City: (1) Water Recycling Funding Program Planning grant application which led to an award of $300,000 and (2) WaterSMART: Title XVI WIIN Act Water Reclamation and Reuse Program for which the City received a Notice of Funding Opportunity No. R23AS00464 (attached) in the amount of $16,194,576.
N2W also assisted in the preparation of a scope of work for a Request for Qualifications that led to the shortlisting of 3 design-build entities that prepared and submitted proposals for Phase 1 (Design) of the WWTP Upgrade Project.
Selection of Progressive Design Build Entity
19 On March 22, 2024, the City issued a Request for qualification (RFQ) seeking prospective Progressive Desing-Build (PDB) entities for the project. Statement of Qualifications (SOQs) were received from PDB entities on May 3, 2024. The City evaluated responsive SOQs in accordance with the RFQ; shortly thereafter, the City shortlisted the following three (3) PDB entities:
1. AECOM Lyles JV
2. Innovative Construction Solutions
3. PERC Water Corporation
Only these three (3) PDB entities were eligible to receive the Request for Proposal (RFP) which was issued on August 9, 2024. These PDB entities were requested to advance the design and provide detailed input as to the design and construction of the Project, including benefits to the Project’s reliability, ease and extent of upgrades and expansion and interconnection, and sustainability. Award of the Progressive Design-Build Contract was made utilizing a best value selection process and consisted of an evaluation of multiple factors as listed below in this RFP:
Project Team, Experience, and Approach (25 Points)
Technical Approach (25 Points)
Construction & Startup Process (20 Points)
Phase 1 – Cost and Fee Schedule (10 Points)
Interview (20 Points)
An evaluation committee consisting of two City Employees and two Owner’s Advisors was assembled to score each proposal based on the evaluation factors listed above. The resulting evaluation scores are as follows:
PDB Entity Score (out of 100)
AECOM Lyles JV 82.44
Innovative Construction Solutions 81.24
PERC Water Corporation 77.75
As a result, staff recommends awarding the Progressive Design-Build Agreement ("Agreement") for Phase 1 of the Wastewater Treatment Plant and Recycled Water Upgrades project to AECOM Lyles JV in the amount of $3,998,627.
If awarded, staff anticipates the Phase 1 (Design) scope of work to commence in early March 2025 through April 2026.
Phase 1 Services
This Phase includes all the planning, engineering, and permitting to prepare a complete design-todevelop a Guaranteed Maximum Price (GMP) and a construction schedule for Phase 2.
It shall be noted that at the completion of Phase 1 scope of work and upon agreement on the GMP by the City, AECOM Lyles JV will proceed with Phase 2 (Construction) for equipment procurement, construction, engineering design support during construction, construction management, commissioning and acceptance testing. Following the completion of Phase 1, the current estimated duration for Phase 2 is approximately another 2 years.
JUSTIFICATION:
The Wastewater Treatment Plant and Recycled Water Upgrades project includes the design and construction of major complex treatment technologies that will allow the City to comply with impending wastewater discharge requirements and to produce recycled water. A PDB approach is a collaborative delivery method that involves the design-builder throughout the design and construction process resulting in a project that will meet the City’s needs for the best value. 20 AECOM Lyles JV was ranked the highest following the RFP.
FISCAL IMPACT:
The recommended Progressive Design-Build Agreement for Phase 1 of the Wastewater Treatment Plant and Recycled Water Upgrades project to AECOM Lyles JV is in the amount of $3,998,627. Staff requests a 10% contingency in the amount of $399,862 for any unforeseen changes in scope of work or conditions. The total project budget for Phase 1, including the Agreement and contingency, is for an amount of $4,398,490.
The current adopted budget for Fiscal Year 2024/2025 includes the required funding for the Agreement, which will be funded as follows:
- Account No. 681 -8000- 454.95-12 : $1,000,000
- Account No. 682-8050-454.95-10: $3,398,490
ALTERNATIVES:
Do not approve Resolution 2025-30 and provide alternative direction to staff.
BUDGETED?:
Yes
CONTRACT/AGREEMENT:
Yes
ATTACHMENTS:
1. Resolution 2025-30, WWTP Design Build award.docx
2. Banning_DB_545_Agreement.pdf
3. Resolution No. 2021-050 (For Reference Purposes Only).pdf
4. Resolution No. 2022-14UA (For Refrence Purposes Only).pdf
5. RWQCB Order R7-2016-0015.pdf
6. Banning Nitrogen Removal Feasibility Study FINAL.pdf
7. BOR Notice of Funding Opportunity No. R23AS00464.pdf
8. AECOM-Lyles Proposal for RFP-24-074.pdf
9. AECOM-Lyles Pricing Proposal - Supporting Information.pdf
10. Banning DB 535 General Conditions.pdf
21