On June 23, 2020, by Resolution No. 2020-84, the City Council approved the contract documents, awarded the bid and authorized the City Manager or designee to execute a construction contract and necessary documents for the Wastewater Treatment Plant Expansion, Phase II, CIP Project No. 592-59140 with C. Overaa & Company in the amount of $44,516,000 plus a 10% contingency of $4,451,600, for a total amount of $48,967,600.
On July 22, 2025, by Resolution No. 2025-82, the City Council 1) adopted the 2025/26–2029/30 Capital Improvement Program (“CIP”), And 2) amended the 2025/26 Operating Budget to account for all revenues, appropriations, project funding transfers and development impact fee revenue and expenditure budgets as detailed in the 2025/26 – 2029/30 CIP, which included Wastewater Treatment Plant Expansion – Phase II, CIP Project No. 592-59140.
Wastewater
Treatment Plant
Expansion Phase II
CIP Project
Why did we need this project?
• Capacity Expansion required to accommodate growth
- 2000; capacity increased from 2.2 mgd to 5.0 mgd
• Allowed for residential growth during dot-com era
- 2020; capacity increased from 5.0 mgd to 6.4 mgd
• Allows for Innovation Center development and
General Plan build-out
• Regulatory Compliance
- New biosolids treatment process needed to comply with SB1383 and future PFAS requirements
2
Adopted CIP Project Budget
3 $0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 WWTP Expansion Phase II Project
budget cumulative expenditures
Adopted CIP Project Budget
4 $0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 WWTP Expansion Phase II Project
budget cumulative expenditures
Applied for SRF funding,
began design work
Adopted CIP Project Budget
5 $0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 WWTP Expansion Phase II Project
budget cumulative expenditures
Design work completed
Adopted CIP Project Budget
6 $0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 WWTP Expansion Phase II Project
budget cumulative expenditures
$65M SRF loan finalized, 3-year construction
contract awarded, but not biosolids bid-alternate
Adopted CIP Project Budget
7 $0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 WWTP Expansion Phase II Project
budget cumulative expenditures
Construction began, biosolids
technology research
Adopted CIP Project Budget
8 $0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 WWTP Expansion Phase II Project
budget cumulative expenditures
Increased cost based on
construction bids in 2020
Covid supply chain issues, design
complications affecting construction
Adopted CIP Project Budget
9 $0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 WWTP Expansion Phase II Project
budget cumulative expenditures
Purchased Biosolids
drying/pyrolysis system
Adopted CIP Project Budget
10 $0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 WWTP Expansion Phase II Project
budget cumulative expenditures
MOU to explore SW
Organics project
Adopted CIP Project Budget
11 $0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 WWTP Expansion Phase II Project
budget cumulative expenditures
Began design for biosolids installation
as part of SW Organics project
Estimated cost of SW
Organics project
Adopted CIP Project Budget
12 $0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 WWTP Expansion Phase II Project
budget cumulative expenditures
Began re-design for
biosolids installation
Halted SW Organics project
due to $160M cost
Adopted CIP Project Budget
13 $0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 WWTP Expansion Phase II Project
budget cumulative expenditures
Current CIP budget includes installation
cost for biosolids system
What’s been done so far? • $73M spent to date - 226,700 man hours - 8,950 yards of concrete - 1,353 tons of rebar - 28.5 miles of wiring - 1.7 miles of piping - New 2M gal aeration basin - Existing 2M gal basins retrofitted - New 0.5M gal clarifier - New emergency generator 14 Page 153 of 163
What’s left to do?
• Complete current process improvements
- PG&E upgrade to 21kV service
• New equipment requires higher voltage
service and upgraded PG&E
- Final equipment start-up and commissioning
• Last aeration basin conversion and start-up
• Secondary clarifier start-up
• Emergency generator start-up
- Negotiate final construction directives and
change order costs (~$1.5M)
15 Page 154 of 163
Project Delays
• Covid
- Supply Chain issues led to delays in materials and equipment • Electrical Design Issue
- 2 years to resolve design issue with 21kV PG&E service • >18 month delay waiting on PG&E
• Total Delay is >2 years
16 Page 155 of 163
What’s next?
• Install biosolids dryers & pyrolysis equipment
- Construction design contract amendment
(location change, cost savings design changes)
• (Waterworks Engineers, $650k)
- Equipment contract amendment (project
changes and tariffs)
• MiscoWater, ($2.5M)
- Biosolids construction bid & contract
• ~$26M + $2.6M contingency = $28.6M
17 Page 156 of 163
Potential Alternatives
• Land disposal
- Requires a digester
- Haul liquid sludge to another facility for digestion
- Haul biosolids out of state to another landfill
• PFAS regulations may make land application infeasible • Alternative Technology or System
- Gasification vs. pyrolysis vs. thermal drying
18 Capital Cost Annual O&M
$40M $1M
$0 $6M+
$0 $2M+
Updated Project Cost & Budget
• Additional Construction Costs:
$1.5M (Covid related change order costs)
• Biosolids Installation Costs:
$0.65M (Engineering)
$2.5M (Biosolids Equipment changes/tariffs)
$28.6M ($26M Biosolids Construction + $2.6M contingency) • $33.3M total additional costs
• Project has an approved CIP budget of $123.6M, but only has funding approved for $93.6M
19 Page 158 of 163
Additional Funding Source
• $33.3M in additional funding needed
- Approximately $27M bond financing
• Annual debt service of $1.7M
- Annual O&M savings of ~$500k
- The remaining balance of funding coming from cash in the Enterprise fund.
20 Page 159 of 163
Effect on Wastewater Rate
• Annual rate increase in FY 28/29 – FY 32/33 = ~4.75% instead of typical 3% 21 Average
Rate
Annual Rate
Increase
Total
Difference
Annual
Increase
3% 4.75%
FY 27/28 $54.65
FY 28/29 $56.29 $57.25 $0.96 $0.96
FY 29/30 $57.98 $59.97 $1.99 $1.03
FY 30/31 $59.72 $62.81 $3.09 $1.10
FY 31/32 $61.51 $65.80 $4.29 $1.20
FY 32/33 $63.35 $68.92 $5.57 $1.28
$52.41
$58.60 $62.61
$76.37
$93.77
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
$100.00
Average Residential Wastewater Rates
Staff is seeking Council direction to:
• Prepare a contract amendment with Overaa for additional change order work ($1,500,000)
• Prepare a contract amendment with Waterworks Engineers for additional design work to prepare construction bid documents and provide engineering support during construction ($650,000) • Prepare a contract amendment with MiscoWater for additional biosolids equipment and tariffs ($2,500,000)
• Direct staff to bring bond financing resolution to Council for consideration
22 Page 161 of 163
Questions?
CITY COUNCIL AGENDA ITEM NO. I.1
10/14/2025
SUBJECT: Consider a request from Mayor Meyer and Council Member Mendoza requesting review of the Open Space Overlay as it relates to agricultural and recreational uses at Deer Ridge Golf Course and similar parcels
DEPARTMENT: City Manager’s Office
STAFF: Sukari Beshears, Interim Assistant City Manager
Darin Gale, Interim City Manager
TITLE/RECOMMENDATION
That the Council consider and discuss the request from Mayor Meyer and Council Member Mendoza’s request for Council to review agricultural and recreational uses at Deer Ridge Golf Course and similar parcels.
FISCAL IMPACT
There is no fiscal impact associated with this agenda item.
BACKGROUND
Pursuant to Rule 4.4 (a)(2) of the City Council 110-1, a request was made to the Interim City Manager from Mayor Meyer and Council Member Mendoza on October 1, 2025. Per Rule 4.4, City Council discussion is limited to whether staff time and City resources should be spent on the item and the time period for scheduling.
CITY COUNCIL STRATEGIC INITIATIVE
Not Applicable
PREVIOUS ACTION
Not Applicable
ATTACHMENT(S)
None