Business Agenda Item 5b
STAFF REPORT
Business Agenda Item
DATE: September 21, 2026
TO: Honorable Mayor and Council Members
FROM: Brian Issa, Public Works Director
THROUGH: Amy Nilsen, City Manager
SUBJECT: Approval of Amendments No. 5 and No. 6 to the Engineering Services Agreement with Jacobs for the Wastewater Treatment Plant NPDES Compliance Project
STAFF RECOMMENDATION:
Approve Amendment No. 5 in the amount of $442,000 and Amendment No. 6 in the amount of $2,539,015 to the Engineering Services Agreement with Jacobs Engineering Group for additional final design, bid-phase services, and construction/implementation of the Wastewater Treatment Plant National Pollutant Discharge Elimination System (NPDES) Compliance Project’s Supervisory Control and Data Acquisition (SCADA) component; authorize the Public Works Director to execute the amendments; and find that sufficient appropriations are available in the current fiscal year wastewater capital budget. Approval of Amendment No. 5 authorizes additional professional services for the main project. Approval of Amendment No. 6 authorizes Jacobs to implement the SCADA portion of the project, including purchase and programming of hardware and related tasks described in the attached amendment; however, the City will contract directly with an electrician for electrical installation work. This action does not authorize advertisement for bids or award of construction contracts for the main treatment plant improvements, and it does not commit the City to a final project financing package.
EXECUTIVE SUMMARY:
The City entered into an engineering services agreement with Jacobs Engineering Group in December 2020 for planning, design, permitting, and implementation support for the Wastewater Treatment Plant National Pollutant Discharge Elimination System (NPDES) Compliance Project.
Since then, the project has advanced through project definition, alternatives analysis, environmental and permitting coordination, detailed design, and development of a State Revolving Fund (SRF) funding application. As the work progressed, the City gained a clearer understanding of the treatment, operational, and funding requirements needed to deliver a reliable compliance project.
The agreement and amendment history is summarized below:
Action Date Change Total Primary purpose
Initial contract Dec. 2, 2020 $2,860,759 $2,860,759 Planning, design, permitting, and implementation support.
Business Agenda Item 5b
Action Date Change Total Primary purpose
Amendment No. 1 Sept. 15, 2023 $0 $2,860,759 No-cost scope amendment.
Amendment No. 2 Jan. 10, 2024 $0 $2,860,759 No-cost scope amendment.
Amendment No. 3 Mar. 12, 2025 $1,889,222 $4,749,981 Additional services for the revised treatment-focused project design.
Amendment No. 4 Mar. 31, 2026 $409,821 $5,159,802 Final design of the SCADA component.
Amendment No. 5 Sept. 14, 2026 $442,000 $5,601,802 Complete main-project final design and provide bidphase services.
Amendment No. 6 Sept. 14, 2026 $2,539,015 $8,140,817
Construct/implement the SCADA and operational
technology component, including hardware purchase,
programming, testing, commissioning, and related
tasks.
Amendments No. 5 and No. 6 provide the remaining main-project and SCADA implementation services now before Council.
The original project concept focused on replacing summer use of the existing percolation ponds with a new land-application system west of the Eel River. That concept included conveying treated effluent across the river for summer application. As project development and regulatory coordination progressed, preliminary feedback from North Coast Regional Water Quality Control Board staff indicated that land application could raise concerns similar to those associated with the existing percolation ponds and might not provide a durable permitting solution. The City therefore discontinued the west-side land-application concept and refocused the project on treatment improvements at the wastewater treatment plant. The revised project is a broader treatment plant modernization effort focused on reducing nitrogen and improving process reliability. The current design includes automated flow equalization, new biological treatment and aeration facilities capable of nitrification and denitrification, blower and pumping improvements, chemical and electrical improvements, chemical storage and feed rehabilitation, and modernization of plant controls. This change in direction is a principal reason the current scope and budget differ from the original planning concept: resources previously directed toward an alternative disposal system were redirected to treatment-process improvements that reduce nitrogen loading and support the City’s long-term permitting strategy.
During design, the existing SCADA system was identified as a significant operational vulnerability because of aging and obsolete components, limited redundancy, and the risk that a failure could disrupt the City’s ability to monitor and control treatment processes. SCADA is the system operators rely on to monitor, automate, and control all plant functions. The City therefore separated the SCADA component from the larger NPDES project construction package so that the controls work could proceed on an accelerated schedule while remaining an integrated part of the overall NPDES Compliance Project and compatible with the planned treatment plant improvements. This approach is intended to allow the new controls system to be integrated with the future facility improvements when construction of the new facilities is complete.
Amendment No. 5 provides the additional engineering effort needed to complete final design of the main NPDES Compliance Project, address design refinements, support the State funding application, and provide bid-phase services. Amendment No. 6 authorizes construction/implementation of the SCADA component of the NPDES Compliance Project, including purchase and programming of hardware, controls programming, programmable logic controller replacement, operational technology and communications improvements, construction coordination, testing, commissioning, documentation, operator training, and other related tasks Business Agenda Item 5b
described in the attached amendment. The City will contract directly with an electrician for electrical installation work rather than routing that work through Jacobs, avoiding Jacobs markup on the electrical subcontractor’s work.
The regulatory context has also changed. North Coast Regional Water Quality Control Board NPDES staff have indicated that the City’s supplemental technical work and proposed denitrification upgrades may support a Low Threat Discharge designation in the City’s next permit. In practical terms, this designation could provide a more achievable permitting path and may reduce future regulatory burden or compliance costs, subject to final Water Board approval.
Board staff have stated that they support the upgraded facility, consider the upgrade important to that permitting path, and view the Low Threat designation as the most expeditious and costeffective path currently under consideration. The proposal has been reviewed by Board legal staff; executive management review and additional written direction remain pending.
Staff recommends approval of both amendments to keep design, bidding preparation, SCADA construction/implementation, regulatory coordination, and funding work moving forward.
Approving the amendments now preserves the City’s readiness to move efficiently once State funding direction is received, while delay could affect schedule, procurement coordination, regulatory responsiveness, and operational reliability. In summary, the requested action keeps the compliance project moving, addresses an identified operational risk, preserves readiness for State funding, authorizes implementation of the SCADA portion of the project, and does not require a supplemental budget appropriation at this time.
CORE VALUES: STRATEGIC PLAN 2026-2036:
This action supports the community’s core values and priorities in the Fortuna Strategic Plan 2026- 2036. Reliable wastewater treatment protects quality of life and the natural environment, while continued progress on critical infrastructure demonstrates clear direction and committed service.
Advancing the project while evaluating affordability, outside funding, long-term operating needs, and the State’s final funding package also reflects the Plan’s emphasis on fiscal foundation, honest commitments, and decisions that strengthen the City for the long term.
FISCAL IMPACT:
The current fiscal year wastewater capital budget includes $3.5 million for project development, design, and implementation. The City has paid Jacobs $441,789 during the current fiscal year, leaving $3,058,211 in available current-year budget authority.
Amendment No. 5 adds $442,000 and Amendment No. 6 adds $2,539,015, for a combined authorization of $2,981,015. The remaining current-year budget is sufficient to cover the work anticipated during this fiscal year; therefore, a supplemental budget request is not needed at this time. The requested action increases the total agreement authorization and authorizes construction/implementation of the SCADA portion of the project, including hardware purchase, programming, and related tasks. It does not by itself approve construction spending or the final project financing plan for the main treatment plant improvements. The City will contract directly with an electrician for electrical installation work to avoid Jacobs markup.
Amendment No. 5 is scheduled for completion by December 31, 2026. Amendment No. 6 extends through October 31, 2028, so a portion of the SCADA implementation work and related costs will occur in future fiscal years and will be included in future wastewater capital budgets as needed.
Business Agenda Item 5b
The agreement total includes $59,500 previously authorized for Task 8, Digester Rehabilitation.
The final amendments use the corrected revised total agreement authorization of $8,140,817. The final project scope and financing plan will depend largely on the State Revolving Fund funding package offered by the State. Future fiscal year costs will be incorporated into future wastewater capital budgets as needed once the State funding package, project schedule, and final financing plan are better defined. The overall project estimate has evolved as the City moved away from the west-side land-application concept and advanced a more treatment-focused project through detailed design.
ALTERNATIVES TO STAFF RECOMMENDATIONS:
Alternative 1. Do not approve one or both amendments and direct staff regarding completion of the project components addressed here.
This alternative would defer some or all of the additional authorization requested for the main NPDES Compliance Project and the SCADA component. Not approving Amendment No. 5 could delay final design, bid-phase preparation, regulatory coordination, and State Revolving Fund support for the main project. Not approving Amendment No. 6 could delay SCADA construction/implementation, including hardware purchase, programming, testing, commissioning, and related work needed to address an identified operational vulnerability.
Deferring either amendment could create schedule, procurement, operational, regulatory, or funding-readiness risks.
RECOMMENDED COUNCIL ACTION:
1. Receive staff presentation and review Council questions
2. Open and close Public Comment
3. Motion to authorize the Public Works Director to execute Amendment No. 5 in the amount of $442,000 for final design and bid-phase services for the National Pollutant Discharge Elimination System (NPDES) Compliance Project and Amendment No. 6 in the amount of $2,539,015 for construction/implementation of the Supervisory Control and Data Acquisition (SCADA) component, including purchase and programming of hardware and related tasks described in the attached amendment; authorize the City to procure and contract directly with an electrical contractor for related electrical installation work to avoid Jacobs markup; and find that sufficient appropriations are available in the current fiscal year wastewater capital budget.
ATTACHMENTS:
• Attachment A - Amendment No. 5 to the Jacobs Engineering Services Agreement • Attachment B - Amendment No. 6 to the Jacobs Engineering Services Agreement • Attachment C - Basis of Design Report (July 2026)