April 15, 2025
TO: City Council
REQUESTED BY: Mathew Osborn, Superintendent
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Award of Contract for Equipping of the Grand Well and Construction of Grand Treatment Plant
RECOMMENDATION:
Staff recommends that the City Council:
. DETERMINE the proposed project is not subject to environmental review under the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines (Cal. Code Regs., § 15000 et seq.) Sections 15061(b)(2) in that the proposed project is categorically exempt from environmental review pursuant to CEQA Guidelines Sections 15301, 15302, 15303, 15304, 15332; and Section 15061 (b)(3) - Common Sense Exemption in that it can be seen with certainty that there is no possibility that the project may have a significant effect on the environment;
2. ADOPT the plans, specifications, and detailed working drawings for the construction of the potable water treatment plant and the equipping of the Well at the Grand Well site;
3. ACCEPT the proposal by Pacific Hydrotech Corporation for site improvements, construction of the potable water treatment plant, and equipping of the Well at the Grand Well site;
4. AWARD a contract to Pacific Hydrotech Corporation in the amount of $8,091,700 with an additional 5% contingency for a total project cost of $8,496,285; and
5. REJECT all other bids.
DISCUSSION:
In 2021, the Federal Government passed the American Rescue Plan Act of 2021 (ARPA) and the Infrastructure Investment and Jobs Act of 2021, which provided significant funding to the City to address infrastructure needs. In fact, without this funding source, the City would not be able to improve its outdated and deteriorating water conveyance system components.
One of the projects approved by the City Council for funding was the drilling and equipping of the new Grand Well, and the construction of the Grand Well Treatment Plant. The first phase of the project, the drilling of the well, was completed in 2023. However, due to rising costs across the country caused by the COVID-19 pandemic, all remaining ARPA funding had to be reallocated in 2024 to complete the construction of the ARPA-funded Bath Treatment Plant and site improvements.
Although ARPA funds have been exhausted on other essential infrastructure projects, the construction of the Grand Well and Grand Treatment Plant remain critical to the functionality of the City’s water system. The new Grand Well has already been drilled, and the proposed contract will enable the City to fully develop the necessary water production and distribution capacity for its district.
The Well and treatment plant will replace aging infrastructure that has exceeded its lifespan while incorporating elements of the existing system to optimize resources. Keeping the Well and treatment plant at the planned location addresses the challenge of centralized water production.
Currently, all three of the City’s active wells are located on the east side of town, resulting in increased costs to pump water across the City to the Grand Well site reservoir and booster pumps.
As the City continues to experience residential and commercial growth, completing this facility is essential to ensuring future water supply reliability, particularly during extreme heat and/or emergency situations like the recent fires in Los Angeles. The new Well will have a production capacity of up to 2,500 gallons per minute, allowing the City to maintain full reservoirs and prevent significant drops in water pressure and supply.
Beyond increasing supply and reliability, the construction of the Grand Treatment Plant will significantly enhance the City’s water quality. The new facility will be equipped to remove iron and manganese from the water supply, eliminating any measurable amounts of these hard minerals. This advanced treatment process will improve the color, odor, and taste of the water, providing residents and businesses with a cleaner product that looks, smells, and tastes better. By addressing these long-standing water quality concerns, the City will instill greater confidence in its water system and ensure compliance with state and federal water quality standards. Reliable access to high-quality drinking water is fundamental to public health, and this investment will enhance the overall well-being of the community while supporting future economic growth.
Further, the State conducts a sanitary survey of each water department every three years. In the last three consecutive surveys, the State has identified San Jacinto’s water pumping capacity as deficient for fire protection. This new Well complex will bring the City into compliance while also reducing strain on existing wells by providing much-needed operational flexibility.
On November 7, 2023, the City Council awarded a contract to Civiltec Engineering for the design of the Grand Well Treatment Plant and Well improvements. Subsequently, on September 23, 2024, the City Council awarded a contract to California Environmental Controls to supply the treatment plant equipment, ensuring standardization with the Bath Treatment Plant. The specifications and design for the Grand Well and Treatment Plant were completed in December 2024. Copies of the plans, specifications, and detailed working drawings can be found on the City’s PlanetBid website at https://vendors.planetbids.com/portal/39490/bo/bo-detail/126031#.
The City is subject to the California Uniform Public Construction Cost Accounting Act and must adhere to the bidding procedures outlined in the Cost Accounting Policies and Procedures Manual. These procedures require that any public works construction project exceeding $220,000 undergo a formal bidding process and be awarded to the lowest responsible bidder.
Additionally, the project must be advertised in local trade journals, as designated by the Commission, at least 14 calendar days before the bid opening.
On February 3, 2025, the City issued a request for proposal utilizing the City’s PlanetBids platform, soliciting proposals for the construction of the Grand Well Treatment Plant and the equipping of the Grand Well. On February 4, 2025, the project was posted in both trade journals required by the California Uniform Construction Cost Accounting Commission—Associated General Contractors of America, San Diego Chapter, Inc., and BidAmerica. Additionally, as required by the California Uniform Construction Cost Accounting Commission, the project was posted in the local newspaper, The Press Enterprise, on February 7, 2025.
A mandatory job walk was held on February 13, 2025, with 19 contractors in attendance. Bids were due on March 11, 2025, and the city received six proposals, listed below:
• Pacific Hydrotech ………………….……..$8,091,700
• Caliagua …………………………………. $8,463,700
• HPS Mechanical ……………………….... $8,975,000
• SCW Contracting Corp ………………..…$9,288,009
• Canyon Springs Enterprises …………….. $9,724,000
• Innovative Construction Solution ….…….$9,999,000
All six bidders were responsible and included all necessary documentation in the each proposal.
After a thorough review of the submitted proposals, staff confirmed that Pacific Hydrotec Corporation was the lowest responsive bidder for site improvements, construction of the potable water treatment plant, and Well equipping at the Grand Well site.
Pacific Hydrotech submitted a proposal for $8,091,700. To account for unforeseen conditions and ensure successful project completion, staff also recommend including a 5% contingency, bringing the total authorized amount to $8,496,285.
Currently, Pacific Hydrotech is constructing the Bath Treatment Plant in San Jacinto and working on multiple projects for neighboring water agencies in the valley. Pacific Hydrotech is a local company based in the City of Perris. The City of San Jacinto has a strong working relationship with Pacific Hydrotech, and staff is confident the project will continue that successful partnership.
Approval of the contract is a critical step in addressing the community’s concerns regarding water quality and ensuring long-term reliability of the City’s water supply.
CALIFORNIA ENVIRONMENTAL QUALITY ACT:
The proposed project is exempt from environmental review under the California Environmental Quality Act (CEQA) in accordance with the California Code of Regulations, pursuant to State CEQA Guidelines (Cal. Code Regs., § 15000 et seq.). It qualifies for exemption under Section 15061(b)(2) as it falls within several categorical exemptions, including Section 15301 – Existing Facilities, Section 15302 – Replacement or Reconstruction, Section 15303 – New Construction or Conversion of Small Structures, Section 15304 – Minor Alterations to Land, and Section 15332 – In-Fill Development Projects. Additionally, it qualifies for exemption under Section 15061(b)(3) – Common Sense Exemption, as it can be determined with certainty that the project will not have a significant impact on the environment.
The Grand Well and Treatment Plant are intended to replace the aging treatment plant and a recently abandoned well, both located on the same parcel as the existing facilities. The new treatment plant will be situated approximately 100 feet west of an existing two-million-gallon reservoir on a site that has been previously and continuously disturbed. The site does not provide habitat for rare or endangered species. While construction activities will result in short-term noise disruptions, these impacts will be temporary and minimal. Furthermore, there are no sensitive receptors on or near the project site.
FISCAL IMPACT:
Approval of this item will not impact the City’s General Fund. The project will be funded through an installment sale agreement between the City and the City of San Jacinto Public Financing Authority (Authority), whereby the City will acquire the project from the Authority in exchange for periodic installment payments. Payments will be due semiannually, averaging $679,000/year for 20 years. The City’s liability is limited solely to net revenues of the water system. A rigorous assessment of the water system’s ability to repay has been performed internally, by the City’s municipal financial advisor, and by the lender, and in all cases, it was determined that sufficient net revenues currently exist to satisfy future obligations. Approval of this item does not impact water rates currently in effect. In other words, water bills will not increase as a result of approval of this action.
ATTACHMENTS:
Grand Well & Treatment Plant RFP
Pacific Hydrotech Corporation Proposal
SCW Contracting Solutions Proposal
Canyon Springs Enterprise Proposal
HPS Mechanical Inc. Proposal
Innovative Construction Solutions Proposal
Caliagua Inc. Proposal
Notice of Exemption