TO:Andrew P. Powers, City Manager
FROM:Clifford G. Finley, Public Works Director
DATE:February 11, 2025
SUBJECT: Unit W Wastewater Interceptor Improvements (CI 5445) RECOMMENDATION:
1. Approve the project design, plans, specifications, and Addendum No. 1 for construction of the Hill Canyon Treatment Plant (HCTP) Unit W Wastewater Interceptor Improvements Project (CI 5445).
2. Award construction contract for HCTP Unit W Wastewater Interceptor Improvements Project (CI 5445) to Toro Enterprises, Inc. of Oxnard, CA, in the amount of $3,440,000, plus a contingency of $344,000.
3. Approve budget appropriation in the amount of $330,000 from A/C #624-0000- 341-9900 (Wastewater Fund, Net Position) to A/C #624-8220-682-8300 (Unit W Interceptor Improvements Project CI 5445).
4. Approve Eighth Amendment to Professional Services Contract No. 12186-2019 with AECOM Technical Services, Inc. (AECOM) of Bakersfield, CA, for Construction Phase Support Services for the HCTP Unit W Wastewater Interceptor Improvements Project (CI 5445) in the amount of $46,900, for a revised not-to- exceed amount of $478,249, plus extra services of $4,690.
5. Approve First Amendment to Professional Services Contract No. 13560-2024 with Padre Associates, Inc. (Padre) of Ventura, CA, for additional Environmental Services and Monitoring Services for the HCTP Unit W Wastewater Interceptor Improvements Project (CI 5445) in the amount of $2,805, for a revised not-to- exceed amount of $86,273 and extend the term of the agreement to December 31, 2025.
6. Authorize issuance of a temporary Bank Letter of Credit to the California Department of Fish and Wildlife (CDFW) in the amount not to exceed $550,000 to guarantee restoration and environmental mitigation and authorize the City Engineer and Finance Director to execute all related documents.
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7. Authorize expenditure in the amount of $4,440,395 ($3,440,000 construction contract, $344,000 construction contract contingency, $46,900 for construction support services and material testing, $4,690 for extra services, $2,805 for construction environmental monitoring services, $5,000 for City furnished supplies and materials, $25,000 for Permitting and Inspection by the CDFW, Bank Letter of Credit up to $550,000, and $22,000 for the Bank Fee associated with the CDFW Letter of Credit), from A/C #624-8220-682-8300 (Wastewater Capital Fund Improvements, CI 5445).
8. Delegate authority to the City Engineer to approve changes in the design, plans, specifications and working details of the project on work directives and change orders up to the project approved contingency amount.
9. California Environmental Quality Act (CEQA): A Mitigated Negative Declaration (MND) was approved for this project by City Council on February 22, 2022.
LEVINE ACT ITEM: Yes
FINANCIAL IMPACT:
$330,000 Increase to Adopted FY 2024-25 Wastewater Fund Capital Budget.
A $330,000 budget increase is requested for the Unit W Interceptor Improvements Project (CI 5445). $4,644,587 in carryover budget is included in FY 2024-25 Wastewater Capital Fund Budget. Although required by the CDFW to provide a letter of credit, it is not anticipated that the City will have to draw on the $550,000 letter of credit. Additional funding for future habitat restoration costs will be requested at the time of habitat restoration contract award depending on bids received.
BACKGROUND:
The City’s HCTP provides tertiary-level wastewater treatment for the community. As part of the overall wastewater collection and treatment system, large-diameter wastewater interceptor pipelines were installed to transport the wastewater from the community and deliver it to the HCTP. The Unit W Wastewater Interceptor is a gravity collection pipeline that originates near The Oaks Mall and transports a large volume of wastewater along the Arroyo Conejo Creek to the HCTP (Attachment #1).
The Unit W pipeline was installed in the 1960s, and improvements have been made over the decades. In the lower portion of the interceptor, the original 1960s Unit W pipeline consisted of a 30-inch diameter pressurized pipeline with two major wastewater access structures (Structure W-1 and Structure W/F). The structures enable the wastewater interceptors to be controlled and accessed by staff.
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This project involves important rehabilitation of Unit W, some of the City’s largest and most essential wastewater interceptor pipelines. The improvements will help prolong the life of current assets and reduce overall risks and maintenance costs to these critical wastewater pipelines. This portion of wastewater interceptor pipelines is nearing the end of its service life, is located deep in the canyon, and is difficult to access.
The project’s scope of work includes exposing and reviewing the existing condition of the two main pipelines towards the south headworks at the HCTP, which includes approximately 5,000 feet of 20- to 42-inch diameter pipes (shown in red and green in Attachment #1). This project also includes replacing non-functioning isolation valves, installation of several additional new structures to gain access to the existing pipelines, installation of a temporary wastewater bypass pipeline, and closed-circuit television (CCTV) work inside of the existing wastewater pipelines to evaluate their condition.
The condition assessment of the existing facilities included with this project is the first phase of a potential two-phase project. After completing this phase and obtaining the necessary internal pipeline CCTV information, staff will evaluate the need for the second phase, which involves replacing any identified defective lining.
The second phase is included under CI 5681 in the Adopted FY 2023-2025 Capital Improvement Program Budget.
In May 2019, Padre, an environmental consulting firm, was issued a Task Order in the amount of $44,781.20 to assist the City with obtaining the environmental regulatory permits associated with the proposed construction project. Padre prepared the MND in accordance with CEQA guidelines under a Task Order that the City issued in January 2022. On February 22, 2022, City Council adopted the MND and Mitigation Monitoring Program for the project. On February 27, 2024, City Council approved a Professional Services Agreement with Padre in the amount of $83,468 for the construction phase environmental support services on the project.
On August 27, 2019, City Council approved a Professional Services Agreement with AECOM, a professional engineering firm, in the amount of $75,000 after a competitive Request for Proposals (RFP) process for the preparation of an asset assessment of a portion of the Unit W Pipeline Project. Seven amendments have been processed for additional design phases and services, as well as time extensions totaling $356,349 for a total current not-to-exceed amount of $431,349.
On January 24, 2023, City Council authorized staff to advertise the project for construction bids. Bids were opened on March 1, 2023. On April 4, 2023, City Council rejected all bids because of the high construction bids ranging from $3.4 million to $3.7 million, and only two total bids were received. Staff worked with Unit W Wastewater Interceptor Improvements (CI 5445)
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AECOM over the Summer and Fall of 2023 to implement design and construction document clarifications and value engineering to clarify the scope of the project. In addition, staff also reached out to more contractors to generate greater bidder interest.
On November 14, 2023, City Council authorized re-bidding of the project. On November 17, 2023, the Notice Inviting Bids was publicly advertised in the Thousand Oaks Acorn newspaper and posted on the City’s procurement website, per Public Contract Code Section 22037 and Thousand Oaks Municipal Code Section 3-10.306. On January 24, 2024, four bids were received and publicly opened. The lowest bid received was from MMC, Inc. (MMC) of La Palma, CA, in the amount of $3,855,000. After executing the project contract with MMC and conducting the preconstruction meeting, the MMC representatives informed the City that there was an oversight in their bid for the project. The representatives stated they had not included groundwater dewatering in their bid, and this oversight would result in significant financial hardship for them. MMC requested that the City terminate the contract. The City's construction contracts include a provision that enables the City to terminate a contract for cause or convenience. On June 18, 2024, City Council authorized the termination of the contract with MMC based on staff’s recommendation and authorized the re-advertisement of the project for new construction bids following a value engineering evaluation.
DISCUSSION/ANALYSIS:
On June 18, 2024, City Council authorized re-bidding of the project. The Notice Inviting Bids was publicly advertised in the Thousand Oaks Acorn newspaper and posted on the City’s procurement website on November 1, 2024, per Public Contract Code Section 22037 and Thousand Oaks Municipal Code Section 3-
10.306. Three bids were received and publicly opened on December 18, 2024. The bid results are as follows:
Bidder Bid
1 Toro Enterprises, Inc. (Oxnard, CA) $3,440,000
2 JR. Filanc Construction Co. (Escondido, CA) $3,995,988 3 Blois Construction, Inc. (Oxnard, CA) $4,854,390
The lowest bid received is from Toro Enterprises, Inc. (Toro) for $3,440,000. The engineer’s estimate is $4,000,000. The bid package submitted by Toro has been reviewed and found to be in order. The time period for bid protests has passed, and no bid protests have been received. Staff recommends the award of the construction contract to Toro.
Design Support Services During Construction
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AECOM is the project engineer of record and will provide design support services during the construction of the project. These support services will include responding to requests for information, reviewing material submittals, preparation of final project punch list, and preparation of record drawings upon completion. The services will also include field observation and inspection throughout the construction period. A portion of AECOM’s design work and budget was utilized during the 2024 construction phase with MMC. This effort will need to be repeated in 2025 to support the project with the newly awarded contractor, Toro. Staff recommends approval of the Eighth Amendment to Contract No. 12186-2019 with AECOM for $46,900 (Attachment #2) for a revised not-to-exceed amount of $478,249 and extra services of $4,690.
Padre is the environmental/biological consultant of record and will also provide construction support services required for the project. Padre’s construction support services will include technical oversight to ensure the requirements of the environmental permits from the CDFW streambed alteration agreement and other required CEQA mitigation monitoring requirements for the project are met. Such mitigation and monitoring activities require services in connection with biological monitoring, breeding bird surveys, and permit compliance documentation during and after project construction. Staff recommends approval of the First Amendment to Contract No. 13560-2024 with Padre for $2,805 (Attachment #3) for a revised not-to-exceed amount of $86,273, and an extension of the term of the agreement to December 31, 2025.
As part of the environmental regulatory permitting for the project, the CDFW requires the City to issue a Bank Letter of Credit to serve as a guarantee that the City will complete the environmental mitigation of the project. Staff is requesting City Council approval to issue the Letter of Credit, in an amount not to exceed $550,000, along with the associated fee in the amount of $22,000 to obtain the Letter of Credit. The costs of the letter of credit are included in the overall not-to- exceed expenditures below for conservative budgeting purposes. However, it is not anticipated that the City will draw on the Letter of Credit, which will lower the overall final project cost by $550,000.
The estimated overall project cost breakdown is as follows:
Design and Environmental Support (previously approved) $ 514,817 Design and Engineering Extra Services (previously approved) $ 47,520 Engineering & Project Management Support (previously approved) $ 125,000 Isolation Valves Equipment (previously approved) $ 68,129 Unit W Construction Contract (this action) $3,440,000
Unit W Construction Contingency (this action) $ 344,000 Construction Phase Support Services (this action) $ 46,900 Unit W Wastewater Interceptor Improvements (CI 5445)
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Construction Phase Support Services Extra Services (this action) $ 4,690 Construction Phase Environmental Monitoring (this action) $ 2,805 City Furnished Supplies and Materials (this action) $ 5,000 Bank Letter of Credit for CDFW Permit Obligations (this action) $ 550,000 Fee for Bank Letter of Credit for CDFW (this action) $ 22,000 Total Estimated Costs (through Current Actions) $5,170,861 Permitting and Inspection: CDFW $ 25,000
Plug Valves Equipment Purchase (future) $ 90,000
Habitat Restoration as required by CDFW (future) $ 550,000 Total Estimated Project Costs (including future actions) $5,835,861 The construction phase is anticipated to start by Spring 2025 and is expected to be fully completed by Fall 2025. AECOM completed the project design and specifications in Fall 2024. Addendum No. 1 was issued in December 2024, and the design and specifications are available for review by request to the Public Works Department by e-mail at [email protected] or by phone at (805) 449- 2400.
This project meets City Council’s Top Ten Priorities #7, “Public Works + Infrastructure Investments.”
Community Outreach: This project will be limited to work in the canyon adjacent to the HCTP where the Unit W pipelines are located and is not expected to impact any neighboring residences. The work will be at the south end of the plant and will have limited impact to plant operation. Construction related impacts to hiking trail users will be minimal.
CIP PROJECT PRIORITY (as outlined in FY 2023-24 and FY 2024-25 CIP Program Budget)
Priority Two – Necessary, but not essential, and there could be consequences if deferred.
LEVINE ACT (California Government Code § 84308):
This item is subject to the Levine Act. City Councilmembers who have received a campaign contribution of more than $500 (aggregated) within the preceding 12 months from a party or their agent/representative, or a financially-interested participant involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; or if applicable (2) return the portion of the contribution that exceeds $500 within 30 days from the time the official knew or should have known about the contribution, Unit W Wastewater Interceptor Improvements (CI 5445)
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and participate in the proceeding.
All parties and their agents/representatives must disclose on the record of this proceeding any aggregated contribution of more than $500 made to any Councilmember within the preceding 12 months. Councilmembers are prohibited from accepting, soliciting, or directing a campaign contribution of more than $500 (aggregated) from a party, their agent/representative, or a financially-interested participant during a proceeding and for 12 months following the date a final decision is made. In addition, a party, their agent/representative, or a financially- interested participant is prohibited from contributing more than $500 (aggregated) to a Councilmember during a proceeding and for 12 months following the date a final decision is made.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
F. Provide and enhance essential infrastructure to ensure that the goals and policies of the Thousand Oaks General Plan are carried out and the City retains its role and reputation as a leader in protecting the environment and preserving limited natural resources.
PREPARED BY: Paul Weinstein, Associate Analyst
Attachments:
Attachment #1 – Vicinity and Location Maps
Attachment #2 – Eighth Amendment to Contract No. 12186-2019 with AECOM Technical Services, Inc.
Attachment #3 – First Amendment to Contract No. 13560-2024 with Padre Associates, Inc.
Documents Provided Under Separate Cover:
#1 – Project Plans and Specifications
DPW: 850-20\ev\Council\2025\021125\CI 5445\ Unit W Interceptor Improvements staff report.docx