TO:Andrew P. Powers, City Manager
FROM:Nader Heydari, Public Works Director
DATE:December 2, 2025
SUBJECT: Polybutylene Service and Valve Replacements (CI 5688 and CI 5689)
RECOMMENDATION:
1. Approve the project design, specifications, and Addendum No.1 for the construction of the Polybutylene Service and Valve Replacements Project (CI 5688 and CI 5689).
2. Award construction contract to J. Vega Engineering, Inc. (Camarillo, CA), in the amount of $1,396,650, plus a contingency of $139,665 for the Polybutylene Service and Valve Replacements.
3. Authorize expense in the amount of $1,541,315 ($1,396,650 construction contract, $139,665 construction contingency, and $5,000 for City furnished materials and supplies) as follows: $780,915 ($707,650 construction contract; contingency of $70,765; and $2,500 for City furnished materials and supplies) from A/C #613-8030-682-8300 (CI 5688, Polybutylene Service Replacement) and $760,400 ($689,000 construction contract; contingency of $68,900; and $2,500 for City furnished materials and supplies) from A/C #613-8030-682-8300 (CI 5689, Valve Replacement).
4. Delegate authority to the City Engineer to approve changes to the project's design, specifications, and working details on work directives and change orders up to the project-approved contingency amount.
5. Find that the Project is Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to California Code of Regulations, Title 14, Section 15302, Class 2 – Replacement or reconstruction.
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
Polybutylene Service and Valve Replacements (CI 5688 and CI 5689) December 2, 2025
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No Additional Funding Requested. $950,000 is included in the Adopted FY 2025-26 Water Capital Fund Budget for CI 5688 (Polybutylene Service Replacement), with estimated project cost of $780,915. $800,000 is included in the Adopted FY 2025-26 Water Capital Fund Budget for CI 5689 (Valve Replacements Project), with estimated project cost of $760,400. The total cost for both projects is estimated at $1,541,315.
BACKGROUND:
The City water system serves more than 17,000 connections and over 50,000 customers (roughly 36 percent of the City). Water service line laterals installed during the 1970s were frequently constructed of polybutylene material, which is prone to cracking, leaking, and premature failure. Through a phased replacement program, over 5,000 polybutylene laterals citywide will be replaced with new copper service line laterals.
Previous phases of the project have replaced approximately 1,913 service line laterals. A total of 125 water service lines within residential neighborhoods bordered by Olsen Road, Pederson Road, and Northwood Parkway will be replaced by the current project (Attachment #1). Replacement of laterals is done using trenchless techniques to minimize excavation in City streets.
Additionally, as part of this project, 54 existing water valves along Calle Castaño, Calle Fresno, Calle Quebracho, Calle Cedro, Calle La Maida, Calle Lacota, and Calle Arino will be replaced. These valves are over 35 years old and have exceeded their expected service life. In some cases, they can no longer be fully opened or closed, limiting their effectiveness. Water valves are essential for redirecting water flow and isolating water mains during maintenance or emergency repairs. Replacing them will enhance the overall operation of the water system and improve reliability in the event of an emergency. Project plans and specifications were prepared in-house by staff in Summer 2025.
On July 8, 2025, City Council authorized the advertisement of the Polybutylene Service Replacement (CI 5688) and Valve Replacement (CI 5689) Projects for construction bids. Subsequently, six bids were received. The lowest bid was found to be incomplete for failing to include a required subcontractor listing. Other bidders also did not properly fill out the subcontractor list for the required engineering testing and inspection. As a result, on September 23, 2025, City Council rejected all bids and authorized staff to re-advertise the projects for construction bids.
Polybutylene Service and Valve Replacements (CI 5688 and CI 5689) December 2, 2025
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DISCUSSION/ANALYSIS:
Staff re-evaluated the project specifications, and revisions and clarifications were made in connection with the engineering testing and inspection requirements for the project. The Notice Inviting Bids was published in the Thousand Oaks Acorn newspaper on September 26, 2025, and was posted on the City’s procurement website. Six bids were received and publicly opened on October 22, 2025, as follows:
Bidder Bid
1. J. Vega Engineering, Inc. (Camarillo, CA) $ 1,396,650.00
2. Sam Hill & Sons, Inc. (Ventura, CA) $ 1,479,999.00
3. Toro Enterprises, Inc. (Oxnard, CA) $ 1,680,375.00
4. Cedro Construction, Inc. (Santa Paula, CA) $ 1,724,660.00
5. Blois Construction, LLC (Oxnard, CA) $ 2,539,216.47
6. Dominguez General Engineering, Inc. (Pomona, CA) $ 2,601,750.00 The lowest bid from J. Vega Engineering, Inc. in the amount of $1,396,650, is approximately 13 percent lower than the engineer’s estimate of $1,600,000. The bid package by J. Vega Engineering, Inc. has been reviewed, found to be in order, and the bid protest period has elapsed with no formal protests received. Staff recommend awarding the construction contract to J. Vega Engineering, Inc.
The estimated project costs are as follows:
Construction Contract (this action) $ 1,396,650
Construction Contingency (this action) $ 139,665
City Furnished Material and Supplies (this action) $ 5,000 $ 1,541,315
Construction is anticipated to start in January 2026 and be completed by Summer 2026. The project design and specifications are available for review upon request to the Public Works Department by e-mail at [email protected] or by phone at (805) 449-2400.
Replacement or reconstruction of existing utility systems and/or facilities involving negligible, or no expansion of capacity is exempt from the CEQA analysis based on State CEQA Guidelines Section 21084 of the Public Resources Code, in accordance with Article 19, Section 15302, Class (2) "replacement or reconstruction."
Community Outreach: A public outreach plan for the project has been established, Polybutylene Service and Valve Replacements (CI 5688 and CI 5689) December 2, 2025
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with a focus on residents located adjacent to the project, as well as the general public. Project website updates will be utilized to inform the public and receive feedback. Additionally, prior to the start of construction, notices will be mailed to all property owners in the project area and special notices will be delivered to individual properties impacted during construction.
This project meets City Council’s Top Ten Priorities #9, “Public Works Infrastructure Investments.”
CIP PROJECT PRIORITY (as outlined in FY 2025-26 and FY 2026-27 CIP Program Budget)
Priority Two – Necessary, but not essential, and there could be consequences if deferred.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
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: Roner DelCastillo, Associate Engineer
Attachments:
Attachment #1 – Vicinity and Location Maps
Documents Provided Under Separate Cover:
#1 – Project Design and Specifications
DPW:850-20\ev\Council\2025\120225\CI 5688 CI5689\Polybutylene and Valve Replacements staff report.docx