TO:Andrew P. Powers, City Manager
FROM:Nader Heydari, Public Works Director
DATE:August 25, 2026
SUBJECT: Pipeline Upgrades Near Calleguas Turnouts Phase I Project (CI 5493)
RECOMMENDATION:
1. Approve the project design, plans, specifications, and Addenda Nos. 1 through 3 for the construction of the Pipeline Upgrades Near Calleguas Turnouts Phase I Project (CI 5493).
2. Award construction contract for the Pipeline Upgrades Near Calleguas Turnouts Phase I Project (CI 5493) to J.A. Salazar Construction and Supply Corp. (La Habra, CA), in the amount of $1,870,830.15, plus a contingency of $187,000.
3. Authorize expense in the amount of $2,157,830.15 ($1,870,830.15 construction contract, $187,000 construction contract contingency, and $100,000 for engineering and construction support services and materials testing) from A/C #613-8030-682-8300 (Water Capital Fund – Improvements Other Than Buildings, CI 5493).
4. 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.
5. Find that the Project is Categorically Exempt from California Environmental Quality Act (CEQA) pursuant to 14 CCR 15302 (replacement/reconstruction of an existing facility).
LEVINE ACT ITEM: No
Pipeline Upgrades Near Calleguas Turnouts Phase I Project (CI 5493) August 25, 2026
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FINANCIAL IMPACT:
No Additional Funding Requested. $2,743,587 in carryover budget is available in the FY 2026-27 Water Capital Fund Budget for CI 5493. The estimated total project cost is $2,157,830.15.
BACKGROUND:
The City's water system serves over 17,000 customer accounts and approximately 50,000 residents. The City receives treated imported water from the Calleguas Municipal Water District (CMWD) and distributes water to roughly 36 percent of the City via 16 water storage reservoirs constructed between 1961 and 2002, with a total storage capacity of over 35 million gallons. Thirteen of the reservoirs are above-ground steel reservoirs, and three are partially buried concrete reservoirs.
As part of the City’s water distribution system, there are approximately 232 miles of transmission and distribution pipelines and 16 pump stations. The distribution system is divided into two service areas: the main Thousand Oaks service area and the Newbury Park service area. The majority of the City’s water service area is residential, with some areas of commercial land uses.
The City’s Water Master Plan (Plan) identified several capital improvement projects, categorized into high, medium, and low priority. One of the projects identified in the Plan was for water main improvements at five CMWD turnouts that supply water to the City’s system (Attachment #1). The improvements focus on short segments of existing pipelines with undersized diameters relative to current demands in the City’s distribution system. These undersized pipelines cause water flow and pressure issues and were identified in the Plan as needing replacement with larger-diameter pipelines.
The five turnouts involve the following streets:
Ventu Park Road
Hillcrest Drive
Encino Vista Drive
Avenida De Las Flores
Avenida De Los Arboles
Staff coordinated with CMWD during the design effort and will continue that collaboration as the project progresses into the construction phase. The pipeline replacement work will mostly take place within the public right-of-way, although certain portions of the work near the turnouts will be adjacent to private parcels where pipeline easements are located. The pipeline work will involve replacing the Pipeline Upgrades Near Calleguas Turnouts Phase I Project (CI 5493) August 25, 2026
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existing pipeline with a larger diameter pipeline using conventional excavation equipment and temporary water services.
DISCUSSION/ANALYSIS:
City Council authorized bidding of the project on May 12, 2026. The Notice Inviting Bids was publicly advertised in the Thousand Oaks Acorn newspaper and posted on the City’s procurement website on May 22, 2026, per the Public Contract Code Section 22037 and Thousand Oaks Municipal Code 3-10.306.
Six bids were received and publicly opened on July 1, 2026. The bid results are as follows:
Bidder Bid
1. Cedro Construction Inc. (Santa Paula, CA) $1,396,852.00
2. J. Vega Engineering, Inc. (Camarillo, CA) $1,835,950.00
3. J.A. Salazar Construction and Supply Corp. (La Habra, CA) * $1,870,830.15
4. Toro Enterprises, Inc. (Oxnard, CA) $2,342,744.00
5. Sam Hill & Sons, Inc. (Goleta, CA) $2,362,804.00
6. CEM Construction - Failed Bid Bond Verification
* Bid of $1,872,830.16 was updated to $1,870,830.15 after mathematical correction.
The May 12, 2026, authorization to bid staff report identified an estimated total project cost of $687,000, based on preliminary project assumptions and available cost information at that time. As the project advanced, the engineer’s estimate was updated to $1,250,000 to reflect refined scope, volatile construction-market conditions, and the higher costs and logistical requirements associated with mobilizing and completing the work at five totally separate locations across the City.
All bids received for this project are higher than the engineer's estimate of $1,250,000. Despite the variance, staff recommend awarding the construction contract because of the strong number of bids received, the fact that the project has sufficient budget (no additional appropriation is required), and the need to deliver the improvements to address the undersized pipelines and service demand. Delaying the work would likely increase the overall project cost due to continued inflation and construction-cost escalation.
The apparent lowest bidder, Cedro Construction, Inc., requested withdrawal of their bid package due to a mistake, and the request was granted. Additionally, the bid submitted by CEM Construction did not have a valid bid bond and was therefore not opened. In reviewing the bid package from the next lowest bidder, J. Vega Pipeline Upgrades Near Calleguas Turnouts Phase I Project (CI 5493) August 25, 2026
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Engineering, Inc., staff determined it to be non-responsive. This was due to J.
Vega’s response to question #11 on Bid Form #6 being found to be factually incorrect.
The third lowest bid received was from J.A. Salazar Construction and Supply Corp. (J.A. Salazar), which totaled $1,872,830.16. Upon review, a minor mathematical error was discovered in their bid, leading to a correction of the total to $1,870,830.15, making it the lowest responsive bid. The bid package submitted by J.A. Salazar has been reviewed and found to be in order.
On August 7, 2026, a bid protest was filed by J. Vega; however, after review by the Public Works Director, under delegated authority from the City Manager, the protest was denied on August 13, 2026, after the original finding of non- responsiveness was confirmed, and the questions raised about J.A. Salazar’s bid were determined to be without merit. No additional appeals of the bid protest rejection were filed by J. Vega by the August 19, 2026, deadline.
Staff, therefore, recommend awarding the construction contract in the amount of $1,870,830.15 to J.A. Salazar, plus a contingency of $187,000. Construction Phase Support services to be supplied under an existing City contract with Phoenix Civil Engineering, Inc. (Contract No. 13281-2023), along with Public Works inspection staff support.
The estimated overall project cost breakdown is as follows:
Construction Contract (this action) $ 1,870,830.15
Construction Contingency (this action) $ 187,000.00 Engineering & Construction Phase Support Services (this action) $ 100,000.00 Total Estimated Cost $ 2,157,830.15
The construction phase is anticipated to start by Fall 2026 and is expected to be fully completed by the end of Summer 2027.
The project plans and specifications were completed by Phoenix Civil Engineering, Inc., and approved by City staff in May 2026. These documents are available for review by request to the Public Works Department by e-mail at [email protected] or by phone at (805) 449-2400.
The project is categorically exempt from CEQA per section 15302 (replacement/reconstruction of an existing facility).
This project meets City Council’s Top Ten Priorities #9, “Public Works Infrastructure & Sustainability.”
Pipeline Upgrades Near Calleguas Turnouts Phase I Project (CI 5493) August 25, 2026
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Community Outreach: The project is located on several streets in the public right- of-way, as well as within easements on private property. City staff have been in contact with the private property owners, and the affected residents are aware of the project. Advance notice of the upcoming construction work will be provided to affected residents and business owners. The construction project will also be advertised on the City's website.
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: Paul Weinstein, Associate Analyst
Attachments:
Attachment #1 – Vicinity and Location Maps
Documents Provided Under Separate Cover:
#1 – Project Plans and Specifications
DPW: 850-20\ev\Council\2026\08252026\CI5493\Pipeline Upgrades Near Calleguas Turnouts Phase I Project staff report.docx