Agenda Item Wording:
title
Conditional award for Cameron Creek linear recharge project - Conditionally authorize the City Manager to award the construction contract to Katch Environmental, Inc for the Cameron Creek linear recharge project in the amount of $2,201,753.32; approve change order number one for scope change in the reduction amount of ($32,913); and appropriate $845,125 from the General Fund 001 to be reimbursed as described in this report.
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Prepared by:
Rebecca Keenan, Senior Civil Engineer, 713-4541; Rebecca.Keenan@visalia.gov
Christopher Crawford, City Engineer, 713-4331; Chris.Crawford@visalia.gov
Nick Bartsch, Public Works Director, 713-4052; Nick.Bartsch@visalia.gov
Jason Huckleberry, Eng & Bldg. Director, 713-4495; Jason.Huckleberry@visalia.gov
Department Recommendation:
Staff recommends that the City Council authorize the City Manager to conditionally award, pending written approval from DWR of change in grant scope, the construction contract to Katch Environmental, Inc. for the Cameron Creek linear recharge project in the amount of $2,201,753.32; approve change order number one for scope change in the reduction amount of ($32,913); and appropriate $845,125 from the General Fund 001 to be reimbursed as described in this report.
Summary:
This project consists of construction of two (2) new reinforced concrete check structure facilities and one tie-in to the existing Pearl Woods development storm basin within the Cameron Creek channel. The project’s goal is to increase groundwater recharge through linear water pools that will percolate over time to recharge the groundwater aquifer in the vicinity of the City limits. The “Measurement” concrete check structure will be located east of the City, at Road 156 and Cameron Creek, and the “Lovers” check structure will be located at Lovers Lane and Cameron Creek. The storm basin tie-in will be located west of Road 148, adjacent to the Pearl Woods subdivision, near the SCE Rector Station.
This project is funded by a $2,000,000 California Department of Water Resources (DWR) - Sustainable Groundwater Management Act (SGMA) Implementation Grant, by local groundwater recharge funds (224), and by funding from the Mid-Kaweah Groundwater Sustainability Agency (MKGSA). The project is a cooperative effort between the City of Visalia, Kaweah Delta Water Conservation District (KDWCD), and Tulare Irrigation District (TID), and the GSA’s.
On October 2, 2025, the City of Visalia Purchasing Division received and opened four (4) bid packages in response to RFB 25-26-06. Katch Environmental, Inc. submitted the apparent low bid of $2,661,400.95, which is the total of the Base Bid + Alternate Bid “A” + Alternate Bid “B” + Alternate Bid “C”. This bid combination was set up to help establish the apparent low bidder. After reviewing the bid packages, staff found that Katch Environmental, Inc. was the successful low bidder, although the bid came in $863,393.95 above the engineer’s estimate. After consultation with TID, staff recommends award of the Base Bid + Alternative Bid “C” in the amount of $2,201,753.32, plus approval of Change Order No. 1 for a deduction of $32,913.00, resulting in a total construction contract of $2,168,840.32. This award combination will eliminate one of the grant required concrete check structures, which will provide construction savings of $414,647.63. The team is currently working with DWR to obtain approval of this change in grant scope, and for that reason, award of this contract to Katch Environmental Inc. is conditioned on receiving that approval. Should the DWR disapprove this change in scope, staff will return to Council for additional direction.
Even with the elimination of one check structure, there is still an overall project budget deficit of approximately $(845,125.56). The team is currently working with the grant agency to redistribute $195,125.56 from another project to this one, and TID has secured additional funding through the MKGSA, as further described in this report. Therefore, staff recommends that the City Council appropriate $845,125.56 from the General Fund 001, to be reimbursed by the grant agency and the MKGSA after the project close-out.
Background Discussion:
On February 7, 2022, the City Council adopted Resolution 2022-06 authorizing the Greater Kaweah Groundwater Sustainability Agency to submit a grant application for the Cameron Creek Check Structure project. The Department of Water Resources (DWR) administers the Sustainable Groundwater Management Act (SGMA) grant program with funds authorized under the California Budget Act of 2021 and Proposition 68. Projects are intended to address groundwater impacts and to help achieve regional groundwater sustainability in groundwater recharge and associated projects.
The Cameron Creek linear recharge project was developed through a cooperative effort for groundwater management between the City of Visalia, Kaweah Delta Water Conservation District (KDWCD), and the Tulare Irrigation District (TID) using the 2010 “Packwood and Cameron Creeks pool and basin reconnaissance study” prepared by Provost & Pritchard as the initial guidance (Attachment 2). The study includes pool capacity analysis at several sections within Cameron Creek, which helped identify some potential check structure locations. The final locations were established during the preliminary site analysis phase, through coordination with Provost & Pritchard (P&P), KDWCD and TID; with site access & operability weighing heavily. In addition, since the underground aquifer gradually flows west and south, the selected sites are located east of Lovers Lane, to provide the maximum benefit to Visalia residents west of the sites.
The City of Visalia provided the project management, including managing engineering, permitting, & environmental efforts; and provided on-going documentation needed for the grant administration. This effort was coordinated with partner agencies TID, KDWCD, and the MKGSA. Provost & Pritchard provided engineering, permitting, and environmental compliance consulting services. They will also be providing biological surveys, construction staking, and construction support under their existing agreement. The City’s Public Works Department has worked with TID to prepare an agreement for post-construction operation, maintenance and reporting to the DWR (which will be done by TID).
As previously discussed, on September 4, 2025, the City of Visalia issued Request for Bid No. 25-26-06 to obtain construction Bids for the Cameron Creek linear recharge project. The project, as shown in the solicitation, included a base bid and three (3) alternateb. The following explains the process involved with the Katch Environmental contract, including the bid solicitation scope of work, establishment of the low bidder, bid cost analysis, and the recommended construction award.
1. Bid solicitation scope of work: The solicitation for this project included a Base Bid and three alternate bids. The base bid includes all the work needed for construction of the “Measurement” check structure, the “Lovers” check structure, and the connection of Cameron Creek to the Pearl Woods basin. The two concrete structures will be equipped with control gates and weir boards to help maintain high water levels in the channel. Work will include earthwork, concrete check structures, canal lining, installation of a manhole & storm pipe, and a telemetry system. P&P also designed a third check structure, the “Rector” check, which was included as alternative bid “A” of the solicitation. Alternative bid “B” included construction of a rubble dam at the Rector location (instead of the concrete check), and alternative bid “C” includes a pump bypass system to be used only with written authorization from the City, if needed due to storm events.
2. Establishment of Low Bidder: As allowed by the California Contract Code, Section 20103.8, this bid solicitation specified that the method to be used to determine the apparent low bidder would be based on the “LOWEST TOTAL OF THE BASE BID + ALTERNATE BID “A” + ALTERNATE BID “B” + ALTERNATE BID “C”. For this project, Katch Environmental, Inc. submitted the apparent low bid of $2,661,400.95.
TABLE 1
|
No. |
Contractor |
Location |
Total Sum Bid |
|
1. |
Katch Environmental, Inc. |
Fresno, CA |
$2,661,400.95 |
|
2. |
DNB Infrastructure Inc. |
Sacramento, CA |
$3,049,900.00 |
|
3. |
Cal Valley Construction, Inc. |
Fresno, CA |
$3,397,191.00 |
|
4. |
Laurel Ag & Water |
Bakersfield, CA |
$4,677,713.06 |
The bid package for Katch was reviewed and found to be in compliance with the City’s requirements. Staff also contacted the listed references at the High Speed Rail CP 2-3, High Speed Rail Segment 3, and Vanir. All three expressed satisfaction with the contractor’s past performance and recommended them. They reported that the contractor performed well on their portions and completed the work in accordance with the project plans and specifications. This will be Katch’s first project for the City of Visalia.
3. Bid Cost Analysis: The lowest responsive bid from Katch Environmental, Inc. is $2,661,400.95, which is 48% over the engineer’s estimate of $1,798,007.00. The engineer’s estimate and the submitted bids can be seen in the following table:
TABLE 2
|
Bid Items |
Engineer’s Estimate |
Katch Environmental |
DNB Infrastructure |
Cal Valley Construction |
Laurel Ag & Water |
|
Base Bid |
$1,403,587.00 |
$1,999,883.02 |
$2,297,400.00 |
$2,762,191.00 |
$2,882,423.06 |
|
Alt “A” |
$219,420.00 |
$414,647.63 |
$440,000.00 |
$260,000.00 |
$550,768.00 |
|
Alt “B” |
$25,000.00 |
$45,000.00 |
$12,500.00 |
$25,000.00 |
$38,384.00 |
|
Alt “C” |
$150,000.00 |
$201,870.30 |
$300,000.00 |
$350,000.00 |
$1,206,138.00 |
|
TOTAL Base Bid + Alt “A” + Alt “B” + Alt “C” |
$1,798,007.00 |
$2,661,400.95 |
$3,049,900.00 |
$3,397,191.00 |
$4,677,713.06 |
Staff coordinated with Katch Environmental and Provost & Pritchard to analyze the bid discrepancy versus the engineer’s estimate. The contractor indicated that in general, the design and bid package were well organized and clear. The bid was estimated using the provided bid package, and reflects the current industry pricing, which continues to increase. There were no errors or corrections identified, which could have reduced the bid as submitted. In addition, P&P reviewed the overall bids submitted and found that the amount submitted per bid items varied from their estimated bid items, with some being over and some being under what they estimated. Then, when added up, they resulted in higher bids overall.
Since there was no specific adjustment that could be made to reduce the cost, while keeping all three check structures in the project, staff prepared three scenarios that would decrease the project scope and decrease the overall project budget:
TABLE 3
|
Scenario No. |
Scope (As required by TID, all scenarios include Alt “C” Pump Bypass) |
Estimated Construction cost |
Estimated Project Cost |
|
1. |
Construct Measurement Check & Rector Check (excludes Lovers Check) |
$1,990,827.41 |
$2,710,789.97 |
|
2. |
Construct Measurement Check & Lovers Check (excludes Rector Check) |
$2,168,840.32 |
$2,935,125.56 |
|
3. |
Construct Measure Check & Rector Rubble Dam (excludes Rector & Lovers Check) |
$1,543,266.78 |
$2,234,074.51 |
The scenarios were presented to the MKGSA, with the recommendation to pursue Scenario 2 from the cost savings scenarios. Scenario 2 includes construction of the Measurement check structure at the upstream location, the connection to the Pearl Woods Basin, and construction of the Lovers Check near Caldwell & Lovers Lane. Provost & Pritchard reviewed the groundwater recharge benefits that would be achieved with each scenario and estimates that the Scenario 2 project will provide the most benefit, as it will achieve recharge rates of 120 acre feet per year or greater, as required by the original grant agreement. Per P&P, the potential groundwater recharge rates may be greater than originally estimated based on updated loss calculations derived from field observations of channel losses. In addition, the connection to the Pearl Woods Basin will provide the opportunity to deposit surplus water into the basin to achieve additional recharge benefits. These deposits would be coordinated with the City’s storm water needs through mutual collaboration between the City, TID, and the KDWCD.
On December 9, 2025, by unanimous vote, the MKGSA Board of Directors approved cost-sharing among the members of costs above all potential grant and other funds available (Attachment 3). In addition, the MKGSA has submitted a request to the DWR to reassign $195,125.56 from a different project, to this project. The DWR has preliminarily verbally indicated that they are agreeable to the transfer and the proposed change in grant scope, although written confirmation is still pending.
4. Recommended Construction Award: With the removal of the Rector check structure, as presented in Scenario 2, the additional $195,125.56 funding to be provided by the DWR, and the commitment by the MKGSA to cover costs above the potential grant amount, staff recommends conditional award of the Base Bid + Alternative Bid “C”, to Katch Environmental, Inc. in the amount of $2,201,753.32.
Fiscal Impact:
Following is the updated budget estimate for this project, which will require an appropriation from the General Fund 001, to be reimbursed as described in this report.
TABLE 4
|
Current Budget |
|
|
SGMA Grant (Component 12) |
$2,000,000.00 |
|
Fund 224 Groundwater Recharge |
$90,000.00 |
|
Total Budget: |
$2,090,000.00 |
|
|
|
|
Estimated New Budget |
|
|
Project Management/Administration |
$156,434.02 |
|
Design Services |
$253,259.00 |
|
Right of Way |
$4,000.00 |
|
Construction Award: Base Bid + Alt “C” Pump Bypass |
$2,201,753.32 |
|
Change Order No. 1: Deduct Bid Item 19 Rector wrought iron fence |
-$32,913.00 |
|
Construction Contingency |
$216,884.03 |
|
Construction management, inspection, materials testing, staking |
$110,708.19 |
|
Tulare Irrigation District |
$25,000.00 |
|
Total Estimated New Budget: |
$2,935,125.56 |
|
Estimated Deficit |
-$845,125.56 |
|
|
|
|
Additional Appropriation |
|
|
General Fund 001 |
$845,125.56 |
|
|
|
|
Additional Reimbursements |
|
|
SGMA Grant (transfer from Component 5) |
$195,125.56 |
|
Mik-Kaweah GSA funding |
$650,000.00 |
|
Total Additional Reimbursement: |
$845,125.56 |
|
Balance: |
$0.00 |
Prior Council Action:
November 18, 2024: The City Council adopted Resolution 2024-63 adopting Mitigated Negative Declaration No. 2024-56 prepared for the California Department of water Resources, Sustainable Groundwater Management Act Implementation Grant, Cameron Creek Linear Recharge Project.
February 20, 2024: The City Council authorized the City Manager to enter into a contract with Provost & Pritchard for professional consulting services for the Cameron Creek linear recharge project in the amount not to exceed $236,259.00.
June 19, 2023: The City Council accepted and authorized the appropriation of $2,000,000 from the Sustainable Groundwater Management Grant Program for the Cameron Creek Linear Recharge Project and appropriated $60,000 for staff indirect costs from Fund 224.
February 7, 2022: The City Council adopted Resolution 2022-06 authorizing the Greater Kaweah Groundwater Sustainability Agency (GKGSA) to submit a grant application on behalf of the City of Visalia to the California Department of Water Resources (DWR) for the Sustainable Groundwater Management Act (SGMA) call for projects.
Other: None
Alternatives: None recommended
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to conditionally authorize the City Manager to award the construction contract to Katch Environmental, Inc. for the Cameron Creek linear recharge project in the amount of $2,201,753.32; approve change order number one for scope change in the reduction amount of ($32,913); and appropriate $845,125 from General Fund 001 to be reimbursed as described in this report.
end
CEQA Review: Environmental Document No. 2024-56, Mitigated Negative Declaration for the Cameron Creek linear recharge project was filed at the Tulare County Assessor/Clerk-Recorder’s Office on November 20, 2024.
Attachments:
1. Location Map
2. 2010 “Packwood and Cameron Creeks pool and basin reconnaissance study”, prepared by Provost & Pritchard
3. MKGSA Letter
4. Katch Environmental, Inc. Ownership Disclosure and Contract