Delays, materials costs bring Santa Paula water facility price tag of $23 million
The Santa Paula City Council on Wednesday agreed to a higher price tag for an advanced water treatment facility, a project now expected to cost $23 million.
The treatment plant was first approved by the City Council in November 2020 and was estimated to cost about $20 million. But project delays and increased material costs have made the project more expensive.
The Council voted unanimously on the increase without much discussion.
To fund the new treatment facility, the city will borrow money from a state loan program. The facility will help Santa Paula comply with state regulations that mandate chloride levels in treated wastewater.
Santa Paula has historically exceeded its chloride discharge limit for treated wastewater, prompting the Los Angeles Regional Water Quality Control Board to issue a cease and desist order. The city is required to comply by 2028, according to a staff report.
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The new facility will be adjacent and connected to the existing Santa Paula Water Recycling Facility, at 921 Calpipe Road. It is expected to begin operations in October 2024.
"This project is like a giant reverse osmosis system," said City Manager Dan Singer. "It is in complement to the wastewater treatment plant in order to reduce chloride levels back into the groundwater."
The cost increase is largely due to a six- to nine-month delay in the project schedule from the state review, said Eileen Shields, a project manager for engineering firm MKN & Associates.
Shields said the total amount could have been higher but they worked with the city to lessen the cost through reducing the size of a building and other construction-related changes.
Officials will use the Clean Water State Revolving Fund loan program, administered by the state water board, to pay for the facility. The program currently has an interest rate of 0.8%, according to the report.
Santa Paula's current facility, which has been operating since 2010, is permitted by the Los Angeles Regional Water Quality Control Board to discharge wastewater, according to the report.
The permit requires that chloride concentration in the discharged water be less than 110 milligrams per liter. But the city exceeded the limit from 2010-2017 when the monthly chloride concentration ranged from 125-166 milligrams per liter, according to the cease and desist order.
With the approval of the new project costs, the city will go out for bid with pre-qualified contractors and award a construction contract. The city will also complete the loan agreement, which will require additional Council action.
Staff members anticipate the state review of the loan application will be completed in summer 2022 and the loan agreement completed by fall 2022. Construction bidding is expected to start in winter 2022.
Completion of the agreement does not obligate officials to proceed with the project or enter into a loan agreement.
Council opts for priciest sanitation plan
In other news, the Council approved in a 3-2 vote to remain with the Ventura Regional Sanitation District for Santa Paula's wastewater collection and treatment facilities despite a 25.4% increase in costs. It means the city will pay $354,037 more annually. It was the costliest of three options for the city.
The sanitation district sent a letter to the city stating water and wastewater services would continue past June 30 only if the agencies that contract with the district, including Santa Paula, are willing to continue their contracts at their previous service levels with new proposed rates for fiscal year 2022-23.
A loss of "key" customers for the district has led to the increase in rates, said Chris Theisen, sanitation district general manager at the meeting.
Council members looked at other options, including hiring city staff members to operate the wastewater collection system and the water recycling facility. Another option was hiring staff members to operate the facility and privately contract out the collection system.
City officials projected a savings of more than $211,000 in the fiscal year 2025-26 if they hired staff to operate both systems, according to a projections report. Under this scenario, the city would incur approximately $625,000 in start-up costs for equipment purchase and other items.
If the city were to opt for a combination of city-operated and contracted system, it would save more than $111,000 in fiscal year 2025-26, according to the report. Under this scenario, the city would incur approximately $118,000 in start-up costs for equipment purchase and other items.
Three council members felt the sanitation district provided great service but their colleagues Leslie Conejo and Andy Sobel voted against it citing the financial costs and the ability to have more control over the operations.
City officials said during the meeting they would negotiate with the sanitation district to include language that could potentially decrease the amount if additional agencies join the district.
Wes Woods II covers West County for the Ventura County Star. Reach him at wesley.woodsii@vcstar.com, 805-437-0262 or @JournoWes.
This article originally appeared on Ventura County Star: Delays, other costs increase Santa Paula water facility to $23 million
