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CITY OF BANNING
STAFF REPORT

 
 
TO:
CITY COUNCIL
 
FROM:
Elizabeth Gibbs, City Manager
 
PREPARED BY:
Shah Nawaz, Deputy Water/Wastewater Director
Art Vela, Director of Public Works
 
MEETING DATE:
September 22, 2026
 
SUBJECT:

Consideration of Resolution 2026-04 UA Awarding a Construction Contract to Mehta Mechanical Company, Inc. in the Amount of $5,350,000 for the Wastewater Treatment Plant Equalization Basin Project and Approving a 10% Construction Contingency for a Total Authorization of $5,885,000 and approving the budget appropriation as listed in the Fiscal Impact section of this report.

 

STAFF RECOMMENDATION:

Adopt Resolution 2026-04 UA

BACKGROUND:

On June 9, 2020, the City Council awarded a Professional Services Agreement to Albert A. Webb Associates (WEBB) for the design of the Wastewater Treatment Plant (WWTP) Equalization Basin. The original concept included two connected basins: one to equalize normal daily wastewater flows and provide steadier flow through the treatment process, and a second to capture excess flows during rain events and other high-flow conditions.

 

As the project advanced, the City pursued design modifications intended to reduce construction costs while maintaining the operational objectives of the Equalization Basin Project. The redesign reduced the size of one cast-in-place concrete basin that will house the submersible pumps. The second basin was redesigned to use a High-Density Polyethylene (HDPE) liner instead of a cast-in-place concrete liner. These changes were incorporated into the final plans and specifications to provide a more cost-effective approach to the construction project.

 

The project is now ready to proceed to construction. The proposed improvements will provide the WWTP with additional flow equalization and storage capacity to better manage peak and wet-weather flows and improve overall plant operational flexibility.

 

After completing the plans and specifications, the City competitively solicited bids for construction of the WWTP Equalization Basin Project. The City received five (5) bids, as summarized below; MMC submitted the lowest bid at $5,350,000. After reviewing the bids, staff determined MMC to be the lowest responsible and responsive bidder and recommends awarding the construction contract to MMC.

 

Rank Bidder Bid Amount
1 Mehta Mechanical Company, Inc. (MMC) $5,350,000
2 Pacific Hydrotech Corporation $5,555,200
3 GSE Construction Company $6,136,136
4 Pyramid Building & Engineering $6,341,816

5

Environmental Construction $6,995,452
JUSTIFICATION:

During prolonged and intense rain events, the WWTP experiences substantial increases in influent flow. The Equalization Basin Project is intended to provide additional storage and flow equalization so excess flows can be contained and returned to the treatment process in a controlled manner. The project will also improve operational flexibility during high-flow events, plant shutdowns, and other conditions that can temporarily affect treatment capacity.

 

Awarding the construction contract to MMC, as the lowest responsible and responsive bidder, will allow the City to proceed with construction of this much-needed WWTP improvement.

FISCAL IMPACT:

The recommended construction contract with MMC is $5,350,000. A 10% construction contingency of $535,000 is recommended to address unforeseen conditions and necessary construction changes, resulting in a total construction authorization of $5,885,000.

 

The project will be funded through Wastewater Operations Fund 680 and Wastewater Development Impact Fund 681. An appropriation in the amount of $3,125,000 is required from Fund 680 and $2,760,000 from Fund 681. The City has also received a $1,250,000 grant through the U.S. Environmental Protection Agency's Community Grants Program, which will be applied toward eligible project construction costs on a reimbursement basis. Utility rates and development impact fees will fund the balance of construction costs. Staff requests budget appropriations associated with this project as follows:

 

General Ledger Account No. Account Description Budget Amount Requested
680-8000-347.34-29 REVENUE FROM FEDERAL / EPA GRANT $1,250,000
680-8000-454-95.12 SPECIAL UTILITY CAP ITEMS / TREATMENT PLANT IMPROV $3,125,000
681-8000-454-95.12 SPECIAL UTILITY CAP ITEMS / TREATMENT PLANT IMPROV $2,760,000

 

There is no impact to the General Fund associated with this item.

ATTACHMENTS:
1. Resolution_2026-04_UA_JT_edits.docx
2. Contract No C01299 - Mehta Mechanical Company Inc - WWTP Equalization Basin.pdf