REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Chau Vu, Director of Public Works
PREPARED BY: Lili Hernandez, PE, Principal Civil Engineer
Subject:
title
Accept the lowest responsive, responsible bid and authorize execution of a construction contract with Arnaz Engineering Contractors, Inc. in the amount of $5,143,000 for the Wells 4, 7, and 13 On-Site Chlorine Generation and Fluoride Injection for Saturation, CC-1734
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Statement of Issue:
On August 28, 2025, the City received bids electronically via PlanetBids for the Wells 4, 7, and 13 On-Site Chlorine Generation and Fluoride Injection for Saturation Project. City Council action is requested to award the construction contract in the amount of $5,143,000 to Arnaz Engineering Contractors, Inc., the lowest responsive, responsible bidder.
Financial Impact:
The total construction cost for the project, including 10% contingency, construction management and inspection is $6,300,000. Funds are available in the Fiscal Year 2025-26 budget in the Water Master Plan Fund, Account 50791055.82100.
Recommended Action:
recommendation
A) Accept the lowest responsive, responsible bid submitted by Arnaz Engineering Contractors, Inc. in the amount of $5,143,000.
B) Authorize the Mayor and City Clerk to execute the construction contract, in a form approved by the City Attorney.
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Alternative Action(s):
1. Reject bid
2. Direct staff with alternative action
Analysis:
The City of Huntington Beach has chlorinated water produced by groundwater wells using gaseous chlorine since the 1950s. This includes nine production wells and four reservoirs. While this method was once standard industry practice, most agencies have since transitioned to On-Site Chlorine Generation (OSG) to enhance safety, improve reliability, and reduce operational costs.
OSG uses a simple electrolysis process that combines salt, water, and electricity to produce sodium hypochlorite, a liquid form of chlorine. The process converts a salty water solution, called brine, into a safe liquid disinfectant that replaces the need for storing or handling hazardous chlorine gas.
The project also replaces existing fluoride injection equipment, which maintains fluoride at State-recommended levels to support dental health.
Huntington Beach remains one of the few water systems in Orange County that continues to rely solely on chlorine gas for disinfection. This dependency creates operational vulnerability due to the limited number of suppliers and their distance from the City. In recent years, delivery interruptions caused by force majeure events have nearly halted groundwater production. During such disruptions, the City would need to rely on imported water from the Metropolitan Water District (MWD), which costs roughly twice as much as groundwater, potentially increasing monthly costs by up to $1 million.
Disadvantages of Chlorine Gas
• Handling and Equipment: Requires cranes and specialized equipment to move, refill, and transport one-ton chlorine cylinders.
• Safety and Training: Demands extensive staff training, certification, and emergency readiness for handling a highly hazardous chemical.
• Fire and Emergency Risk: Chlorine gas exposure risks necessitate wide-scale evacuations during fire or release incidents, significantly expanding emergency response zones.
Advantages of On-Site Chlorine Generation
• Eliminates hazardous chlorine gas storage and handling.
• Reduces dependency on external suppliers.
• Simplifies training and maintenance requirements.
• Enhances safety for staff and nearby residents.
• Improves system reliability and reduces potential costs from emergency imported water purchases.
• Reduces operational overhead by eliminating:
• Annual hazardous materials training and recordkeeping (EPA/OSHA compliance).
• Self-Contained Breathing Apparatus (SCBA) and emergency leak response requirements.
• Extensive regulatory reporting to multiple agencies.
The OSG project is critical for improving the safety, reliability, and sustainability of the City’s water production system, aligning with regional best practices and the City’s Water Master Plan goals.
The City advertised bids electronically on PlanetBids from July 8 through August 28, 2025. Five (5) bids were received, with the low bid submitted by Arnaz Engineering Contractors, Inc. This company successfully performed similar water production and chemical treatment projects for other public agencies. The Engineer’s Estimate was $5,500,000.
|
Contractor |
Bid Amount |
|
Arnaz Engineering Contractors, Inc. |
$5,143,000 |
|
Mehta Mechanical Company, Inc. |
$5,754,000 |
|
Innovative Construction Solutions |
$5,959,000 |
|
Pacific Hydrotech Corp |
$6,389,800 |
|
Metro Builders & Engineers Group, Ltd. |
$7,164,168 |
Staff recommends awarding a contract to Arnaz Engineering Contractors, Inc. in the amount of $5,143,000. The total project cost is estimated to be $6,300,000, which includes the construction contract, a 10% construction contingency, and construction management and inspection.
Environmental Status:
This project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15031c under Class 1 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on th
Strategic Plan Goal:
Goal 6 - Infrastructure Investment, Strategy C - Conduct an assessment of all City facilities to determine priorities for upgrades and repairs, implementation and financial priority.
Attachment(s):
1. RCA Contract Agreement Summary
2. City Funded Construction Contract
3. PowerPoint Presentation