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 Karbonous, Inc. in the amount of $527,375.34 for the Well 9 Hydrogen Sulfide (H2S) Filter Media Replacement Project, CC-1837; and approve the reallocation of funds
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Statement of Issue:
On August 21, 2025, bids were publicly opened for the Well 9 Hydrogen Sulfide (H2S) Filter Media Replacement Project (CC-1837). City Council action is requested to award the construction contract to Karbonous, Inc., the lowest responsive and responsible bidder.
Financial Impact:
The total construction cost for the project, including a 10% contingency, construction management, and inspection, is $625,000. Funds in the amount of $400,000 are available in the Fiscal Year 2025-26 Water Fund, Account 50691051.82100.
Staff requests the reallocation of $225,000 from the Water Master Plan Fund - Well 4, 7, and 13 On-Site Chlorine Generation and Fluoride Injection for Saturation Project (OSG) Project, CC-1734, Account 50791055.82100 with a total budget of $7,100,000. The total construction cost for the OSG Project is $6,300,000 leaving a remaining balance of $800,000, which is adequate to cover the budget shortfall for this project.
Recommended Action:
recommendation
A) Accept the lowest responsive, responsible bid submitted by Karbonous, Inc. in the amount of $527,375.34.
B) Approve the reallocation of funds from the Water Master Plan Fund, Account 50791055.82100, in the amount of $225,000 from Project CC-1734 - Wells 4, 7, and 13 On-Site Chlorine Generation and Fluoride Injection for Saturation Project, to the Water Fund, Account 50691051.82100.
C) Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney.
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Alternative Action(s):
Reject all bids and provide staff with alternative direction.
Analysis:
In 2011, Well 9 was found to produce groundwater with elevated hydrogen sulfide (H2S) levels exceeding State drinking water standards. Hydrogen sulfide causes a strong “rotten egg” odor, making the water aesthetically unacceptable for domestic use. To address this issue, the City constructed a treatment facility consisting of six tanks and a Granular Activated Carbon (GAC) filtration system, which removes H₂S to eliminate odors and ensure continued compliance with State drinking water standards.
The GAC system has effectively treated groundwater from Well 9 since its installation in 2018; however, the filter media has exceeded its expected service life. The existing media has been in place for approximately seven to eight years - beyond its typical five-year lifespan - and currently requires daily backwashing, which has increased staff time as well as operations and maintenance (O&M) costs.
Replacing the spent media will restore full treatment efficiency, extend the interval between backwashing, and reduce operational impacts on production staff. Maintaining well performance is also necessary to meet the City’s Basin Production Percentage (BPP) as established by the Orange County Water District (OCWD), and to maximize the use of local groundwater, which is significantly more cost-effective than imported water. The City currently pays a replenishment assessment fee of $711 per acre-foot to OCWD - about half the cost of imported water, which averages approximately $1,395 per acre-foot through MWDOC. This project will ensure continued delivery of reliable, odor-free, high-quality drinking water to the community.
The City advertised bids electronically on PlanetBids from July 8 through August 21, 2025. Two (2) bids were received, with Karbonous, Inc. submitting the lowest responsive, responsible bid. This company successfully completed similar media replacement projects for other public agencies and received favorable performance evaluations.
|
Contractor |
Bid Amount |
|
Karbonous, Inc. |
$527,375.34 |
|
Carbon Activated Corp. |
$621,517.00 |
Staff recommends awarding a contract to Karbonous, Inc. in the amount of $527,375.34. The total project cost, including a 10% construction for contingency, construction management, and inspection, is $625,000.
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