Escalon updates council on surface water pipeline, phases wastewater plant upgrades

Escalon City officials told the City Council on June 16 that work is advancing on two of the city’s largest utility projects: a pipeline to access treated surface water and a multi‑phase plan to upgrade the wastewater treatment plant.

City Manager Jalen French said the surface water connection project would let Escalon reduce reliance on groundwater by tapping an allocation of treated water secured through a regional partnership. The project is currently estimated at about $14,000,000, French said, and the city has already set aside portions of rate revenue toward construction and is pursuing multiple grants to close the remaining funding gap. “We have a relatively small delta” to fill, French told council, noting a rate study has generated roughly $10,000,000 toward the work and the city currently sells treated water to Tracy, producing about $1,800,000 in sales revenue that helps the water enterprise.

French said Escalon has about 2,100 acre‑feet of water allocated and currently uses about 1,500 acre‑feet; that surplus creates options for leasing or selling water to other agencies once Escalon has its conveyance in place. The city has applied for federal grants including a Bureau of Reclamation program, pursued funding through Representative Josh Harder’s office and submitted projects to the U.S. Senate office of Senator Alex Padilla, French said. He told the council that the project’s design consultant (ArdurA/DuarA referenced in staff remarks) is about 60 percent complete and could finish design in only a few months if council directed staff to move forward, but councilors expressed concern about cost escalation while grants are pending.

To reduce escalation risk, staff recommended exploring a “design‑assist” procurement model so a contractor can help finish design and provide a guaranteed maximum price, speeding transition to construction if grant awards arrive. Council asked staff to continue talks with Tracy about the current water sale agreement; staff said the sale would likely be renegotiated or ended once Escalon can convey and receive its allocated water.

On the wastewater treatment plant, French and project staff described a shift from a single large renovation to a phased, targeted set of improvements. A previously discussed $40,000,000 replacement‑level project has been reassessed. Staff said progress on operations and permit compliance over the last decade reduces immediate regulatory pressure, creating an opportunity to phase work, pursue industry‑led on‑site solutions and lower total cost. The wastewater program manager said the plant’s load — the strength and composition of industrial discharges from two major customers — is the key cost driver. Escalon has been coordinating with the two industrial users to pilot on‑site treatment improvements; pilots last season showed some approaches would not work and staff requested additional trials with different technologies.

If industrial on‑site upgrades succeed, staff said, Escalon can shrink the scope and cost of its plant work. The remainder of the plan envisions four phases, with an illustrative per‑phase cost near $10,000,000; staff emphasized that the phasing and costs are dependent on pilot outcomes and the city’s ability to secure grant funds. Council members supported continued industry collaboration but asked for clearer timelines, pilot metrics and a schedule for design work if grants are awarded.

Both project updates stressed grant timing uncertainty. French warned that several federal grant processes are delayed and that pursuing multiple funding sources remains the city’s strategy to avoid large rate increases for residents. He also told council the city can continue to seek additional grant funds during design and construction should bid results indicate a shortfall.