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Council approves $8.44 million contract for wastewater treatment and Bridal Road stormwater improvements
Summary
The council awarded a contract for an industrial wastewater treatment plant and Bridal Road stormwater improvements after receiving two bids. The work is required by a state stormwater (MS4) permit and will be funded through a mix of state Prop 1 grant funds and local stormwater impact fees that require matching funds.
The Hollister City Council voted to award a contract to the lowest bidder for the Industrial Wastewater Treatment Plant (IWTP) and Bridal Road Stormwater Improvements Project, approving the agreement and authorizing the city manager to execute contract documents.
Marco Martinez, a public works engineer, presented the item and described scope and procurement history. The combined project includes trash capture structures, inlet/outlet and diversion structures, hardened spillways at several ponds, an emergency backup generator, flow-splitter infrastructure, manhole improvements, reconstruction of an existing city parking lot, relocation of a city water line and additional solar lighting near Bridal Road.
Martinez said the two previously separate projects were combined for bidding and cost-saving purposes. The city had earlier advertised the IWTP portion and rejected a single, significantly over-budget bid in August 2023. The combined packet went back out to bid and on Jan. 8, 2025 the city received two bids; the lowest was submitted at $8,441,982.
The engineer’s combined estimate before bids was approximately $7.5 million, Martinez said, leaving the low bid about $1 million above the estimate. The city’s staff explained the funding mix: part of the project will be paid from a Prop 1 water-quality grant that requires matching funds, and the city’s matching share will come from stormwater impact fees that the city has collected.
Council members discussed the bid results and procurement process. Council member Pesce said the cost over the estimate meant a meaningful reduction in dollars available for other projects in his district, but moved to adopt the resolution authorizing the award. Several council members raised concerns about the limited number of bidders, the effect of combining projects on contractor interest, and how the community workforce agreement (CWA) interfaces with procurement and prevailing wage obligations.
Council member Pesce made the motion to adopt the resolution awarding the contract; a second followed. The council approved the resolution by voice vote (ayes only recorded). No public comments were received on this item.
City staff said the improvements are required under the state’s trash amendment to the city’s Municipal Separate Storm Sewer System (MS4) permit, which applies to municipalities serving populations under 100,000. The project construction will be the next step after contract execution and pre-job coordination with the trades and contractor.
Action on the item authorizes the city manager to execute the contract and related documents with the awarded contractor and to proceed to construction per the contract schedule.
