Gonzales advances industrial wastewater conveyance; treatment plant bidding underway

The Gonzales City Council heard a detailed update on the city's wastewater capital program, including progress on the industrial wastewater conveyance pipeline and the start of bidding for an industrial wastewater treatment facility.

The presentation said the city secured a State Revolving Fund (SRF) loan to finance the project and has already started construction on the conveyance pipeline that will feed the new industrial treatment plant. Megan Panofsky, program manager with M and S Engineers, told the council, "We are actually at 6,200 linear feet of pipeline installed and 6 manholes," and said the contractor began work Nov. 4 and is tracking for early completion in May on a contract that runs to June.

Why it matters: the project creates a separate industrial wastewater conveyance and treatment capacity intended to protect the municipal system and meet regulatory requirements. City staff said construction staging, cash flow from SRF disbursements and temporary construction easements with private property owners are key near-term risks.

Project and finance details presented - SRF loan: presenters described securing a low-interest SRF loan from the State of California after about three years of effort. The presentation referenced the loan as roughly $29,000,000 in one slide and later listed $28,800,000; staff framed the figure as the roughly $28.8 million SRF loan backed by sewer rates that took effect in January 2024. The city also has a separate construction loan to bridge timing gaps between contractor invoices and SRF reimbursements. Staff said they had submitted three SRF claims and received the first payment.

- Conveyance pipeline: the conveyance project went to bid Aug. 6, 2024; the low bidder was Sierra Construction & Excavation, the contract was awarded Sept. 3, executed Sept. 24 and crews began work Nov. 4. M and S Engineers reported the job is about 35% complete and tracking to finish early in May; two (sometimes three) crews are in the field.

- Treatment facility: staff completed a constructability review and updated drawings and SCADA requirements. The treatment facility documents were issued for bid Jan. 15 with a bid opening anticipated Feb. 26; staff projected contract awards in mid-March and construction to begin in April, pending bids and final approvals.

- Easements and site work: the conveyance work required temporary construction easements and rights-of-entry across six property owners; recorded easements exist for four owners and two remain in negotiation, the report said.

- Emergency infiltration basin and municipal plant planning: the council approved an emergency infiltration basin for the municipal wastewater plant on Dec. 11 with a not-to-exceed authorization of $950,000; staff reported the basin was operational Dec. 23, the contractor was Swift Tectonics, and anticipated final cost is about $550,000. Staff also has applied for a $300,000 planning grant to support rehabilitation of the municipal wastewater plant and intends to use SRF and other funding sources as projects progress.

Next steps and regulatory items Staff said next steps include completing the conveyance pipeline, awarding the treatment plant contract, applying for the Regional Water Quality Control Board permit for treatment plant operations, performing video inspection and rehabilitation of a 21-inch trunk sewer that serves the municipal plant, installing additional groundwater monitoring wells, issuing an RFP for a new wastewater master plan and upgrading the city's SCADA system. Staff also proposed presenting an updated sewer ordinance that would add an industrial pretreatment program within two to three months.

Quotes and attribution - "We are actually at 6,200 linear feet of pipeline installed and 6 manholes," Megan Panofsky, program manager, M and S Engineers.

Ending Council members asked clarifying questions and staff said it would return with additional schedule and budget detail as bids are opened and contracts are awarded.