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Modesto approves $143.9 million River Trunk realignment and authorizes up to $60 million in wastewater bonds
Summary
Council awarded multiple contracts and authorized a revenue bond issuance to fund the River Trunk realignment pump station project; most measures passed 6-1 with Council Member Rickey dissenting on several financial items.
The Modesto City Council approved a set of resolutions Sept. 23 to advance the River Trunk realignment and pump station project, a multi-component wastewater infrastructure program the city described as essential to address aging pipeline collapses and hydraulic deficiencies.
Staff described the scale of the work: a pump station with a wet well as deep as 90 feet, replacement pipeline beneath the river reach, and related construction. The project was split into three subprojects; the pump station and associated pipe replacement — the item before council Sept. 23 — will convey roughly 24% of the city’s wastewater flow to the Sutter Treatment Plant once complete.
The council accepted the low bid from Shimek Construction Company (Irvine) for $115,560,000 and authorized change orders up to 10% ($11,556,010) for a construction total not to exceed $127,116,000. The council also approved agreements for construction-management services with West Yost Associates (not to exceed $8,500,000 plus 10% additional-services authority, total $9,350,000) and for engineering support during construction with Corolla (Corola/Corolla Engineers — transcript spelling captured as “Corolla engineers”) for an amount not to exceed $5,675,000 plus $567,500 (total $6,242,500). The council amended the FY25–26 capital budget to transfer wastewater reserves into the project to fully fund construction and associated services, and authorized the issuance of wastewater revenue bonds not to exceed $60,000,000 to finance construction.
Council votes on the multiple resolutions were consistent: the construction contract and associated agreements and the bond authorization were approved on roll-call votes that carried 6–1 (Council Member Chris Rickey recorded the lone “no” votes on several of the items). Staff said the need for debt issuance had been captured in the wastewater rate study approved in 2021; estimated annual debt service was discussed in the staff presentation, and staff said the utility would maintain required coverage ratios and reserve targets even after borrowing.
The council’s approvals move the project into construction procurement and financing steps; staff said detailed schedules, a credit-rating review and final bond pricing remain as next steps.
