Council awards Plumas Street Water Tower Plaza contract to local bidder after bids exceed grant; council accepts reduced scope and contingency

The Yuba City Council voted to award a construction contract for the Plumas Street Water Tower Plaza to NorthStar Construction after bids for the project exceeded available Clean California grant funds.

City staff told the council the project, funded in part by a Clean California grant, originally had an engineering estimate near the grant award of about $2.2 million. The single bid returned from NorthStar came in at roughly $2.3 million. Faced with the funding gap, staff proposed a reduced‑scope “light” version of the plaza and amphitheater and asked the council to authorize a contract award for $1,768,449 with a 5% contingency plus authority for staff to value‑engineer and issue change orders to reduce scope where feasible. Staff also proposed budget transfers from eligible non‑general‑fund sources such as pavement‑management, sidewalk and drainage budgets to cover the shortfall.

Public works staff described the remaining project elements as an archway (about $500,000 in the original estimate), a plaza and amphitheater area (roughly $1.2–1.4 million depending on options) and a digital events sign. Staff recommended deleting the digital sign, reducing landscaping and lighting elements, and delivering the concrete foundation and conduit for later additions. Staff said a fuller build could be completed later if additional grant or CDBG funding becomes available.

The Downtown Business Association (DBA) and a downtown business owner spoke in support during public comment. Sandy Drown, a downtown business owner and DBA board member, read a letter from the DBA backing staff's recommendation, calling the plan a ‘‘thoughtful’’ use of funds to improve downtown and support long‑term investments. A younger resident also urged the council to invest in places that keep younger residents engaged in community life.

Council members debated the tradeoffs. One council member voiced strong concern that the reduced scope diminished the project's original vision and worried that transferring funds from other city programs would ‘‘short‑change’’ the community. Others said the project remains a long‑term investment and noted the plaza infrastructure would allow future phases (play structures, shade, signage) to be added later, possibly with Community Development Block Grant (CDBG) funds or other grants.

Mayor Dave Shaw made the motion to award the contract to NorthStar on the reduced scope and to authorize the city manager to execute the contract subject to legal review, and to authorize the finance director to make necessary budget transfers and appropriations. The motion carried; the council recorded one opposing vote.

Staff will proceed with value engineering and post‑award change orders to refine the scope and seek any additional funding opportunities for future phases. The council directed staff to consider CDBG and other grant programs for finishing elements such as playground equipment when grant cycles allow.

Votes at a glance (related actions taken at this meeting): the council also approved the consent calendar (items 5–13) including a $1,000,000 appropriation for Richland Village affordable‑housing funding with a staff clarification that the appropriation is contingent on HCD approvals; the council initiated a downtown Plumas Street overlay district; and the council adopted an updated planning fee schedule (see related articles).