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Council awards $63M-plus Morena pipeline and street-improvement contract, first under citywide PLA
Summary
The council authorized a construction contract (not to exceed approximately $63 million) for the Morena pipeline bundle — a water-transmission and street-improvement package — and noted the project will be the first major contract executed under the citywide Project Labor Agreement with workforce and local hiring goals.
The City Council on March 25 authorized the award of a construction contract to OHLA USA for the Morena pipeline bundle, a multi-component public works package that replaces aging water transmission lines and funds related sewer, median and bike-lane work along the corridor.
Public Utilities and Engineering staff told the council the full Morena bundle has a total budget of roughly $92 million, including design, construction management, SDG&E relocation costs and contingencies. The construction contract being authorized is approximately $63 million and covers two major new pipelines (36-inch and 16-inch segments) and associated work; about $57 million of the project is funded through State Revolving Fund resources.
Council members highlighted workforce and community benefits: the contract is the first to be awarded under the citywide Project Labor Agreement approved by voters, which includes a 30% local-worker goal and monitoring requirements. Council and staff described ongoing community outreach and substantial subsurface utility investigations (potholing) that reduced, but did not eliminate, risk from previously uncharted underground infrastructure.
Council action: The council moved and approved the staff recommendation to award the contract and permit the chief financial officer to expend funds under the contract. Staff anticipates construction beginning in mid-to-late 2025 with a roughly two-year schedule and closeout into 2027; SDG&E relocation work and contingency funds are included to manage underground utility conflicts.
