To: Honorable Mayor and Members of City Council
From: Joy Eldredge, Utilities Director
Prepared By: Doug DeMaster, Senior Civil Engineer
TITLE:
Title
Milliken Raw Water Pipeline Hardening Construction HMGP
LABEL
RECOMMENDED ACTION:
Recommendation
Authorize the Utilities Director to (1) negotiate and execute a construction contract with Sierra Mountain Construction, Inc. for construction of the Milliken Raw Water Pipeline Hardening in an amount not to exceed $5,283,902; (2) approve change orders and execute contracts for project services in a total amount not to exceed $1,200,000, for a total construction project amount of $6,483,902; and determine that the actions are exempt from CEQA.
Body
DISCUSSION:
On October 8, 2017, the Atlas Fire was one of fourteen large fires that burned simultaneously across eight Northern California counties. The Atlas Fire began near Atlas Peak Road and stretched from Lake Berryessa to the City of Napa (City), portions of which included the Milliken Reservoir Watershed, the City’s water service area in the Silverado Country Club, and surrounding areas.
The Atlas Fire was widespread and caused extensive damage to private and public property, some of which included damage to the Milliken Raw Water Pipeline (“Pipeline”), which conveyed raw, untreated water from the diversion dam on Milliken Creek roughly 6,500 feet to the Milliken Water Treatment Plant along a trail that runs parallel to Milliken Creek with steep grades on either side.
While the Milliken Water Treatment Plant was left relatively unscathed only suffering damage to ancillary buildings, the raw water pipeline, trail, and structures on the trail were heavily damaged. The damaged trail and raw water pipeline left the treatment plant inoperable. Indirect damage caused by falling trees and rocks punctured the pipeline in numerous locations along the alignment. Repairs to the trail and walkway facilities were completed in 2025. If the project is not completed, the City will be unable to take beneficial use of the 1,400 acre-feet of water stored in Milliken Reservoir to supply water to customers.
FEMA has approved Hazard Mitigation Grant Program (HMGP) funds to harden the pipeline. This hardening includes replacing the original pipeline with a pipeline that is buried where possible and protected by a steel shield where burying is impractical.
On November 28, 2023, the City posted an Invitation for Bids on OpenGov Procurement portal. Submissions were due on December 3, 2025. The City received base bids from the following three contractors:
• Cratus, Inc. - $5,154,975
• Mountain Cascade, Inc. - $6,008,043
• Sierra Mountain Construction, Inc. - $4,906,682
City staff reviewed the three submitted bids and found tight grouping with just 5% differential between the two lowest base bids-on which the selection was based- indicative of a competitive bid process. Staff recommends awarding the contract to the lowest responsible bidder submitting a responsive bid, Sierra Mountain Construction, Inc. for $4,906,682 plus the optional additive bid item of $377,220 included as part of the bid process, for a total award of $5,283,902.
Given the complex site conditions and specialized nature of the work, staff recommends project services in the amount of $1,200,000, including $600,000 for construction contingency and $600,000 for construction-related services including engineering, construction management, specialty inspection, and materials testing for a total construction project amount not to exceed $6,483,902.
FEMA has approved a HMGP grant award total of $5,908,666, of which FEMA will reimburse the City 75%. Additionally, the City has received an award for funding from Housing and Urban Development's CDBG Mitigation program that will supplement and help cover the City’s 25% share of the project. The City proposes to fund the remaining City share using Water Enterprise Capital Improvement Funds.
FINANCIAL IMPACTS:
The Project is funded by FEMA's Hazard Mitigation Grant Program (HMGP) at 75% of Project costs, plus a supplemental grant award from Housing and Urban Development's CDBG Mitigation program, for which a separate Council item and resolution will follow. Water Enterprise Capital Improvement Funds are required to fund any amount not covered by the grant awards. There are currently sufficient funds in the amount of $6,930,618.79 available for the project in account 9017FR20 (as of December 17, 2025).
CEQA:
City staff recommends that the City Council determine that the potential environmental effects of the Recommended Action described in this Agenda Report are exempt from CEQA pursuant to CEQA Guidelines Section 15302(c) which exempts the replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity.
DOCUMENTS ATTACHED:
None.
NOTIFICATION:
None.