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AGENDA ITEM REVIEW FORM |
7.B.
Regular City Council Meeting
- Meeting Date:
- 06/10/2026
- Department Head:
- Eulogio Vera
- Submitted By:
- Jorge Perez, Assistant Director of Public Works, Public Works Department
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding the award of a construction contract to Filanc Construction Company, Inc. for the West Wastewater Treatment Plant Expansion project. (Eulogio Vera, Director of Public Works)
SUMMARY:
The Department of Public Works provided an update to the City Council in January 2026, including the status of the project design and the efforts undertaken to procure a construction contractor. At that time, the city determined that a traditional design-bid-build delivery method would be utilized for the project.
During March and April 2026, city staff conducted a formal bidding process for the construction of the West Wastewater Treatment Plant Expansion Project, which had a budget of $26 million. Bids were received on April 9, 2026, from two (2) qualified contractors: Filanc Construction Company, Inc., and PERC Water Corporation. Both bids exceeded the established project budget, with Filanc Construction Company, Inc. submitting the lowest responsive and responsible bid in the amount of $41,163,578.00.
Prior to bidding, the city secured $26 million in funding through the Water Infrastructure Finance Authority of Arizona (WIFA). In efforts to keep the project moving forward, staff is currently working with Pacific Advanced Civil Engineering, Inc. (PACE), the city’s engineer of record, to evaluate value engineering options aimed at reducing overall project costs. Concurrently, staff submitted a second application to WIFA for an additional $12 million in funding to support the project, with an anticipated completion of the WIFA review and approval process in August 2026.
Staff is requesting the City Council's approval to award a construction contract to Filanc Construction Company, Inc. for the West Wastewater Treatment Plant Expansion Project in the amount of $41,163,578.00 and authorize staff to proceed with contract execution. Staff further recommends that the City Council approve Change Order No. 1, negotiated with Filanc Construction Company, Inc., with a scope and cost reduction totaling $4,292,201.00, resulting in a revised contract amount of $36,871,377.00.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO AWARD A CONSTRUCTION CONTRACT TO FILANC CONSTRUCTION COMPANY, INC. FOR THE WEST WASTEWATER TREATMENT PLANT EXPANSION PROJECT IN THE AMOUNT OF $41,163,578.00, AND TO APPROVE CHANGE ORDER NO. 1 AS PRESENTED BY STAFF.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- No
- CITY/STATE/FEDERAL FUNDS:
- N/A
- TOTAL:
- $41,163,578
- BUDGETED AMOUNT:
- $26,000,000
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- N/A
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
Staff recommends award of the construction contract utilizing secured funding in the amount of $26 million from the Water Infrastructure Finance Authority of Arizona (WIFA). Concurrently, staff has submitted a second application to WIFA requesting an additional $12 million in funding to support the project.
Staff has also worked with the contractor to achieve a cost reduction of $4,292,201.00 through value engineering efforts and scope adjustments. The project is anticipated to have a construction duration of 27 months. Staff anticipates that the review and approval process for the second WIFA funding application will be completed by August 2026.
Staff has also worked with the contractor to achieve a cost reduction of $4,292,201.00 through value engineering efforts and scope adjustments. The project is anticipated to have a construction duration of 27 months. Staff anticipates that the review and approval process for the second WIFA funding application will be completed by August 2026.