Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors, Acting as the Governing Board of County Service Area No. 7
From: Tory A. Newman, Director of Public Works
Subject: Measure K County Service Area No. 7 Water System Distribution Pipeline Improvements Project (County Project No. PC021; Project File No. E5032)
RECOMMENDATION:
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Measure K: Acting as the Governing Board of County Service Area No. 7, adopt a resolution:
A) Executing an agreement with Ghilotti Construction Company, Inc. for the County Service Area No. 7 Water System Distribution Pipeline Improvements Project, in the amount of $3,116,611; and
B) Authorizing the Director of Public Works to:
1. Execute subsequent change orders to grant time extensions for project completion and payment up to a maximum aggregate amount not to exceed $311,661, or approximately 10% of the agreement amount; and
2. Approve payment up to the not-to-exceed amount of $3,428,272 for items requiring adjustment based on unit bid prices without execution of a change order.
C) The Director of Public Works to file a Notice of Exemption for a California Environmental Quality Act Categorical Exemption.
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BACKGROUND:
The County Service Area No. 7 (CSA 7) Water System is located in the unincorporated area south of La Honda and provides potable water to 69 residential connections within the La Honda Creek and Alpine Creek drainage areas. The system relies on water from Alpine Creek. The system also supplies water to two County facilities: Camp Glenwood and Sam McDonald Park. CSA 7 is managed and operated by the Department of Public Works (Department). The County is currently leasing Camp Glenwood to CalFire for the Glenwood Fire Center (Center). The Center houses CalFire staff in a strategic location of the unincorporated County that is generally rural and mountainous thereby enhancing and improving response when needed.
On February 24, 2026, this Board adopted Resolution No. 081710 which adopted plans and specifications, including conformance with prevailing wage scale requirements, and called for sealed proposals for the County Service Area No. 7 Water System Distribution Pipeline Improvements Project (Project).
DISCUSSION:
On Wednesday, March 25, 2026, bids were accepted for the Project and subsequently referred to Public Works for checking and recommendation. The bid of:
Ghilotti Construction Company, Inc.
246 Ghilotti Avenue
Santa Rosa, CA 95407
at $3,116,611 was the lowest responsible base bid received for the work. The base bid Engineer’s Estimate was $3,370,000. A summary of bids received is attached as Exhibit A.
Department staff has determined that this project qualifies for a Categorical Exemption pursuant to Section 15301(d), 15302 (c), and 15304 (c) of the California Environmental Quality Act (CEQA) Guidelines for Implementation, which provides that restoration or rehabilitation of deteriorated facilities to meet current standards of public health and safety; replacement of existing utilities systems involving negligible or no expansion of capacity; and filling of earth into previously excavated land with material compatible with the natural features of the site.
The County Attorney has reviewed and approved the resolution as to form.
COMMUNITY IMPACT:
The Project will improve the reliability of potable water service for CSA 7 customers in the La Honda area by replacing aging pipelines that have caused recurring breaks, leaks, and low-pressure conditions of the system. These improvements will support public health, reduce costs to CSA 7 associated with water line breaks and leaks, fire protection, and long-term system sustainability.
FISCAL IMPACT:
The total estimated cost for construction is $3,428,272, which includes the base bid and authorization for up to $311,661 in change orders as the work is bid on a unit price basis. The contingency is used to pay the contractor for any unforeseen conditions not anticipated in the construction agreement documents.
Funding for this Project is provided by Measure K, which was previously appropriated for capital improvements in the FY 2021-22 budget.
There is no impact on the General Fund.