City Sewer Line Project Costs Could Double

Replacing an aging sewer main could be twice as expensive as anticipated because the job will be subject to intense scrutiny from regulators and the public, a city official said Wednesday.

City Atty. Mark Sellers said the city has little choice but to accept higher-than-expected bids because it must replace the sewer line this summer. The line broke in February, unleashing 86 million gallons of untreated sewage and triggering state and federal investigations.

Sellers’ statements came a day after the City Council unanimously approved spending $10.4 million to replace the lower reaches of a sewer main that feeds the Hill Canyon Wastewater Treatment Plant and to refurbish the existing line for backup use.

The repair work--given to low bidder Steve Bubalo Construction Co. of Monrovia--also includes replacing smaller lines that feed the main. The project was planned before the winter sewer disaster.

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In February, a city contractor had estimated that the project would cost $5.2 million and that replacing the upper segment of the line, work slated for next summer, would cost $3.2 million. Although bids have not been requested for next year’s work, city staffers now estimate that the whole project could cost up to $21 million instead of $8.4 million.

The reasons for the higher price tag--which will likely result in increased user fees for residents--are many, Sellers said.

“It is very difficult terrain,” he said of the project, which will take place in the narrow, craggy Hill Canyon, which is crisscrossed by the Arroyo Conejo.

“And we have all sorts of regulators looking over our shoulders, ready to pounce on the next unfortunate situation that may occur. That drives the prices up.

“If you’re doing the work as a contractor, that subjects you to extra liability. They [contractors] also know we’re between a rock and a hard place--because we have to get the work done this summer. So there’s not a lot of motivation for them to come in with a low bid,” Sellers said.

Other factors are the healthy economy and El Nino, both of which have made work plentiful in the construction trades.

A representative from Bubalo Construction was not available for comment Wednesday. City Council members, who have been reluctant to discuss the sewer issue because of investigations into the winter spill, either declined comment or did not return calls for comment Wednesday.

Residents will likely pay for the increased tab through higher user fees, Sellers said.

“When you consider all the costs involved here, I think there’s a good probability that rates will increase,” Sellers said. “Adding this [bid amount] to the picture only increases that probability.”

The city also could tap the general fund, but such a step is not recommended because the waste-water fund is a self-supporting entity, Sellers said. Other options include scaling back a $75-million sewer plant upgrade and applying for state and federal loans.

Thousand Oaks activist Wayne Possehl said he was shocked by the price but agreed that the city has little choice but to pay. However, he said the city should have acted sooner to fix the line, which had broken before and had been scheduled for replacement for a decade.

“If the city had fixed the line . . . any of the times before when it broke, we wouldn’t be in this situation,” he said.

The city is also facing mounting legal bills and a recommended $2.1-million fine from state regulators.

The City Council is set to review the financing for the waste-water treatment plant upgrade early next year. Until then, the first part of the construction project will be financed by an interdepartmental loan and a bond issuance.

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Just getting to this point is an accomplishment, said Public Works Director Don Nelson. There was some question earlier this year whether the city would be able to get all the required permits from the Army Corps of Engineers, the state Department of Fish and Game and the Los Angeles Regional Water Quality Control Board in time. The final permits are expected by Monday, he said.

Construction should be underway by the end of the month. It is expected to last up to 135 days, with a $2,000 daily penalty being assessed for lateness.