Logo courtesy of Yuba City

YUBA CITY, CA (MPG) – The Yuba City Council approved shifting $650,000 in local water capital funds to complete a major groundwater storage project after delays prevented the final phase from being fully reimbursed under a state grant.

The July 22 action also reduced the engineering agreement for the Water Treatment Plant Aquifer Storage and Recovery Well No. 3 project to reflect work no longer required as the project nears completion.

The project began after the California Department of Water Resources awarded the city a $6.325 million grant in 2022 to construct Aquifer Storage and Recovery Well No. 3 at the city's Water Treatment Plant at the intersection of Northgate Drive and Live Oak Boulevard. The well is designed to store treated water underground during periods of surplus and pump it back into the city's water system during higher demand, improving long-term water reliability by expanding groundwater storage capacity.

During design, engineers reduced the estimated construction cost from about $11.1 million to approximately $7.25 million, cutting projected costs by roughly $3.85 million while maintaining the well's intended function. Officials said the redesign also extended the construction schedule.

Construction was split into two phases. The first included drilling about 500 feet and installing the underground well infrastructure. The second includes above-ground improvements, including a concrete pad, shade structure, piping, pump, motor and electrical equipment.

Officials said lengthy delivery times for specialized materials delayed the project. Although the city sought additional time from the Department of Water Resources, the agency did not extend the March 31, 2026 grant deadline. The city instead modified the project so work completed before the deadline remained eligible for reimbursement.

With the grant expired, the remaining engineering, inspection and project management costs will be paid with local Water Capital Improvement Program funds. The council approved the $650,000 transfer to complete the remaining consultant services.

The council also approved reducing the Carollo Engineers contract to about $2.41 million to reflect work eliminated during the redesign. Officials said the revised agreement lowers the engineering contract by about $338,000, leaving the project with lower overall engineering costs while requiring no General Fund contribution.