SCWD flags contractor performance risks as Lift Station 2 falls eight months behind

SCWD flags contractor performance risks as Lift Station 2 falls eight months behindA committee review of schedule slippage and cost increases on a wastewater asset has sparked debate over the readiness of contractors slated for the district’s flagship desalination facility.

The Lift Station 2 Replacement Project is eight months behind schedule, requiring a $519,665 contract increase for construction management.

Committee members expressed concern that the general contractor, J.R. Filanc, who is also slated for the Doheny Desalination Project, is underperforming.

Staff are seeking a regulatory waiver for the Doheny Desalination Project’s brine discharge mitigation, potentially saving $10 million.

Giles Engineering was awarded a $1.56 million contract for the PCH PRV Replacement Project after the low bidder was rejected as non-responsible.

The South Coast Water District (SCWD) Engineering and Operations Committee advanced a contract amendment for the Lift Station No. 2 Replacement Project on January 5, 2026, amid concerns regarding significant schedule delays and their implications for the district's broader capital program. The project, which involves replacing a critical wastewater lift station, is currently eight months behind schedule. Taryn Kjolsing, Director of Engineering, reported that the delays were driven by a combination of soil conditions, groundwater issues, weather, and construction techniques. As a result, the project’s construction management firm, Butier Engineering, expended its contract value by September 2025, months ahead of the revised March 2026 completion date. The committee recommended the Board authorize a $519,664 amendment to Butier’s contract, bringing the total value to approximately $1.55 million. However, the request triggered scrutiny regarding the project's general contractor, J.R. Filanc. A committee member noted that the same contractor is involved in the district’s upcoming Doheny Ocean Desalination Project. "I'm not fingering Butier, but we're 50% change order. That's a big flag," the committee member stated. "If it all goes back to [the contractor]... I see they might lose a month maybe, but eight months? I don't know why." Staff acknowledged the difficulties, noting they are currently negotiating "very large change orders" with J.R. Filanc regarding cost and schedule recovery. The committee member expressed unease about the contractor's performance carrying over to the desalination project: "I'm also concerned about our next project. We're looking at doing the desal project, same contractor." Concerns were also raised regarding the capacity of the construction management firm. During a subsequent agenda item awarding Butier a $153,240 inspection contract for the PCH PRV Replacement Project, the committee member suggested the firm might have "too much on their plate," citing the need for district staff to heavily support the management process. **Doheny Desalination Update** Separately, the committee received a status update on the Doheny Ocean Desalination Project. The Design-Build team submitted their 60% design package prior to Christmas. On the regulatory front, the district is preparing to request an updated NPDES hearing to seek "zero mitigation" for brine discharge, compared to the 7.5 acres currently required. General Manager Rick Shintaku estimated that eliminating the mitigation requirement could save the project approximately $10 million. **PCH PRV Award** In other procurement news, the committee recommended awarding a $1.56 million construction contract to Giles Engineering for the PCH PRV Replacement Project. The district rejected the apparent low bidder, Diamond Construction, deeming the firm non-responsible due to a lack of sufficient experience with municipal pipeline projects and a lack of positive recommendations from references.