Item 09i - Sewer Main Replacement Program — Arcadia City Council, October 6, 2026

STAFF REPORT

PUBLIC WORKS SERVICES DEPARTMENT
DATE: October 6, 2026

TO: Honorable Mayor and City Council

FROM: Paul Cranmer, Assistant City Manager / Public Works Services Director By: Michael Kwok, Associate Civil Engineer

SUBJECT: CONTRACT WITH GRBCON, INC. FOR THE SEWER MAIN REPLACEMENT PROGRAM IN THE AMOUNT OF $1,054,543, WITH A 10% CONTINGENCY CEQA: Exempt
Recommendation: Approve

SUMMARY

The Fiscal Year 2025-26 Capital Improvement Program Budget provides funding for the replacement of existing 8–inch and 10-inch sewer mains with 12 -inch sewer mains, along Santa Anita Avenue, between Christina Street and the alley north of El Dorado Street . The improvements are intended to accommodate future sewer demand and reduce potential sewer spills.

To obtain competitive pricing and ensure quality service, the City conducted a formal competitive bidding process for the project. GRBCON , Inc. submitt ed the lowest responsive bid. It is recommended that the City Council approve, authorize, and direct the City Manager to execute a contract with GRBCON, Inc. for the Sewer Main Replacement Program in the amount of $1,054,543, with a 10% contingency.

BACKGROUND

In 2006, the State Water Resources Control Board adopted the Waste Discharge Requirements Program for publicly owned sanitary sewer collection systems in California with more than one mile of sewer pipeline. Under this program, the City is required to develop and implement a Sewer System Management Plan (“SSMP”).

Award Sewer Main Replacement Program
October 6, 2026

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The SSMP establishes routine preventative operation and maintenance activities designed to support the City’s goal of preventing sanitary sewer overflows. These activities include annual inspections, routine sewer main cleaning, repair of damaged or deteriorated sewer infrastructure, and replacement of sewer mains operating above their design capacity.

The City of Arcadia’s 2022 Sewer Master Plan Study identified and prioritized segments of sanitary sewer system that are operating at or above their design capacity. Several segments along Santa Anita Avenue were identified as inadequate to accommodate current peak flows. Anticipated development along Santa Anita Avenue is expected to generate additional sewer flows, further increasing demand on the system and the potential for sewer backups and overflows.

To address these capacity deficiencies, the existing 8 -inch and 10-inch sewer mains along Santa Anita Avenue, between Christina Street and the alley north of El Dorado Street, will be replaced with new 12 -inch sewer mains. The larger -diameter sewer mains will provide additional capacity to accommodate peak flows and reduce the potential for sewer backups.

The project will utilize in -ground pipe bursting to replace the existing sewer mains.

This trenchless construction method will minimize the amount of excavation required and reduce impacts to traffic along Santa Anita Avenue during construction.

Construction is anticipated to begin in December and is expected to take approximately three months to complete. A Project Location Map is provided as Exhibit “A”.

DISCUSSION

A Notice Inviting Bids was published on August 10, 2026, in accordance with City Council Resolution No. 7483, and bid packages were provided to contractors that perform this type of work. On September 1, 2026, the City Clerk received five bids with the following results:

Bidder Location Bid Amount
GRBCON, Inc. Baldwin Park, CA $ 1,054,543
Torres Sanitation Systems Const. South Gate, CA $ 1,074,500 Ramona, Inc. Baldwin Park, CA $ 1,242,000
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October 6, 2026

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Bidder Location Bid Amount
We R Builders, Inc. Riverside, CA $ 1,379,000
T.E. Roberts, Inc. Irvine, CA $ 1,402,303

All bid documents were reviewed for content, and the contractor’s background was investigated. Based on the review, it was determined that GRBCON, Inc. is the lowest responsive bidder and is qualified to complete the project as defined in the bid documents. GRBCON, Inc. has successfully completed similar projects on time and within budget for Arcadia as well as the Cities of Alhambra and West Covina.

ENVIRONMENTAL ANALYSIS

This project involves the replacement and minor alteration of an existing utility system with no expansion of the system, and therefore, qualifies as a Class 2 categorical exemption per Section 15302(2) of the California Environmental Quality Act (“CEQA”).

FISCAL IMPACT

Funds in the amount of $1,350,000 have been budgeted in the FY 202 5-26 Capital Improvement Program for the Sewer Main Replacement Program. The total construction cost for this project is $ 1,054,543. A 10% construction contingency would bring the total cost to $1,159,997.30, which is within the adopted budget.

RECOMMENDATION

It is recommended the City Council determine that this project is exempt under the California Environmental Quality Act (“CEQA”); and approve, authorize, and direct the City Manager to execute a contract with GRBCON, Inc. for the Sewer Main Replacement Program in the amount of $1,054,543, with a 10% contingency.

Award Sewer Main Replacement Program
October 6, 2026

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Attachments: Exhibit “A” - Project Location Map
Proposed Contract

CITY OF ARCADIA

SEWER MAIN REPLACEMENT PROGRAM
PROJECT NO.: 33861626

BETWEEN

CITY OF ARCADIA
AND
GRBCON, INC.

CONTRACT

Contract - 1

CONTRACT FOR THE

CITY OF ARCADIA

This CONTRACT, No. ________ is made and entered into this ____ day of _______, ______, by and between City of Arcadia, sometimes hereinafter called “City,” and GRBCON, INC. , sometimes hereinafter called “Contractor.”
WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows:

A. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project:

Sewer Main Replacement Program / Project No.: 33861626
The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation.

B. TIME FOR COMPLETION. Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 90 calendar days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work.

C. CONTRACT PRICE. The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of ONE MILLION, FIFTY-FOUR THOUSAND, FIVE HUNDRED FORTY -THREE DOLLARS AND NO CENTS ($1,054,543.00) .

Payment shall be made as set forth in the General Conditions.

D. LIQUIDATED DAMAGES. In accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum set forth in Special Conditions , Article 1.11 for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents.

E. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following:

Notice Inviting Bids
Instructions to Bidders
Bid Form
Bid Bond
Designation of Subcontractors
Information Required of Bidders
Non-Collusion Declaration Form
Iran Contracting Act Certification
Public Works Contractor Registration Certification
Performance Bond

Contract - 2
Payment (Labor and Materials) Bond
General Conditions
Special Conditions
Technical Specifications
Addenda
Plans and Drawings
Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9
Applicable Local Agency Standards and Specifications, as last revised Approved and fully executed change orders
Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents.

All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. This Contract shall supersede any prior agreement of the parties.

F. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work.

G. INDEMNIFICATION. Contractor shall provide indemnification and defense as set forth in the General Conditions.

H. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Administrative Office or may be obtained online at dir.ca.gov and which must be posted at the job site.
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Contract - 3
IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written.

CITY OF ARCADIA
By:

Dominic Lazzaretto
City Manager
GRBCCON, INC.

By:

Signature

Print Name and Title
Attest:

By:

City Clerk

By:

Signature

Print Name and Title
Approved as to Form:

Michael J. Maurer
City Attorney

(CONTRACTOR’S SIGNATURE MUST BE NOTARIZED AND CORPORATE SEAL AFFIXED)

Contract - 4
Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally

appeared , who proved to me on the basis of satisfactory

evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

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CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual
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 Partner(s)  Limited
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Signer is representing:

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Contract - 5
Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.