STAFF REPORT
PUBLIC WORKS SERVICES DEPARTMENT
DATE: October 20, 2026
TO: Honorable Mayor and City Council
FROM: Paul Cranmer, Assistant City Manager/Public Works Services Director By: Michael Kwok, Associate Civil Engineer
SUBJECT: ACCEPT ALL WORK PERFORMED BY RAMONA, INC. FOR THE SEWER
MAIN REPLACEMENT PROGRAM AS COMPLETE
CEQA: Exempt
Recommendation: Approve
SUMMARY
On August 19, 2025, the City Council awarded a contract to Ramona, Inc., in the amount of $865,000 for the Sewer Main Replacement Program. All work has been completed in accordance with the contract terms and conditions and to the satisfaction of the Project Manager. The final project cost is $831,410, reflecting the original contract amount of $865,000, less approved contract change orders totaling $33,590, which represent a 3.9% reduction from the original contract amount.
It is recommended that the City Council accept the work performed by Ramona, Inc., for the Sewer Main Replacement Program as complete and authorize final payment in accordance with the contract documents, subject to the retention of $41,570.50.
BACKGROUND
In 2006, the State Water Resources Control Board adopted the Waste Discharge Requirements for Sanitary Sewer Systems, which applies to publicly owned sanitary sewer collection systems in California with more than one mile of sewer pipeline.
Under this program, the City was required to develop and implement a Sewer System Management Plan (“SSMP”). The SSMP establishes routine preventative operation and maintenance practices that supports the City’s goal of achieving zero overflows.
These practices include annual inspections, routine sewer line cleaning, repair of
Accept Sewer Main Replacement Program
October 20, 2026
damaged pipes, and replacement of sewer lines operating at or above their design capacity.
The City of Arcadia’s 2022 Sewer Master Plan (“SMP”) Study identified and prioritized sections of sanitary sewer system operating at or above their design capacity. The Study identified portions of the sanitary sewer line along Santa Anita Avenue as insufficient to accommodate existing high-demand flows. Anticipated development along the corridor is expected to generate additional wastewater flows, further increasing demand on the system and the potential risk of sewer overflows.
To address these capacity deficiencies, the existing 10-inch sewer main along Santa Anita Avenue, between Christina Street and Camino Real Avenue, was identified for replacement.
DISCUSSION
On August 19, 2025, the City Council awarded a contract to Ramona, Inc. for the Sewer Main Replacement Program. The project involved replacing the existing 10- inch sewer main with a 12-inch sewer main along Santa Anita Avenue, between Christina Street and Camino Real Avenue. The work was completed using pipe bursting, a trenchless construction method that minimized the need for extensive excavation within the roadway, thereby reducing traffic impacts and disruptions to nearby businesses and residents.
During construction, contract adjustments resulted in credits to the City due to reduced quantities of materials required to complete the work. The following provides a summary of the contract change orders and associated cost adjustments.
CCO Description Amount
1. Deleted (6 EA) – Locate and Reconnect Existing Sewer Laterals ($21,000)
2. Deleted (1 EA) – Repair Manhole Walls and Channel Affected by Pipe Bursting ($5,000)
3. Deleted (33 LF) – Pipe Burst 10” Pipe to 12” HDPE DR 17 Pipe ($7,590) Total ($33,590)
Accept Sewer Main Replacement Program
October 20, 2026
The contract change orders resulted in a net reduction of $33,590, representing a
3.9% decrease from the original contract amount. All contract terms and conditions have been satisfied, and the work has been completed to the satisfaction of the Project Manager. Ramona, Inc. completed the project in accordance with the approved plans and specifications in an efficient and timely manner.
ENVIRONMENTAL ANALYSIS
This project involved 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
Funding in the amount of $1,350,000 has been budgeted for the Sewer Main Replacement Program, in the FY 2024-25 Capital Improvement Program. The total construction cost for this project is $831,410. The total cost reflects the original contract amount of $865,000, minus change orders totaling $33,590, or 3.9% less than the original contract amount.
RECOMMENDATION
It is recommended that the City Council determine this project constitutes a Class 2 categorical exemption under the California Environmental Quality Act (“CEQA”); and accept all work performed by Ramona, Inc. for the Sewer Main Replacement Program as complete; and authorize the final payment to be made in accordance with the contract documents, subject to the retention of $41,570.50.