ADMINISTRATIVE REPORT
MEETING DATE: June 24, 2026 AGENDA CATEGORY: Consent - Agreement TO: Honorable Mayor and City Council
FROM: Kristina Budak, Water Director
DATE: June 9, 2026
SUBJECT: Amendment No. 2 to Agreement 2024-189 with GSE Construction Company Inc. (extend the term by one year and increase compensation by $800,000; revised not to exceed $1,600,000) to provide On-Call Wastewater Maintenance for the Wastewater Division.
RECOMMENDATION:
Staff recommend approval of amendment.
BACKGROUND:
The Water Department - Wastewater Division requires maintenance and repair services beyond the expertise of City Staff. These services in clude, but are not limited to, the repair, replacement, and installation of pumps, pipelines, and equipment associated with critical systems such as the tertiary treatment system, ferric chloride system, and primary and secondary clarifiers, as well as other essential plant infrastructure.
On June 26, 2024, City entered into Agreement No. 2024 -189 with GSE Construction Company, Inc. to provide on -call wastewater maintenance services for the Wastewater Division. Since that time, the contractor has comple ted a variety of maintenance and repair projects, including grit classifier repairs, dewatering sludge conveyor repair and removal, replacement of the headwork’s flow meter, and pipeline repairs between the trickling filters and secondary clarifiers.
On September 24, 2025, the City executed Amendment No. 1 to Agreement No. 2024-189, increasing the contract amount by $500,000. Since the amendment was approved, the contractor has completed additional projects, including secondary clarifier rehabilitation, primary clarifiers skimmer repairs, emergency pipeline repairs at Wastewater Treatment Plant No. 2, and numerous other repairs and facility improvements.
At this time, given the increased need for repair and maintenance services to support ongoing operations and ensure the reliability of critical wastewater infrastructure, staff recommend extending the term by one year and increasing compensation by $ 800,000, for a revised total not to exceed $ 1,600,000. This adjustment is in accordance with the original Agreement and will allow the Division to continue addressing essential maintenance, emergency repairs, and necessary system improvements without interruption to service.
FISCAL IMPACT:
Sufficient funds are budgeted in the Sewer Enterprise Fund for this amend ment, therefore, there is no impact to the City General Fund associated with this amendment.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
1. Amendment No. 2
2. Exhibit B