City of Corona
Staff Report
400 S. Vicentia Ave.
Corona, CA 92882
File #: 22-0261
REQUEST FOR CITY COUNCIL AND
CORONA UTILITY AUTHORITY ACTION
DATE: 04/06/2022
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Utilities Department
SUBJECT:
First Amendment to the Construction Contract with Sancon Technologies, Inc. for the Sierra Del Oro Lift Station Coating Project.
EXECUTIVE SUMMARY:
A wastewater lift station is a pump station that moves wastewater from a lower elevation to a higher elevation. On September 15, 2021, the City Council awarded Notice Inviting Bids 21-071AS to Sancon Technologies, Inc. for the Sierra Del Oro Lift Station Coating Project. The project included rehabilitation to ensure proper functionality and help extend the facility’s useful life. At the start of construction, it was discovered the access well leading up to the lift station had corroded, which was not anticipated as part of the work. An amendment to the original Maintenance/General Services Agreement is requested to increase compensation to cover the cost of rehabilitating the access well so construction can begin.
RECOMMENDED ACTION:
That the:
a. City Council approve the First Amendment to the Maintenance/General Services Agreement with Sancon Technologies, Inc. to increase the total compensation by $26,246 to perform the required access well work.
b. City Council authorize the City Manager, or his designee, to execute the First Amendment to the Maintenance/General Service Agreement with Sancon Technologies, Inc. in the amount of $26,246, for a total contract amount of $190,546 for the Sierra Del Oro Lift Station Coating City of Corona Page 1 of 4 Printed on 3/31/2022
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File #: 22-0261
Project.
c. City Council authorize an appropriation in the amount of $35,000 within the Water Reclamation Utility Fund 572 to the Capital Improvement Project titled Sierra Del Oro Lift Station Coating Project No. 73960.
d. City Council authorize the Purchasing Manager to issue Change Order No. 1 to Purchase Order P22257 to Sancon Technologies, Inc. in the amount of $26,246 for a total contract amount of $190,546.
e. City Council authorize the City Manager, or his designee, to approve amendments necessary for the execution of the work, in accordance with the Corona Municipal Code Section 3.08.060 (J), up to $19,055 or 10 percent of the amended contract amount. f. Corona Utility Authority review, ratify and to the extent necessary, direct the City Council to take the above actions.
BACKGROUND & HISTORY:
Following the September 15, 2021 City Council award of the Sierra Del Oro (SDO) Lift Station Coating Project, a pre-construction meeting was held that occurred on October 28, 2021. At this meeting, a construction start date was tentatively set for after the holidays. During subsequent site visits, the project team discovered that the access well leading up to the lift station had corroded and must be rehabbed prior to start of construction. From project inception to the scheduled start of construction, the access well corroded and deteriorated at a higher rate than expected. Staff performed an internal odor study and found an excessive amount of Hydrogen Sulfide gas in the sewer collection system that resulted in the accelerated decay of the access well. The source of excessive Hydrogen gas has been corrected. This access well is approximately 20 feet deep and 5 feet in diameter. This access well will be utilized to isolate and bypass flows during the construction process. The project team also discovered that the lift station wet well frame and cover had corroded beyond the rehabilitation stage and must be replaced.
ANALYSIS:
Staff requested a quote from Sancon Technologies, Inc., which provided the lowest responsible bid for this project, to rehabilitate the access well and replace the steel frame and cover with a composite cover and frame that are resistant to corrosive gasses, which is consistent with the competitively bid prices provided by the contractor for other similar rehabilitation projects. The cost to rehabilitate the access well concrete walls and coat them with protective coating is $15,766. The cost to replace the steel cover and frame at the lift station wet well is $10,480. As an additional measure to ensure cost competitiveness, staff has compared these additional costs with other such repairs that were previously bid and believes the costs are comparable, reasonable, and acceptable.
The September 15th City Council action authorized a not to exceed 10 percent change order authority to the original Maintenance/General Services Agreement in the amount of $16,430. However, the 10 percent change order authority is not sufficient to address the cost of the additional scope of work City of Corona Page 2 of 4 Printed on 3/31/2022
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File #: 22-0261
percent change order authority is not sufficient to address the cost of the additional scope of work necessary to complete the project safely and extend the useful life of the access well.
The additional work has extended the project duration and requires additional resources for staff time and project management and administration costs.
Staff recommends that City Council authorize an additional appropriation in the not to exceed amount of $35,000 from the Water Reclamation Utility Fund 572 to the Capital Improvement Project titled Sierra Del Oro Lift Station Coating Project No. 73960.
FINANCIAL IMPACT:
The estimated cost of the additional scope of work to complete the project is outlined as follows:
Frame & Cover Replacement $10,480
Rehab of Access Well $15,766
Project Management, Administration & Staff costs $8,754 Total Increase Cost $35,000
The Utilities Department requests to appropriate an additional $35,000 from the Water Reclamation Utility Fund 572 to the Capital Improvement Project titled Sierra Del Oro Lift Station Coating Project No. 73960.
Fund 07/01/21 Est.
Working Capital
Budgeted
Revenues/
Sources
Budgeted
Expenditures/
Uses
Working
Capital
Impacts
06/30/22 Est.
Working Capital
Water
Reclamation
Utility Fund 572
$38,460,751 $32,893,509 ($44,483,123) Appropriation
($35,000)
$26,836,137
ENVIRONMENTAL ANALYSIS:
This action is categorically exempt pursuant to Section 15301 of the Guidelines for the California Environmental Quality Act (CEQA), which states that operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the CEQA determination, and is therefore exempt from CEQA. This action involves repair of the existing access well for the SDO Lift Station Project. Therefore, no environmental analysis is required.
PREPARED BY: AFTAB HUSSAIN, MAINTENANCE MANAGER
REVIEWED BY: TOM MOODY, DIRECTOR OF UTILITIES
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File #: 22-0261
Attachments
1. Exhibit 1 - First Amendment to the Maintenance/General Services Agreement with Sancon Technologies, Inc.
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