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STAFF REPORT - FIRST AMENDMENT TO MGSA WITH SANCON FOR INFRASTRUCTURE REHAB SERVICES.pdf

Corona City Council
June 3, 2026

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STAFF REPORT - FIRST AMENDMENT TO MGSA WITH SANCON FOR INFRASTRUCTURE REHAB SERVICES.pdf
Meeting
June 3, 2026
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Corona City Council
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Text extracted from the city's file for reading and search. Open the original on pub-corona.escribemeetings.com. That file is the official record.

DATE: 06/03/2026
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Utilities Department
2026-208

REQUEST FOR CITY COUNCIL AND

CORONA UTILITY AUTHORITY ACTION
SUBJECT:

FIRST AMENDMENT TO THE MAINTENANCE AND GENERAL SERVICES

AGREEMENT WITH VORTEX SERVICES LLC DBA SANCON TECHNOLOGIES FOR

INFRASTRUCTURE REHABILITATION SERVICES
EXECUTIVE SUMMARY:

This staff report asks the City Council to approve the first amendment to the Maintenance/General Services Agreement with Vortex Services, LLC dba Sancon Technologies to provide sewer line rehabilitation services .

RECOMMENDED ACTION:

That the City Council:
a. Approve the First Amendment to the Maintenance/General Services Agreement with Vortex Services, LLC dba Sancon Technologies to perform Sewer Infrastructure Rehabilitation Services in the amount of $850,000. b. Authorize the City Manager, or his designee, to execute the First Amendment to the Maintenance/General Services Agreement with Vortex Services, LLC dba Sancon Technologies for a total contract amount of $850,000 per fiscal year through June 30, 2028, including the ability to negotiate and execute non- substantive changes and extensions, purchase orders and amendments up to $85,000 or 10% of the agreement amount.
c. Authorize the City Manager, or his designee, to issue a Purchase Order to Vortex Services, LLC dba Sancon Technologies in the amount of $850,000 per fiscal year.

That the Corona Utility Authority review, ratify, and to the extent necessary, direct the City Council to take the above actions.

BACKGROUND:

The Utilities Department maintains 435 miles of gravity sewer lines, 22 miles of sewer force mains, 9,500 manholes, and 20 wet wells. This underground sewer infrastructure consists of varying pipe sizes, materials, and age. Existing sewer mains are comprised of vitrified clay pipe, asbestos cement pipe, ductile iron pipe, or polyvinyl chloride. These materials have a life expectancy of up to 100 years, but actual service life depends largely on pipe condition and the working environment.

Sewer lines are assessed for structural damage by conducting regular closed-circuit television (CCTV) inspections over a four-year cycle. These inspections enable proactive, targeted repairs or replacements of sewer lines. When the condition or damage is less severe, trenchless rehabilitation techniques can be employed to restore the pipes without the high costs and time involved with extensive excavation.

One such trenchless rehabilitation project is Cured-in-Place Pipe (CIPP) lining, which restores existing pipelines of various materials, per Greenbook Standard 500-5.5. Before installation, meticulous inspections with CCTV verifies the pipeline’s suitability, followed by high-velocity cleaning to remove debris and roots. The CIPP liner is a high-strength woven fiber saturated with an epoxy resin mix that hardens, forming a 4-millimeter-thick lining within the pipe. This method effectively reduces infiltration and leaks without excavation, providing an additional lifespan of up to 50 years. In addition, this lining protects against root intrusion, cracks, leaks, and other damage. The epoxy coating also includes damp-proofing, corrosion resistance, and wear resistance.

Similar rehabilitation benefits wet wells and manholes through the use of spray-applied structural liners. Like CIPP, this trenchless approach minimizes downtime and excavation while significantly extending the service life of critical wastewater infrastructure.

The use of CIPP and spray linings for sewer repairs provides an efficient and costeffective method to maintain sewer lines, wet wells, and manholes- reducing the chances of sanitary sewer overflows or sewer line failures.

On July 3, 2024, City Council awarded Request for Proposals (RFP) 24-0353SB for Sewer Main Rehabilitation Services through CIPP to Sancon Technologies and Insituform Technologies. The RFP evaluation team awarded Sancon the highest score during this process. On January 2, 2025, a Consent to Assignment and Assumption Agreement was executed to assign Sancon Technologies’ agreement to Vortex Services, LLC dba Sancon Technologies (Sancon) when Sancon was acquired by Vortex Services. Sancon has continued to provide excellent service and competitive pricing for CIPP lining.

ANALYSIS:

The Utilities Department has experienced an increase in the need for CIPP lining in the current year. Projects such as the Green Alley, Southeast Quadrant, and multiple repairs in the McKinley area have also increased the need for funding.

Continued increases in sewer CIPP lining projects due to rapid identification of defects from routine CCTV inspections and the implementation of AI-driven software are also expected. AI driven technology has enabled faster and more efficient review of CCTV footage by eliminating the need for technicians to pause video inspections to document defects or debris. As a result, technicians have increased the volume of video delivered to UD, leading to more rapid identification of proactive maintenance needs. This allows defects to be addressed before they become expensive, disruptive emergencies.

With continued CCTV Inspections and use of SewerAI, increases in proactive CIPP lining costs are expected to continue for the near future, although in time, there should be a corresponding overall decrease in reactive sewer repair costs. By identifying defects early and utilizing CIPP lining techniques, total costs associated with sewer system repair maintenance will be minimized.

This first amendment requests an increase of $250,000 to the MGSA with Sancon for sewer main, wet well, and manhole rehabilitation services for a total of $850,000 per fiscal year through June 30, 2030, including the optional two-year extension available on this MGSA.

FINANCIAL IMPACT:

Funding for the recommended actions is available within multiple Operating and Maintenance projects within Sewer Utility Fund 572 in the current fiscal year. Future funding will be recommended through the annual budget process.

ENVIRONMENTAL ANALYSIS:

This action is categorically exempt pursuant to Section 15302 (c) of the Guidelines for the California Environmental Quality Action (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 sewer main, wet well, and manhole rehabilitation services to maintain public health and safety. Therefore, it is exempt from the requirements of CEQA, and no environmental analysis is required.

PREPARED BY: ERIN KUNKLE, MAINTENANCE MANAGER
REVIEWED BY: TOM MOODY, UTILITIES DIRECTOR
ATTACHMENTS:

1. Exhibit 1 – Sancon MGSA

2. Exhibit 2 – Sancon Assignment Agreement

3. Exhibit 3 – Sancon First Amendment

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