STAFF REPORT
Meeting Date:
March 10, 2026
CONSENT
8 SUBJECT: SECOND AMENDMENT TO INDEPENDENT CONTRACTOR AGREEMENT
FOR SEWER LIFT STATION SERVICES
RECOMMENDATION: It is recommended that the City Council:
1. Authorize the City Manager to execute a Second Amendment to Agreement No. 25-55 with DownStream Services Inc., to increase the contract amount by $120,000 for services through June 30, 2027, resulting in a revised not-to-exceed amount of $220,000;
2. Authorize the City Manager to exercise up to two (2) one-year extensions, subject to satisfactory performance, each in the amount not-to-exceed $120,000, for a total contract award of amount notto-exceed $460,000; and
3. Find that the agreement amendment is categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301(b).
SUMMARY OF THE MATTER
This report recommends that the City Council authorize a Second Amendment to Agreement No. 25-55 with DownStream Services, Inc., for sewer lift station inspection, maintenance, repair, and emergency response services. The amendment would increase the contract amount by $120,000 for Fiscal Year 2026- 27, resulting in a revised not-to-exceed amount of $220,000, and authorize up to two (2) optional one-year extensions for a total potential contract amount of $460,000.
DownStream currently provides quarterly inspections and as-needed maintenance and emergency response services for the City’s 26 wastewater lift stations. Continued funding will allow the City to maintain reliable wastewater operations, prevent system failures, and respond promptly to emergencies. Funding for FY 2025-26 is included in the adopted budget. Future year costs will be incorporated into proposed budgets for City Council consideration.
DISCUSSION
On July 23, 2025, under the City Manager’s authority, the City entered into Agreement No. 25-55 with DownStream Services, Inc. (DownStream) for quarterly sewer lift station inspections, as-needed maintenance and repairs, and two-hour emergency response services in an amount not-to-exceed $63,156.
On January 30, 2026, the City Manager approved a First Amendment increasing the contract by $36,844, for a total not-to-exceed amount of $100,000. This funding is anticipated to support services through June 30, 2026.
To ensure continued proactive maintenance and emergency response capability through June 30, 2027, staff recommends approval of a Second Amendment increasing the contract by $120,000. Staff also recommends authorizing the City Manager to exercise up to two (2) one-year extensions, each in an amount not-toexceed $120,000, subject to satisfactory performance.
SECOND AMENDMENT TO INDEPENDENT CONTRACTOR AGREEMENT FOR SEWER
LIFT STATION SERVICES
March 10, 2026
Procurement History
Staff issued a Request for Proposals on May 5, 2025, to solicit competitive bids for sewer lift station inspection, repair, maintenance, and emergency services. The solicitation was sent to 573 vendors, and a mandatory pre-bid site meeting was held on May 19, 2025. Representatives from five (5) firms, including DownStream, attended the meeting. Despite this outreach, no proposals were received by the submission deadline (June 16, 2025).
Following the deadline, DownStream notified staff that it experienced internal technical difficulties preventing it from submitting a proposal on time. Since no other proposals were received, staff reviewed DownStream’s proposal and qualifications and determined that it possesses the appropriate experience, technical capacity, and resources to provide the required life station inspection, maintenance, repair, and emergency services.
In July 2025, under the City Manager’s authority, the City contracted with DownStream to provide these services for a not-to-exceed amount of $63,156 through Fiscal Year (FY) 2026-27. This amount mainly covers quarterly lift station inspections, which include DownStream providing recommended sewer lift station maintenance and repairs. In January 2026, under the City Manager’s Authority, the agreement was increased by $36,844 for a new not-to-exceed amount of $100,000 to also provide funds for maintenance, repairs, and, if necessary, emergency response. Since initiation of the agreement, DownStream has provided emergency response services once at the Main Beach lift station, and has recommended approximately $29,000.00 in repairs to the Crescent Bay and Main Beach lift stations that staff requested be undertaken.
Need for Second Amendment
This report recommends the City Council authorize a second amendment to Agreement No. 25-55 to add $120,000 in funding to the agreement for DownStream to carryout needed maintenance and repair activities approved by staff and, if necessary, emergency services as requested by staff through FY 2026-27. In general, approximately $40,000 would be used for quarterly inspections at the City’s 26 wastewater lift stations, and $80,000 ($20,000 per quarter) would be reserved for emergent maintenance and repairs.
Further, this report recommends authorizing the City Manager, should DownStream perform these services satisfactorily, to exercise up to two (2) one-year contract extensions with annual costs not to exceed $120,000, with no roll-over of any unused funds from the previous year. The recommended contract amendment will allow the City to continue to properly maintain, repair, and operate its sewer lift stations and obtain emergency services should they be needed.
As noted above, the City solicited bids and received the sole bid from DownStream. Further, based on DownStream’s previous performance, the importance of the work, and the City’s desire to maintain continuity with its contractor regarding sewer lift stations, the City Council is authorized to approve this Second Amendment pursuant to Laguna Beach Municipal Code sections 2.30.050(a) or (g).
FINANCIAL ANALYSIS
The FY 2025-26 adopted budget includes sufficient funding within the Sewer Enterprise Fund operating budget to support the recommended contract amendment.
Approval of the Second Amendment will increase the contract amount by $120,000, resulting in a revised not-to-exceed amount of $220,000.
SECOND AMENDMENT TO INDEPENDENT CONTRACTOR AGREEMENT FOR SEWER
LIFT STATION SERVICES
March 10, 2026
The proposed annual allocation is anticipated as follows:
• Quarterly lift station inspections: approximately $40,000 • As-needed maintenance and emergency repairs: approximately $80,000 If the City Manager exercises the two (2) optional one-year extensions, each in an amount not-to-exceed $120,000, the total potential contract amount would not exceed $460,000. Future year costs will be incorporated into the proposed Sewer Enterprise Fund budgets for City Council consideration. No General Fund resources are required for this action.
ALIGNMENT WITH CITY COUNCIL GOALS AND PRIORITIES
The amendment aligns with the City Council’s adopted goal to upgrade community service facilities.
Maintaining and repairing the City’s sewer lift stations ensures the vital community service of wastewater disposal continues along with as needed emergency servicing, mitigating wastewater spills.
ENVIRONMENTAL ANALYSIS
The recommended action is exempt under the California Environmental Quality Act under CEQA Guidelines Section 15301(b) because it consists of the 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 existing or former use. Here, the recommended action meets the exemption because the work involves existing facilities of publicly owned utilities used to provide sewerage. Upon taking the recommended action, City staff will cause to be filed within five calendar days a notice of exemption with the County.
ATTACHMENTS
1. Request For Proposals Sewer Lift Station Maintenance Services (Pgs. 4-14)
2. Second Amendment to Independent Contractors Agreement for Sewer Lift Station Maintenance Services with DownStream Services, Inc. (Pgs. 15-17)
3. Independent Contractors Agreement for Sewer Lift Station Maintenance Services with DownStream Services, Inc. (Pgs. 18-39)
4. First Amendment to Independent Contractors Agreement for Sewer Lift Station Maintenance Services with DownStream Services, Inc. (Pgs. 40-53)
Submitted By: Mark McAvoy Approved: .David A Kiff
Mark McAvoy, Director of Public
Works & Utilities
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Liz Mendelson-Goossens, Administrative
Analyst
Mark Trestik, Interim Deputy Director of Public
Works & Utilities