REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Shannon Buckley, Assistant City Manager
Date:May 27, 2025
Subject: Award of a Public Works Construction Agreement to Endresen Development Inc. for replacing the lateral sewer Lines at The Anchor (CIP Project No. Z20032)
Recommendation
Approve and authorize the City Manager to execute a Public Works Construction Agreement with Endresen Development Inc. in an amount not to exceed $168,995.00 for the construction of the main sewer lateral lines at The Anchor, in such final form as approved by the City Attorney; authorize the City Manager to execute change orders not to exceed the 10% contingency amount of $16,899.50; and authorize the City Clerk to record the Notice of Completion once work is completed.
Background
The framework for an equitable homelessness response was created to help policymakers address public health implications, help contain the spread of the virus, and help communities quickly get back on track economically. The framework provided the needed help for communities to maximize their resources and use them wisely. The needs are significant, and the City of Lake Elsinore has positioned itself in a favorable position to utilize both state and federal funding to improve The Anchor located at 215 West Graham Avenue. The City has utilized the established framework to have a powerful opportunity by making decisions and implementing appropriate funding through the Homekey, Set Aside.
Endresen Public Works Construction Agreement (CIP Project No. Z20032)
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The range of strategies and activities the City needs to implement, across systems and partners, can be overwhelming. Through conversations with our partners and learning from the experiences of diverse communities, the City has followed a directed framework that directly impacts people experiencing homelessness. This framework has supported the City's efforts to address public health crises, to respond to future needs, and to leave our City better prepared for future emergencies and crises.
The original grant for $700,000 provided the lion's share of the Anchor's rehabilitation cost.
However, because of rising construction, labor, and material costs, a key element (replacement of the lateral sewer lines) was not completed because of a funding shortfall. Today, the City has secured an additional $175,000 to complete the sewer line lateral replacement at The Anchor facility and must move quickly to complete the project in the allotted timeframe.
Discussion
Since The Anchor opened, the sewer laterals have repeatedly failed, causing sewage to back into habitable spaces. With additional funds, an emergency replacement of the sewer laterals is required. Failure of the sewer laterals can result in severe consequences for the residents and the property's infrastructure. The recurrent malfunction of the sewer system can lead to:
•Health Hazards: Sewage backup in habitable spaces can create unsanitary conditions, exposing residents to harmful pathogens and unpleasant odors. This poses significant health risks, including respiratory issues, skin infections, and gastrointestinal problems. •Structural Damage: Persistent sewage overflow can weaken building foundations and damage interiors, necessitating extensive and costly repairs. Wet and moldy environments can further degrade structural integrity.
•Environmental Impact: Failed sewer laterals can lead to the contamination of soil and water sources in the surrounding area, harming local ecosystems and wildlife. •Financial Burden: Emergency replacements and continuous maintenance of faulty sewer systems can strain financial resources, impacting the property owners and the community. •Disruption of Anchor Housing Operations: The inconvenience and discomfort caused by sewage issues can disrupt residents' daily routines, affecting their quality of life and overall well-being.
Addressing and resolving these issues promptly with emergency replacement and repairs is crucial to safeguarding health, preserving property integrity, and maintaining environmental standards.
Endresen Public Works Construction Agreement (CIP Project No. Z20032)
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The project involves replacing all sewer lines from each of the 16 units. This will require the demolition of concrete sidewalks on either side of the building to expose the building's footing.
Coring through the building footings is required for the sewer line pipe passages. The existing plumbing under the building will be demolished and replaced. Two new main sewer lines will be installed running parallel to each building and connecting to the main sewer line in front of The Anchor, near East Graham Avenue. The plumbing will be connected to the sewer system, and the concrete sidewalks will be reconstructed to restore the site.
On April 21, 2025, staff conducted an emergency and mandatory site visit and scope of work review to expedite the proposal process. Five contractors that are known and capable of satisfying federal contractor construction requirements were invited to the facility for the walk-through. Two contractors (Endersen Development Inc. and Cotter Construction) attended the emergency and mandatory site visit, scope of work review, and provided subsequent proposals. Each contractor was briefed on the entire scope of work and performed a thorough analysis to assess the work requirements more clearly. Listed below are the submitted proposals for the sewer line lateral replacement:
Company Amount
Endersen Development Inc. $ 168,995.00
Cotter Construction $ 173,950.00
The project is scheduled to commence immediately upon approval and contract execution and is expected to be completed by June 24, 2025, per the grant conditions. Endresen Development Inc. has demonstrated expertise in similar projects, and their proposal aligns with the City's budgetary and quality requirements. All efforts will be made to minimize the interruption of The Anchor operation.
Fiscal Impact
The CDBG Homekey Set-Aside Grant Program will pay funding costs Attachments
Attachment 1- Agreement
Exhibit A - Proposal
City Manager’s Office