April 29, 2025
Agenda Item No. 12
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Mark Vukojevic, Utilities Director - 949-644-3011, [email protected] PREPARED BY:
Casey Parks, Utilities Superintendent - 949-718-3477, [email protected] TITLE:
Reassignment and Amendment of the Services Agreement for Sewer Manhole Lining Services ABSTRACT:
The Utilities Department manages the City of Newport Beach’s wastewater utility system, which includes a comprehensive network of pipelines, pump stations, laterals and manholes. An on-call contractor is used to perform as-needed lining rehabilitation of City manholes. The current vendor, Sancon Technologies Inc. (Sancon), was recently acquired by Vortex Services LLC (Vortex). The Utilities Department is requesting City Council approval to reassign the agreement to Vortex, as well as to extend and increase the agreement limits.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Approve assignment agreement from Sancon Technologies, Inc. to Vortex Services, LLC for on-call maintenance/repair services agreement C-8934-1 for sewer manhole lining services; and c) Approve Amendment No. 1 to the On-Call Maintenance/Repair Services Agreement with Vortex Services, LLC for Sewer Manhole Lining Services, extending the term to July 28, 2027, and increasing the agreement amount by $200,000, and authorize the Mayor and City Clerk to execute the Agreement.
DISCUSSION:
The operation and maintenance of the City’s wastewater collection system, also known as the sewer system, are managed by certified Utilities Department staff members and contractors.
Due to the corrosive marine environment, concrete and brick sewer manholes deteriorate over time. Staff generally prefers to rehabilitate the manholes with a lining instead of replacing the manhole. Replacements involve street closures, sewer diversions, and customer outages and are therefore a last resort. The lining process includes preparing, cleaning, patching and installing a polyurethane-sealed lining inside the manhole. This slows the damaging corrosion of the manhole and significantly extends its lifespan. The process is also quicker, more cost-effective than replacement, and less disruptive to the community and traffic. The City has successfully used this process for many years.
The Utilities Department originally entered into an agreement with Sancon in 2022 following a competitive selection process. Sancon recently reorganized and assigned its existing agreement to Vortex. The agreement is set to expire on August 22, 2025. Despite the transition, the contractor’s staff and project manager have remained unchanged, and the company has consistently performed satisfactorily over the years. Additionally, Sancon/Vortex provides pipe-lining rehabilitation services under another existing agreement with the City. Staff recommends City Council approval to reassign the agreement to Vortex, extend the agreement to July 28, 2027, and increase the agreement compensation limit by $200,000.
FISCAL IMPACT:
The adopted budget includes sufficient funding for this purchase. It will be expensed to the Sewer Manhole Lining Program and Maintenance and Repair accounts in the Utilities Department, 7119061-851050 and 7119061-851037.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A –Assignment Agreement Between the City of Newport Beach, Sancon Technologies Inc. and Vortex Services LLC.
Attachment B –Amendment No. One Maintenance/Repair Agreement with Vortex Services LLC for Sewer Manhole Lining Services 12-3
12-1
Reassignment and Amendment of the Services Agreement
for Sewer Manhole Lining Services
April 29, 2025
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