City Council Agenda Report
October 20, 2026
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Albert Mendoza, P.E., Director of Public Services/City Engineer Jacqueline Koontz, P.E., Senior Civil Engineer
Christopher Enriquez, Management Analyst
SUBJECT: PROJECT NO. 7527 - TERMINATION OF CONSTRUCTION CONTRACT
SERVICES FOR THE REHABILITATION FOR SEWAGE LIFT STATION AT
HARVARD DRIVE AND GRIDLEY ROAD
Background:
On July 15, 2025, the City awarded a contract for an amount of $320,923.28 to Christensen Brothers General Engineering Inc. (”Christensen”) for Project No. 7527 Rehabilitation Project for Sewage Lift Station at Harvard Drive and Gridley Road (originally Project No. 7524). The purpose of this project is to rehabilitate the existing sewer lift station at this intersection. The scope of work includes the installation of a temporary sewer bypass; removal and replacement of plug valves, swing check valves, two submersible pumps, slide rail assemblies, ductile iron piping; construction of a new meter vault; and installation of a magnetic flow meter. The project was initially scheduled to be completed prior to June 2026.
During the course of the contract, staff determined that Christensen was in default of its obligations due to failure to procure equipment in a timely manner and commence construction in accordance with the project schedule.
Events Timeline:
• July 15, 2025: The City awarded a contract to Christensen. • August 26, 2025: The City executed the contract.
• November 4, 2025: The City issued an Administrative Notice to Proceed. • July 1, 2026: The City issued a Notice to Proceed for Construction. • July 8, 2026: The City was notified the contractor was unable to complete Project No. 7527.
• August 12, 2026: The Notice to Cure was issued to the contractor.
City Council October 20, 2026
Termination of Construction Contract Page No. 2
Pursuant to Section 17.2 of the contract, staff is requesting authorization to terminate the contract for Default. Upon approval, a formal Notice of Termination will be issued in accordance with the terms of the contract.
The contractor's inability to complete the work leaves the area vulnerable to a sanitary sewer overflow in the event of a simultaneous failure of both pumps. Such an overflow could discharge contaminated water into the area and the storm drain system, creating potential health violations and damage to private property.
On September 21, 2026, Governor Gavin Newsom issued a proclamation of a state of emergency in preparation for potential severe weather and flooding associated with the predicted El Niño event. On October 9, 2026, the State Water Resources Control Board issued a letter directing Sanitary Sewer Systems General Order enrollees to take steps to minimize sanitary sewer system spills during the upcoming severe storms. Specifically, enrollees must maintain an up-to-date emergency response plan and complete preventative maintenance, including reducing inflow and infiltration, fixing structural vulnerabilities, and ensuring adequate system capacity. To mitigate the risk of a sanitary sewer overflow, this project will be completed on an emergency work basis with another contractor.
Upon City Council approval of the contract termination, staff will execute a new contract with Mike Bubalo Construction Co., Inc. to complete the remaining work under the same scope as originally defined in Project. No. 7527. Mike Bubalo Construction Co., Inc. was selected as a responsible contractor based on verified, satisfactory performance on comparable projects within the City, including Project No. 7606, and for its experienced personnel.
Fiscal Impact:
Sufficient funding is available in the Sewer Enterprise FY 26/27 adopted budget and no additional funding is requested at this time.
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
N/A
Recommended Action:
Staff recommend City Council approve terminating the contract with Christensen Brothers General Engineering, Inc.; instruct staff to issue a formal Notice of Termination in accordance with the terms of the contract; and authorize the City Manager to execute a new contract with Mike Bubalo Construction Co., Inc. to complete Project No. 7527.
City Council October 20, 2026
Termination of Construction Contract Page No. 3
Attachments:
N/A