March 17, 2026, Item #7
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
summary:
AGENDA REPORT CityofPoway
CITY COUNCIL
March 17, 2026
Honorable Mayor and Members of the City C~cll
Eric Heidemann, Director of Public Works Jt.
Robert Weber, Principal Civil Engineer, Public Works -Utilities ~ (858) 668-4717 or [email protected]
Approval of Change Order No. 1 to the Construction Contract with Gateway Pacific Contractors, Inc. for the Water Treatment Plant Filter Rehab Project Phase A During initial work at the Water Treatment Plant (WTP) for the Filter Upgrades project (Project), staff discovered that five existing surface wash water (SWW) valves were leaking and unable to adequately isolate the filters. Replacement of these valves is necessary to safely complete the planned Project upgrades. The contractor. Gateway Pacific Contractors, Inc. (Gateway), proposed Contract Change Order No. 1 which increases the total contract amount and extends the project schedule. The change order was reviewed by staff and the construction manager and determined to be fair and reasonable.
Recommended Action:
It is recommended the City Council approve Contract Change Order No. 1 to the Agreement with Gateway Pacific Contractors, Inc. for the Water Treatment Plant Filter Upgrades Phase A in the amount of $116,171.36, resulting In a revised total contract amount of $799,771.36, including an extension of 26 additional non-compensable calendar days; and authorize the City Manager to execute the necessary documents.
Discussion:
The WTP Project includes both structural and mechanical upgrades focused on filter deck structures, filters five through eight, and the filter backwash vault. This overall project scope includes the cleaning of interior surfaces of the filter vaults and inlet channel, the complete media replacement for existing filters five through eight, resurfacing and condition assessment of the existing stainless steel SWW headers, and the installation of necessary pipe supports. In addition, the project includes the replacement of the ductile iron (DI) 90-degree elbow on the sww header, application of protective coating to the DI SWW piping and fittings, removal and disposal of the existing polyvinyl chloride (PVC) spray system, repair of concrete cracks within the interior filter structures and top slab edge of the filters, rehabilitation of the wash water supply valve, and various other related tasks. The project shall be executed in phases to ensure that no more than two filters are taken offllne simultaneously, with filters six and eight out of service together, followed by filters five and seven.
During initial stage of the Project, WTP plant staff attempted to isolate selected filters in preparation 1 of 5
March 17, 2026, Item #7
for contractor mobilization and determined that five (5) existing valves exhibited unacceptable rates of leakage which prevent isolation of the filters to safely and adequately perform the work of the contract. These valves include the four (4) 10-inch diameter SWW valves for filters five through eight and one (1) 24-lnch diameter backwash control valve for filter eight. Staff determined replacement of these existing valves is necessary for the completion of Project. This change also requires an extension of construction work time by 26 non-compensable days to a total of 150 days. A change order proposal was provided by Gat eway and reviewed by staff and the construction manager and found to be fair and reasonable.
Environmeatal Review:
This action is not subject to review under the California Environmental Quality Act (CEQA).
Fiscal Impact:
Sufficient funds are available in the relevant Capital Improvement Program project account WT037 to award Change Order No. 1 for WTP Plant Filter Upgrades for the recommended amount of $116,171.36. The City proactively planned for this project as part of the development process for the Fiscal Year 2025-26 budget, with funds appropriated from the Water Enterprise Fund (5100).
Public Notification:
None.
Attachments:
A. Contract Change Order No. 1 -Water Treatment Plant Filter Upgrades Phase A Reviewed/Approved By:
Assistant City Manager
2 of5
Reviewed By:
Alan Fenstermacher
City Attorney
Chris Hazeltine
City Manager
March 17, 2026, Item #7
CITY OF POWAY
Contract Change Order
PROJECT: LESTER J. BERGLUND WATER TREATMENT PLANT
FILTER UPGRADES PHASE A
CONTRACT CHANGE ORDER NO. 1 PROJECT NO. WT037
ACCOUNT NO. 40-41200 BID NO. 26·002
CONTRACTOR: GATEWAY PACIFIC CONTRACTORS, INC.
ADDRESS: 8055 FREEPORT BLVD., SACRAMENTO, CA 95832
Change Order Prepared By: William Baker, Construction Manager (CM) The Contractor is directed to make the following changes as described herein. Changes shall include all labor, materials, equipment, contract time extension, and all other goods and services required to implement this change. Payment stated on this change order includes all charges, direct or indirect, arising out of this additional work and is expressly agreed between the City and the Contractor to be the complete and final costs hereof. The requirements of the specifications, where pertinent and not in conflict with this change order, shall apply to these changes. This change order is not effective unless signed by the City Manager.
In accordance with this contract, the following change is ordered, resulting in:
(Check all that apply)
X Increase in Contract Amount
___ No Change in Contract Amount
___ Decrease in Contract Amount
Change Order Description:
_lL_ Increase In Contract Time
__ No Change in Contract Time
Decrease in Contract Time
This Change Order shall be a 0 Lump Sum" Change Order for the Filter Upgrades Phase A, Project at the Lester J. Berglund Water Treatment Plant (LJBWTP) for the changes related to the replacement of:
• Replace 4 qty-10'' butterfly valves with Mueller XPII CL 125 with 250B rating and reattach the 4 existing Beck actuators.
• Supply and install 8 qty -1 O" dismantling coupling gaskets. • Replace 1 qty -24" butterfly valve with Mueller XPII CL 125 with 2508 rating. Remove the existing Limitorque actuator and install 1 new Beck actuator. • Supply and install 2 qty - 24" dismantling coupling gaskets. • The City will furnish 1 new Beck actuator and 5 new mounting brackets to remount the existing actuators.
The "Lump Sum" amount of this Change Order shall be $116,171 .36 and 26 days of non compensable contract time.
3 of5
ATTACHMENT A
March 17, 2026, Item #7
Reason for the Change:
The current condition present in the existing wash water system reflects 5 butterily valves that do not seal correctly and allow water or air to pass by the valves during the back wash process. The 5 valves consist of (4 qty 1 O" butterfly valves, 1 qty 24" butterily valve and 1 O gaskets for the associated dismantling couplings). To avoid disruption of the filter media in this current condition, the water elevation in filter bays 5, 61 7, and 8 must be raised above the elevation of the surface wash water piping. Doing this elevates the passage of air or water into the filter bays during the back wash process.
The City issued directions to provide a cost proposal for the above-described work and included an as-built drawing of the piping gallery for estimating purposes.
The Contractor submitted PCO 001 on February 16, 2026, to recover additional costs and time incurred due to the request to provide 5 new valves, 10 gaskets for associated dismantling couplings and re-attachment hardware for the 5 Beck actuators. The Construction Manager (CM) reviewed the time impact analysis and confirmed it was accurate and reasonable. The Construction Manager also reviewed the PCO information submitted and verified the scope was accurate per the City's request. It was determined that the information provided was accurate and consistent with previously agreed rates.
Because of the above-described changes and conditions, the contractor incurred additional costs and time to complete the added scope of work. The resulting extra costs reflected in this PCO 001 should be properly associated with costs incurred due to the owner's directed changes. The Contractor's price proposal in the amount of $116,171.36 is considered fair and reasonable for the work.
The Construction Manager's recommendation is to move forward with the approval of this Change Order to add the 5 new valves, 10 gaskets for associated dismantling couplings and re-attachment hardware for the 5 Beck actuators. This will require a Change Order to Gateway Pacific Contractors resulting in a contract Increase of $116,171 .36 and 26 days of non-compensable contract time to be added to the project end date as a result of this change.
4of5
March 17, 2026, Item #7
TlflS CHANGE ORDER
Amount: $116,171.36
Working Days: 26
ORIGINAL CONTRACT
Amount: $683,600.00
WT~ Filter Upgrade Working Days; 124
Completion Date: June 23, 2026
P,RlOR CHANGE ORDERS
Amount: $(0.00)
Working Days: 0
ADJUSTED CONTRACT
Amount: $799,771.36
WTP Filter Upgrade Working Days: ISO
Completion Date: August 4, 2026
We, the undersigned, have given careful consideration RECOMMENDED BY: CONSTRUCTION MANAGER to the change proposed, and hereby agree, if this
proposal Is approved, that we will provide all equipment, furnish all materials, except as may otherwise be noted above, and perfom, all services necessary for the work
specified, and will therefore, accept as full payment, the 1"'-"'.,,L""Ll:-c-A-c-::M--=eA77KE=R--=, e:-:-u=T1=1:R=-=:EN:-:-:G:-::1N:-::E:-=E=R1"'N-=-o-DATE fees or prices and adjustments In contract time shown 1-----------------------1 above. This Change Order includes all direct costs such RECOMMENDED BY: PROJECT MANAGER as labor, material, job overhead, profit, costs for
modifications or changes in sequence of work to be
performed, delays, rescheduling, disruptions, extended
direct overhead or general overhead, acceleration,
material or other escalation which include wages and other ROBERT WEBER. CITY OF POWAY impact costs.
~CCEPTED BY: GATEWAY PACIFIC CONTRACTORS, INC (CONTRACTOR) APPROVED QY: DEPARTMENT DIRECTOR
~IGNATURE: -,,G"'"A""RY,.,.A.,..,-=e--=Ec""'H""'T"='E,-L -----------ERIC HEIDEMANN, CITY OF POWAY TITLE: VICE P~ESIOENT ANO COO
DATE: _____ _
DISTRIBUTION:
CITY CLERK (ORIGINAL)
CONSTRUCTION MANAGER
CONTRACTOR
FINANCIAL FILE
PROJECT FILE
S ofS
APPROVED BV: CITY MANA.GER
CHRIS HAZELTINE. CITY OF POWAY
DATE
DATE
DATE