Administrative
Report
H.12., File # 22-4979 Meeting Date: 1/17/2023
To: MAYOR AND CITY COUNCIL
From: TED SEMAAN, PUBLIC WORKS DIRECTOR
TITLE
APPROVE AN AMENDMENT TO THE AGREEMENT FOR PROJECT SERVICES BETWEEN THE CITY OF REDONDO BEACH AND SANCON TECHNOLOGIES, INC. TO PROVIDE PLANNED AND
ON-CALL MAINTENANCE AND REPAIR SERVICES TO THE CITY'S STORM DRAIN AND WASTEWATER CONVEYANCE SYSTEMS AND INCREASE THE CONTRACT BY $1,000,000 FOR A NEW CONTRACT AMOUNT NOT TO EXCEED $2,870,000 AND EXTEND THE TERM FROM APRIL 15, 2024 TO JANUARY 17, 2025
EXECUTIVE SUMMARY
Approval of the Amendment (“Amendment”) to the Sancon Agreement (“Agreement”) will enable the City to continue preventative maintenance and life extending rehabilitation activities for the existing sanitary sewer mains, storm drain, and manholes structures within the City of Redondo Beach through trenchless technology called Cured-In-Place Pipe (CIPP). CIPP technology allows a protective liner to be installed in existing pipes to repair deficiencies in pipe integrity and to extend their useful life without the typical street and sidewalk disruptions that are caused by traditional pipe repair methods.
The Amendment is needed to increase the number of pipe sections to be treated with CIPP during the contract term. The proposed amendment would increase the not to exceed amount by $1,000,000 and extend the term from April 15, 2024 to January 17, 2025 to perform the additional work. The increased contract amount would only be utilized to the extent that annual appropriations for pipe repair work are included in future year budgets.
BACKGROUND
The City's aged storm drain and wastewater conveyance systems require preventative maintenance and some significant rehabilitation of high priority repair locations that should be conducted as soon as possible to avoid failures. The risks related to failures include sanitary sewer overflows, sink holes and other public health and safety issues. Many of these rehabilitation locations include the repair of storm drain corrugated metal pipes (CMP) that are typically aged beyond their estimated service life.
Historically, CMP was used as an inexpensive means for providing stormwater drainage, however, these pipes are highly susceptible to corrosion and ultimately complete failure over time, often resulting of soil collapse, flooding and sinkholes under pavement. Staff regularly inspects these CMP pipes and has developed a lining program as a means to repair and extend the life of these pipes by 20 to 30 years. Staff prioritizes the repairs as funding is available.
In May 2006, to provide a statewide regulatory approach to address sanitary sewer overflows, the
H.12., File # 22-4979 Meeting Date: 1/17/2023
In May 2006, to provide a statewide regulatory approach to address sanitary sewer overflows, the State Water Resources Control Board adopted Statewide General Waste Discharge Requirements for Sanitary Sewer Systems, Water Quality Order No. 2006-0003 (Order). The Order requires the City to develop and implement a Sanitary Sewer Master Plan (SSMP) that documents the City's program to operate and maintain its sanitary sewer system properly. The SSMP covers various activities and programs addressing the system, including a System Evaluation and Capacity Assurance Plan and a Rehabilitation and Replacement Program for the City's conveyance system.
The SSMP includes a Rehabilitation and Replacement Program for the City's wastewater conveyance system.
The CIPP lining program enables the City to make ongoing and necessary repairs to the wastewater system to continue meeting the Order's requirements. On April 16, 2019, the City Council approved the Citywide CIPP lining program and authorized the on-call contract with Sancon to implement repairs utilizing the CIPP program and to preserve the City's aging and damaged storm drain and wastewater underground piping networks.
The Citywide CIPP lining program minimizes cost and disruption to the community because it is a “trenchless” technology that accesses the pipe system through existing manholes rather than through street and sidewalk cuts. CIPP lining has proven to be a cost-effective method of pipe rehabilitation with minimal disruption to the community with its short installation duration, and is especially useful in hard-to-reach residential easement areas. Between 2019 and 2022, Sancon successfully lined over 9,200 LF of high-priority sewer pipes, including residential easement areas and 1900 LF of deteriorated storm drain CMP pipes.
Many sections of piping networks and manhole structures throughout the City have been treated with this method, but their remains a large inventory of pipes still to be done. Staff prioritizes those pipes showing signs of age or other deficiencies and considers this work as high priority preventative maintenance to mitigate risks associated with pipe failure leading to sinkholes, sanitary sewer overflows, and other risks to public health and safety.
This amendment would increase the not to exceed amount of existing Wastewater Funding and allow for needed repairs to move forward. The program initiated in 2019 with the current five year on-call contract has been very successful and staff is projecting that funding will be available annually to expand the program’s activity, allowing the City’s pipe inventory to be treated earlier, thereby reducing future risk. As an on-call contract, work authorization will be issued each year as the budget is formally adopted and funding availability is known. The on-call contract is useful to provide the flexibility needed for annual budgeting and the efficiency of a five-year agreement.
The recent increase in construction costs has prompted Sancon to request a 10% increase in unit costs. Such a request is anticipated in the Agreement and tied to the change of the Consumer Price Index, which has increased by about 16% since the Agreement was approved. The Amendment also adds a new service, which is the treatment of the City’s manholes with CIPP liner. The application of CIPP technology to manholes is recommended preventative maintenance that was not included in the original contract.
Staff anticipates funding the repairs by appropriating available Wastewater CIP funds annually over the remaining two years of the agreement. As a result of the City’s Sewer System Evaluation and Capacity Assurance Plan, it is estimated that an additional $500,000 of repair work is needed annually over the remaining two years of the agreement. Sancon extended its comparable pricing to
H.12., File # 22-4979 Meeting Date: 1/17/2023
annually over the remaining two years of the agreement. Sancon extended its comparable pricing to the City of Redondo Beach with a current market value adjustment that is in line with the current Consumer Price Index. Additionally, staff reviewed Sancon's recent successful competitive bids from other local agencies, including the City of Oxnard, the City of Newport Beach, and the Eastern Municipal Water District and concludes that the unit costs included in this Amendment remain at competitive rates.
If the amendment is approved, Sancon will perform a variety of repair services on the City's piping networks, including, but not limited to, installation of CIPP liners, pipe cleaning, pipe root removal, pipe Closed-Circuit Television Inspections, hydro-vacuum cleaning, hydro-jetting cleaning, hydro excavation services, coring services, conduct traffic control, grouting of pipe voids, pipe slurry, and abandonment, and manhole and structural liner repairs.
COORDINATION
The scope of work identified in the contract will be coordinated through the Public Works Department.
The contract has been approved as to form by the City Attorney’s Office.
FISCAL IMPACT
This contract, including the Amendment anticipates being funded through a multi-year appropriation process, that is annually awarded by City Council utilizing wastewater and stormwater program funds with the following estimated totals:
Funding Expenditures
Wastewater Fund CIP $ 1,750,000 Sancon Agreement $1,870,000 Drainage CIP Fund $ 1,120,000 Sancon 1st Amendment $1,000,000 Total $2,870,000 Total $2,870,000
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· First Amendment to Sancon Technologies, Inc