June 17, 2025
Public Works
DATE: June 17, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Daniel Chavarria, PE, Director of Public Works
Robert Armijo, PE, Deputy Director of Public Works/City Engineer
Darcie DeLashmutt, Capital Project Manager
SUBJECT:
Construction Agreement Amendment with UST Testing
Services, Inc. for the Flood Risk Reduction - Rheem
Creek Project
FINANCIAL IMPACT: The Capital Improvement Plan includes $2,880,244 in total funding for the Flood Risk Reduction - Rheem Creek Project. The final construction change order in the
amount of $242,036 exceeds City Council approved
funds. The additional funds to process the amendment
are available within the Fiscal Year 2024-25 project
budget. (Account String: 20136031- 400708)
PREVIOUS COUNCIL
ACTION:
July 6, 2021
July 19, 2022
July 11, 2023
September 26, 2023
STATEMENT OF THE
ISSUE:
City staff requests City Council adopt a resolution to
approve a second construction contract amendment with
UST Services, Inc. for the Flood Risk Reduction - Rheem Creek Project.
RECOMMENDED ACTION:
ADOPT a resolution and APPROVE a second
amendment to the construction contract with UST Testing Services, Inc., increasing the contract by $242,036, for a revised not-to-exceed amount of $1,778,026, for the
Rheem Creek Flood Risk Reduction Project; and
ACCEPT the project as complete and AUTHORIZE the
AGENDA
REPORT
June 17, 2025
city clerk to file a Notice of Completion with the Contra Costa County Recorder’s Office - Public Works
Department (Darcie DeLashmutt 672-3944 / Robert
Armijo 620-5477).
DISCUSSION:
The Flood Risk Reduction – Rheem Creek Project (Capital Improvement Project No. 22A02) addresses the longstanding flooding concerns of residents in the Fairmede and Rollingwood neighborhoods (Attachment 1). Restoration efforts for this project included the removal of invasive vegetation and excessive sediment, regrading the creek to establish a geomorphically stable channel, and the planting of native riparian vegetation (Attachment 2). Improvements were implemented along the segment of Rheem Creek extending from Annapolis Avenue to Greenwood Court.
In 2019, the City initiated a collaborative effort with American Rivers, The Watershed Project, Restoration Design Group, and other local partners to conduct technical studies and develop community-supported plans to mitigate flooding. In September 2021, the City was awarded a grant totaling $1,598,844, of which $864,124 was designated for construction. Remaining costs are supplemented with General Funds.
On July 11, 2023, the City Council authorized the award of a construction contract and contingency to UST Testing Services, Inc. in the amount of $1,356,509 (Attachment 3).
During construction, multiple unknown utilities, hazardous soils, and additional soil volumes were discovered, requiring additional work and that caused delays. The Department of Fish and Wildlife permit for this project stipulates that in-creek work may only occur between May 1 and October 31. As a result, the associated change orders also incurred costs for temporary infrastructure and contractor remobilization.
On June 25, 2024, the City Council approved an amendment to UST Testing Services, Inc. contract in the amount of $179,481, for an amended total contract amount not to exceed $1,535,990, and authorized the Director of Public Works to approve an additional $18,000 in change orders for the additional scope of work (Attachment 4).
During the final stage of construction, ongoing unforeseen circumstances required increased excavation, soil off-haul, and dewatering. The final Change Order 008 for $242,036 is for the incurred costs. Approval of Change Order 008 will exceed the approved contingency funds in the amount of $100,717 (Attachment 5).
On February 8, a ribbon cutting event brought project partners, community members, and local representatives together to celebrate the completion of construction.
City staff recommends that the City Council adopt a resolution accepting the work completed by UST Testing Services, Inc. for the Rheem Creek Flood Risk Reduction Project as complete and approving an amendment to the construction agreement to increase the contract amount by $242,036, resulting in a final not-to-exceed contract total of $1,778,026. Upon adoption of the resolution, and provided there are no
June 17, 2025
outstanding stop notices or liens (none have been received to date), the City Clerk will be authorized to file a Notice of Completion with the Contra Costa County Recorder’s Office (Attachment 6).
City staff notes that the project includes revegetation elements that will require ongoing irrigation and maintenance, to be performed by third-party contractors. Additionally, the project is subject to multi-year grant monitoring and reporting requirements, which Public Works staff will manage to ensure continued compliance with the terms of the funding agreement and environmental permits.
DOCUMENTS ATTACHED:
Attachment 1 – Project Location
Attachment 2 – Site Plan
Attachment 3 – Construction Agreement
Attachment 4 – Contract Amendment 1
Attachment 5 – Contract Amendment 2 - Proposed
Attachment 6 – Resolution