March 17,2026
Public Works
DATE: March 17, 2026
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:
Accept Ferry Point Sewer Pump Station Project as
Complete
FINANCIAL IMPACT: Funding in the amount of $131,366.80 is required to close out the project. Sufficient funds are available in the Wastewater Enterprise Fund (Fund 4003), and no
General Fund support is required. Approval of this
appropriation will increase the total project budget from $2,732,742 to $2,864,109 (Account String: 40322931-
400708-01U10).
PREVIOUS COUNCIL
ACTION:
December 1, 2020
April 7, 2022
December 15, 2023
STATEMENT OF THE
ISSUE:
The Ferry Point Sewer Pump Station Project (CIP No.
01U10), as complete. During final cost reconciliation,
staff determined that a contractor credit of $136,050
associated with Change Order No. 2 was applied only to
the change order costs rather than deducted from the
original construction contract value. This accounting
discrepancy resulted in a shortfall of $131,366,80 and
additional funds need to be appropriated. A task
authorization amendment with Veolia is required to
reconcile all approved project expenditures and close out the contract.
AGENDA
REPORT
March 17,2026
RECOMMENDED ACTION: ADOPT a resolution to APPROPRIATE and AMEND the task authorization with Veolia to increase the total project authority by $131,366.80; ACCEPT the Ferry Point
Sewer Pump Station Project as complete, and
AUTHORIZE the city clerk to record the Notice of
Completion with the Contra Costa County Recorder; and
AUTHORIZE the city engineer to release applicable
bonds and retention – Public Works Department (Darcie
DeLashmutt 510-672-3944/Robert Armijo 510-620-5477).
DISCUSSION:
The Ferry Point Sewer Pump Station Project replaced an aging and undersized pump station at the intersection of Brickyard Cove Road and Dornan Drive (Attachment 1).
The project enhances the reliability of the City’s sewer collection system and improves service to the surrounding community. The project is managed by Veolia, with Thompson Builders, Inc., serving as the contractor.
On December 1, 2020, the City Council awarded the construction contract for the Ferry Point Sewer Pump Station Project. Construction has been completed in accordance with the approved plans, specifications, contract documents, and applicable City of Richmond standards.
Over the course of the project, several design modifications and construction adjustments were required. Construction was substantially completed in 2023, and the City took beneficial occupancy of the new facility at that time. Following substantial completion, additional work was identified based on community feedback related to aesthetics and the visual compatibility of the pump station with the surrounding natural setting. These improvements were intended to reduce the visual impact of the facility and enhance the surrounding environment at the intersection of Brickyard Cove Road and Dornan Drive, in response to comments received during and after construction.
This additional work resulted in Change Order No. 2, which included:
Raising the wall to screen pump station equipment
Installing gates and screening
Roadway resurfacing
Trail improvements
During negotiations for Change Order No. 2, the contractor identified a contract credit of $136,050, which was expected to keep the project within the City Council-authorized amount. However, during final cost reconciliation, Veolia determined that the $136,050 credit was applied only to the cost of the change order instead of being deducted from the original contract value. This accounting discrepancy resulted in total project costs exceeding the previous authorization by $131,366.80 (Attachment 2).
March 17,2026
A final cost reconciliation has been completed. The total construction cost, inclusive of prior change orders and Change Order No. 2, is $2,864,109. When combined with construction management, inspection, testing, and other soft costs, the total project expenditures are $3,414,008. This exceeds the previously authorized amount by $131,366.80.
Veolia has reduced the standard markup to 9 percent. The proposed appropriation will increase the total project authority for Veolia from $2,732,742 to $2,864,109, allowing the City to finalize all project expenses and close out the contract.
Status of budget and project costs are as follows:
A. Construction Contract Amount $2,039,740
B. Approved Change Orders $356,445
C. Change Order No. 3 $120,520
D. Veolia Mark-ups $347,404
E. Design, Construction Management, Inspection, Project Management, and other soft Costs
$549,899
Total Project Cost
$3,414,008
This appropriation reconciles existing approved work and does not add new project scope. The Ferry Point Sewer Pump Station Project is substantially complete.
Landscaping around the pump station will be installed by Public Works Operations and Maintenance during Winter 2026.
Upon acceptance, staff will file a Notice of Completion with the Contra Costa County Recorder’s Office, provided no outstanding liens or stop notices exist. As of this date, no such notices have been recorded.
There are no outstanding contractor claims or disputes associated with this project.
City staff recommend that City Council accept, by resolution, the construction of the Ferry Point Sewer Pump Station Project (CIP No. 01U10), completed by Thompson Builders, Inc., of Novato, California; authorize the City Clerk to record the Notice of Completion with the Contra Costa County Recorder; and authorize the City Engineer to release the bonds and retention payment, provided there are no outstanding liens or stop notices (Attachment 3).
DOCUMENTS ATTACHED:
Attachment 1 – Project Location
Attachment 2 – Proposed Change Order #2
Attachment 3 – Resolution Appropriating Funds and Accepting the Ferry Point Sewer Pump Station Project