Susana Alcala Wood, City Attorney Jorge Oseguera, City Auditor Mindy Cuppy, City Clerk Howard Chan, City Manager John Colville, City Treasurer
City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00771 April 26, 2022 Consent Item 06
Title: Change Order - Florin Reservoir Pump Station Improvements
Location: District 6
Recommendation: Adopt a Resolution: 1) authorizing the City Manager or the City Manager’s designee to execute Change Order No. 3 to City Agreement No. 2021-0694 with TNT Industrial Contractors, Inc., for an amount not-to-exceed $77,260, bringing the agreement’s total not-to-exceed amount to $1,641,726; 2) resetting the City Manager’s authority to issue Change Orders for the Agreement; and 3) transferring $200,000 from the Reservoir Rehab Program (Z14130500, Fund 6005) to the Florin Reservoir Back Up Engine Project (Z14130100, Fund 6005).
Contact: Steven Swain, Project Manager (916) 808-4059, [email protected] ;
Michelle Carrey, Supervising Engineer (916) 808-1438, [email protected]; Tony Bertrand, Engineering & Water Resources Division Manager, (916) 808-1461, [email protected]; Department of Utilities
Presenter: None
Attachments:
1-Description/Analysis
2-Change Order
3-Resolution
Description/Analysis
Issue Detail: Staff recommends City Council approve Change Order No. 3 with TNT Industrial Contractors, Inc. for the City Agreement No. 2021-0694, to install new insulation board on the interior walls of the exhaust stack and modify the existing ducting to protect the concrete from deterioration.
During construction of the project, the heat insulation sheets within the west exhaust stack of the pump station were found to be crumbled and deteriorated. Upon investigation, it was discovered that these heat insulation sheets contained asbestos, creating a hazardous work environment for the Contractor. To provide a safe working environment, the Contractor tested, abated, and disposed of the crumbled insulation sheets in accordance with the applicable regulations as a part of a change order.
Policy Considerations: This Change Order exceeds the City Manager’s approval authority and requires Council approval.
Economic Impacts: This Change Order is expected to create 0.31 total jobs (0.18 direct jobs and 0.13 jobs through indirect and induced activities) and create $47,703.03 in total economic output ($30,067.58 of direct output and another $17,635.44 of output through indirect and induced activities).
The indicated economic impacts are estimates calculated using a calculation tool developed by the Center for Strategic Economic Research (CSER). CSER utilized the IMPLAN input-output model (2009 coefficients) to quantify the economic impacts of a hypothetical $1 million of spending in various construction categories within the City of Sacramento in an average one- year period. Actual impacts could differ significantly from the estimates and neither the City of Sacramento nor CSER shall be held responsible for consequences resulting from such differences.
Environmental Considerations: On February 27, 2018, the City Council adopted a negative declaration for the project (Resolution #2018-0072). The current change order is further implementing the approved project. No further environmental review is required.
Sustainability: The proposed project is consistent with the 2035 General Plan as it improves infrastructure reliability at the Florin Pump Station, which will enhance the ability to maintain pressure throughout the entire water system.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The condition of the heat insulation sheets within the west exhaust stack at Florin Pump Station have been found to be deteriorated, exposing the concrete walls of the stack. The purpose of the insulation sheets is to protect the concrete walls from the high temperature exhaust from the pump engines. Prolonged exposure to these high temperatures will likely cause the concrete walls of the stack to deteriorate, leading to structural issues. To continue to protect walls of the exhaust stack, it is in the City’s best interest to install new insulation sheeting and modify the existing ducting.
Financial Considerations: The original contract not-to-exceed amount was $1,490,026. The net change by previous change orders in the amount of $74,440, increased the contract not-to- exceed amount to $1,564,466. Proposed Change Order No. 3 in the amount of $77,260 would increase the contract not-to-exceed amount to $1,641,726. Staff is recommending a budget transfer from the Reservoir Rehab Program (Z14130500, Fund 6005) to the Florin Reservoir Back Up Engine Project (Z14130100, Fund 6005) in the amount of $200,000 to complete the project.
There are no General Funds allocated or planned for this project.
Local Business Enterprise (LBE): TNT Industrial Contractors, Inc. is an LBE.
RESOLUTION NO. 2022-
Adopted by the Sacramento City Council
April 26, 2022
Florin Pump Station Improvements Project
BACKGROUND
A. The Florin Pump Station and Reservoir are considered an integral part of the water distribution system, almost as important as the treatment plants themselves. The pump station was originally constructed in 1970. Recently, it has been discovered that the heat insulation sheeting on the inside of the west exhaust stack at the pump station has failed, exposing the concrete walls to the high temperature exhaust from the pump engines.
B. Prolonged exposure to the high temperature exhaust will cause the concrete walls of the exhaust stack to deteriorate, leading to structural issues. Once complete, the improvements included in the scope of this change order will protect the concrete walls from the effects of the high temperature exhaust.
C. A budget augmentation of $200,000 is required to provide sufficient funding to complete the Florin Reservoir Backup Engine Project.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Manager or the City Manager’s designee is authorized to execute Change Order No. 3 with TNT Industrial Contractors, Inc. for the Florin Pump Station improvements Project for an amount not–to-exceed $77,260.00.
Section 2 The City Manager’s authority to issue Change Orders for the Agreement is reset.
Section 3. The City Manager or the City Manager’s designee is authorized to transfer $200,000 from the Reservoir Rehab Program (Z14130500, Fund 6005) to the Florin Reservoir Back Up Engine Project (Z14130100, Fund 6005).
Adopted by the City of Sacramento City Council on April 26, 2022, by the following vote:
Ayes:
Noes:
Abstain:
Absent:
Attest:
The presence of an electronic signature certifies that the foregoing is a true and correct copy as approved by the Sacramento City Council.