City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01149 June 28, 2022
Title: Combined Wastewater Treatment Plant Emergency Sewer Bypass Pipe Repair [Published for 10-Day Review 06/17/2022]
Location: Citywide
Recommendation: Adopt a Resolution: 1) authorizing the City Manager or the City Manager’s designee to 1) execute Change Order No. 1 to City Agreement No. 2022-0110 with Steve P.
Rados, Inc, for an amount not-to-exceed $2,808,534, bringing the agreement’s total not-to- exceed amount to $3,058,533; 2) resetting the City Manager’s authority to issue Change Orders for the Agreement; and 3) increase revenue and expenditures budgets in an amount not-to-exceed $2,500,000 in the Wastewater reimbursable fund (Fund 6206).
Contact: Tim Moresco, Project Manager, (916) 808-1432, [email protected] ;
Luz “Nina” Buelna, Supervising Engineer, (916) 808-4937, [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 No. 1
3-Resolution
Description/Analysis
Issue Detail: Staff recommends Council approve Contract Change Order (CCO) No. 1 with Steve P. Rados, Inc. for the City Agreement No. 2022-0110, to provide funding for various items associated with the repairs of the failed bypass piping at the N-12 Structure at the City of Sacramento’s Combined Wastewater Treatment Plant (CWTP). This work includes, but is not limited to, exploratory underground investigations (potholing), the removal and replacement of valves at the CWTP and Sump 55, removal and replacement of the failed 48-inch bypass piping, dewatering, bypass pumping, trench backfill and compaction, and final asphalt paving.
The initial emergency repair work was determined through the cost and percentage method as defined in Section 8-10 of the Standard Specifications; however, the remainder of the work is to be performed at a negotiated not-to-exceed lump sum price.
As a result of the proposed change order, $2,500,000 will need to be transferred into the project budget.
Policy Considerations: This Change Order exceeds the City Manager’s approval authority and requires Council approval.
The Sacramento City Code Section 4.04.020 and Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a 2/3 vote of the City Council, all labor agreements and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to council action. This item was published for 10-day review on June 17, 2022, in compliance with the City Code.
Economic Impacts: This change order is expected to create 11.23 total jobs (6.46 direct jobs and 4.77 jobs through indirect and induced activities) and create $1,734,087.41 in total economic output ($1,093,008.55 of direct output and another $641,078.86 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:
California Environmental Quality Act (CEQA): This project is exempt from the California Environmental Quality Act (CEQA) under Section 15301 of the CEQA Guidelines governing the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing facilities. The activity consists of the restoration or rehabilitation of deteriorated or damaged structures, facilities, or mechanical equipment to meet current standards of public health and safety.
Sustainability: The proposed project is consistent with the 2035 General Plan as it improves infrastructure reliability and addresses existing safety and health impacts.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: City Code Section 3.60.070 authorizes the City Manager to negotiate and contract for public projects without advertising for bids when public interest and necessity demand immediate action, repair, or replacement to safeguard life, health, or property, to permit the continued conduct of city operations or services, or to mitigate further damage.
An emergency contract was necessary in this instance to ensure that repairs were conducted in a timely manner to prevent the sinkhole from becoming a safety hazard, and to prevent a potential combined sewer overflow (CSO) into the City’s waterways. Steve P. Rados, Inc. was selected to perform the emergency repair work on a time and materials basis until the initial repair was completed. The remainder of the emergency construction repair was outlined by City staff and a lump sum price was developed. Steve P. Rados, Inc. performed much of the initial repair work and potholing on a time and materials basis but has since submitted a cost proposal to perform the remaining repair work, which was approved by City and Sacramento County Regional Sanitation District (Regional San) staff.
Financial Considerations: The total project costs including this change order is estimated at $3,500,000. Staff recommends increasing the revenue and expenditure budgets in the Combined Sewer System Capital Program (X14010000, Fund 6206) in the amount of $2.5 million. The additional budget adjustment and existing funding in Combined Sewer System Capital Program (X14010000, Fund 6206) will cover the cost of the project. The costs incurred for this project will be reimbursed by the Regional Sanitation District as the owners of the asset.
There are no General Funds allocated or planned for this project.
Local Business Enterprise (LBE): Steve P. Rados, Inc. is an LBE.
Background: The bypass pipe is located at the CWTP’s N12 Structure. It serves as a bypass for the fall structure that was installed on the 72-inch force main that directs wastewater flows to Regional San. The 72-inch force main and 48-inch bypass piping are owned by Regional San but operated and maintained by the City, per the latest agreement executed in 2013. The bypass pipe was installed in the 1980’s due to the odor issues that were caused by the fall structure.
During rain events in late December 2021, City staff noticed water flowing out from all of the cracks and joints in the asphalt near the N12 structure. Based on this observation city staff was concerned there was a leak in the pipe and a sinkhole had formed. The City requested that Steve P. Rados, Inc. perform excavation and underground exploration to identify the issue.
The contractor was able to mobilize on December 27, 2021, and as they began the sawcut the asphalt, it was determined that there was a large void beneath the asphalt that was roughly 10 feet wide by 15 feet long by 12 feet deep. Excavation exposed, a large hole in the pipe, which caused the void.
The Contractor was able to install a blind flange on the bypass piping that directed flows back over the fall structure and isolated the bypass piping. Once that was done, a full inspection of the bypass piping determined that the entire bypass piping would need to be replaced. It was decided that, due to the poor condition of the remaining pipe, it would need replacement also.
The City and Regional San worked together to define a complete scope of work that would be required for the repair of the bypass pipeline. This complex proposed plan was provided to the contractor on March 24, 2022. The Contractor quickly responded that the lead times on many of the items, such as valves and piping, could be 14-18 weeks. To minimize the impacts to the schedule, the City and Regional San requested that the Contractor separate the pipe and valve cost proposal from the remaining cost proposal to expedite the approval process to allow the Contractor to purchase the items with long lead times. On April 7, 2022, the City received the cost proposal for the piping and valves for $178,675 and approved it on April 13, 2022. On April 15, 2022, the City received the remaining cost proposal for $2,519,000 and provided written approval to the contractor on May 11, 2022, to proceed with the work.
This contract change order No. 1 will provide compensation for just over two months of rental equipment and materials, as well as standby equipment that remained on-site in case of further failures, potholing, valve and piping cost proposal, and the remaining full cost proposal.
An itemized list can be seen below:
Change Order Item Total Cost
Remaining Costs from T&M Work 1/26/22 – 2/25/22 $ 651 T&M Work 2/26/22 – 3/25/22 $ 84,143
T&M Work 3/26/22 – 4/25/22 $ 25,552
Valve and Pipe Cost Proposal $ 179,188
Complete Cost Proposal for N-12 Repairs $ 2,519,000
Total $ 2,808,534
Regional San will reimburse the City for this work, based on the 2013 Operating Agreement.
@BCL@68152FDD, Rev. 09/09/2020
RESOLUTION NO. 2022-
Adopted by the Sacramento City Council
June 28, 2022
Change Order: CWTP Emergency Sewer Bypass Pipe Repair
BACKGROUND
A. Steve P. Rados, Inc. was authorized to perform construction services for the CWTP Emergency Sewer Bypass Pipe Repair project by City Agreement No. 2022-0110. This emergency agreement was executed due to a pipe failure on critical City infrastructure that the City required emergency construction services to help remediate. Per City Code Section 3.60.070, the City Manager is required to present a report to Council describing the emergency, the actions taken, and the emergency contracts executed. This agreement was ratified by City Council on March 22, 2022, where it was noted that the City would present a future change order for the remaining work to complete the repair.
Change Order No. 1 provides for the labor, equipment, materials, overhead, and markup for all the work that the contractor has performed that exceeded the original contract value of $249,999, and the cost proposals for all the remaining work required for completing the repairs. This change order will be in the amount of $2,808,534 and will increase the total contract amount to $3,058,533.
B. With Change Order No. 1, the City’s approved budget of $1,000,000 will be exceeded. It is estimated that the project budget will require $2,500,000 in additional funds to successfully complete the project, on time, and in line with City Standards, which will increase the total budget value to $3,500,000.
C. A budget augmentation of $2,500,000 is required to provide sufficient funds to the CWTP Emergency Sewer Bypass Pipe Repair Project to accommodate the additional work necessary to complete this project (X14010000, Fund 6206). The costs incurred for this project will be reimbursed by Sacramento County Regional Sanitation District as the owners of the asset.
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. 1 with Steve P. Rados, Inc, for an amount of $2,808,534.
Section 2. The City Manager or the City Manager’s designee is authorized to increase the revenue and expenditure budgets in the Combined Sewer System Capital @BCL@68152FDD, Rev. 09/09/2020
Program (X14010000, Fund 6206) in the amount of $2,500,000.
Adopted by the City of Sacramento City Council on June 28, 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.