City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-02343 1/31/2023 Consent Item 5.
Change Order: Shasta Park Reservoir and Pump Station Project File ID: 2022-02343
Location: Citywide
Recommendation: Pass a Motion: 1) authorizing the City Manager or the City Manager’s designee to execute Change Order No. 23 to City Agreement No. 2016-1073 with Sierra National Construction, Inc., for an amount not-to-exceed $265,613.21, bringing the agreement’s total not-to-exceed amount to $15,579,988.95; and 2) resetting the City Manager’s authority to issue Change Orders for the Agreement.
Contact: Megan Thomas, Project Manager, (916) 808-1729; Michelle Carrey, Supervising Engineer, (916) 808-1438; Sherill Huun, Engineering & Water Resources Division Manager, (916) 808-1455; Department of Utilities
Presenter: None.
Attachments:
1-Description/Analysis
2-Change Order
Description/Analysis
Issue Detail: Staff recommends Council approve Change Order No. 23 with Sierra National Construction, Inc. for the City Agreement No. 2016-1073, for modifications due to City-directed design changes and unforeseen conditions that extended the contract completion time and costs associated with activation of the new drinking water facility.
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 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 10 days prior to
File ID: 2022-02343 1/31/2023 Consent Item 5.
council action.
Economic Impacts: This Change Order is expected to create 1.06 total jobs (0.61 direct jobs and
0.45 jobs through indirect and induced activities) and create $163,998.89 in total economic output ($103,369.76 of direct output and another $60,629.14 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: An Initial Study, Mitigated Negative Declaration, and a Mitigation Reporting Program were prepared for this project in accordance with the California Environmental Quality Act (CEQA). The City Council adopted the Mitigated Negative Declaration and Mitigation Reporting Program on May 22, 2012 (Resolution No. 2012-0138).
No additional environmental review is required.
Sustainability: The proposed project is consistent with the 2035 General Plan as it completes the installation of new water supply facilities which will ensure the City continues to provide safe, clean, and reliable drinking water to its customers.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The original project that included a four million-gallon water reservoir, a groundwater well (Well No. 165), a water treatment system, and a pump station was extended during construction when a decision was made to add another groundwater well (Well No. 167) to the Shasta Park Reservoir and Pump Station project. The extension resulted in the close-out activities of the project to occur just as the COVID pandemic hit. Although work continued, unexpected delays occurred obtaining the needed supplies and coordinating the required training for completion of the project during the pandemic.
Change Order No. 23 includes a series of changes that were needed to complete the facility improvements over the past two years, including unexpected, but necessary, overhead that the contractor was impacted with due to the unexpected delay of the project completion. This change order would complete all remaining change orders for the project to allow the project to close.
Financial Considerations: The original not-to-exceed amount of the contract was $11,595,790.00.
The net change by previous change orders in the amount of $3,718,585.74, increased the contract
File ID: 2022-02343 1/31/2023 Consent Item 5.
not-to-exceed amount to $15,314,375.74. Proposed Change Order No. 23 in the amount of $265,613.21 would increase the contract not-to-exceed amount to $15,579,988.95. There are sufficient funds in the Shasta Park 4MG Reservoir and Pump Station (Z14005400, Fund 6005) to execute this Change Order.
There are no General Funds allocated or planned for this project.
Local Business Enterprise (LBE): Sierra National Construction, Inc. is an LBE.
Background: The Shasta Park Reservoir, Booster Pump Station, and Groundwater Well project was originally conceived to improve system water pressure in the southwest portion of the City at times of peak water usage. The 2005 Water Master Plan concluded that a finished water reservoir should be constructed in the southeast portion of Sacramento to help maintain service pressure, and to provide additional emergency and fire suppression water supply.
The Shasta Park Water Facility Project was awarded on September 9, 2016, to Sierra National Construction, Inc in the amount of $11,595,790 to construct one well, an aboveground 4-million gallon (MG) water reservoir, a water treatment system with 2 filters, and a pump station After the original award for construction, additional work was added to the project, including the completion of a second well, the addition of a third filter, and improved fluoride and chlorine systems to handle the larger volume of water production. Construction was near completion at the end of 2019.
In 2020, the Department of Utilities implemented a new policy with protocols to move away from the use of liquid chlorine (“chlorine gas”) to a safer and more reliable chlorine source for drinking water:
sodium hypochlorite, which is similar to a liquid household bleach. Since the facility had not yet been activated, it was determined that the new Shasta well site would be the first drinking water facility in the City to be switched to sodium hypochlorite. With the original construction not yet completed, this incorporated additional delays in the activation of the facility, including testing and training of the equipment that required chlorine to be available in order to properly operate.
Sierra National Construction, Inc. was willing to continue working with the City on procuring materials and scheduling subcontractors and suppliers for training and testing of facilities through the pandemic. However, each company and contractor had their own protocols for safety, limiting when and how activities occurred and when materials might arrive. This unexpected delay created additional overhead costs that the original contract did not account for, but the project required in order for the facility to be completed.
As time progressed, previously procured materials began to “age out” and require repair and
File ID: 2022-02343 1/31/2023 Consent Item 5.
replacement. Since these items (such as pressure gauges, analyzer fluid, and batteries) were necessary to test the facility, the contractor replaced the materials at the City’s direction in order for the facility to be tested and activated.
CONTRACT
ROUTING SHEET
Contract Cover/Routing Form: Must Accompany ALL Contracts; however, it is NOT part of the contract.
General Information (Required)
Original Contract # (supplements only): ________ Supplement/Addendum #: ___________________ Assessor’s Parcel Number(s): ________________________________________________________________ Contract Effective Date: _________ Contract Expiration Date (if applicable): _________ $ Amount (Not to Exceed): ______________________ Adjusted $ Amount (+/-): _____________________ Other Party: ______________________________________________________________________________ Project Title: _____________________________________________________________________________ Project #: ____________________________________ Bid/RFQ/RFP #: ___________________________ City Council Approval: if YES, Council File ID#: __________ Contract Processing Contacts
Department: ______________________________
Contract Coordinator: _______________________
Project Manager: ___________________________
______
Department Review and Routing
(Signature) (Date)
(Signature) (Date)
(Signature) (Date)
(Signature) (Date)
Special Instruction/Comments (i.e. recording requested, other agency signatures required, etc.) _______________________________________________________________________________________ ------------------FOR CLERK & IT DEPARTMENTS ONLY – DO NOT WRITE BELOW THIS LINE------------------ Sierra National Construction, Inc.
Z14005402
22 Utilities
08/09/2016
Megan Thomas
B16141321030
[email protected]
$265,613.21
Shasta Park Water Facility
2022-02343YES
Robyn Noguchi
2016-1073
$15,579,988.95