City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00225 3/28/2023 Consent Item 5.
Change Order: Combined Wastewater Treatment Plant Emergency Bypass Pipe Repair File ID: 2023-00225
Location: District 4, Represented by Councilmember Valenzuela Recommendation: Adopt a Resolution: 1) authorizing the City Manager or the City Manager’s designee to execute Change Order No. 2 to City Agreement No. 2022-0110 with Steve P. Rados, Inc. for an amount not-to-exceed $546,734.80, bringing the agreement’s total not-to-exceed amount to $3,605,268.15; 2) resetting the City Manager’s authority to issue Change Orders for the Agreement; and 3) amending the revenue and expenditures budgets in an amount not-to-exceed $650,000 in the Wastewater reimbursable fund (Fund 6206).
Contact: Tim Moresco, Project Manager, (916) 808-1432; Roxanne Dilley, Supervising Engineer, (916) 808-1458; Sherill Huun, Engineering & Water Resources Division Manager, (916) 808-1455; Department of Utilities
Presenter: None
Attachments:
1-Description/Analysis
2-Change Order
3-Resolution
Additional Description/Analysis
Issue Detail: Staff recommends Council approve Contract Change Order No. 2 with Steve P. Rados, Inc. for the City Agreement No. 2022-0110 to provide funding for various items that occurred throughout construction, including the additional rental time for the shoring, fencing, and plugging equipment between April 26, 2022 and June 24, 2022; additional coating on materials to prevent corrosion; additional dewatering, bypass, and discharge piping; and other unforeseen issues throughout the duration of the project. This change order provides for all the labor, equipment, materials, overhead, and markups for the work described above.
In addition to the proposed Change Order, the project is approaching the maximum approved budget
File ID: 2023-00225 3/28/2023 Consent Item 5.
amount and is estimated to need $650,000 transferred into the project fund to provide for anticipated change orders including additional increases in several bid items, delays due to utility conflicts, and other unforeseen changes.
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 2.19 total jobs (1.26 direct jobs and
0.93 jobs through indirect and induced activities) and create $337,573.20 in total economic output ($212,774.97 of direct output and another $124,798.23 of output through indirect and induced activities).
Environmental Considerations: This project is exempt from the California Environmental Quality Act (CEQA) under Section 15301 of the CEQA Guidelines governing existing facilities, in that it meets the definition of 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: Change Order No. 2 is needed to provide compensation for all the labor, equipment, materials, markup, surcharges, and fees associated with the various items including the additional time and materials for shoring, fencing, and plugs between April 26, 2022 and June 24, 2022; additional coating on materials to prevent corrosion, additional dewatering, bypass, and discharge piping; and other unforeseen issues throughout the duration of the project. The transfer of funds is necessary to augment the approved project budget to fund Change Order No. 2 and all other remaining project expenses due to insufficient funds in the current project budget.
Financial Considerations: The original not-to-exceed amount of the contract was $249,999.00. The net change by the previous change order in the amount of $2,808,534.35, increased the contract not- to-exceed amount to $3,058,533.35. Proposed Change Order No. 2 in the amount of $546,734.80 would increase the contract not-to-exceed amount to $3,605,268.15.
Staff recommends amending the revenue and expenditure budgets in the Combined Sewer System Capital Program (X14010000, Fund 6206) in an amount not-to-exceed $650,000. The costs incurred for this project will be reimbursed by the Sacramento Regional County Sanitation District (Regional San) as the owners of the asset.
File ID: 2023-00225 3/28/2023 Consent Item 5.
There are no General Funds allocated or planned for this project.
Local Business Enterprise (LBE): Steve P. Rados, Inc. is an LBE.
Background: In December 2021, a failure was identified at the Combined Wastewater Treatment Plant. This failed asset is owned by Regional San and is operated and maintained by the City of Sacramento Department of Utilities. City Staff reached out to Steve P. Rados, Inc. to help perform the emergency repair work required to mitigate the issue. By December 31, 2021, Steve P. Rados was able to temporarily mitigate the issue. Once mitigated, City and Regional San staff worked together to develop a complete scope of work to fully repair the issue.
On March 22, 2022, City Council authorized the City Manager to ratify Agreement C2022-0110 with Steve P. Rados, Inc. for the emergency work, and on June 28, 2022, authorized the Contract Change Order No. 1, which provided compensation to the Contractor for 2 months of equipment rentals, material costs, and the cost proposal for the complete scope of work developed by City and Regional San Staff.
This Change Order No. 2 provides compensation to the Contractor for several different items of work that occurred during the construction of the CWTP Emergency Sewer Bypass Pipe Repair. These items include two additional months of rental equipment and materials between April 26, 2022 and June 24, 2022 that were not captured in Contract Change Order No. 1, additional coating on materials to prevent corrosion, additional dewatering, bypass, and discharge piping, and other unforeseen issues throughout the duration of the project. The itemized list can be found below.
Change Order Item Total Cost
T&M Work 4/26/22 - 5/27/22 $ 25,538.12
T&M Work 5/28/22 - 6/24/22 $ 18,577.96
Coating for Backing Rings $ 10,741.00
Failed Dewatering Attempt $ 231,604.89
Repacking of the Valves $ 2,868.64
6-inch Drain Piping $ 9,120.65
Spool Modifications and Victaulic Coupling Repair $ 30,886.80 Additional Link Seals at Pipe Penetrations to Vaults $ 19,008.03 N12 Sump Discharge Piping $ 32,856.71
Groundwater Dewatering $ 125,583.05
Unforeseen Utilities $ 13,615.59
Additional Bypass - Phase 13 $ 4,092.46
Additional Modifications to Sump 55 $ 9,635.17
Structural Engineering Support $ 12,605.73
Total $ 546,734.80Page 3 of 4
File ID: 2023-00225 3/28/2023 Consent Item 5.
Change Order Item Total Cost
T&M Work 4/26/22 - 5/27/22 $ 25,538.12
T&M Work 5/28/22 - 6/24/22 $ 18,577.96
Coating for Backing Rings $ 10,741.00
Failed Dewatering Attempt $ 231,604.89
Repacking of the Valves $ 2,868.64
6-inch Drain Piping $ 9,120.65
Spool Modifications and Victaulic Coupling Repair $ 30,886.80 Additional Link Seals at Pipe Penetrations to Vaults $ 19,008.03 N12 Sump Discharge Piping $ 32,856.71
Groundwater Dewatering $ 125,583.05
Unforeseen Utilities $ 13,615.59
Additional Bypass - Phase 13 $ 4,092.46
Additional Modifications to Sump 55 $ 9,635.17
Structural Engineering Support $ 12,605.73
Total $ 546,734.80
Based on the 2014 Operating Agreement, Regional San has agreed to reimburse the City for all of the costs for the work.
CONTRACT ROUTING SHEETContract 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 ContactsDepartment: ______________________________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------------------ Steve P. Rados, Inc.X1401011202Utilities06/30/202312/27/2021Tim [email protected]$546,734.80CWTP Emergency Sewer Bypass Pipe Repair2023-00225YESRobyn Noguchi2022-0110$3,605,268.15
@BCL@F00D274C, Rev. 09/09/2020
RESOLUTION NO. 2023-
Adopted by the Sacramento City Council
April 4, 2023
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 created due to a pipe failure on critical City infrastructure that the City required emergency construction services to 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 later 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 was authorized by City Council on June 28, 2022, which provided for the labor, equipment, materials, overhead, and markup for all the work that the contractor performed that exceeded the original contract value of $249,999, as well as the cost proposals for all the remaining work required for completing the repairs. This change order was in the amount of $2,808,534.35 and increased the total contract amount to $3,605,268.15.
This Change Order No. 2 provides compensation to the Contractor for several different items of work that occurred during the construction of the CWTP Emergency Sewer Bypass Pipe Repair. These items include two additional months of rental equipment and materials between April 26, 2022 and June 24, 2022 that were not captured in Contract Change Order No. 1; additional coating on materials to prevent corrosion, additional dewatering, bypass, and discharge piping; and other unforeseen issues throughout the duration of the project. This change order is in the amount of $546,734.80 and will increase the contract not-to-exceed amount to $3,605,268.15.
B. With Change Order No. 2, the City’s approved budget of $3,850,000 will be exceeded. It is estimated that the project budget will require $650,000 in additional funds to successfully complete the project on time and consistent with City Standards, which will increase the total budget value to $4,500,000.
C. A budget augmentation of $650,000 is required to provide sufficient funds to the CWTP Emergency Sewer Bypass Pipe Repair Project to accommodate for the additional work necessary to complete this project (X14010000, Fund 6206). The costs incurred for this @BCL@F00D274C, Rev. 09/09/2020
project will be reimbursed by the Sacramento Regional County 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. 2 with Steve P. Rados, Inc, for an amount of $546,734.80.
Section 2. The City Manager or the City Manager’s designee is authorized to amend the revenue and expenditure budgets in the Combined Sewer System Capital Program (X14010000, Fund 6206) in an amount not-to-exceed $650,000.
Adopted by the City of Sacramento City Council on April 4, 2023, 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.