City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01109 6/11/2024 Consent Item 11.
Change Order: Rio City Café Sewer Replacement
File ID: 2024-01109
Location: District 4, Represented by Councilmember Valenzuela Recommendation: Adopt a Resolution: 1) authorizing the City Manager or City Manager’s designee to execute Change Order No. 1 to City Agreement No. C2024-0714 with Florez Paving for an amount not-to-exceed $448,500, bringing the agreement’s total not-to-exceed amount to $692,000; and 2) approving a budget transfer of $375,000 from the Arts and Creative Economy Program (I17609000, Fund 1003) to the Sewer Repairs Program (X14120300, Fund 1003).
Contact: Tim Moresco, Project Manager, [email protected], (916) 808-1432; Roxanne Dilley, Supervising Engineer, [email protected], (916) 808-1458; Sherill Huun, Engineering & Water Resources Division Manager, [email protected], (916) 808-1455; Pravani Vandeyar, Director, [email protected], (916) 808-3765; Department of Utilities
Presenter: None
Attachments:
1-Description/Analysis
2-Contract Change Order No. 1
3-Resolution
Description/Analysis
Issue Detail: Staff recommends Council authorize the City Manager, or City Manager’s designee to execute Change Order No. 1 to City Agreement No. C2024-0714 with Florez Paving for $448,500, to replace 230 linear feet of 8-inch sewer and 60 linear feet of 6-inch sewer, located adjacent to Rio City Café, with a new 6-inch sewer pipe by means of pipe bursting. Pipe bursting is a trenchless operation that minimizes the amount of excavation necessary to replace the pipe, which is desired in this situation due to the highly specialized stamped concrete that is located along the boardwalk of Old Sacramento. This change order will bring the total not-to-exceed contract amount to $692,000.
Additionally, this sewer main is owned by the City of Sacramento and only provides service for the Rio City Café, which operates out of a building owned by the City of Sacramento and leased to Rio
File ID: 2024-01109 6/11/2024 Consent Item 11.
City Café. The condition of the sewer main was severe enough that the Department of Utilities (DOU) required that Rio City Café temporarily shut down operations until the sewer main could be repaired.
DOU staff have had discussions with the Department of Convention and Cultural Services (CCS), who manage the lease with Rio City Cafe, regarding the responsibility of costs associated with the sewer repair. The total project estimate is roughly $925,000. It has been determined that DOU will provide funding for $320,000 out of the Sewer Repair Program (X14120300, Fund 6006) and CCS and the Office of Innovation and Economic Development (OIED) will collectively provide the remaining $605,000, and therefore a budget transfer is necessary to fund this change order and project.
Policy Considerations: This action is consistent with City Code Section 3.60.070, which requires the City Manager to present a report to Council describing the emergency, the actions taken, and the emergency contracts that were executed.
Economic Impacts: This change order is expected to create 1.79 total jobs (1.03 direct jobs and
0.76 jobs through indirect and induced activities) and create $276,919.60 in total economic output ($174,544.54 of direct output and another $102,375.06 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: 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 2040 General Plan (
https://www.cityofsacramento.org/Community-Development/Resources/Online-Library/2035-- General-Plan) as it meets Goal PFS-3.1, “Provision of Adequate Utilities” because this project will improves infrastructure reliability, by providing a new sewer pipe that is more resistant to corrosion from sewer gases.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Change Order No. 1 is needed to provide compensation to Florez Paving for the labor, equipment, markups, surcharges, and fees associated with the work to perform the pipe bursting of the 6- and 8-inch sewer mains along the Boardwalk of Old Sacramento in front of
File ID: 2024-01109 6/11/2024 Consent Item 11.
Rio City Café. The value of Change Order No. 1 exceeds the approval authority for change orders.
Financial Considerations: The original contract not-to-exceed amount was $243,500. Proposed Change Order No. 1, in the amount of $448,500, would increase the contract not-to-exceed amount to $692,000. With the total project estimated to cost $925,000, a budget transfer is needed to provide sufficient funding for the project. Staff is recommending a budget transfer from the Arts and Creative Economy Program (I17609000, Fund 1003) to the Sewer Repairs Program (X14120300, Fund 1003) in the amount of $375,000 that will provide sufficient budget to complete the project.
There are no General Funds allocated or planned for this project.
Local Business Enterprise (LBE): Florez Paving is an LBE.
Background: On March 4, 2024, while performing maintenance on the sewer main, City Staff found that the main was in extremely poor condition, as the bottom of the pipe had completely deteriorated and was missing, leaving the sewer pipe to directly exfiltrate into the surrounding soil. This sewer pipe is owned by the City of Sacramento and only provides service for the Rio City Café building, which is owned by the City of Sacramento and leased to Rio City Café. Utilities staff monitored the situation daily for several weeks until April 10, 2024, when it was determined that Rio City Café should no longer operate until the sewer main can be repaired. That same day, City staff delivered a letter to Rio City Café to temporarily close as of 11:59 p.m. on April 12, 2024, until the sewer main is repaired.
In March of 2020, under a separate contract, Florez Paving performed pipe bursting operations on the sewer main just downstream of the main currently to be replaced. Due to their familiarity with the location and capabilities to perform similar work, the City reached out to them to perform the emergency replacement of the sewer main in front of Rio City Café. On March 27, 2024, Florez met City Staff in the field to go over the proposed scope of work and provided a cost to perform the work the next day on March 28, 2024. On April 11, 2024, it was determined that this situation should now be considered an emergency and Florez Paving was provided the notice to proceed to perform the sewer repair work through emergency contracting procedures as outlined in Section 3.60.070 of the City Code.
CITY OF SACRAMENTO
CHANGE ORDER
Contract # & Date: 2024-0714 5/8/24 Budget #: 472011-50000-6006-51000000-X14120307 Purchase Order #: Change Order No: 001
Sacramento, California June 11, 2024
TO: Florez Paving, Contractor
CONTRACT FOR: Pocket Road Emergency Sewer Improvements
Upon mutual acceptance of this document by the City of Sacramento, hereinafter referred to as "CITY", and your firm, hereinafter referred to as "CONTRACTOR", in accordance with the terms and conditions of the original contract documents, you are hereby directed to make the following change or changes for the consideration set forth below:
Description: See Exhibit A, attached and incorporated herein.
The original contract sum was: $ 243,500.00
Net change by previous change orders: $ 0.00
The contract sum prior to this change order was: $ 243,500.00 The contract sum will be increased by this Change Order: $ 448,500.00 New contract sum including all Change Orders: $ 692,000.00 CONTRACTOR agrees that the amount of increase or decrease in the contract sum specified in this change order shall constitute full compensation for the work required by this change order, including but not limited to all compensation for the additional and /or revised work specified herein, and shall fully compensate CONTRACTOR for any and all direct and indirect costs that may be incurred b y CONTRACTOR in connection with such additional and/or revised work, including any changes, disruptions or delays in work schedules or in the performance or other work by CONTRACTOR. The time for performance of the Contract will not be extended by reason of the performance of the work required by this Change Order. Except as herein above expressly provided, CONTRACTOR further agrees that the performance of the work specified in this Change Order or the rescheduling of other project work made necessary by this Change Order, shall not constitute a delay which will extend the time limit for completion of the work as said term is used in the Contract between CITY and CONTRACTOR for the project.
Approval Recommended By: Approved as to Form by:
___________________________________________ _____________________________________________ Project Manager – Tim Moresco Date Michael Voss, Senior Deputy City Attorney Approved By: Approved By:
___________________________________________ _____________________________________________ Contractor –Florez Paving Date Ryan Moore, Assistant City Manager, Department of Utilities Approved By:
_____________________________________________
Mindy Cuppy – City Clerk Date
Exhibit A, Page 1 of 1
CITY OF SACRAMENTO
CHANGE ORDER
EXHIBIT A
Contract # & Date: 2024-0714 5/8/24 Budget #: 472011-50000-6006-51000000-X14120307 Purchase Order #: Change Order No: 001
Change Order Items:
1. Remainder of Cost Proposal for Sewer Improvements – On March 28, 2024, Florez Paving submitted a cost proposal to perform the work associated with the replacement of the sewer main located under the boardwalk in front of Rio City Café. The initial preparatory work and first push were captured in the original contract for $243,500. This change order includes the work to perform pipe bursting for an additional 230 linear foot segment, remove and replace the two (2) existing sewer services, install one manhole, and replace all of the existing concrete. All work shall be performed per the City Standard Specifications and Standard Details. Total compensation for this will be $448,500, which includes all labor, equipment, materials, overhead, and markup for performing this work. There will be no additional working days added to the contract’s time of performance by means of the work performed in this change order. The items and quantities for this work will be paid with the schedule of values below:
(Database Code: Owner Requested Change) Total This Item: $448,500.00 Total This Change Order: $448,500.00
Item Description Quantity Unit Unit P rice T otal
1 Manhole R eplacement 1 LS 35,000.00 $ 35,000.00 $
2 C oncrete R estoration 1 LS 25,000.00 $ 25,000.00 $
3 R econnection of S ewer lines 1 LS 26,000.00 $ 26,000.00 $ 4 6" P ipe B urst/P ush 230 LF 1,576.09 $ 362,500.00 $ @BCL@141786D7, Rev. 09/09/2020
RESOLUTION NO. 2024-
Adopted by the Sacramento City Council
June 11, 2024
Change Order: Rio City Café Sewer Replacement
BACKGROUND
A. On March 4, 2024, City staff performed routine maintenance on the sewer main located in front of Rio City Café in Old Sacramento and through inspection of the main determined that it was in extremely poor condition, with the bottom of the pipe being completely deteriorated, leaving the pipe vulnerable to exfiltration into the surrounding soil. The sewer main only provides sewer service to the Rio City Café building, which is owned by the City of Sacramento and leased to Rio City Café. Utilities staff monitored the situation daily for several weeks until April 10, 2024, when it was determined that Rio City Café should no longer operate until the sewer main can be repaired. That same day, City staff delivered a letter to Rio City Café to temporarily close as of 11:59 p.m. on April 12, 2024, until the sewer main is repaired.
B. In March of 2020, under a separate contract, Florez Paving performed pipe bursting operations on the sewer main just downstream of the main currently to be replaced.
Due to their familiarity with the location and capabilities to perform similar work, the City reached out to them to perform the emergency replacement of the sewer main in front of Rio City Café. On March 27, 2024, Florez met City Staff in the field to go over the proposed scope of work and provided a cost to perform the work the next day on March 28, 2024. On April 11, 2024, it was determined that this situation should now be considered an emergency and Florez Paving was provided the notice to proceed to perform the sewer repair work through emergency contracting procedures as outlined in Section 3.60.070 of the City Code.
C. Per City Code 3.60.70, the City Manager is authorized to negotiate and contract up to $250,000 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. Due to the environmental and safety concerns caused by deteriorated pipe and the need to temporarily shut down Rio City Café, the City needed a contractor to respond immediately. Therefore, City staff entered into an agreement with Florez Paving, City Agreement C2024-0714, for a contract not to exceed $243,500 to perform the initial prep work and the pipe bursting of the first stretch of 65 linear feet of pipe.
D. The repair was anticipated to exceed the original contract value of $243,500, which was planned to be paid for through a contract change order. The total amount for this @BCL@141786D7, Rev. 09/09/2020
contract is expected to be $692,000, which $448,500 will be paid through a contract change order #1.
E. Contract Change Order #1 for Rio City Sewer Replacement for a total of $448,500 will cover all remaining labor, equipment, materials, overhead, and markup for all the work necessary to complete the emergency sewer repair at Rio City Café that was not covered in the original agreement, including additional pipe bursting, sewer service restoration, and concrete surface restoration.
F. A budget augmentation of $375,000 is required to provide sufficient funds to the Rio City Café Sewer Replacement Project (X14120300).
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 #1 to the emergency agreement with Florez Paving to perform all the work necessary for the Project for a total amount not-to-exceed $692,000.
Section 2. The City Manager or the City Manager’s designee is authorized to transfer $375,000 from the Arts and Creative Economy Program (I17609000, Fund 1003) to the Sewer Repairs Program (X14120300, Fund 1003).
Adopted by the City of Sacramento City Council on June 11, 2024, 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.