City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-02047 1/7/2025 Consent Item 15.
Change Order: 5th Street Sinkhole Repair Project
File ID: 2024-02047
Location: District 4, Represented by Councilmember Pluckebaum 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. 2024-0966 with Steve P. Rados, Inc., for an amount not-to-exceed $774,049.78, bringing the agreement’s total not-to-exceed amount to $1,064,609.52; 2) approving the budget transfer of $622,000 from the Wastewater available fund balance (Fund 6006) to the Combined Sewer Pipe Program (X14170100, Fund 6006); and 3) resetting the City Manager’s authority to issue Change Orders for the Agreement.
Contact: Kyle Beltran, Project Manager, (916) 808-3828, [email protected]; Roxanne Dilley, Supervising Engineer, (916) 808-1458, [email protected]; Sherill Huun, Engineering & Water Resources Division Manager, (916) 808-1455, [email protected]; Pravani Vandeyar, Director, (916)-808-3765, [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. 2 with Steve P. Rados, Inc. for the City Agreement No. 2024-0966, to compensate the Contractor for performing emergency repairs required to mitigate the sinkholes and underground voids found at the intersection of 5 th
Street and Crate Avenue that rendered the roadway unsafe for vehicle traffic during the time period between June 1, 2024, and September 30, 2024. This work includes, but is not limited to the emergency exploration, dewatering, traffic control, excavation, shoring, bracing, and removing and replacing the damaged piping and manholes associated with the sinkhole. The total cost of this work is $774,049.78, which was determined using the City Standard Specification 8-10, “Payment by Cost and Percentage” and includes all labor, equipment, materials, overhead, and markups for the work
File ID: 2024-02047 1/7/2025 Consent Item 15.
described above.
In addition, this proposed change order amount will exceed the maximum approved budget for this project and is estimated to need $622,000 transferred from the Wastewater available fund balance (Fund 6006) into the Combined Sewer System Pipe Program (X14170100, Fund 6006) to provide for this change order and additional staff time needed to close out the project.
Policy Considerations: This Change Order exceeds the City Manager’s approval authority and requires Council approval according to City Policy 3.04.020.
Economic Impacts: This Change Order is expected to create 3.10 total jobs (1.78 direct jobs and
1.32 jobs through indirect and induced activities) and create $477,925.43 in total economic output ($301,240.05 of direct output and another $176,685.38 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 was determined exempt from the California Environmental Quality Act (CEQA) under Class 1, Section 15301(d) 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 change order work is consistent with the 2040 General Plan PFS-3.12 as it aims to ensure that public utilities are designed to be safe and compatible with adjacent uses.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: On June 10, 2024, the City executed the City Agreement C2024- 0966 with Steve P. Rados, Inc. for the emergency construction services for the 5 th Street Sinkhole
Repair Project under City Code Section 3.04.010, which allows for 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. This project consists of emergency repair work required to mitigate several sinkholes and underground voids found at the intersection of 5th Street and Crate Avenue that have posed health and safety hazards to the public.
File ID: 2024-02047 1/7/2025 Consent Item 15.
Change Order No. 2 is needed to provide compensation for all the labor, equipment, markup, surcharges, and fees associated with the construction work performed between June 1, 2024, and September 30, 2024, for the emergency repairs of the sinkholes and underground voids, which created risks for the health, safety, and wellbeing of the public. This value exceeds the approval authority of $250,000 for change orders that were set in City Agreement No. 2024-0966.
Financial Considerations: The original not-to-exceed amount of the contract was $249,999.00. The net change by previous change orders in the amount of $40,560.74, increased the contract not-to- exceed amount to $290,559.74. Proposed Change Order No. 2 in the amount of $774,049.78 would increase the contract not-to-exceed amount to $1,064,609.52.
The total estimated cost for this project is $1,372,000, which includes all city staff time, contractor expenses, and all other purchase orders as identified below:
Name Purchase
Order
Expenditures
to Date
Estimated
Remaining
Expenses
Total
United Rentals Northwest Inc. 75138 $1,561.65 $0.00 $1,561.65 HDR Construction Control
Corporation
76606 $53,002.65 $18,997.35 $72,000.00
Twining, Inc. 77092 $3,456.00 $6,544.00 $10,000.00
Steve P Rados, Inc. 77322 $237,499.05 $827,110.47 $1,064,609.52 Herc Rentals, Inc. 75214 $0.00 $2,276.93 $2,276.93
S&H Consultants, LLC 74206 $1,943.66 $741.51 $2,685.17
Subtotal $297,463.01 $855,670.26 $1,153,133.2
7 City Staff Time $209,318.92 $9,500.00 $218,818.92
Total $506,781.93 $865,170.26 $1,371,952.1
9 The existing project budget is $750,750. With Change Order No. 2, the existing budget will be exceeded. It is anticipated that this project will require an additional $622,000 to fund this change order and the remaining staff time needed to close out the project. Staff recommends transferring $622,000 from the Wastewater available fund balance (Fund 6006) to the Combined Sewer System Pipe Program (X14170100, Fund 6006).
There are no General Funds allocated or planned for this project.
Local Business Enterprise (LBE): LBE requirements are suspended for contracts that are emergency in nature, however, Steve P. Rados, Inc. qualifies as an LBE.
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RESOLUTION NO. 2024-
Adopted by the Sacramento City Council
January 7, 2024
Contract Change Order: 5th Street Sinkhole Repair
BACKGROUND
A. On June 10, 2024, the City executed the City Agreement C2024-0966 with Steve P.
Rados, Inc. for the emergency construction services for the 5th Street Sinkhole Repair Project under City Code Section 3.04.010, which allows for 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.
This project consists of emergency repair work required to mitigate several sinkholes and underground voids found at the intersection of 5th Street and Crate Avenue that have posed health and safety hazards to the public. This work includes, but is not limited to the emergency exploration, dewatering, traffic control, excavation, shoring, bracing, and removing and replacing the damaged piping and manholes associated with the sinkhole. Change Order No. 2 will compensate the Contractor for all work performed between June 1, 2024, and September 30, 2024, that was required to remediate the issue and return the sewer main and roadway to City standards.
B. With this change order, the current project budget will be exceeded. Based on the contractor invoices for the months of May 2024 through September 2024, the total estimated project budget will be $1,372,000 which accounts for the construction contract, construction contingency, inspection, and staff time.
C. A budget augmentation of $622,000 is required to provide sufficient funds to the 5th Street Sinkhole Repair Project to accommodate all the work necessary to complete the project (X14170100, Fund 6006). These funds will be provided by Wastewater Fund Balance (Fund 6006) in the amount of $622,000.
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 the Contract Change Order No. 2 with Steve P. Rados, Inc. for an amount not–to- exceed $774,049.78.
@BCL@A4106613, Rev. 09/09/2020
Section 2. The City Manager or the City Manager’s designee is authorized to transfer $622,000 from the Wastewater Fund Balance (Fund 6006) to the Combined Collection System R&R Program (X14170100, Fund 6006).
Section 3. The City Manager’s authority to issue change orders for the Agreement is reset.
Adopted by the City of Sacramento City Council on January 7, 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.