City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01355 7/29/2025
Contract: Florin Pump Station Heat Exchangers
File ID: 2025-01355
Location: District 6
Recommendation: Pass a Motion authorizing the Interim City Manager or designee to: 1) execute Supplemental Agreement No. 01 to amend, extend, and increase City Agreement PRC002149 with TNT Industrial Contractors, Inc. for the emergency replacement of heat exchange systems for the Florin Reservoir Pump Station Pumps by $900,000, bringing the total not to exceed amount to $1,700,000; and 2) reset the Interim City Manager’s administrative authority to issue supplemental agreements in accordance with City Code Chapter 3.56.
Contact: Steven Swain, Project Manager, [email protected], (916) 808-4059; Michelle Carrey, Engineering & Water Resources Interim Division Manager, [email protected], (916) 808-1438; Sherill Huun, Interim Director, [email protected], (916) 808-1455; Department of Utilities Presenter: None
Attachments:
1-Description/Analysis
2-Supplemental Agreement
Additional Description/Analysis
Issue Detail: In February 2023, the Department of Utilities (DOU) issued an emergency contract to TNT Industrial Contractors, Inc. (TNT) to procure and install replacement heat exchange systems for all three natural gas engines at the Florin Reservoir Pump Station for an amount not to exceed $800,000.
Due to delays associated with receiving required approvals from State regulating agencies, identification of capable equipment manufacturers, as well as longer than anticipated procurement lead times, the project is not yet complete. Although the current contract timeline with TNT has lapsed, the emergency situation remains ongoing. The pump station is operating at a reduced capacity, creating an emergency operational scenario due to the lack of redundancy at this facility.
File ID: 2025-01355 7/29/2025
Original timelines and cost estimates for this project were based on the best known variables at the time of the emergency. Because this emergency contract included both design and construction, the estimated cost for project completion was adjusted as design was finalized and real quotes for materials and construction were received.
As Florin Reservoir Pump Station is a critical part of the City’s water distribution system, it is in the City’s best interest to extend the timeline of the contract with TNT to December 31, 2027, and increase the NTE from $800,000 to $1,700,000.
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 project is expected to create 3.20 total jobs (1.84 direct jobs and 1.36 jobs through indirect and induced activities) and create $493,948 in total economic output ($311,3239.20 of direct output and another $182,608.80 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: The subject projects were reviewed and determined to be categorically exempt from the California Environmental Quality Act (CEQA). The projects include replacing existing heat exchange systems involving negligible expansion of capacity [CEQA Guidelines Section 15302 (c)].
Sustainability: The proposed contract is consistent with the 2040 General Plan’s goals and policies related to public facilities and safety, including providing reliable water, wastewater, and stormwater drainage service to the City of Sacramento: (PFS-3.1). The proper maintenance of water, wastewater, and storm drainage infrastructure and treatment plants supports this goal.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The Florin Reservoir Pump Station is an integral part of the water distribution system, almost as important as the treatment plants themselves. Without pump redundancy, failures in the pumps could result in the inability to adequately pressurize the City’s water distribution system.
File ID: 2025-01355 7/29/2025
An emergency situation arose at the Florin Reservoir Pump Station in January 2023, when pump 3 experienced a failure. At that point, pump 1 had already been removed from service due to a coolant system failure, and pump 2 was operating on reduced load because of a similar issue. With pump 3 offline, the facility was left without a fully functional pump, putting the City's drinking water supply at risk. DOU issued an emergency contract to expedite the replacement of the heat exchange systems for all three pumps and restore critical operations at the facility.
A supplement to this emergency contract with TNT is necessary to ratify prior and ongoing work and expenses required to return the pumps to normal operating status as quickly as possible.
Financial Considerations: The total estimated cost for the project is $1,700,000. Sufficient funds exist in the Reservoir Rehab Program (Z14130500, Fund 6005) in the amount of $900,000 to execute the agreement.
There are no General Funds allocated or planned for this project.
Local Business Enterprise (LBE): TNT Industrial Contractors, Inc is an LBE.
Background: In September 2022, DOU staff at the Florin Reservoir Pump Station identified a coolant leak in the heat exchange system for pump number 1. After disassembly of the system, it was confirmed that there was a crack failure in the coolant jacket, causing the leak. The existing heat exchange system, originally installed in 2002, does not conform to NSF-61 standards, and therefore cannot be repaired and reinstalled, according to California regulations regarding drinking water.
Therefore, pump number 1 was removed from service, and DOU staff began design of a replacement heat exchange system. DOU approached HydroScience Engineers, Inc. (HydroScience) for assistance with design of these systems.
In November 2022, a leak of the intermediate coolant fluid was identified in the heat exchange system for pump number 2. This leak indicates a similar failure in the heat exchange system of pump number 1 has occurred and would require a similar replacement. Although this failure did not require pump 2 to be removed from service, the pump was placed on a stand-by status to reduce the possibility of worsening the failure. Furthermore, this failure further indicated that a failure in the heat exchange system for the last pump, pump number 3, is likely to occur, and replacement of that unit is warranted.
On January 8, 2023, a failure occurred within the control system of pump number 3. With pump 1 out of service and pump 2 operating on a reduced load, the lack of pump redundancy and criticality of the pump station in the drinking water system warranted issuing an emergency contract to replace the heat exchange units on an expedited timeline. DOU contracted with TNT to expedite procurement and installation of replacement heat exchange systems for all three engines.