City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01725 10/21/2025
Change Order: Lavender Heights Water Main Replacement Project File ID: 2025-01725
Location: Citywide
Recommendation: Adopt a Resolution: 1) authorizing the Interim City Manager or designee to execute Change Order No. 3 to City Agreement No. 2025-0490 with Navajo Pipelines., for an amount not-to-exceed $192,558, bringing the agreement’s total not-to-exceed amount to $3,508,242.79; 2) resetting the Interim City Manager’s authority to issue Change Orders for the Agreement; and 3) approving budget transfers from the Combined Sewer System Pipe Program (X14170100, Fund 6021) in the amount of $92,092.
Contact: Julia McBride, Associate Engineer, (916) 808-1802, [email protected]; Michelle Carrey, Interim Engineering Division Manager, (916) 808-1438, [email protected]; Sherill Huun, Interim Director, [email protected], (916) 808-1455; Department of Utilities
Presenter: None
Attachments:
1-Description/Analysis
2-Contract
3-Resolution
Description/Analysis
Issue Detail: Staff recommends Council approve Change Order No. 3 with Navajo Pipelines Inc., for City Agreement No. 2025-0490 for modifications due to City-directed design changes and unforeseen conditions that extended the contract scope and costs associated with the Lavender Heights Water Main Replacement Project.
Policy Considerations: This Change Order exceeds the City Manager’s approval authority and requires Council approval per City Code 3.04.020.
Economic Impacts: This project is expected to create 0.77 total jobs (0.44 direct jobs and 0.33 jobs through indirect and induced activities) and create $118,892.05 in total economic output ($74,938.57
File ID: 2025-01725 10/21/2025
of direct output and another $43,953.48 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 project was reviewed and determined to be categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines sections 15301 and 15302. This project consists of the operation, repair and minor alteration of existing public or private facilities used to provide public utility services involving negligible expansion of use [15301(b)]; and the replacement of existing utility systems and facilities involving negligible or no expansion of capacity [15302(c)].
Sustainability: The project is consistent with the 2040 General Plan PFS-4 as its purpose is to ensure a reliable supply of high-quality water that meets projected needs within the City’s place of use. Proactive maintenance of utility systems ensure built capacity matches need and that improvements accommodate new development. This project also improves the sustainability, resilience, and reliability of water infrastructure.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: On 09/04/2025, a Request for Proposal (RFP) was advertised on PlanetBids for the Lavendar Heights Water Main Project. The City received 2 proposals from Navajo Pipelines and Lund Construction. The firms were rated and scored out of 100 total points based on their experience, performance, disputes and resolutions, schedule, project closeout and LBE certification. Navajo Pipelines was selected to provide the requested services after the following ranking:
Ranking Consultant
1 Navajo Pipelines
2 Lund Construction
The Lavender Heights Water Main Replacement Project was awarded and issued the Notice to Proceed in May 2025. Due to the site’s location and the age of the existing infrastructure, the project encountered numerous unforeseen utility conflicts, variable site conditions, and required several in- field design modifications. Additionally, beneficial operation and maintenance (O&M) changes and Public Works restoration changes were requested to maximize infrastructure upgrades within the project area.
File ID: 2025-01725 10/21/2025
Change Order No. 3 includes updated line-item quantities needed to complete the water main and combined sewer main, along with changes requested by O&M staff.
Financial Considerations: The original not-to-exceed amount of the contract was $3,106,640. The net change by previous change orders in the amount of $209,044.79, increased the contract not-to- exceed amount to $3,315,684.79. Proposed Change Order No. 3 in the amount of $192,558.00 would increase the contract not-to-exceed amount to $3,508,242.79. Sufficient funding exists in the Distribution Maintenance Rehabilitation Program (Z14130400, Fund 6005) and Combined Sewer System Pipe Program (X14170100, Fund 6021) to fund this request.
Local Business Enterprise (LBE): Pursuant to City Code 3.60.270, Navajo Pipelines Inc. is a Local Business Enterprise.
Background: The City of Sacramento has an ongoing need to expand and upgrade water infrastructure in the Central City Corridor by replacing aging cast iron water mains that have extended past their useful life. The existing 6-inch diameter cast iron water mains in the Lavender Heights area of Midtown, Sacramento (part of the Central City Corridor) cannot provide sufficient water flow to meet future customer demands or required fire flow. The Project aimed to expand and upgrade water infrastructure, help create a more gridded/looped distribution system to move water more efficiently through the system, improve water quality, and increase fire safety.
The Lavender Heights Water Main Replacement Project was awarded on April 24, 2025 to Navajo Pipelines, Inc in the amount of $3,106,640.00.
After the original award for construction, due to the site’s location and the age of the existing infrastructure, the project encountered numerous unforeseen utility conflicts, variable site conditions, and required several in-field design modifications. Additionally, beneficial operations and maintenance (O&M) changes and Public Works restoration changes were requested to maximize infrastructure upgrades within the project area. The most significant changes include the removal and replacement of five fire hydrants, and additional asphalt paving and concrete restoration per new Public Works 13-4 requirements.
SACAMENTO CONTRACT Office of the Cpty Clerk
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): 2025-0490 Supplement/Addendum #: 03 Assessor's Parcel Number(s):
Contract Effective Date: Contract Expiration Date (if applicable):
$ Amount (Not to Exceed): $3,508,242.79
Other Party: Navajo Pipelines, Inc
Project Title: Lavender Heights Water Main Project
Project #: Z14130404
Adjusted $ Amount (+/-): $192,558.00
Bid/RFQ/RFP #: P24141322041
City Council Approval: YES if YES, Council File ID#: 2025-01725 Contract Processing Contacts
Department: Utilities Project Manager: Julia McBride
Contract Coordinator: Jamie McKinley Email: [email protected] Department Review and Routing
Construction Mgmt:
Supervisor:
Division Manager:
Other:
(Signature) (Date)
Sep 29, 2025
igna re (Date)
0ct 1, 2025
(Signature)
"".0_40 Sep 23, 2025
(Date)
Sep 24, 2025 Oct 3, 2025
Fiscal: O&M: Director of Utilities:
Special Instruction/Comments (i.e. recording requested, other agency signatures required, etc.) Recording Requested Other Party Signature Required
FOR CLERK & IT DEPARTMENTS ONLY- DO NOT WRIT r THIS LINE )2025 - 0490 - 03 (i"
CC Rev. 12.19.2018
TM
Sep 25, 2025
Project Manager — Julia McBride
Approved By:
Seett5d,a, 0,1 (scp ')(05 I, Dr;
Date Michael Voss, Senior Deputy City Attorney
Approved By:
Oct 6, 2025 Sep 23, 2025 (
Contract #2025-0490-03
CITY OF SACRAMENTO
CHANGE ORDER
Contract # & Date: C2025-0490 04/25/2025 Budget #: 472011-50000-6006-51000000-Z14130404-401 472011-50000-6005-51000000-Z14130404-401
Purchase Order #: 0000080168 Change Order No: 3
Sacramento, California September 23, 2025
TO: Navajo Pipelines, Inc. , Contractor
P24141322041
CONTRACT FOR: LAVENDER HEIGHTS WATER MAIN PROJECT (P24141322041) 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: $ 3,106,640.00
Net change by previous change orders: $ 209,044.79
The contract sum prior to this change order was: $ 3,315,684.79 The contract sum will be increased by this C.O: $ 192,558.00 New contract sum including all Change Orders: 3,508,242.79 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 by 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. 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:
Afte,Sri,de- Sep 23, 2025 711e:ciaai 1/e4¢4, Oct 2, 2025 Contractor — Scott Silva Date Ryan Moore, Assistant City Manager Approved By:
Oct 7, 2025
Date
Mindy Cuppy — City Clerk
CITY OF SACRAMENTO
CHANGE ORDER
EXHIBIT A
Contract # & Date: C2025-0490 04/25/2025 Budget #: 472011-50000-6006-51000000-Z14130404-401 472011-50000-6005-51000000-Z14130404-401
Purchase Order #: 0000080168 Change Order No: 3
Increased Bid Quantity Items:
1)
ITEM
NO.
This change order increases the quantities as follows:
ITEM DESCRIPTION UNIT UNIT PRICE QUANTITY
CHANGE
AMOUNT
CHANGED
Abandon 6-Inch Water Main and Remove Existing
8 LF $550.00
Valves, Tees, and Saddles
4 $2,200
Reconnect Existing Services (1-inch & 2-inch) to
13 EA $1,900
New Water Main
2 $3,800
Construct and Install New Fire Hydrant and
14 1 $15,000
Assembly
5 $75,000
8-inch Pipe to Remove, 10-inch Combined Sewer
18 LF $290
Pipe to Place
15 $4,350
24 Sewer Service to Replace/Reinstate EA $4,000 2 $8,000 25 CCTV Inspection LF $20 15 $300
6-Inch Portland Concrete Cement Alley — Score
30 SF $38
Mark 4-foot Width Replacement
2241 $85,158
Tota I $178,808
(Database Code: Owner Requested Change,
Unforeseen Site Condition) Total Increased Bid Quantity Items: $178,808 NOTE: Above increases and decreases in the specified Bid Item unit quantities reconcile the original contract quantities with the actual unit quantities measured in the field. These payments constitute full and complete compensation for the above work and no additional compensation shall be provided.
Other Change Order Items:
2) PCO 26, Fire Hydrant Removal: In accordance with City of Sacramento Standard Specification Section 4-
6 "Extra Work", the Contractor was directed to remove five existing fire hydrants and replace them with new hydrants. The costs associated with this fire hydrant removal work include all materials, equipment and all associated labor. Compensation of $13,750 was determined using a time and materials analysis and includes all mark-ups, profits, surcharges, taxes, and overhead costs. Zero (0) additional workdays will be added to the contract for this work.
(Database Code: Owner Requested Change) Total This Item: $ 13,750 Total This Change Order: $ 192,558.00
Exhibit A, Page 1 of 1
@BCL@28158791, Rev. 09/09/2020
RESOLUTION NO. 2025-
Adopted by the Sacramento City Council
October 21, 2025
Lavender Heights Water Main Project
BACKGROUND
A. Navajo Pipelines, Inc. was awarded construction services for the Lavender Heights Water Main Project by City Agreement No. 2025-0490.
B. A Resolution is needed to transfer Wastewater Engineering costs related to the combined sewer main efforts. Due to the site’s location and the age of the existing infrastructure, the sewer main encountered unforeseen utility conflicts, variable site conditions, and required several in-field design modifications.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Manager or designee is authorized to execute Change Order No. 3 to City Agreement No. 2025-0490 with Navajo Pipelines.
Section 2. The City Manager’s authority to issue Change Orders for the Agreement is reset.
Section 3. The City Manager or designee is authorized to approve budget transfers from the Wastewater Base CIP Contingency (X14170100, Fund 6021) in the amount of $ $92,092.
Adopted by the City of Sacramento City Council on October 21, 2025, 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.