SAN2502.SR.DD
C
ITY OF SIMI VALLEY
MEMORANDUM
M
arch 10, 2025
T
O: City Council
F
ROM: Department of Public Works
S
UBJECT: CONSIDERATION AND POSSIBLE ACTION TO AMEND THE BUDGET
FOR THE DIGESTER MIXER AND SECONDARY CLARIFIER REMOVAL
AND INSTALLATION PROJECT (CP70200055 & CP70200056, SV 24-28)
STAFF RECOMMENDATION
I
t is recommended that the City Council:
1. A
pprove a S upplemental Budget Request (SBR) of $2,000,000 in the Sanitation Fund (Fund 700) and an interfund transfer in the same amount to the Sanitation Replacement Reserve Fund (702), a llocating $1,745,200 to the Digester Mixer Project (CP70200055) and $254,800 to the Secondary Clarifier Removal and Installation Project (CP70200056), SV 24-28, at the City’s Water Quality Control Plant (WQCP);
2. A
uthorize the City Manager to execute Change Order No. 3 (Attachment A, page 4) with GSE Construction Company, Inc. (GSE) by $872,768 for a total project amount not to exceed $7,248,744 and add 25 calendar days to extend the contract end date to April 22, 2026; and,
3. Aut
horize the City Manager to negotiate and execute future change orders with GSE, in a form approved by the City Attorney, up to $1,127,232, not exceeding a total contract amount of $8,375,976 to cover the cost of unforeseen project requirements through the contract term.
BACKGROUND AND OVERVIEW
On
July 22, 2024, the City Council awarded a contract to GSE Construction to complete the Digester Mixer and Secondary Clarifier Removal and Installation Project (“Project”).
The Project includes demolishing the existing digester lance mixing systems and installing new low-energy mechanical digester mixers ; demolishing existing secondary clarifiers , and installing new ones; refurbishing and coating internal digester tank s; installing new digester valves and piping; and installing a new corrosion-resistant pipeline to replace the existing failing pipeline. This will complete work started under the Energy Savings Company (ESCO) project that concluded in September 2024. $6,330,000 was available in the FY 2024-25 Capital Improvement Project budget for the work.
A
dditional funding is required to complete the Project. The Director recommends approval of $2,000,000 in additional funding.
AGENDA ITEM NO.
Consent (5)
SAN2502.SR.DD
FINDINGS AND ALTERNATIVES
The Project completes work started with the $38,598,999 ESCO project under Schneider Electric at the WQCP in 2017. The ESCO project constituted the design and construction of new systems for energy efficiency and equipment rehabilitation at the WQCP. On November 6, 2023, the City Council authorized the City Manager to renegotiate and execute a change order to the original ESCO contract. The change order deducted $7,938,449 and reduced the scope of work from the project.
The Project will further refurbish and modernize equipment installed at the WQCP in the 1970s and 1980s.
During recent construction, additional unforeseen conditions ( due to corrosive environments encountered at the site ) were discovered in WQCP Digester 4 ( built in 1986) and Secondary Clarifier 1 (built in 1972). Digester Tank 4’s inner piping, expansion joint seals, port frame, and valves were found to require replacement after it was determined they were irreparably damaged due to corrosion. Additionally, the Secondary Clarifier 1 subsurface 8-inch, 18-inch, and 36-inch piping used for its operation requires rehabilitation and replacement to repair holes and to extend and replace damaged pipes.
A previously un documented underground drainage channel was found that flooded the clarifier foundation excavation. Since more damaged equipment/material is anticipated in this corrosive environment, it is recommended that the City Council appropriate additional funds to complete the work.
GSE provided three change order proposals for $ 872,768; additional proposals are expected. The contract is currently 35% complete, with $1.7 million paid to date. An additional $2,000,000 is required to address the recently discovered defects. The cost of the contract changes are necessary to ensure the desired facility lifetime by protecting existing and new process equipment from the existing corrosive environments.
The following alternatives are available to the City Council:
1. Approve a Supplemental Budget Request of $2,000,000 in the Sanitation Fund (Fund 700) and an interfund transfer in the same amount to the Sanitation Replacement Reserve Fund (702), allocating $1,745,200 to the Digester Mixer Project (CP70200055) and $254,800 to the Secondary Clarifier Removal and Installation Project (CP70200056), SV 24- 28, at the City’s Water Quality Control Plant (WQCP);
2. Authorize the City Manager, or her designee, to execute C hange Order No. 3 (Attachment A) with GSE Construction Company, Inc. (GSE) by $ 872,768 for a total project amount not to exceed $7,248,744 and add 25 calendar days to extend the contract end date to April 22, 2026;
3. Authorize the City Manager, or her designee, to negotiate and execute future change orders with GSE, in a form approved by the City Attorney, up to $1,127,232, not exceeding a total contract amount of $8,375,976 to cover the cost of unforeseen project requirements through the contract term;
4. Authorize the City Manager, or her designee, to take such additional, related action that may be necessary to complete the project;
2 SAN2502.SR.DD
5. Do not approve the S upplemental Budget Request or change order and provide staff with other direction.
Staff recommends Alternative Nos. 1, 2, 3, and 4.
SUGGESTED BOARD MOTION
I move to approve a supplemental budget request of $2,000,000 in the Sanitation Fund (Fund 700) and an interfund transfer in the same amount to the Sanitation Replacement Reserve Fund (702) to add $1,745,200 to the Digester Mixer Project (CP70200055) and $254,800 to the Secondary Clarifier Removal and Installation Project (CP70200056) ; authorize the City Manager, or her designee, to execute Change Order No. 3 with GSE Construction Company, Inc. by $872,768 for a total project amount not to exceed $7,248,744 and add 25 calendar days to extend the contract end date to April 22, 2026; authorize the City Manager, or her designee, to negotiate and execute future change orders with GSE, in a form approved by the City Attorney, up to $1,127,232, not exceeding a total contract amount of $8,375,976 for unforeseen project requirements through the contract term; and authorize the City Manager, or her designee, to take such additional, related, action that may be necessary to complete the project.
SUMMARY
On July 22, 2024, the City Council awarded a contract to GSE for the Digester Mixer and Secondary Clarifier Removal and Installations Project at the City’s WQCP for $6,327,000.
Staff is seeking additional funding of $2,000,000 for unforeseen repair work required to complete the project and maintain the essential ongoing operation of the WQCP’s Digester and Secondary Clarifier . Staff recommends that the City Council a pprove a Supplemental Budget Request to provide an additional $2,000,000 in the Sanitation Fund (Fund 700) and an interfund transfer in the same amount to the Sanitation Replacement Reserve Fund (702), in the Sewer Replacement Reserve Fund (702), to add $1,745,200 to the Digester Mixer Project (CP70200055) and $254,800 to the Secondary Clarifier Removal and Installation Project (CP70200056), authorize the City Manager to execute change order no. 3 by $872,768 for a total project amount not to exceed $7,248,744 and add 25 calendar days to extend the contract end date to April 22, 2026, and authorize the City Manager to negotiate and execute future change orders with GSE , in a form approved by the City Attorney, up to $ 1,127,232, not exceeding a total contract amount of $8,375,976 for unforeseen project requirements through the contract term.
________________________________
Ronald K. Fuchiwaki
Public Works Director
Prepared by: John Hamilton, Principal Engineer
INDEX Page
Attachment A – Change Order No. 3................................................ 4 3 General
CHANGE ORDER No. 03
Digester Mixer and Secondary Clarifier Removal and Installation CIP No. CP70200055 & CP702000056
Contract No. 3250013
TO: G SE Construction Company, Inc
7633 Southfront Rd. Ste 160,
Liv
ermore, CA 94551
You are h
ereby directed to comply with this Change Order.
ITEM CE
NO. DESCRIPTION OF CHANGES AMOUNT
Time
Extension
(Days)
01 05 DIGESTER NO. 4 EXTERIORE ROOF JOINT SEALANT
TO GAS AND WATER SEAL ROOF $25,987 0
02 08 INSTALL NEW ROOF PORT REINFORCEMENT FOR
ANAERGIA MIXERS FOR DIGESTERS 3 & 4. $158,688 0
03 09 DIGESTER NO. 4 MANWAY AND SLUDGE PIPE
REPLACEMENT $221,091 0
04 11 MOTOR CONTROL CENTER WIRING MODIFICATION $5,952 0 05 12
VIDEO OF THREE PIPES 8”, 18” AND 36” IN
SECONDARY CLARIFIER 1 TO DETERMINE METHOD
AND SCOPE OF WORK FOR REHAB OF PIPES.
$3,252 0
06 13
T&M TO MITIGATE WATER FLOW AND STABILIZE
SOIL IN SECONDARY CLARIFIER 1 EXCAVATION
AREA FROM UNFORESEEN GRAVEL DRAIN
$150,869 25
07 14 DIGESTER NO. 3 & 4 ADDITIONAL PIPE, VALVES,
FITTINGS, AND PARTS OMMITTED FROM PLAN $150,432 0
08 17 DIGESTER NO. 3 & 4 UNFORSEEN VALVES
REQUIRING REPLACEMENT $46,599 0
09 18 MIXER MANUFACTURER START-UP AND
COMMISSIONING $35,021 0
10 22 CLARIFIER 1 AND 2 LAUNDER ELEVATION
ADJUSTMENT $56,967 0
11 21 DIGESTER FLOOR PRESSURE GROUTING FOR
STOPPING GROUNDWATER LEAKS $17,910 0
NET CHANGE IN CONTRACT AMOUNT-INCREASE OR
(DECREASE) $872,768 25
REVISED NOT-TO-EXCEED AMOUNT $7,248,744
REVISED CONTRACT END DATE APRIL 22, 2026
ACCEPTANCE:
The Parties accept the terms and conditions stated above as full and final settlement of any and all claims arising from this Change Order and acknowledge that the compensation (time and cost) set forth in this Change Order comprises the total compensation due for the Work or change defined in the Change Order, including all impact on any unchanged Work. By signing the Change Order, the Parties acknowledge and agree that the stipulated compensation includes payment for all Work contained in the Change Order, plus all payment for the interruption of schedules, extended overhead costs, delay, and all impact, ripple effect or cumulative impact on all other Work under this Contract. The signing of the Change Order by the Parties acknowledges their full mutual accord and satisfaction for the change, and that the time and/or cost under the Change Order constitute the total equitable adjustment owed the Contractor as a result of the change. The Parties agree to waive all rights, without exception or reservation of any kind whatsoever, to file any further claim or request for equitable adjustment of any type, for any reasonably foreseeable cause that may arise out of or as a result of this Change Order or the impact of this Change Order on the remainder of the Work under this contract.
Cont
ractor agrees to perform the above-described work in accordance with the above terms and in compliance with applicable Sections of the Contract Documents.
Thi
s Change Order is agreed to, accepted, and approved by the Parties, all in accordance with the General Conditions of the
ATTACHMENT A
4 General
CITY OF SIMI VALLEY DEPARTMENT OF PUBLIC WORKS CONTRACTOR: GSE Construction, Inc
__________________________________ ________________________________ John Hamilton Date Arcelio Aguilar Date Project Manager, Principal Engineer Project Manager
___________________________________
Ronald K. Fuchiwaki Date
Director of Public Works
___________________________________
Samantha C. Argabrite Date
City Manager
___________________________________
Dee Dee Cavanaugh Date
Mayor of the City of Simi Valley, California
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