City of Simi Valley
Staff Report
J
une 8, 2026
To: Cit
y Council
Fr
om: Public Works Department
Ron Fuchiwaki, Public Works Director
S
ubject: Approve a Supplemental Budget Request and authorize the City Manager to execute a Change Order for the Repair and Rehabilitation of Four (4) Concrete Structures Project at the Water Quality Control Plant, CP975240, CP70200059, CP70200060, Specification No. SV 25-29
Sta
ff Recommendation
I
t is recommended that the City Council:
1. A
pprove a Supplemental Budget Request (SBR) of $300,000 in the Sanitation Fund (Fund 700) and an interfund transfer in the same amount to the Sanitation Replacement Reserve Fund ( Fund 702), allocating $ 100,000 to the Concrete Structural Repairs Project (CP975240), $ 100,000 to the East BNR Tank Repair Project (CP70200059), and $100,000 to the Primary Clarifier Rehabilitation Project (CP70200060), SV 25-29, at the City’s Water Quality Control Plant (WQCP);
2. A
uthorize the City Manager to execute Change Order No. 4 (Attachment A) with GSE Construction Company, Inc. (GSE) by $135,184 for a total contract amount not to exceed $1,624,125;
3. A
uthorize the City Manager to negotiate and execute future change orders with GSE, in a form approved by the City Attorney, up to $164,816, not exceeding a total contract amount of $ 1,788,941, to cover the cost of unforeseen project requirements reasonably related to the original project scope through the contract term.
Ba
ckground
O
n October 6, 2025, the City Council awarded a contract (Attachment B) to GSE to complete the Repair and Rehabilitation of Four (4) Concrete Structures Project (Project) at the Water Quality Control Plant (WQCP). The Project involves repairing various tank components, i ncluding walls, walkways, guardrails, and support beams , that are in deteriorating condition. During construction, several tank components were discovered to be in significantly worse condition than originally expected. Due to decades of exposure to corrosive environments, items such as piping systems and walkway bridges were found to be too deteriorated for reuse.
A
dditional funding is required to complete the Project. Staff recommends approval of $300,000 in additional funding.
Agenda I
tem No.
Consent (7)
Future project phases will address tanks built in 1963 and 1965. Based on current findings, staff anticipates that equipment associated with those tanks will also be in poor condition once removed. Additional damaged equipment is also expected during upcoming work on the primary tanks, the primary tank roof, and the grease tank.
Discussion
The Project consists of structural repairs and the installation of a shade canopy at the WQCP. These improvements are intended to reduce the risk of tank and equipment failure, improve worker safety, and ensure the reliable future operation of the Plant.
Since construction began, three change orders have been executed to address project needs identified during the course of the work. On November 6, 2025, Change Order No. 1 extended the contract duration by 61 calendar days, establishing a revised completion date of July 4, 2026, to accommodate additional administrative processing and design submittal review requirements. On May 5, 2026, Change Order No. 2 increased the contract amount by $103, 247, resulting in a revised not -to-exceed contract amount of $1,480,947, for additional structural calculations and replacement of the pipe manifold on the biological nutrient removal (BNR) tanks No. 1 and No. 2. On May 28, 2026, Change Order No. 3 increased the contract amount by $7,994, resulting in a revised not-to-exceed contract amount of $1,488,941, for the installation of strut supports for electrical conduits.
The contractor has submitted additional change order proposals totaling $ 135,184, with additional unforeseen work potentially identified as construction progresses. The contract is currently 35% complete, with $482,195 paid to date. Although the cost increases are substantial, the additional work is necessary to extend the facility’s service life, improve employee safety, and protect essential process equipment from harsh corrosive conditions. To accommodate the unforeseen work and contract adjustments, additional funding is required. It is anticipated that the work will be completed by October 1, 2026.
Financial Impact
$300,000. Funds are available in the Sanitation Fund (Fund 700) to cover the cost.
City Council Priority
This Project supports the Reliable Infrastructure Pillar of Excellence.
Suggested Motion
I move to:
1. Approve a S upplemental Budget Request of $ 300,000 in the Sanitation Fund (Fund 700) and an interfund transfer in the same amount to the Sanitation Replacement Reserve Fund ( Fund 702), allocating $ 100,000 to the Concrete Structural Repairs Project (CP975240), $ 100,000 to the East BNR Tank Repair Project (CP70200059), and $100,000 to the Primary Clarifier Rehabilitation Project (CP70200060), SV 25-29, at the City’s Water Quality Control Plant (WQCP);
2 2. Authorize the City Manager to execute Change Order No. 4 with GSE by $135,184 for a total project amount not to exceed $1,624,125;
3. Authorize the City Manager to negotiate and execute future change orders with GSE, in a form approved by the City Attorney, up to $164,816, not exceeding a total contract amount of $ 1,788,941 to cover the cost of unforeseen project requirements through the contract term.
Summary
On October 6, 2025, the City Council awarded a contract to GSE to complete the Project at the WQCP. The Project involves repairing various tank components , including walls, walkways, guardrails, and support beams , that are in deteriorating condition. During construction, several tank components were discovered to be in significantly worse condition than originally expected. Due to decades of exposure to corrosive environments, items such as piping systems and walkway bridges were found to be too deteriorated for reuse.
Staff recommends that the City Council approve a SBR of $ 300,000 in the Sanitation Fund (Fund 700) and an interfund transfer in the same amount to the Sanitation Replacement Reserve Fund (702), allocating $100,000 to the Concrete Structural Repairs Project (CP975240), $100,000 to the East BNR Tank Repair Project (CP70200059), and $100,000 to the Primary Clarifier Rehabilitation Project (CP70200060), SV 25- 29, at the City’s Water Quality Control Plant (WQCP); and, authorize the City Manager to execute Change Order No. 4 with GSE by $ 135,184 for a total contract amount not to exceed $1,624,125; and, authorize the City Manager to negotiate and execute future change orders with GSE, in a form approved by the City Attorney, up to $164,816, not exceeding a total contract amount of $ 1,788,941, for unforeseen project requirements reasonably related to the original project scope, to cover the cost of unforeseen project requirements through the contract term.
Prepared by: John Hamilton, Principal Engineer
Attachments:
Attachment A – Change Order No. 4
Attachment B – Contract
3 Attachment A
CHANGE ORDER NO. 04
REPAIR AND REHABILITATION OF FOUR (4) CONCRETE STRUCTURES AT THE WQCP CP975240, CP70200059, CP70200060
SPECIFICATION NO. SV 25-29
CONTRACT NO. 3260042
TO: GSE Construction Company, Inc.
7633 Southfront Rd., Ste. 160
Livermore, CA 94551
You are hereby directed to comply with this Change Order.
ITEM CE NO. DESCRIPTION OF CHANGES AMOUNT
Time
Extension
(Days)
01 03 REPLACEMENT OF THREE BRIDGES BETWEEN
BNR TANKS $135,184 0
NET CHANGE IN CONTRACT AMOUNT-INCREASE OR
(DECREASE) $135,184 0
REVISED NOT-TO-EXCEED AMOUNT $1,616,131
REVISED CONTRACT END DATE JULY 04, 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.
Contractor agrees to perform the above-described work in accordance with the above terms and in compliance with applicable Sections of the Contract Documents.
This Change Order is agreed to, accepted, and approved by the Parties, all in accordance with the General Conditions of the Contract Documents.
Time extension in calendar days.
SIGNATURES ON NEXT PAGE
4 General
Attest: City of Simi Valley, A Municipal Corporation
By:
Lucy Blanco, City Clerk Samantha C. Argabrite, City Manager
Approved as to Form: GSE Construction Company, Inc.
By:
Algeria R. Ford, City Attorney
Print Name: Dennis Gutierrez
Title: President
Approved as to Content:
By:
Print Name: Iris Sosa
Title: Secretary
Johanna Medrano,
Deputy Administrative Services Director/
Budget & Purchasing
Ronald K. Fuchiwaki
Public Works Director
5 1
PUBLIC WORKS CONTRACT
BETWEEN
THE CITY OF SIMI VALLEY AND
GSE CONSTRUCTION COMPANY, INC.
This CONTRACT is entered into this 6th day of October, 2025, by and between the CITY OF SIMI VALLEY, a general law city and municipal corporation (“ City”) and GSE CONSTRUCTION COMPANY, INC., a California S Corporation (“Contractor”).
1. WORK.
A. The Contractor will provide all work required by the Contract Documents (the “Work”). The Contractor agrees to do additional work arising from changes ordered by the City in accordance with the Contract Documents.
B. The Contractor and the City agree to abide by the terms and conditions contained in the Contract Documents;
C. The Contractor will furnish all of the labor; supplies and materials; equipment; printing; vehicles; transportation; office space and facilities; all tests, testing and analyses; and all matters whatsoever (except as otherwise expressly specified to be furnished by the City) needed to perform and complete the Work and provide the services required of the Contractor by the Contract Documents.
D. “Contract Documents” means the Notice Inviting Bids; Instructions to Bidders; Supplementary Instructions to Bidders; Proposal; this Contract; Standard Specifications; Supplementary Conditions; Exhibits; Technical Specifications; List of Drawings; Drawings; Addenda; Notice to Proceed; Change Orders; Notice of Completion; and all other documents identified in the Contract Documents which together form the contract between the City and the Contractor for the Work. The Contract Documents constitute the complete agreement between the City and the Contractor and supersede any previous agreements or understandings.
2. CONTRACT SUM. The City agrees to pay the Contractor a sum not to exceed one million three hundred seventy- seven thousand seven hundred dollars ($1,377,700) for the Work in the manner set forth in the Cont ract Documents. The City may adjust this amount as set forth in the Contract Documents.
3. TIME FOR PERFORMANCE.
A. The Contractor will fully complete the Work within 180 calendar days (the “Contract Time.”)
Attachment B
Contract No. 3260042
6 City of Simi Valley
Contract No. 3260042
GSE Construction Company, Inc.
SAN2509.CON.MG SPEC NO. SV 25-29
B. The Contract Time will commence when the City issues a notice to proceed.
The Contract Documents will supersede any conflicting provisions included on the notice to proceed issued pursuant to this Contract.
C. The Contractor may not perform any Work until:
i. The Contractor furnishes proof of insurance as required by the Contract Documents; and
ii. The City gives the Contractor a written, signed, and numbered purchase order and notice to proceed.
D. By signing this Contract, the Contractor represents to the City that the Contract Time is reasonable for completion of the Work and that the Contractor will complete the Work within the Contract Time.
E. Should the Contractor begin the Work before receiving written authorization to proceed, any such Work is at the Contractor’s own cost and risk.
4. DISPUTES. Disputes arising from this contract will be determined in accordance with the Contract Documents and Public Contracts Code §§ 10240-10240.13.
5. THIRD PARTY CLAIMS. In accordance with Public Contracts Code § 9201, the City will promptly inform the Contra ctor regarding third- party claims against the Contractor, but in no event later than ten (10) business days after the City receives such claims. Such notification will be in writing and forwarded in accordance with the “Notice” section of the Contract Documents. As more specifically detailed in the Contract Documents, the Contractor agrees to indemnify and defend the City against any third-party claim.
6. TAXPAYER IDENTIFICATION NUMBER. The Contractor will provide the City with a Taxpayer Identification Number.
7. PERMITS AND LICENSES . Unless otherwise provided, the Contractor, at its sole expense, will obtain and maintain during the Contract Time, all necessary permits, licenses, and certificates that may be required in connection with the Work.
8. OWNERSHIP OF DOCUMENTS. All documents, data, studies, drawings, maps, models, photographs and reports prepared by the Contractor under the Contract Documents are the City’s property. The Contractor may retain copies of said documents and materials as desired, but will deliver all original materials to the City upon the City’s written notice.
7 City of Simi Valley
Contract No. 3260042
GSE Construction Company, Inc.
SAN2509.CON.MG SPEC NO. SV 25-29
9. INDEMNIFICATION. The Contractor agrees to indemnify, defend, and hold the City harmless as set forth in the Contract Documents. The requirements as to the types and limits of insurance coverage to be maintained by the Contractor as required by the Contract Documents, and any approval of such insurance by the City, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Contractor pursuant to the Contract Documents, including, without limitation, to the provisions concerning indemnification.
10. INDEPENDENT CONTRACTOR. The City and the Contractor agree that the Contractor will act as an independent contractor and will have control of all work and the manner in which is it performed. The Contractor will be free to contract for similar service to be performed for other employers while under contract with the City. The Contractor is not an agent or employee of the City and is not entitled to participate in any pension plan, insurance, bonus or similar benefits the City provides for its employees. Any provision in this Contract that may appear to give the City the right to direct the Contractor as to the details of doing the work or to exercise a measure of control over the work means that the Contractor will follow the direction of the City as to end results of the work only.
11. AUDIT OF RECORDS. The Contractor will maintain full and accurate records with respect to all services and matters covered u nder this Contract. The City will have free access at all reasonable times to such records, and the right to examine and audit the same and to make transcript therefrom, and to inspect all program data, documents, proceedings and activities. The Contractor will retain such financial and program service records for at least three (3) years after termination or final payment under the Contract Documents.
12. NOTICES. All communications to either party by the other party will be deemed made when received by such party at its respective name and address as follows:
The City The Contractor
Attention: John Hamilton Attention: Dennis Gutierrez
City of Simi Valley GSE Construction Company, Inc.
2929 Tapo Canyon Road 7633 Southfront Road, Suite 160
Simi Valley, CA 93063 Livermore, CA 94551
(805) 583-6809 (925) 447-0292
[email protected] [email protected]
Any such written communications by mail will be conclusively deemed to have been received by the addressee three (3) days after deposit thereof in the United States Mail, postage prepaid and properly addressed as noted above. In all other instances, notices will be deemed given at the time of actual delivery. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph.
8 City of Simi Valley
Contract No. 3260042
GSE Construction Company, Inc.
SAN2509.CON.MG SPEC NO. SV 25-29
13. NO THIRD PARTY BENEFICIARY . This Contract and every provision herein is for the exclusive benefit of the Contractor and the City and not for the benefit of any other party. There will be no incidental or other beneficiaries of any of the Contractor’s or the City’s obligations under this Contract.
14. INTERPRETATION. This Contract was drafted in, and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this Contract will be in Ventura County.
15. EFFECT OF CONFLICT. In the event of any conflict, inconsistency, or incongruity between any provision of the Contract Documents, precedence will be as follows:
A. This Contract;
B. The Standard Specifications; and
C. Precedence of documents as determ ined in the Standard Specifications.
16. SEVERABILITY. If any portion of the Contract Documents are declared by a court of competent jurisdiction to be invalid or un enforceable, then such portion will be deemed modified to the extent necessary in the opinion of the court to render such portion enforceable and, as so modified, such portion and the balance of this Contract will continue in full force and effect.
17. AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Contract and to engage in the actions described herein. This Contract may be modified by written amendment. The City’s City Manager, or designee, may execute any such amendment on the City’s behalf.
18. ACCEPTANCE OF FACSIMILE SIGNATURES. The Parties agree that this Contract, agreements ancillary to this Contract, and related documents to be entered into in connection with this Contract will be consider ed signed when the signature of a party is delivered by facsimile transmission. Such facsimile signature will be treated in all respects as having the same effect as an original signature.
19. COVENANTS AND CONDITIONS. The parties agree that all of the provisions hereof will be construed as both covenants and conditions, the same as if the words importing such covenants and conditions had been used in each separate paragraph.
20. CAPTIONS. The captions of the paragraphs of this Contract are for convenience of reference only and will not affect the interpretation of this Contract.
9 City of Simi Valley
Contract No. 3260042
GSE Construction Company, Inc.
SAN2509.CON.MG SPEC NO. SV 25-29
21. TIME IS OF ESSENCE. Time is of the essence for each and every provision of the Contract Documents.
IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written.
Attest: City of Simi Valley, A Municipal Corporation
B y :
Lucy Blanco, City Clerk Dee Dee Cavanaugh, Mayor of the City of Simi Valley, California
Approved as to Form: GSE Construction Company, Inc.
B y :
Algeria R. Ford, City Attorney
Print Name: Dennis Gutierrez
Approved as to Content: Title: President
B y :
Samantha C. Argabrite, City Manager
Print Name: Iris Sosa
Title: Secretary
Johanna Medrano,
Deputy Administrative Services Director/
Budget & Purchasing
Ronald K. Fuchiwaki,
Public Works Director
10