City of Simi Valley
Staff Report
June 22, 2026
To: City Council
From: Public Works Department
Ron Fuchiwaki, Public Works Director
Subject: Authorization to accept a $1,684,000 Community G rant from the Environmental Protection Agency for the Sinaloa-Royal-Long Canyon Sewer Line Rehabilitation Project, CP702000 35, Specification No. SV 23 -34, and award a contract to V ortex Services, LLC dba Sancon Technologies for construction
Staff Recommendation
It is recommended that the City Council:
1. Authorize the acceptance of a $1,684,000 Community G rant from the Environmental Protection Agency (EPA) for the Sinaloa-Royal-Long Canyon Sewer Line Rehabilitation Project, CP70200035, Specification No. SV 23- 34 (Project), and authorize the City Manager or Designee to execute all grant-related forms and documents; and,
2. Award a contract ( Attachment A ) to Vortex Services, LLC dba Sancon Technologies (Sancon) in the amount of $3,002,985 to construct the Project, and authorize the City Manager or Designee to execute any contract amendments.
Background
In April 2022, the City submitted a request to the Office of Congresswoman Julia Brownley for EPA Community Grant funding for the Easy-Arroyo Simi Sewer Rehabilitation Project, CP70200019. On March 7, 2023, the City received confirmation that $1,684,000 in grant funding had been approved, and on May 15, 2023, the City Council authorized acceptance of the grant funding for the project. However, during the grant application process, the EPA later determined that the project was no longer eligible because construction was anticipated to be completed prior to the official grant award. Staff subsequently coordinated with the EPA to identify an eligible replacement project and is now recommending acceptance of the grant funding for the Sinaloa-Royal-Long Canyon Sewer Line Rehabilitation Project, CP70200035, Specification No. SV 23-34.
The Project proposes to rehabilitate approximately 9,340 linear feet of 12-inch to 24-inch diameter sewer lines, using a cured-in-place pipe (CIPP) lining system. The existing sewer lines are asbestos cement pipe (ACP) and are over 50 years old. Sewer video assessments revealed that ACP segments within the project area are severely corroded and in need of rehabilitation. The Project includes sewer segments on First Street, Royal Avenue, and Sinaloa Road terminating at Los Angeles Avenue. A Location Map showing the project area is included in Attachment B.
Agenda Item No.
Consent (5)
Discussion
On March 31, 2026, the City solicited bids for the Project. A notice inviting bids was published in the Ventura County Star and posted on the City’s website. P lans and specifications were made available at the Public Works counter and sent to plan rooms and contractors. Four (4) firms requested to be placed on the plan holder’s list.
On April 28, 2026, three (3) bids were received, with the following results:
CONTRACTOR BID
Vortex Services, LLC dba Sancon Technologies – Huntington Beach, CA $3,002,985 Southwest Pipeline and Trenchless Corp. – Torrance, CA $3,081,901 Insituform Technologies, LLC – Chesterfield, MO $3,928,743
The Engineer’s construction estimate for the Project is $2,105,000 , which is much lower than the lowest responsive bid. The reason for this difference is the higher costs of labor and materials compared to when it was initially assessed. Staff reviewed and evaluated the bids and determined that the low bid, submitted by Sancon, is responsive. Sancon is a responsible bidder with the proper license and has a history of successfully completing projects for the City. The Project has an 180-calendar-day schedule, with work expected to take place from August 2026 through January 2027.
Financial Impact
The cost of the Project is $3,002,985 and was included in the FY 2025-26 Adopted Budget for the Sinaloa- Royal-Long Canyon Sewer Line Rehabilitation Project, CP70200035, Specification No. SV 23-34. The City is expected to receive reimbursement in the amount of $1,684,000 through the EPA Community Grant program to partially offset project costs.
No additional appropriation is required.
City Council Priority
This project supports the Reliable Infrastructure Pillar of Excellence.
Suggested Motion
I move to:
1. Authorize the acceptance of a $1,684,000 Community Grant from the EPA for the Sinaloa-Royal-Long Canyon Sewer Line Rehabilitation Project, CP70200035, Specification No. SV 23- 34, and authorize the City Manager or Designee to execute all grant-related documents; and,
2. A ward a contract to Sancon in the amount of $3,002,985 to construct the Project , and authorize the City Manager or Designee to execute any contract amendments.
2 Summary
In 2022, the City applied for EPA Community Grant funding for the Easy -Arroyo Simi Sewer Rehabilitation Project, CP70200019, and subsequently received approval for $1,684,000 in grant funding. Although the City Council authorized acceptance of the grant on May 15, 2023, the EPA later determined the project was no longer eligible because construction was anticipated to be completed prior to the official grant award. Staff coordinated with the EPA to identify the Sinaloa- Royal-Long Canyon Sewer Line Rehabilitation Project, CP70200035, Specification No. SV 23- 34, as a replacement eligible project. The Project will rehabilitate approximately 9,340 linear feet of aging and deteriorated sewer lines using a cured-in-place pipe lining system. It is recommended that the City Council authorize the acceptance of $1,684,000 from the EPA Community Grant program for the Sinaloa- Royal-Long Canyon Sewer Line Rehabilitation Project, CP70200035, Specification No. SV 23- 34, authorize the City Manager or Designee to execute all grant-related documents, and a ward a contract to Sancon in the amount of $3,002,985 to construct the Project.
Prepared by: Jamshed Yazdani, Senior Engineer
Attachments
Attachment A – Contract
Attachment B – Location Map
3 Attachment A
Contract No. 3260159
1 PUBLIC WORKS CONTRACT
BETWEEN
THE CITY OF SIMI VALLEY AND
VORTEX SERVICES LLC DBA SANCON TECHNOLOGIES
This CONTRACT is entered into this 22nd day of June 2026, by and between the CITY OF SIMI VALLEY , a general law city and municipal corporation (“the City”) and VORTEX SERVICES LLC DBA SANCON TECHNOLOGIES , a Texas limited liability company (“the 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 $3,002,985type number numerical for the Work in the manner set forth in the Contract 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.”)
4 City of Simi Valley
Contract No. 3260159
Vortex Services LLC dba Sancon Technologies
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 Contractor 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.
5 City of Simi Valley
Contract No. 3260159
Vortex Services LLC dba Sancon Technologies
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 under 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: Jamshed Yazdani Attention: Ryan Helmuth
City of Simi Valley Vortex Services LLC dba Sancon
Technologies
2929 Tapo Canyon Road 5841 Engineer Drive
Simi Valley, CA 93063 Huntington Beach, CA 92649
(805) 583-6833 (714) 412-3448
[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, notic es 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.
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Contract No. 3260159
Vortex Services LLC dba Sancon Technologies
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 determined 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 unenforceable, then such portion will be deemed modified to the extent necessary in the opinion of the court to render such portion enforceable an d, 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. ELECTRONIC SIGNATURES. This Contract may be executed by the Parties on any number of separate counterparts, and all such counterparts so executed constitute one agreement binding on all the Parties notwithstanding that all the Parties are not signatories to the same counterpart. In accordance with Government Code §16.5, 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 considered signed when the signature of a party is delivered by electronic transmission. Such electronic signature will be treated in all respects as having the same effect as an original signature.
7 City of Simi Valley
Contract No. 3260159
Vortex Services LLC dba Sancon Technologies
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.
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
By:
Lucy Blanco, City Clerk Dee Dee Cavanaugh, Mayor of the City of Simi Valley, California
Approved as to Form: Vortex Services LLC dba Sancon
Technologies
By:
Algeria R. Ford, City Attorney
Print Name: Ryan Helmuth
Approved as to Content: Title: Regional Vice President
By:
Samantha C. Argabrite, City Manager
Print Name: Mark Weber
Title: Senior Project Manager
Johanna Medrano,
Deputy Administrative Services Director/
Budget & Purchasing
Ronald K. Fuchiwaki,
Public Works Director
8 SINALOA-ROYAL-LONG CYN
LOCATION MAP
FIRST ST
FITZGERALD AVE
SINALOA RD
NEWMAN ST
ARCANE ST
CATLIN ST
E HARPER ST
E LOS ANGELES AVE
FIRST ST
FIFTH ST
VENTURA AVE
WILLOWBROOK LNROYAL AVE
Attachment B
9