City of Simi Valley
Staff Report
S
eptember 21, 2026
To: B
oard of Directors, Ventura County Waterworks District No. 8 Fr
om: Public Works Department,
Jay Spurgin, Interim Public Works Director
Subj
ect: Approve a $50,000 Supplemental Budget Request and authorize the District Manager to execute a Change Order in the amount of $277,572 for the Waterline Replacement Project at Various Locations in the Santa Susana Knolls, CP76300033, CP76300036, CP76300037, Specification No. SV 24-16
Sta
ff Recommendation
I
t is recommended that the Board of Directors:
1. A
pprove a Supplemental Budget Request of $50,000 in the Waterworks Fund (Fund 761) and an interfund transfer in the same amount to the Waterworks Replacement Reserve Fund ( Fund 763), allocating $50,000 to the Waterline Replacement Project at Various Locations in the Santa Susana Knolls (CP76300037), SV 24-16;
2. A
uthorize the District Manager to execute Change Order No. 1 (Attachment A) with J. Vega Engineering, Inc. (J. Vega) in the amount of $277,572, for a total contract not-to-exceed amount of $ 2,777,199, and extend the contract term by 251 calendar days, revising the contract completion date from January 27, 2026 to October 5, 2026;
3. A
uthorize the District Manager to negotiate and execute additional change orders with J. Vega, subject to approval as to form by the City Attorney, up to $ 30,614, not exceeding total contract amount of $2,807,813 to cover the cost of unforeseen project requirements reasonably related to the original project scope through the contract term.
Ba
ckground
O
n July 21, 2025, the Board of Directors awarded a contract (Attachment B) to J. Vega for the Waterline Replacement Project at various locations in the Santa Susana Knolls (Project) in the amount of $2,499,627 . The P roject includes the replacement of approximately 5,367 linear feet of aging 6-inch, 8-inch, and 12-inch water mains, as well as the installation of new valves, fire hydrants, service connections, pavement restoration, and other related improvements. This Project represents the continuation of the District's ongoing waterline replacement capital improvement program within this service area, originally developed in the 1960s . Over the past five years, the District has completed Agenda Item No.
Consent (4)
water system improvement projects annually to replace aging infrastructure, improve system reliability, and maintain regulatory compliance. The District anticipates continuing this investment over the next five years through additional capital improvement projects, with the goal of replacing approximately three miles of aging water lines to further modernize the water distribution system, enhance operational resilience, and improve service reliability.
During construction, several unforeseen utility conflicts and other field conditions were encountered, and additional project needs were identified. These conditions and needs required additional corrective work and modifications to the Project scope to address field conditions, ensure proper installation, and restore affected areas to acceptable standards.
Additional funding is required to complete the Project. Staff recommends approval of $50,000 in additional funding.
Discussion
During construction, J. Vega encountered field conditions that differed from those anticipated during the design phase. These unforeseen conditions and additional project needs require additional work to complete the Project safely and in accordance with current engineering standards.
The additional work includes:
• Repair and replacement of deteriorated and failed existing waterline facilities identified during construction, including replacement of aging wharf heads, replacement of broken valves, repair of a failing pipe section, and installation of additional piping necessary to complete connections.
• Installation of fire hydrants, fittings, valves, and appurtenances to address existing system conditions and provide additional system improvements. • Resolution of unexpected conflicts with existing utilities. • Emergency repair of a failing water main segment.
• Placement of asphalt concrete and slurry seal to restore pavement and other disturbed improvements beyond the original project limits.
Staff reviewed the additional work and determined that it is necessary to address these items to complete the Project and ensure the long-term reliability of the water distribution system. J. Vega submitted a cost proposal in the amount of $277,572 for the additional work. Staff determined that the pricing is fair and reasonable, as it is consistent with the contract unit prices and current construction costs. Approval of Change Order No. 1 will increase the total construction contract amount by approximately 11%, from $2,499,627 to $2,777,199.
The Notice to Proceed (NTP) was issued on September 9, 2025, and established an original contract completion date of January 27, 2026. Before construction began, the Project experienced schedule impacts from an agreed- upon schedule adjustment to accommodate unavoidable weather-related delays , unforeseen field conditions , and 2 longer-than-anticipated lead times for materials needed to complete the work. As a result, the District verbally approved a 128 -calendar-day extension. Construction commenced on January 15, 2026, and is approximately 95% complete, with $2,262,991 paid to date.
Change Order No. 1 incorporates a total extension of 251 calendar days, including the initial 128-calendar-day extension referenced above, establishing October 5, 2026, as the revised contract completion date. While the contractor has submitted change order proposals totaling $277,572, additional unforeseen work may be identified as construction is completed. Accordingly, additional project funding is requ ested to accommodate the approved and potential contract adjustments necessary to complete the Project.
Financial Impact
$277,572. However, only an additional $ 50,000 needs to be appropriated to the project fund to cover the total cost. Funds are available in the Waterworks Fund (Fund 761).
Board of Directors Priority
This Project supports the City’s Reliable Infrastructure Pillar of Excellence, which is the City’s commitment to maintain and upgrade roads, facilities, and technology systems to ensure safe, efficient, and resilient public services.
Suggested Motion
I move to:
1. Approve a S upplemental Budget Request of $50,000 in the Waterworks Fund (Fund 761) and an interfund transfer in the same amount to the Waterworks Replacement Reserve Fund ( Fund 763), allocating $50,000 to the Waterline Replacement Project at Various Locations in the Santa Susana Knolls (CP76300037), SV 24-16;
2. Authorize the District Manager to execute Change Order No. 1 with J. Vega in the amount of $277,572, for a total contract not-to-exceed amount of $2,777,199, and extend the contract completion date from January 27, 2026 to October 5, 2026;
3. Authorize the District Manager to negotiate and execute additional change orders with J. Vega, subject to approval as to form by the City Attorney, up to $30,614, not exceeding a total contract amount of $2,807,81 3 to cover the cost of unforeseen project requirements reasonably related to the original project scope through the contract term.
Summary
On July 21, 2025, the Board of Directors awarded a contract to J. Vega for the Project in the amount of $2,499,627. The Project includes the replacement of approximately 5,367 linear feet of aging 6-inch, 8-inch, and 12-inch water mains, as well as the installation of new valves, fire hydrants, service connections, pavement restoration, and other related improvements. During construction, unforeseen field conditions and additional project 3 needs required corrective work and modifications to the Project scope to address field conditions, ensure proper installation, and restore affected areas to acceptable standards.
Staff recommends that the Board of Directors approve a Supplemental Budget Request of $50,000 in the Waterworks Fund (Fund 761) and an interfund transfer in the same amount to the Waterworks Replacement Reserve Fund (Fund 763), allocating $50,000 to the Waterline Replacement Project at Various Locations in the Santa Susana Knolls (CP76300037), SV 24-16; and, authorize the District Manager to execute Change Order No. 1 with J. Vega in the amount of $277,572 for a total contract not to exceed amount of $2,777,199, extend the contract term by 251 calendar days, revising the contract completion date to October 5, 2026; and authorize the District Manager to negotiate and execute future change orders with J. Vega, in a form approved by the City Attorney, up to $30,614, not exceeding a total contract amount of $2,807,813 to cover the cost of unforeseen project requirements reasonably related to the original project scope through the contract term.
P
repared by: Michel Kadah, Principal Engineer
Attachments
Attachment A – Change Order No. 1
Attachment B – Contract
4 Attachment A
CHA
NGE ORDER NO. 01
WATERLINE REPLACEMENT PROJECT: VARIOUS LOCATIONS IN THE SANTA SUSANA KNOLLS SPECIFICATION NO. SV 24-16
CP76300033, CP76300036 & CP76300037
CONTRACT NO. 3250132
TO: J. V ega Engineering, Inc.
7090
Los Coyotes Place
Camarillo, CA 93012
Y
ou are hereby directed to provide the extra work necessary to comply with this Change Order.
ITEM COR
NO. DESCRIPTION OF CHANGES AMOUNT
Time
Extension
(Days)
01 01 Addition of Fire Hydrant at Sta. 26+60 to improve fire flow and reduce response times, r esulting in increased fire coverage and enhanced protection for the project area.
$17,895 0
02 01 Addition of Wharf Head at Sta. 24+20 to replace existing aging wharf head that was originally not included in the project scope of work.
$14,625 0
03 01 Hot Tap required at Sta. 37+34 as District valves were inoperable for a planned shutdown of existing waterline (Studio).
$16,337 0
04 01 Addition of Blow-Off at Sta. 37+34 to utilize existing 4” stub out as a future flushing point (Studio).
$9,500 0
05 01 Addition of Fire Hydrant at Sta. 33+25 and demo existing aging wharf head that was originally not included in the project scope of work (Studio).
$17,050 0
06 01 Additional water meters (3) which were buried (Oak Knolls), not on the original survey.
$13,695 0
07 01 Additional piping is needed to complete connections due to field changes. 6’ of 12” and 6’ of 8” (Oak Knolls).
$5,160 0
08 01 Emergency repair of unmarked existing 12” waterline (Hilltop). $15,230 0 09 01 Addition of two 6” valves and one 8” v alve (Iris), existing valves were broken. Addition of 18’ of 8” & 20’ of 6” waterline to complete connection.
$21,240 0
10 01 Addition of two 8” valves (Larkspur), existing valves were broken.
Addition of 10’ of 8” waterline to complete connection. $13,600 0
11 01 Additional waterline depth to clear existing gas utilities (Katherine).
Addition of 20’ of 8” waterline and 10’ of 6” to complete connection. $8,580 0
12 01 Addition of Asphalt Concrete, Slurry, and Pipe at Studio, including work extending beyo nd the original project limits, as required to restore and complete improvements associated with the additional work.
$71,472 0
13 01 Addition of Fire Hydrant at Sta. 54+21 (Black Canyon) to improve fire flow and reduce response times, resulting in increased fire coverage and enhanced protection for the project area.
$15,800 0
14 01 Additional emergency work to repair failing pipe section on Clear Springs Road as part of this project.
$5,359 0
15 01 Relocation of water meter services due to utility conflicts. $10,059 0 16 01 Relocation of Air/Vac – Blowoff due to access limits (Junipero). $2,650 0 5 17 01 Repair of unmarked Sewer (Junipero and El Camino), $7,000 0 18 01 Addition of asphalt paving at Oak Knolls, including work extending beyond the original project limits, as required to restore areas affected by the additional waterline work.
$8,400 0
19 01 Addition of 40 feet of rolled AC curb at Gonzales, including associated pavement restoration extending beyond the original project limits.
$3,920 0
20 01 The project experienced schedule impacts attributable to an agreed-upon adjustment to accommodate the contractor’s prior commitments, adverse weather conditions beyond the contractor’s control, and unforeseen field conditions encountered during construction. Collectively, these circumstances required additional time to resolve the associated issues and complete the associated work.
$0 251
NET CHANGE IN CONTRACT AMOUNT – INCREASE OR (DECREASE) $277,572 251 REVISED NOT-TO-EXCEED AMOUNT $2,777,199
REVISED CONTRACT END DATE October 5, 2026
ACCEPTANCE:
Contractor accepts the terms and conditions stated above as full and final settlement of any and all claims arising from this Change Order and acknowledges that the compensation (time and cost) set forth in the 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 Contractor acknowledges and agrees 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 acknowledges 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 Contractor agrees 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 shall arise out of or as a result of this Change Order or the impact of t his 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 hereby agreed to, accepted and approved, all in accordance with the General Conditions of the Contract Documents.
Attest: City of Simi Valley, A Municipal Corporation
By:
Lucy Blanco, City Clerk Samantha C. Argabrite, City Manager
Approved as to Form: J. Vega Engineering, Inc.
By:
Algeria R. Ford, City Attorney
Print Name: Juan Vega
Title: President
Approved as to Content:
By:
Print Name: Juan Vega
Title: Secretary
Johanna Medrano,
Deputy Administrative Services Director/
Budget & Purchasing
Jay Spurgin
Interim Public Works Director
6 1
PUBLIC WORKS CONTRACT
BETWEEN
THE CITY OF SIMI VALLEY AND
J. VEGA ENGINEERING, INC.
This CONTRACT is entered into this 21 st day of July, 2025, by and between the CITY OF SIMI VALLEY, a general law city a nd municipal corporation (“the City”) and J.
VEGA ENGINEERING, INC., a California Corporation (“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 two million four hundred ninety-nine thousand six hundred twenty-seven dollars ($2,499,627.00) 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 140 calendar days (the “Contract Time.”)
Attachment B
Contract No. 3250132
7 City of Simi Valley
Contract No. 3250132
J. Vega Engineering, Inc.
WATER2505.CON.MG SPEC. NO. SV 24-16
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.
8 City of Simi Valley
Contract No. 3250132
J. Vega Engineering, Inc.
WATER2505.CON.MG SPEC. NO. SV 24-16
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: Rob Herr Attention: Juan Vega
City of Simi Valley J. Vega Engineering, Inc.
2929 Tapo Canyon Road 7090 Los Coyotes Place
Simi Valley, CA 93063 Camarillo, CA 93012
(805) 583-6871 (805) 479-6563
[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.
9 City of Simi Valley
Contract No. 3250132
J. Vega Engineering, Inc.
WATER2505.CON.MG SPEC. NO. SV 24-16
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.
10 City of Simi Valley
Contract No. 3250132
J. Vega Engineering, Inc.
WATER2505.CON.MG SPEC. NO. SV 24-16
21. TIME IS OF ESSENCE. Time is of the essence for each and every provision of the Contract Documents.
[SIGNATURES ON NEXT PAGE]
11 City of Simi Valley
Contract No. 3250132
J. Vega Engineering, Inc.
WATER2505.CON.MG SPEC. NO. SV 24-16
IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written.
Attest: City of Simi Vall ey, A Municipal Corporation
B y :
Lucy Blanco, City Clerk Dee Dee Cavanaugh, Mayor of the City of Simi Valley, California
Approved as to Form: J. Vega Engineering, Inc.
B y :
Algeria R. Ford, City Attorney
Print Name: Juan Vega
Approved as to Content: Title: President
B y :
Samantha C. Argabrite, City Manager
Print Name: Juan Vega
Title: Secretary
Johanna Medrano,
Deputy Administrative Services Director/
Budget & Purchasing
Ronald K. Fuchiwaki,
Public Works Director
12