REPORT TO THE CITY COUNCIL FROM: SCOTT L. MOZIER, PE, Director Public Works Department BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: WILLIAM C. HERR, Assistant Director Public Works Department, Facilities and Construction Management Divisions BRADLEY OBERG, Senior Engineering Inspector Public Works Department, Construction Management Division SUBJECT ..Title Approve Contract Change Order No. 05 in the amount of $500,000 to Emmett's Excavation, Inc. for the North Avenue Sewer Trunk Main Realignment Project ID RC00177 (Council Districts 3 and 5) ..Body RECOMMENDATION Staff recommends that City Council approve Contract Change Order No. 05 with Emmett's Excavation Inc. for a total increase in Contract amount of $500,000 for the North Avenue Sewer Trunk Main Realignment Project. Change Order No. 05 provides additional funds for Bid Item 21 Supplemental Work. EXECUTIVE SUMMARY On November 21, 2021, a Contract was awarded in the amount of $6,372,238 to Emmett's Excavation, Inc. for the North Avenue Sewer Trunk Main Realignment Project. City Council approval of Contract Change Order No. 05 will allow for an additional $500,000 for Contract Bid Item 21 Supplemental Work. There are significant anticipated costs for additional work due to differing job site conditions not provided for on the Plans or Technical Specifications and other unforeseen work which the Engineer determines is necessary to allow for the work required by the plans and specifications to proceed as intended without interruption. Structural instability of the existing sewer pipe requires the main be replaced. This sewer trunk main experienced a localized structural collapse in North Avenue between Maple Avenue and the Burlington Northern Santa Fe Railway and the Union Pacific Railroad. During a routine inspection of a nearby irrigation canal, the Fresno Irrigation District discovered a large sinkhole on their property. Upon further inspection by Department of Public Utilities staff, it was discovered that the 57-inch diameter North Avenue sewer main suffered a structural failure due to the complete corrosion of the crown of the sewer trunk main from hydrogen sulfide gas. This section of the sewer trunk main must be replaced in a new alignment to divert flows away from the existing sewer pipe which has deteriorated from hydrogen sulfide gas corrosion. BACKGROUND On November 21, 2021, a Contract was awarded in the amount of $6,372,238 to Emmett's Excavation, Inc. for the North Avenue Sewer Trunk Main Realignment Project. The Notice to Proceed was issued with a starting date of March 21, 2022, and completion date of August 9, 2022. There have been four Contract Change Orders executed to date for a total amount of $633,807 and a net change of 9.9% of the original Contract Price. City Council approval of Contract Change Order No. 05 allows for an additional $500,000 for Contract Bid Item 21 Supplemental Work. There are significant anticipated costs for additional work due to differing job site conditions not provided for on the Plans or Technical Specifications and other unforeseen work which the Engineer determines is necessary to allow for the work required by the plans and specifications to proceed as intended without interruption. The existing sewer trunk main in North Avenue conveys an average of 11.5 million gallons of wastewater per day to the Fresno-Clovis Regional Wastewater Reclamation Facility. This sewer trunk main experienced a localized structural collapse in North Avenue between Maple Avenue and the Burlington Northern Santa Fe Railway and the Union Pacific Railroad. During a routine inspection of a nearby irrigation canal, the Fresno Irrigation District discovered a large sinkhole on their property. Upon further inspection by the DPU-WMD it was discovered that the 57-inch diameter North Avenue sewer main suffered a structural failure due to the complete corrosion of the crown of the sewer trunk main from hydrogen sulfide gas. Attempts were made to expose a section of main to assess the condition of the rest of the pipe, which caused further erosion of the crown of the pipe. Due to the severe lack of structural integrity of the sewer main, it was determined that rehabilitation of the pipe was not an option. An emergency, temporary, solution was taken to stabilize the point of failure and the surrounding area to allow time to contract an engineering consultant to design a viable solution for this section of sewer main. The Statewide General Waste Discharge Regulations Order No. 2006-0003-DWQ (c), requires rehabilitation and replacement of sewer pipes that are at risk of collapse or prone to more frequent blockages due to pipe defects. The severity of the condition of the North Avenue sewer trunk main calls for its immediate replacement. City Council approval of Contract Change Order No. 05 for an additional $500,000 for Contract Bid Item 21 Supplemental work is required by Resolution 2017-158 which sets the approval thresholds for contract change orders which in aggregate exceed ten percent of the original contract. The aggregate amount of all approved contract change orders is $633,807 which is 9.9% of the original Contract amount. The project is funded through Wastewater Management Division Sewer Enterprise Fund 40501. Staff recommends that City Council approve Contract Change Order No. 05 on behalf of the City of Fresno. ENVIRONMENTAL FINDINGS This is not a project for the purposes of CEQA pursuant to CEQA guidelines section 15378(b)(5), as it is an administrative action that will not result in direct or indirect changes to the environment. LOCAL PREFERENCE Local Preference was not considered because this action does not include a bid or an award of a City construction contract. FISCAL IMPACT This Contract Change Order has no impact to the General Fund. This project is funded by Wastewater Management Division's Sewer Enterprise Fund 40501. Attachment: Contract Change Order No. 05