REPORT TO THE CITY COUNCIL FROM: NICHOLAS D. MASCIA, PE, Assistant City Manager Interim Capital Projects Director PAUL AMICO, PE, Director Department of Public Utilities BY: CASSIE L. SCHOLZ, PE, Assistant Director Capital Projects Department, Utilities Project Management Division SARAH AGUILA, Project Manager Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Approve Contract Change Order No. 3 with A. Teichert & Son, Inc. dba Teichert Construction in the amount of $300,000.00, increasing the total contract amount to $9,203,232.93 for the North Avenue Sewer Trunk Main Realignment from west of Golden State Boulevard to Maple Avenue (Bid File 12500312) (Council District 3 and 5) ..Body RECOMMENDATION Staff recommends that the City Council approve Contract Change Order No. 3 with A. Teichert & Son, Inc. dba Teichert Construction in the amount of $300,000.00, increasing the total contract amount to $9,203,232.93 for the North Avenue Sewer Trunk Main Realignment from west of Golden State Boulevard to Maple Avenue, and authorize the Capital Projects Department Director or designee to sign Contract Change Order No. 3 on behalf of the City. EXECUTIVE SUMMARY On May 22, 2025, a contract was awarded in the amount of $8,738,800 to Teichert Construction for the North Avenue Sewer Trunk Main Realignment from west of Golden State Boulevard to Maple Avenue (Project). Due to an increase in railroad-related Project costs, the Capital Projects Department recommends approval of Contract Change Order No. 3 in the amount of $300,000.00. This increase will result in a revised contract total of $9,203,232.93. Funding for this Contract Change Order is included in the Fiscal Year 2027 Capital Improvement Budget within the Wastewater Management Division Operating Fund. BACKGROUND On February 24, 2019, the North Avenue sewer trunk main experienced a localized structural collapse in the proximity of Union Pacific Railroad (UPRR) and Burlington Northern Santa Fe Railway (BNSF) facilities, approximately 0.2 miles west of Maple Avenue. Since this initial collapse, multiple temporary repairs have been executed to stabilize the sewer main until the permanent replacement could be constructed. On May 22, 2025, a contract was awarded in the amount of $8,738,800 to Teichert Construction, for the permanent realignment and construction of a 66-inch diameter sewer main. The contractor's Notice to Proceed was issued with a start date of January 26, 2026, and a contract completion date of October 16, 2026. Bid Item 17 was revised during the bidding period to include both railroad flagging and inspection costs while retaining the original $400,000 allowance. Both UPRR and BNSF required continuous 24-hour flagging, inspection, and Form B protection during portions of the railroad work. The level and duration of coverage required by the railroads resulted in actual costs exceeding the original allowance. The majority of the required flagging, inspection, and Form B coverage has been completed; however, additional funding is included for remaining railroad support and final invoice reconciliation. This Contract Change Order will provide the funding necessary to complete the railroad-related work associated with the Project. City Council approval of Contract Change Order No. 3 is required by Resolution 2017-158, which sets the approval thresholds for individual Contract Change Orders based on both compensation and time. City Council approval is required for Contract Change Orders which exceed 1% of the total contract price or $100,000.00, whichever is greater; and multiple change orders, which aggregate more than 10% of the original Contract amount or $100,000 whichever is greater. City Council approval is also required when individual Contract Time extensions aggregated with time increases under previous Change Orders equal up to thirty (30) days or 20 percent (20%) of the total time allowed under the Contract, whichever is greater. The amount of Contract Change Order No. 3 is $300,000.00, which is 3.43% of the original Contract amount. This increase will result in a revised contract total of $9,203,232.93. Previous Contract Change Orders are summarized in the table below. CCO # CCO Amount Days Added Approved by: Reason Scope Change 1 $35,234.66 0 Capital Projects Director Regulatory or Code Requirements Railroad insurance and construction signage 2 $129,198.27 13 Capital Projects Director Unforeseen Conditions Railroad-related night work, mobilization, track monitoring, and delay This Contract is subject to the Community Workforce Agreement, adopted by City Council in September 2021. The Contractor has become signatory to the Community Workforce Agreement by executing the Agreement to be Bound. ENVIRONMENTAL FINDINGS On May 22, 2025, as part of the construction Contract award (Action Item File ID 25-653), the Council adopted a finding of Categorical Exemption per staff's determination pursuant to Section 15302(c)/Class 2 (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) Guidelines. Furthermore, staff previously determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. LOCAL PREFERENCE Local preference was not implemented as this is a change order on an existing contract. FISCAL IMPACT This Project is located in Council Districts 3 and 5 and will have no impact to the General Fund. Funding for this Contract Change Order is included in the Fiscal Year 2027 Capital Improvement Budget within the Wastewater Management Division Operating Fund. Attachments: Contract Change Order No. 3 Contract Change Order No. 2 Contract Change Order No. 1 Construction Contract - Teichert Construction Vicinity Map