Title
[Contract Amendment] Del Paso Sewer Improvements
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FileID
File ID: 2026-00901
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Location
Location: District 2
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Recommendation
Recommendation: Pass a Motion: 1) authorizing the City Manager or designee to execute Change Order No. 3 to City Agreement No. 2025-0769 with Soracco, Inc., for an amount not to exceed $104,953, bringing the agreement’s total not-to-exceed amount to $3,673,876; and 2) resetting the City Manager or designee’s authority to issue contract amendments for the Agreement.
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Contact
Contact: Kyle Beltran, Project Manager, (916) 808-3828, kbeltran1@cityofsacramento.org; Sherill Huun, Engineering & Water Resources Division Manager, (916) 808-1455, shuun@cityofsacramento.org; Dalia Fadl, Director, (916) 808-3765, dfadl@cityofsacramento.org; Department of Utilities
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Change Order
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Description/Analysis
IssueDetail
Issue Detail: Staff recommends Council approve Change Order No. 3 with Soracco, Inc. for the City Agreement No. 2025-0769, to compensate the Contractor for performing additional work to resolve and support unforeseen utility conflicts during the construction of the sewer improvement plan along Edgewater Road. This work included, but was not limited to, potholing, saw cutting, excavation, shoring, support, traffic control, backfill, and surface restoration performed between January 7, 2026, and January 29, 2026. The total cost of this work is $104,953, which was determined using the City Standard Specification 8-10, “Payment by Cost and Percentage” and includes all labor, equipment, materials, overhead, and markups for the work described above.
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PolicyConsiderations
Policy Considerations: This Change Order exceeds the City Manager’s approval authority and requires Council approval pursuant to City Code 3.04.020.
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EconomicImpacts
Economic Impacts: This phase of the project is expected to create 0.42 total jobs (0.24 direct jobs and 0.18 jobs through indirect and induced activities) and $64,801.51 in total economic output ($40,844.89 of direct output and another $23,956.62 of output through indirect and induced activities).
The indicated economic impacts are estimates calculated using a calculation tool developed by the Center for Strategic Economic Research (CSER). CSER utilized the IMPLAN input-output model (2009 coefficients) to quantify the economic impacts of a hypothetical $1 million of spending in various construction categories within the City of Sacramento in an average one-year period. Actual impacts could differ significantly from the estimates and neither the City of Sacramento nor CSER shall be held responsible for consequences resulting from such differences.
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EnvironmentalConsiderations
Environmental Considerations: This project was reviewed and determined to be categorically exempt from the California Environmental Quality Act (CEQA) under Section 15302. This project includes removing and replacing existing separated sewer mains (utility systems) involving negligible expansion of capacity (CEQA Guidelines Section 15302 (c)).
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Sustainability
Sustainability: The project is consistent with the 2040 General Plan goal PFS-3.3, “Development Impacts”, as it improves infrastructure reliability and addresses capacity needs within the existing separated sewer system to best support new development. The area within Sewer Basin G304 and G305 has been identified by the Planning Department as a primary redevelopment area and will benefit from this project’s sewer capacity improvements. In response to this designation, along with maintenance issues, a wastewater master plan for Basin G304/G305 was completed in June 2018 by Woodard & Curran.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: Change Order No. 3 is needed to provide compensation for all the labor, equipment, markup, surcharges, and fees associated with the additional construction activities performed between January 7, 2026 and January 29, 2026, while the City of Sacramento and Soracco, Inc. attempted to resolve and support unplanned utility conditions that impacted the sewer improvements along Edgewater Road. The value of Change Order No. 3 exceeds the approval authority of the City Manager as the sum of all contract amendments for this agreement exceed 8% of the original contract value. (City Code 3.04.020.A.3)
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FinancialConsiderations
Financial Considerations: The original not-to-exceed amount of the contract was $3,308,182. The net change by previous change orders in the amount of $260,741, increased the contract not-to-exceed amount to $3,568,923. Proposed Change Order No. 3 in the amount of $104,953 would increase the contract not-to-exceed amount to $3,673,876. There are sufficient funds in the Del Paso Boulevard Infrastructure Needs project (X14160500; Fund 6006) to execute this Change Order.
There are no General Funds allocated or planned for this project.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Soracco, Inc. is not an LBE but has partnered with Pace Supply Corp., Anrak Corp., and APS Environmental for this project to exceed the minimum LBE participation requirement. Pace Supply Corp. will provide sewer pipe material. Anrak Corp. will provide asphalt grinding services. APS Environmental will provide closed-circuit television (CCTV) services.
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