Title
[Contract Amendment] Combined Sewer System (CSS) Pipe Program Replacement and Rehabilitation (R&R) Block 6
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FileID
File ID: 2026-01226
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Location
Location: District 4
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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. 2025-0770 with Soracco, Inc. for Combined Sewer System Pipe Program (X14170100; Fund 6021), for an amount not-to-exceed $67,805, bringing the agreement’s total not-to-exceed amount to $1,325,428; and 2) ratifying all previous contract amendments executed pursuant to the City Manager’s delegated authority to execute contract amendments and thus resetting the City Manager’s or designee’s authority to issue change orders for City Agreement No. 2025-0770.
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Contact
Contact: Kyle Beltran, Project Manager, (916) 808-3828, kbeltran1@cityofsacramento.org; Michelle Carrey, Engineering & Water Resources Division Manager, (916) 808-1438, mcarrey@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-Contract
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Description/Analysis
IssueDetail
Issue Detail: Staff recommends City Council approve Change Order No.03 with Soracco, Inc. for the City Agreement No. 2025-0770, to compensate the Contractor for performing additional work related to the Combined Sewer System (CSS) Pipe Replacement and Rehabilitation (R&R) Block 6 Project.
In November 2025, the City of Sacramento (City) approved Change Order No. 2, which directed the Contractor to perform sewer repairs on the existing sewer main along the Old Sacramento Waterfront near the Delta King, and between L and K Streets. The work in Change Order No. 3 is the additional work associated with the sewer repair work performed in Change Order No. 2. The need for the additional sewer repair was discovered during the construction work performed under Change Order No. 2, and the issue was unanticipated at the time that change order was executed.
This work included, but was not limited to, additional potholing, saw cutting, excavation, shoring, support, traffic control, backfill, and surface restoration performed between December 17, 2025, and February 13, 2026. Additionally, this change order includes balancing the overruns and underruns of the contract quantities and reconciling the final contract amount based on the actual work completed during construction. The total cost of this work is $67,805, 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. The original contract value was $1,186,368, allowing the City Manager authority to approve contract amendments up to a cumulative amount of 8% of the original contract price, or $94,910. This Change Order exceeds that amount and therefore requires Council approval.
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EconomicImpacts
Economic Impacts: This phase of the project was expected to create 0.27 total jobs (0.16 direct jobs and 0.11 jobs through indirect and induced activities) and create $ $41,865.18 in total economic output ($26,387.94 of direct output and another $ $15,477.24 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 replacing existing combined 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-3.6, “Combined Sewer System Rehabilitation and Improvements,” as it rehabilitates and improves the CSS to decrease flooding, CSS outflows, and combined system overflows (CSOs).
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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 the labor, equipment, markup, surcharges, and fees associated with the additional construction activities performed between December 17, 2025, and February 13, 2026, while the City of Sacramento and Soracco, Inc. performed sewer improvements near the Old Sacramento Waterfront, between L Street and K Street. 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 $1,186,368. The net change by previous change orders in the amount of $71,255, increased the contract not-to-exceed amount to $1,257,623. Proposed Change Order No. 3 in the amount of $67,805 would increase the contract not-to-exceed amount to $1,325,428. There are sufficient funds in the Combined Sewer System Pipe Program (X14170100; Fund 6021) 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 materials. Anrak Corp will provide asphalt grinding services. APS Environmental will provide closed-circuit television (CCTV) services.
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