Title
[Contract Amendment] Freeport Reservoir Pump Replacement and Improvement Project
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FileID
File ID: 2026-01726
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion: 1) authorizing the City Manager or designee to execute Change Order No. 6 to City Agreement No. 2023-1349 with TNT Industrial Contractors, Inc., for the Reservoir Rehabilitation Program (Z14130500, Fund 6005), for an amount not to exceed $69,588 bringing the agreement’s total not-to-exceed amount to $5,321,803; and 2) resetting the City Manager or designee’s authority to issue contract amendments for the Agreement.
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Contact
Contact: James Yorita, Project Manager, (916) 808-1911, jyorita@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 Amendment
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Description/Analysis
IssueDetail
Issue Detail: Staff recommends City Council approve Change Order No. 6 with TNT Industrial Contractors, Inc. for the City Agreement No. 2023-1349 to compensate the Contractor for performing additional work related to the Freeport Reservoir Pump Replacement and Improvement Project.
This work performed between December 1, 2025, and August 17, 2026, included, but was not limited to, preparatory activities for future reservoir repairs, installation of a new water quality analyzer, overflow switch, door threshold, and new security doors. The change order also balances eliminated contract items and reconciles the final contract amount based on actual work completed during construction.
The work in Change Order No. 6 covers design changes and work required to address existing conditions found during construction. While City could have performed some of the work, doing so would have resulted in construction delays and additional compensation to the Contractor. It was determined to be in the City’s best interest to have the Contractor perform the work.
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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 $5,525,870, allowing the City Manager authority to approve contract amendments up to a cumulative amount of 8% of the original contract price. 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 0.47 total jobs (0.27 direct jobs and 0.20 jobs through indirect and induced activities) and create $72,118.26 in total economic output ($45,456.69 of direct output and another $26,661.57 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: The subject project was reviewed and determined to be categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines sections 15301, 15302, and 15303. The project includes the operation, maintenance, and minor alteration of the existing Freeport Reservoir facility (15301) by replacing equipment (15302), and constructing and locating new equipment and facilities (15303) as described above.
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Sustainability
Sustainability: The project is consistent with the 2040 General Plan Goal PFS-3.5 Water Treatment Capacity and Infrastructure as it improves infrastructure reliability, which will ensure continued safe operation and maintenance of the existing facility. The project also supports the continued operation of the elevated reservoir and advances General Plan goals PFS-1.7, Water Supply for Fire Suppression, and PFS-3.4, Water Distribution System Management.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: Change Order No. 6 is needed to provide compensation for all the labor, equipment, markup, surcharges, and fees associated with the additional construction activities performed between December 1, 2025, and August 17, 2026, while the City of Sacramento and TNT Industrial Contractors, Inc. performed improvements to the Freeport Reservoir. The value of Change Order No. 6 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 section 3.04.020.A.3).
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FinancialConsiderations
Financial Considerations: The original not-to-exceed amount of the contract was $5,525,870. The net change of previous change orders decreased the contract amount by $273,655, bringing the contract not-to-exceed amount to $5,252,215. Proposed Change Order No. 6 in the amount of $69,588 would increase the contract not-to-exceed amount to $5,321,803. Sufficient funding exists in the Reservoir Rehabilitation Program (Z14130500, Fund 6005) 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): TNT Industrial Contractors, Inc. is an LBE.
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Background: The Freeport Water Reservoir has not had any significant hydraulic improvements since it was constructed, circa 1960. The existing pump has reached the end of its useful life. The new pump will enable the reservoir water to be pumped into the water distribution system. The hydraulic improvements will also allow for the installation of a future pump for increased pumping resiliency. The electrical system will be upgraded to support the pumping improvements, water quality testing, site security, communication and safety improvements. While the reservoir is out of service, corrosion protection will be addressed on the interior of the reservoir by eliminating corrosion and recoating affected areas of the steel tank. Interior reservoir access concerns will also be addressed with the installation of a new flight of stairs.
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