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ADOPT A RESOLUTION TO AUTHORIZE CONTRACT CHANGE ORDER NO. 4 WITH SORACCO INC. FOR ON-CALL UTILITY REPAIR SERVICES FOR CITYWIDE WASTEWATER COLLECTION AND WATER DISTRIBUTION SYSTEMS
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RECOMMENDATION
It is recommended that the City Council adopt a resolution to authorize Contract Change Order (CCO) No. 4 with Soracco Inc., for Municipal Utilities Department (MUD) Collection and Water Distribution System services to extend and fund the existing contract for an additional two (2) years in the amount of $6,470,000 for a total contract not-to-exceed amount of $14,700,000.
It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The Municipal Utilities Department (MUD) is comprised of three enterprise funds including Water, Wastewater and Stormwater Utilities. The Wastewater Utility features a sanitary sewer collection system of approximately 900 miles of gravity sewer main, 554 miles of lower lateral pipe, 27 pump stations, and 30 miles of pressurized force main that route sewage for treatment at the Regional Wastewater Control Facility (RWCF). The system collects sewage from properties within the City, special districts outside the City, and certain areas within San Joaquin County. The Water Utility provides drinking water service to the northern and southern regions of the Stockton Metropolitan Area, with the California Water Service Company and San Joaquin County serving the central region.
To respond in a timely manner to larger scale and emergency repair projects, MUD negotiated Contract Change Order No. 4 (CCO No.4) to extend the current contract with Soracco Inc., of Lodi, California, for on-call utility repair services to water distribution, and wastewater collection systems citywide.
If approved, this action will authorize CCO No. 4 (Exhibit 1 to the resolution) with Soracco, Inc., of Lodi, California, for two (2) additional years and increase the total contract amount to $14,700,000.
DISCUSSION
Background
MUD staff are responsible for regularly maintaining, inspecting, and repairing sewer collection and water distribution systems throughout the City. The maintenance program is required to safely transport wastewater for treatment at facilities owned and operated by the City and to distribute drinking water to customers in the City water service area.
In June 2022, by Resolution 2022-06-21-1205, the City Council awarded a three (3) year contract to Soracco Inc. with a not-to-exceed amount of $6,300,000 for on-call utility repair services to wastewater collection systems with pipelines smaller than 24 inches in diameter. Contracted services allow staff to respond to large-scale and emergency repairs in a safe and timely manner. The contract is set to expire on June 30, 2025, and allows for a possible two (2) year extension.
In June 2023, CCO No. 1 increased the contract not-to-exceed amount by $730,000 to $7,030,000 due to additional work required during the response to the January 2023 storm events.
In March 2024, CCO No. 2 amended the annual unit rate prices for FY 2024-25 following negotiations with the contractor in accordance with the terms of the contract.
In November 2024, the City Council authorized CCO No. 3 by Resolution 2024-11-12-1209, adjusting the scope of work to include on-call repair services for water distribution systems and emergency repair services for sanitary sewer pipelines larger than 24 inches in diameter. The total contract amount increased to $8,230,000.
Present Situation
The contract is presently in year three (3) and is set to expire on June 30, 2025. Staff negotiated CCO No. 4 with Soracco Inc., to exercise the two-year extension for a total five-year term. The annual cost for the additional two-year term is $6,470,000.
If approved by the City Council, CCO No. 4 will extend the existing contract through June 30, 2027, and increase the total contract amount not-to-exceed $14,700,000 for on-call repair services for wastewater collection and water distribution systems.
FINANCIAL SUMMARY
The FY 2025-26 budget will include funding requests for year 4 services. Future funding will be requested as part of the annual budgeting process. The cost for services will be charged to the Wastewater Collections account, Wastewater and Stormwater Pump Station Maintenance accounts, Water Distribution account, Water Hydrants account, and Sanitary Sewer System Emergency fund to approve CCO No. 4 in the amount of $6,470,000.00 for a total not-to-exceed contract amount of $14,700,000.
This action has no impact on the General Fund or any other unrestricted funds.