AGENDA TITLE:
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Adopt a Resolution Authorizing an Increase of the City Manager’s Change Order Authority From $100,000 to a Total Amount Not-to-Exceed $235,000 for the Central Plume PCE/TCE Soil Vapor Remediation Project (PW)
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MEETING DATE:
October 21, 2026
PREPARED BY:
Sean Nathan, Deputy Public Works Director
recommendation
RECOMMENDED ACTION:
Adopt a Resolution authorizing an increase of the City Manager’s change order authority from $100,000 to a total amount not-to-exceed $235,000 for the Central Plume PCE/TCE Soil Vapor Remediation Project.
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BACKGROUND INFORMATION:
For over 20 years the City of Lodi has been involved in the remediation efforts associated with perchloroethylene (PCE) in the Central Plume Source Area (CPSA). The CPSA is generally bound by Pine Street on the North, Oak Street on the South, Church Street on the East, and Pleasant Street on the West. While the City did not cause the soil and groundwater contamination, the City agreed to assume all of the cleanup obligations as part of multiple lawsuit settlements.
On July 2, 2025, Council approved the plans and specifications for the Central Plume PCE/TCE Soil Vapor Remediation Project, authorized the advertisement for bids, authorized the award to the lowest responsive bidder ($1,000,000), authorized change orders ($100,000), and appropriated funds ($1,100,000).
On July 1, 2026, Council approved the reimbursement agreement with Pine Street Partners, LLC, in an amount not to exceed $135,000. The agreement was established in conjunction with the $135,000 contract credit from Innovative Construction Solutions (ICS), allowing the contractor to demolish the interior walls without reconstructing them and providing the property owner flexibility to reconfigure the interior as part of its future remodel.
On July 14, 2026, Innovative Construction Solutions (ICS) began work to remove the interior walls and demolish the existing concrete floor in accordance with the approved construction documents. During demolition of the existing slab, it was discovered that the slab was approximately twice as thick as originally anticipated, resulting in additional demolition, material handling, and off-haul costs. In addition, two previously unknown concrete structures were discovered directly beneath the slab. Because these abandoned structures conflicted with proposed utilities and other improvements, additional demolition and removal work was required to allow the project to proceed. These unforeseen conditions resulted in additional work and associated costs that were not included in the original contract, and utilized the previously authorized change order amount. As work progresses there is additional dirt that needs to be removed from the site (beyond what the contract included) as well as trenches that need to be backfilled with sand that was not in the original contract scope. This additional change order authority will accommodate these unforeseen items as well as allowing additional authority for any additional items that may arise.
FISCAL IMPACT:
This item will have no long term fiscal impact. The project (for reference) is funded through the PCE/TCE Rates Fund, and no General Funding is being utilized.
FUNDING AVAILABLE:
The project funds previously appropriated on July 2, 2025, from the PCE/TCE Rates Fund (56599000.77020) are sufficient for the contract and the proposed change order increase.