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9.D.

City Council Meeting - FINAL

Meeting Date:: 05/05/2026
From:: Ivey Coss, Senior Project Manager – Capital Improvements

TITLE:

Consideration and Approval: Approve Confirming Change Order 02 with Kear Civil Corporation in the amount of $137,365.12 for the Lake Mary Water Treatment Plant, Meter and Vault Replacement Project.

STAFF RECOMMENDED ACTION:

Approve Confirming Change Order 02 with Kear Civil Corporation in the amount of $137,364.67 or the Lake Mary Water Treatment Plant, Meter and Vault Replacement Project; and
Authorize the City Manager to execute the necessary documents.

Executive Summary:

The Lake Mary Water Treatment Plant Meter and Vault Replacement Project required additional unanticipated work during construction. While removing and installing pipeline components, the contractor, Kear Civil Corporation (KEAR), identified an active leak beneath the Lake Mary pump house. Locating the leak required significantly deeper excavation than originally anticipated, which in turn required additional safety measures, specialized equipment, and increased labor hours. Confirming Change Order 02 in the amount of $137,364.67 covers the necessary equipment, personnel, and labor associated with locating and repairing the leak. All work included in this change order has been completed and is required to ensure the continued safe and reliable operation of the facility.

Financial Impact:

The Lake Mary Water Treatment Plan Meter & Vault Replacement Project Confirming Change Order 02 is funded by the total appropriations of $646,964 from the FY2025-26 approved budget. The cost of Confirming Change Order 02 will come from the Drinking Water Fund, with the reallocation of budget from account 202-08-301-1021-0-4405 ($69,000) and account 202-08-301-1022-0-4405 ($68,365.12). These funds cover the additional materials, labor, and equipment required to address the leak that was discovered and repaired. No additional appropriation is required.

Policy Impact:

None.

Previous Council Decision or Community Discussion:

N/A

Options and Alternatives to Recommended Action:

Approve Confirming Change Order 02 in the amount of $137,364.67 to fund the additional excavation, labor, equipment, and materials required to locate and repair the pre-existing leak discovered during construction; or
Reject the confirming change order, which would delay payment for work already completed and could impact the timely closeout of the Lake Mary Water Treatment Plant Meter and Vault Replacement Project.

Background and History:

On January 15, 2025, KEAR received the official Notice to Proceed for the Job Order Contract (JOC) to replace the Lake Mary Water Treatment Plant’s flow meter and vault.
From the Notice to Proceed through the end of August 2025, project components, parts, and equipment were ordered and delivered to the Lake Mary site. KEAR began mobilizing to the site on August 14, 2025.
On October 16, 2025, a change order in the amount of $64,780.00 was approved through the Change Order Committee to fund additional excavation time and labor. This work was required due to discrepancies between the design documents and the actual in-ground pipe length encountered during construction.
On November 3, 2025, during removal of the existing 36-inch pipe, a small leak was discovered beneath the pump house. The leak volume increased with water usage, and despite initial efforts, the source could not be identified. Additional excavation was performed; however, excavation eventually reached a point where continuing would have created structural safety concerns.
On January 6, 2026, KEAR, Water Services, and Capital Improvements met to determine how to proceed. Because the leak source could not be located or viewed, it was not possible to determine whether it was a pre-existing condition or attributable to construction activities. KEAR maintained a separate log of labor, tools, and equipment charges associated with the leak investigation until financial responsibility could be determined.
On January 6, 2026, the project entered Winter Shut Down via Field Order 01.
On February 25, 2026, the City notified KEAR that if it chose not to proceed with the leak investigation, the City would cancel the contract and draw on KEAR’s performance bond to complete the necessary leak investigation, repairs, and remaining project work. KEAR agreed to move forward with locating the leak to determine responsibility.
On March 10, 2026, Water Services personnel identified the source of the leak and confirmed that it was a pre-existing condition. Financial responsibility for the leak therefore rested with Water Services.
On March 30, 2026, the project initiated Spring Startup via Field Order 02.
On March 31, 2026, the leak was fully repaired and the excavation area verified dry.
On April 2, 2026, the Change Order Committee reviewed and approved the Confirming Change Order for the completed leak investigation and repair work in the amount of $137,364.67.
The full project is scheduled for successful completion on May 8, 2026.

Connection to PBB Priorities and Objectives:

Sustainable and Innovation Infrastructure

Deliver outstanding services to residents through a healthy, well-maintained water treatment and distribution system.
Utilize existing long-range plans that identify the community's future infrastructure needs and all associated costs

Connection to Regional Plan:

This project directly advances key goals in the Flagstaff Regional Plan related to environmental protection, water resource stewardship, and resilient public infrastructure. Relevant goals include:
• Natural and Cultural Resources Goal: Protect and conserve environmentally sensitive lands and natural resources.
The Lake Mary Water Treatment Plant is located within a critical watershed area. Locating and repairing the leak helps prevent water loss, ground instability, and environmental impacts, directly supporting this goal.
• Water Resources Goal: Ensure a sustainable, clean, and reliable water supply for the community.
Because Lake Mary provides more than half of the City’s potable water, repairing infrastructure failures and maintaining treatment capacity is essential to achieving this goal.
• Public Facilities and Services Goal: Maintain and improve public infrastructure systems to be safe, resilient, and well managed.
The change order supports necessary excavation and repair activities that ensure the continued safe and reliable operation of a core public utility facility.

Connection to Carbon Neutrality Plan:

Infrastructure projects like the Lake Mary WTP Vault and Meter Replacement support the CNP by maintaining and enhancing essential water infrastructure—bolstering both resilience and emissions reduction goals through efficient operation and secure resource delivery.

Connection to 10-Year Housing Plan:

While the project does not directly support housing development or occur on housing related property, maintaining the Lake Mary Water Treatment Plant—which provides more than half of Flagstaff’s potable water supply—is essential for supporting long?term housing capacity, community growth, and residential stability.

Connection to Division Specific Plan:

This project supports Water Services and Capital Improvements Division priorities to maintain reliable, safe, and resilient water infrastructure. Repairing the leak discovered during construction and completing the meter and vault replacement are consistent with division goals to ensure uninterrupted treatment capacity, responsibly manage water system assets, and protect the City’s primary drinking water supply.

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