DATE: April 8, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Development Services Department
TITLE: CHANGE ORDER WITH MONTANO PIPELINE FOR THE CAVALIER MOBILE ESTATES STORM DRAIN REPAIR
RECOMMENDATION
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Staff recommends that the City Council approve a construction change order with Montano Pipeline, Inc. (“Montano”), in the amount of $37,095, for a total contract amount not to exceed $236,217, for additional construction services for the Cavalier Mobile Estates Storm Drain Repair and authorize the City Engineer to execute the change order.
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BACKGROUND AND ANALYSIS
During the 2026 New Year’s storm event, a slope failure occurred on the northeast side of Marshall Street Park, adjacent to the Cavalier Mobile Estates, as a result of the structural failure of the existing corrugated metal pipe (CMP). The pipe failure caused slope erosion and a backup within the storm drain system, resulting in significant localized flooding within the Cavalier Mobile Estates community. Maintenance crews from Cavalier Mobile Estates implemented temporary measures, including debris clearing and flow bypassing, to prevent additional flooding.
The storm drain system serving this area was originally constructed in the 1950s. Following this damage, it was found that historical drainage improvements were not well-documented and easement records were incomplete, creating uncertainty regarding long-term maintenance responsibilities. Subsequently, it was determined that a portion of the storm drain system falls under City ownership and maintenance responsibility, necessitating the City’s involvement in the repair effort.
Based on the estimated construction cost, the project qualified for the informal bid process under City’s Procurement Policy (AD-21). Bid documents were distributed to qualified contractors, and multiple bids were received by the deadline. Montano Pipeline Inc. submitted the lowest responsive and responsible bid, in the amount of $199,122. On February 24, 2026, the Public Works Agreement was executed.
Construction activities began on March 5th, 2026, including the installation of site controls, excavation of the failed slope, and removal of debris and unsuitable material.
Once the slope was stabilized, Engineering staff was able to safely evaluate the integrity of the remaining storm drain pipe system. Based on this field evaluation, staff determined that the remaining CMP had deteriorated to the extent that repair was not feasible and full replacement was required. Therefore, this change order includes the removal of the remaining CMP and replacement with high-density polyethylene (HDPE) pipe, providing a more durable storm drainage system and improving long-term performance.
The work is anticipated to be complete by late April 2026.
FISCAL IMPACT
The Change Order No. 1 with Montano in the amount of $37,095 will be charged to the Annual Storm Drain Maintenance Account 902158319265.5703.10600, which has a current available balance of $282,059. Therefore, sufficient funds are available.
|
Description |
Account |
Construction Change Order Cost |
Available Balance |
|
Change Order No. 1 |
902158319265.5703.10600 |
$37,095 |
$282,956 |
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: Edwin Medina, Associate Engineer
Reviewed by: Brian Thomas, Interim Development Services Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Construction Change Order No. 1