DATE: January 21, 2025
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Title
Adopt a Resolution Authorizing the City Manager to (1) Negotiate, Approve and Execute a Cost Share Agreement Between the City of Hayward and Solcom, Inc., in a Not-to-Exceed Amount of $304,135.10 for Emergency Repair of the Sewer Main Collapse at Hesperian Boulevard; and (2) Appropriate $454,135.10 to Project No. 07765, Annual Emergency/Spot Line Repairs in Sewer Replacement Fund
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RECOMMENDATION
Recommendation
That Council adopts a resolution (Attachment II) authorizing the City Manager to (1) negotiate, approve and execute a cost Share Agreement between the City of Hayward (City) and Solcom, Inc., (Solcom) in an Amount Not-to-Exceed $304,135.10 for Sewer Main Collapse at Hesperian Boulevard Emergency Repair ; and (2) appropriate $454,135.10 to Project No. 07765, Annual Emergency/Spot Line Repairs from the Sewer Replacement Fund (Fund 611).
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SUMMARY
In February 2024, Solcom Inc., a contractor working for Bandwidth IG-a company specializing in the development and management of dark fiber infrastructure to support high-speed data transmission-conducted directional bore activities on Hesperian Boulevard to install fiber optic conduits. In June 2024, a significant sinkhole formed in the area, related to extensive damage to the 36-inch RCP sewer main. The pipe, installed in 1952, suffered a collapse likely due to advanced deterioration and corrosion, exacerbated by heavy external loads and impacts from construction activities over time. Emergency repair work was performed promptly to mitigate public safety risks and restore the sewer system’s functionality. Initially, Solcom assumed full responsibility for the repair project, under the assumption that their directional bore work had directly contacted and physically damaged the City’s sewer main. Solcom subsequently hired and paid a specialized contractor, GSW, to perform the repairs. The repair, a joint effort between City staff and Solcom, was completed in July 2024, with revised invoices reflecting negotiated reductions subsequently received from the contractor.
During the emergency repair project in July 2024, further investigations indicated that Solcom may have only partially contributed to the damage and failure of the sewer main. Forensic investigation pointed to the pipe’s deterioration as the primary cause of failure, however, it could not conclusively determine the impact of directional bore activities conducted by Solcom. This finding underscored the need for shared responsibility, forming the basis of the proposed cost-sharing agreement between the City and Solcom, Inc. In the proposed cost sharing agreement between the City and Solcom, the City will agree to cover 100% of Solcom’s subcontractor (GSW Construction) costs, totaling $227,952.71 plus the reasonable portion of Solcom’s invoices related solely to the sanitary sewer repair, totaling $76,182.39 for a grand total of $304,135.10. Further, staff is requesting to appropriate a total of $454,135.10, including the share cost with Solcom of $304,135.10 and an additional $150,000 to replenish the budget in case of other emergency repairs for the remainder of FY25, to the Annual Emergency/Spot Line Repairs project no. 07765 from the Sewer Replacement Fund.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution