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9 DATE: April 7, 2025
TO: President and Members of the EMID Board of Directors VIA: Stefan Chatwin, District Manager
Marlene Subhashini, Assistant District Manager
FROM: Andrew Brozyna, Public Works Director
Laura Galli, Engineering Manager
Francine Magno, Senior Civil Engineer
Jerrick Carandang, Associate Engineer
DEPARTMENT: Public Works
SUBJECT: CONTRACT AMENDMENT NO. ONE (1) TO THE VENDOR
AGREEMENT WITH BAY CITY ELECTRIC WORKS IN THE
AMOUNT OF $127,978 FOR THE EMERGENCY GENERATOR
REPLACEMENTS PROJECT (CIP 455-705)
RECOMMENDATION
It is recommended that the EMID Board of Directors adopt the attached resolution authorizing the President to execute Contract Amendment No. One (1) to the vendor agreement with Bay City Electric Works (BCEW) in the amount of $127,978 for the Emergency Generator Replacements Project (CIP 455-705).
EXECUTIVE SUMMARY
At the August, 19, 2024 Board Meeting, the District Board adopted EMID Resolution No. 3772 authorizing a vendor agreement to BCEW for the purchase of three (3) generators and two (2) Automatic Transfer Switches (ATS) for Lift Stations 22, 29, and 59 in the amount of $1,587,158. As a result of the Bay Area Air Quality Management District’s (BAAQMD) recent revision of regulatory permit requirements for diesel engine generators of 50 Horsepower (hp) or more to meet Tier 4 emissions standards, the generators for Lift Station 22 and 29 in the original agreement were impacted. The attached Contract Amendment No. One (1) addresses the costs associated with replacing the LS 22 and LS 29 generators specified in the original agreement with generators that meet Tier 4
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9 emission standards and comply with revised BAAQMD regulatory requirements. Funding is available for this amendment in the approved project budget for the Emergency Generator Replacement Project (CIP 455-705).
BACKGROUND
CIP 455-705 consists of the replacement of generators and ATSs at ten (10) of the District’s lift stations. Three (3) of the lift stations were prioritized due to their equipment reaching the end of their service life. Due to the long lead time for the equipment, a separate equipment procurement was performed prior to the award of the construction contract to minimize the effects of supply chain issues including potential future price increases and potential delay claims by the installation contractor.
On May 20, 2024, the District Board adopted EMID Resolution No. 3757 approving the equipment procurement bid package and authorizing the call for bids for three (3) generators and two (2) ATSs for Lift Stations 22, 29, and 59.
On August 19, 2024, the District Board adopted EMID Resolution No. 3772 authorizing a vendor agreement with Bay City Electric Works for the purchase of three (3) generators and two (2) ATSs for Lift Stations 22, 29, and 59 in the amount of $1,587,158.
In November 2024, during the submittal review of the generators, staff was made aware of an upcoming potential change to the BAAQMD regulatory permit requirements. The permit revision would require diesel engine generators with 50 Horsepower (hp) and above to meet Tier 4 emissions standards, which are a set of emissions requirements established by the U.S. Environmental Protection Agency (EPA). At the time of vendor agreement award, only diesel engines with 1000 hp and above were required to meet Tier 4 emission standards. The generators for LS 22 and LS 29 specified in the original agreement are 200 hp and 215 hp, respectively and are not Tier 4 certified and would be adversely impacted by these new regulations should they be implemented. The generator for LS 59 was already specified to comply with Tier 4 emission standards and would not be affected by the new regulations. In order to avoid purchasing generators that had the potential not to meet anticipated regulatory permit changes, the City’s consultant recommended the City proceed with submittal review for LS 59 while additional inquiries to determine the likelihood of the new requirements taking effect were performed.
On January 17, 2025, BAAQMD officially revised their regulatory permit requirements for diesel engine generators with 50 hp and above to meet Tier 4 emissions standards. 8 9
9 ANALYSIS
The District is required to obtain authority from BAAQMD to construct and to obtain a permit to operate for each generator installation. On January 17, 2025, BAAQMD determined that the Best Available Control Technology (BACT) for small to medium size standby diesel generators was available to meet the EPA’s Tier 4 emissions standards.
The BACT determination applies to generator engines from 50 hp up to 1,000 hp. This determination impacts the 2 (two) generators previously approved to be purchased at Lift Stations 22 and 29.
Staff initiated a meeting with Freyer & Laureta, Inc. (F&L) (Design Consultant) and BCEW to discuss mitigation options with respect to the regulatory permit changes. BCEW presented two options. The first option was to retrofit the originally specified generators to bring them to Tier 4 compliance; the second option was to purchase Tier 4 certified generators. Staff and the design team conducted a cost benefit analysis to determine the best course of action. The price impacts for both options are provided below.
Option 1: Retrofit for Tier 4 Compliance
Option 1 Reso # 3772
Item Description Awarded
Purchase Price
Revised
Pricing for
Retrofitting
% Change Price Difference
Lift Station 22
1 Generator, enclosure
and subbase Diesel
fuel storage tank
$ 72,531 $ 260,031 259% $ 187,500 Lift Station 29
2 Generator, enclosure
and subbase Diesel
fuel storage tank
$ 82,897 $ 270,397 226% $ 187,500 3 Automatic Transfer
Switch $ 40,000 $ 40,000 0% $ - Lift Station 59
4 Generator, enclosure
and subbase Diesel
fuel storage tank
$ 1,321,463 $ 1,321,463 0% $ - 5 Automatic Transfer
Switch $ 41,689 $ 41,689 0% $ - Optional
1 Particulate Matter
Filter $ 28,578 $ - -100% $ (28,578) Total $ 1,587,158 $ 1,933,580 22% $ 346,422 Option 1 would retrofit the originally specified generators to comply with Tier 4 emission standards. The total revised cost in the amount of $1,933,580 is a 22% increase from the original contract award amount. Furthermore, generators that have been retrofitted will have add-on parts that may change the footprint of the generator and would still require 8 9
9 testing every 3-4 years to maintain compliance with EPA standards. Additionally, testing will cost roughly $30,000-$ 40,000 per test (per generator) over the life of each generator.
Option 2: Purchase Tier 4 Certified generators
Option 2 Reso # 3772
Item Description Awarded
Purchase Price
Revised
Pricing for
Tier 4 certified
% Change Price Difference
Lift Station 22
1 Generator, enclosure
and subbase Diesel
fuel storage tank
$ 72,531 $ 138,803 91% $ 66,272 Lift Station 29
2 Generator, enclosure
and subbase Diesel
fuel storage tank
$ 82,897 $ 173,181 109% $ 90,284 3 Automatic Transfer
Switch $ 40,000 $ 40,000 0% $ - Lift Station 59
4 Generator, enclosure
and subbase Diesel
fuel storage tank
$ 1,321,463 $ 1,321,463 0% $ - 5 Automatic Transfer
Switch $ 41,689 $ 41,689 0% $ - Optional
1 Particulate Matter Filter $ 28,578 $ - -100% $ (28,578) Total $ 1,587,158 $ 1,715,136 8% $ 127,978 Option 2 would replace the generators that were originally specified, with generators that are Tier 4 certified. The total cost in the amount of $1,715,136 is an 8% increase from the original contract award amount. Due to these generators coming “out-of-the box” Tier 4 certified, they would not require any further testing to confirm ongoing EPA Tier 4 requirements.
Staff and the design team concluded that purchasing Tier 4 certified generators (Option 2) is preferred from both a financial and maintenance perspective. This option achieves the goal of complying with EPA Tier 4 requirements while minimizing potential site impacts. Option 2 has a lesser financial impact both upfront and in the future as the certification eliminates the future need for costly compliance testing. In both cases, the Particulate Matter Filter included in the original vendor agreement will no longer be required, offsetting the increased cost of the Tier 4 revisions by approximately $28,000.
The District Board’s approval of the attached resolution will amend BCEW’s vendor agreement to provide for the purchase of Tier 4 certified equipment for Lift Stations 22 and 29. Upon execution, BCEW will provide the necessary submittal documents for review and approval by the District in order to proceed with procurement of the equipment. 8 9
9 CALIFORNIA ENVIRONMENTAL QUALITY ACT
This action is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.) as this project is exempt from the provisions of CEQA as a Class 2 (Replacement or Reconstruction) because this project will be a replacement of existing facilities on the same site for the same purpose and capacity as the structure being replaced.
FISCAL IMPACT
Funding in the amount of $127,978 for Contract Amendment No. 1 to the Vendor Agreement is available in the approved project budget for the Emergency Generator Replacement Project (CIP 455-705).
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Infrastructure and Facilities
ATTACHMENTS:
Attachment 1 – Resolution
Attachment 2 – Contract Amendment No. One (1)