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9 DATE: July 20, 2026
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: AMENDMENT NO. TWO (2) TO THE VENDOR AGREEMENT WITH CD & POWER IN THE AMOUNT OF $26,484.18 FOR THE
EMERGENCY GENERATOR REPLACEMENTS PROJECT (CIP
455-705)
RECOMMENDATION
It is recommended that the Estero Municipal Improvement District (EMID) Board of Directors adopt the attached resolution authorizing the President to execute Contract Amendment No. Two (CA# 2) to the vendor agreement with CD & Power (CDP) in the amount of $26,484.18 for the Emergency Generator Replacements Project (CIP 455-705).
EXECUTIVE SUMMARY
On January 20, 2026, CD & Power (CDP) was awarded a vendor agreement for the purchase of seven (7) generators and seven (7) Automatic Transfer Switches (ATS) for Lift Stations 10, 12, 14, 15, 16, 26 and 41 for CIP 455-705. During the submittal review process, it became clear that CDP had misinterpreted EMID’s contract documents. The bid documents required stainless steel enclosures, but CDP prepared its bid assuming a lower cost option consisting of gray painted steel enclosures and requested compensation for the difference. Staff rejected the request and CDP indicated it would need to withdraw from the project as it could not absorb the additional cost, which led to staff and CDP meeting to negotiate a resolution. While EMID is contractually justified in its position that the bid
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9 language was clear, staff is recommending the approval of CA#2 in the amount of $26,484.18 to provide for the purchase of 316 stainless steel enclosures for seven (7) ATSs.
The recommended action represents the most cost-effective option and best protects EMID’s schedule, budget objective, and is still below the amount submitted by the second lowest bidder. 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. 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 October 20, 2025, the District Board adopted EMID Resolution No. 3824 approving the equipment procurement bid package and authorizing the call for bids for seven (7) generators and seven (7) Automatic Transfer Switches (ATS) for Lift Stations 10, 12, 14, 15, 16, 26 and 41.
On January 20, 2026, the District Board adopted EMID Resolution No. 3831 authorizing a vendor agreement to CDP for the purchase of seven (7) generators and seven (7) Automatic Transfer Switches (ATS) for Lift Stations 10, 12, 14, 15, 16, 26 and 41 in the amount of $635,351.13.
On May 18, 2026, the District Board adopted EMID Resolution No. 3848 authorizing an amendment to the vendor agreement for the upsizing of generator for Lift Station 41 in the amount of $13,412.63 to ensure sufficient power to run the pumps as a result of more recent performance evaluations of a similar generator at another bay area project.
ANALYSIS
During the submittal review of the ATS enclosures, it became clear that the vendor had misinterpreted EMID’s bid specifications and instructions. The bid package required that the base bid includes pricing for 316 stainless steel ATS enclosures. The bid package also required the vendor to provide alternate bid pricing for gray-painted steel enclosures, in lieu of 316 stainless steel, should EMID elect to allow gray-painted steel enclosures. CDP prepared its bid assuming gray-painted enclosures, which the industry widely recognizes as a lower cost option.
EMID prefers that its outdoor utility enclosures be 316 stainless steel as the material is more resistant to corrosion and rusting. Although grey-painted steel is sufficient to withstand EMID’s marine weather conditions, the material relies heavily on paint to provide protection.
Any damage to the paint will leave the steel vulnerable to corrosion and rusting without swift 2 8
9 repainting with weather-resistant paint. Thus, EMID exercised its option as per the contract documents to move forward with the stainless-steel enclosures.
CDP disputed that the bid package instructions were ambiguous and requested additional compensation for the material change to stainless steel to proceed with procurement. Staff, in conjunction with EMID’s consultant Freyer & Laureta (F&L), met with CDP to better understand CDP’s misinterpretation. After discussion and further review of the bid package, staff concluded that the bid requirement for stainless steel was clear and unambiguous.
EMID rejected the request and CDP indicated that it would need to withdraw from the project under the current pricing structure. Staff determined it was in EMID’s best interest to negotiate compensation for the cost difference for the change of enclosure material to minimize overall project risk and protect the project schedule and budget objectives.
Rebidding would result in project delays, additional administrative effort, consultant overhead costs, and potentially higher costs for the equipment.
Staff and F&L negotiated compensation for the material change to stainless steel. The negotiated amount of $26,484.18 has been deemed reasonable and reflects fair market value for the upgraded material. Additionally, the revised contract amount with CA #2, remains the lowest responsive and responsible bid, still below the amount submitted by the second lowest bidder.
EMID’s District Board approval of the attached resolution will amend CDP’s vendor agreement to provide for the purchase of stainless steel ATS enclosures for all seven (7) Lift Stations. Upon execution, CDP will provide the necessary submittal documents for review and approval by EMID in order to proceed with procurement of the material.
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 $26,484.18 for CA #2 to the Vendor Agreement is available in the existing agreement and approved project budget for the Emergency Generator Replacement Project (CIP 455-705). The revised not-to-exceed contract amount is $675,247.94.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Infrastructure and Facilities
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9 ATTACHMENTS:
Attachment 1 - Resolution
Attachment 2 – Contract Amendment No. Two (2)