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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Memorandum of Understanding between Southern California Regional Rail Authority and the City of Glendale.
1. Motion authorizing the City Manager, or his designee, to enter into and execute a Memorandum of Understanding (MOU) with Southern California Regional Rail Authority (SCRRA) for the temporary installation and removal of spur track into the Glendale Water & Power Utility Operation Center in connection with the Grayson Repowering Project in an amount not to exceed $966,114 plus a 20% contingency in the amount of $193,223.
COUNCIL ACTION
Item Type: Consent Calendar
Approved for December 16, 2025 calendar
EXECUTIVE SUMMARY
As part of the Grayson Repowering Project (Grayson), the City contracted with Wartsila North America, Inc. (Wartsila), for the delivery and installation of three Wartsila engines and their generators. The engines, in their shipping configuration without generators, turbochargers, and other equipment, are large and heavy, each weighing approximately 470,000 lbs., 14 feet tall and 41 feet long.
Wartsila’s original plan to deliver the engines via heavy haul truck to Grayson has proven to be unworkable. The engines were subsequently moved from the Port to Valla Yard in Santa Fe Springs by rail where they remain pending development of a successful delivery plan.
Wartsila has been working to find a viable pathway to deliver the engines, with the following two options that are being pursued:
1. Over the road heavy haul from Valla Yard to Grayson. Wartsila has submitted an application to the California Department of Transportation (CalTrans) for review. After the CalTrans issuance of their permit, Los Angeles County and the Cities of Irwindale, Monrovia, Arcadia, San Gabriel, San Marino, Pasadena, La Cañada Flintridge, and Glendale will need to do their own reviews to issue permits. The proposed route includes multiple bridges which will also require structural review with the potential for temporary shoring or other means to mitigate the heavy weights. This route also requires removal of some minor 4c2
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equipment (rocker arm covers and some piping) to reduce the overall height when loaded on the transporter so it can safely pass under several overpasses.
2. Constructing a temporary spur track next to GWP’s Utility Operations Center and bringing the engines to Grayson via Metrolink. This option completely eliminates all road transportation permits. The rail cars with the engines can successfully traverse the Metrolink rail line to Grayson.
For both options, the costs of transportation are Wartsila’s responsibility. For the second option, Metrolink requires that the counterparty for its agreement be the property owner - the City of Glendale. With that in mind, the City has executed a Change Order and an Amendment wherein Wartsila has agreed to reimburse the City for all costs associated with the Metrolink spur. Those costs include the work Metrolink will perform under the Memorandum of Understanding plus some work at the Grayson site that ARB, Inc. (ARB), the Balance of Site Engineering, Procurement, and Construction (EPC) Contractor for the Grayson Repowering Project, will perform.
Currently, it’s uncertain which of the two options is the quicker way to deliver the engines. However, it is GWP’s opinion given the preliminary work that has been done thus far that the Metrolink option is the more certain path. Wartsila does have the right, and the Metrolink MOU recognizes this, to request GWP to terminate the MOU if a path for earlier delivery is found. In any case, GWP’s costs for the temporary Metrolink spur will be covered by Wartsila with a contract Change Order.
RECOMMENDATION
Authorize the City Manager to enter into and execute a MOU with SCRRA for the temporary installation and removal of spur track into the GWP Utility Operation Center in connection with the Grayson Repowering Project in an amount not to exceed $966,114 with a 20% contingency of $193,223.
ANALYSIS
As part of the Grayson Repowering Project, the City contracted with Wartsila for the engineering and procurement of the Wartsila Power Island portion of the project.
Wartsila’s scope included the fabrication and delivery of three 18V50SG reciprocating internal combustion engine generators. The costs of transportation are Wartsila’s responsibility.
The engines were tested at the factory, partly disassembled, and then shipped from Vaasa, Finland to be delivered to the project site. The engines, in their shipping configuration without the generator, turbochargers, and other minor equipment, are physically large and heavy. Each engine weighs approximately 470,000 lbs. and is 14’ tall and 41’ long.
The Wartsila engines were delivered to the Port of Long Beach on April 28, 2025.
Wartsila’s original shipping plan to deliver the engines via heavy haul truck to Grayson from the Port of Long Beach proved unworkable as Los Angeles County would not 4c3
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issue a transportation permit. The engines remained at the Port of Long Beach for the month of May; however, they then needed to be moved out of the Port. The engines were subsequently loaded onto heavy duty rail cars and moved from the Port of Long Beach to Valla Yard in Santa Fe Springs where they have remained pending development of a successful delivery plan.
Wartsila had a guaranteed delivery date of July 31, 2025, to have all three engines, with their generators, installed on their respective foundations. To achieve that, the engines needed to first be delivered to the site and then re-assembled from their shipping configuration to their fully assembled configuration. The next step would have been to move each engine into the Engine Hall onto its foundation followed by moving in and coupling its generator.
Failing to deliver the engines on time, the City, through GWP, has been assessing liquidated damages in accordance with the terms of the contract. Wartsila has disputed being subject to liquidated damages and has claimed that failing to obtain a transportation permit is a Force Majeure event. The City has denied that Force Majeure claim and continues to exercise its rights to apply liquidated damages.
The delay in receiving the engines has become a significant issue for the Grayson Repowering Project. In addition to driving an extension of the project schedule and additional project costs, the engines will not be available for the Summer 2026 peak load season.
Wartsila has continued working to find a viable pathway to deliver the engines. Several options have been explored and were deemed non-viable for various reasons. At this time, there are two options that are being pursued:
1. Over the road heavy haul from Valla Yard to Grayson. Wartsila has recently submitted an application to CalTrans for review for a new route. Prior routes that have been submitted have failed to gain approval. Subsequent to the CalTrans review and issuance of their permit, LA County and the Cities of Irwindale, Monrovia, Arcadia, San Gabriel, San Marino, Pasadena, La Cañada Flintridge, and Glendale will need to do their own reviews and issue permits.
The currently proposed route involves several bridges which will also require structural review with the potential for temporary shoring or other means to mitigate the heavy weights.
The heavy haul routes have also required removal of some minor equipment (rocker arm covers and some piping) to reduce the overall height when loaded on the transporter so it can safely pass under several overpasses.
2. When the initial heavy haul routes failed to be permitted, Wartsila also began to explore rail transportation options. Delivery to two nearby lumberyards was not viable as the track curvature was tighter than the rail car could safely traverse. 4c4
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Unloading at the Flower Street grade crossing was not possible as Union Pacific, the freight operator that uses Metrolink’s track, would not unload off a mainline track.
Ultimately, Wartsila proposed a temporary spur track next to GWP’s Utility Operations Center to bring the engines to Grayson via Metrolink. This option completely eliminates all road transportation permits. The rail cars with the engines can successfully traverse the Metrolink rail line to Grayson.
Metrolink was supportive of this concept, and Union Pacific was agreeable to delivering the rail cars to the temporary spur. Metrolink did require that the counterparty for its agreement be the property owner, the City of Glendale.
That agreement, the Memorandum of Understanding, is the subject of this Staff Report.
For the first option, Wartsila is solely responsible for its execution.
For the second option, Wartsila is also responsible for its execution. However, GWP has become a partner due to Metrolink’s requirement that the counterparty for their MOU be the City of Glendale. With that in mind, the City has executed a Change Order and an Amendment with Wartsila wherein Wartsila has agreed to reimburse the City for all costs associated with the Metrolink spur. Those costs include the work Metrolink will perform under the Memorandum of Understanding plus some work at the Grayson site that ARB, the Balance of Site EPC Contractor for the Grayson Repowering Project, will perform.
It is not certain which of the two options is the quicker way to deliver the engines to Grayson. However, it is GWP’s opinion given the preliminary work that has been done thus far by Metrolink, Wartsila, and GWP, that it is the more certain path. Wartsila does have the right, and the Metrolink MOU recognizes this, to request the City to terminate the MOU if a path for earlier delivery is found. In any case, the City’s costs for the temporary Metrolink spur will be covered by Wartsila under the terms of the Change Order.
Metrolink’s estimate for their work is $966,114 with the final price adjusted to reflect actual costs. As only preliminary work was done to develop this estimate, procurement has not begun, getting the engines delivered as soon as possible is to the City’s benefit, and all costs will be covered by Wartsila. GWP is requesting a 20% contingency to cover potential cost increases without delay.
STAKEHOLDERS/OUTREACH
Not applicable.
FISCAL IMPACT
The MOU with SCRRA for the GWP temporary spur track will cost $966,114, with a 20% contingency of $193,223, for a total of $1,159,337. The Grayson Repowering 4c5
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Project budget can absorb this cost. Additionally, Wartsila will reimburse GWP for the total actual cost; no new appropriation is requested at this time.
The City Council approved funding is outlined below:
Existing Appropriation
Amount Account String Funding Source
$1,159,337 GL: 43110-5830-GWP-0020-P0000-
PL: GWP00171BN
Electric Depreciation Fund
Department Cost Center Program
Glendale Water
and Power
Projects
ENVIRONMENTAL REVIEW (CEQA/NEPA)
On February 15, 2022, the City certified a Final Environmental Impact Report (FEIR), Statement of Overriding Considerations and Mitigation Monitoring and Reporting Program for the Grayson Repowering Project (“Project”) pursuant to the California Environmental Quality Act (CEQA) Guidelines (14 Cal Code Regs. 15000 et seq. and Public Resources Code Sections 21000 et seq.) The Project includes all aspects of Project implementation, including demolition and site improvements as well as mitigation monitoring and reporting. Staff has prepared an addendum to the Certified FEIR to evaluate the proposed Metrolink Temporary Spur Project. The addendum is attached as Exhibit 1 to the report for the Council’s consideration along with a link to the Certified FEIR.
The action presented to the City Council here involves an MOU with SCRRA to complete the Project. Installation, use, and subsequent removal of the temporary spur do not introduce any new environmental impacts. The Metrolink rail line is already frequently used by both passenger and freight trains.
CAMPAIGN DISCLOSURE
Not applicable to public entities. Metrolink is part of the South Coast Railroad Authority (SCRRA). The SCRRA, a public entity, is a joint powers authority governed by five county-level agencies that fund the Metrolink service: Los Angeles Metro, the Orange County Transportation Authority, the Riverside County Transportation Commission, the San Bernardino County Transportation Authority, and the Ventura County Transportation Commission.
ALTERNATIVES TO STAFF RECOMMENDATION
Allow Wartsila to continue to find an alternative route which may delay the delivery of the engines. This Alternative is not recommended as doing so could potentially expose the City to a claim by Wartsila for failing to issue the required government approval in order to enable performance under the contract.
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ADMINISTRATIVE ACTION
Submitted by:
Scott K. Mellon, P.E., General Manager - Glendale Water and Power Prepared by:
Rostamik Chetin, P.E. Senior Mechanical Engineer
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Exhibit 1: Addendum to Grayson Repowering Project FEIR.