CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
2/13/2023
1 SUBJECT:
Anza Pump Station Repair Project–Additional Budget Authorization for Construction and Construction Services Management
RECOMMENDED ACTION:
A. Adopt a Resolution Increasing the Anza Station Project Project’s construction contingency budget by $232,600 (10%) to the total contingency of $697,800 (30%), bringing the total construction authority to $3,023,800; and authorizing the City Manager to extend the term of the contract with DW Nicholson Corporation, and execute any additional construction change orders within the amended construction budget.
B. Adopt a Resolution to authorize the City Manager to execute a Task Order No. 2 (Attachment “B”) to the Consultant Master Services Agreement with Ghirardelli Associates, Inc. for Professional Engineering Services in an amount not to exceed $88,435 which includes a contingency of fifteen percent (15%); and add this amount to the overall Project budget.
STAFF CONTACT:
Nelson Schlater, P.E., Engineering Manager - Wastewater (650) 738-3767
[email protected]
Lisa Petersen, P.E., Director of Public Works
(650) 738-3770
[email protected]
BACKGROUND/DISCUSSION:
The fiscal impacts associated with the Anza Pump Station Repair Project (C036) - Additional Budget Authorization will be submitted for reimbursement to the City’s insurance carrier, PLAN JPA.
The Anza Pump Station is a stormwater pump station located just off Linda Mar Beach, west of Cabrillo Highway between Crespi Drive and Linda Mar Boulevard. On March 16, 2020, a fire occurred at the Anza Pump Station causing catastrophic damage. During the fire investigation, the pumps, engines, shafts, and other mechanisms of the pumping system were inspected. The inspection found that the fire resulted in damage to the pump station’s mechanical, electrical, gas meter and appurtenances, control systems, and building roof. Although most of the pumping system (that consists of three pumps and three engines plus associated equipment) was damaged by the fire and will need to be replaced, it was determined that one pump, built in the 1940’s, could be temporarily repaired and run with a rental engine from Herc Rentals and this has allowed the Anza Pump Station to function during recent storm events including the large storm events experienced in October of 2021, late December 2022 and early January 2023.
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The City of Pacifica’s Emergency Plan and Section 4-2.01 et seq. of the Pacifica Municipal Code empower the City Manager, acting as the Director of Emergency Services, to proclaim the existence of a local emergency when there is an actual or threatened existence of conditions of disaster or of extreme peril to the safety of persons and properties within this City. The Proclamation of Local Emergency was declared on April 8, 2020 for the Anza Pump Station.
The Proclamation has been continued and will continue until the Anza Pump Station is repaired and in working condition.
Additionally, pursuant to Section 3-15.09 (A) of the Pacifica Municipal Code, in cases of an emergency the City Manager is authorized to proceed at once to replace or repair any public facility without adopting plans, specifications, strain sheets, or working details, or giving notice for bids to let contracts. The City complies with Public Contract Code section 22050, which provides a process for City Council’s review of the emergency action if notice of bids to let contracts for public projects will not be given because of the emergency. This allows staff to obtain the necessary equipment to rehabilitate the pump station faster. For the Anza Pump Station, the City Manager has determined that the damaged pump station threatens the health and safety of persons and properties, including critical public infrastructure, which requires immediate attention and constitutes an emergency pursuant to Pacifica Municipal Code section 4-2.02 and Public Contract Code section 1102. In cases where time allows, staff will receive Council approval in advance for elements of emergency work.
Beginning in May 2020, the City contracted engineering services to assist with temporary repair of the pump station, developed bid documents to construct the necessary permanent repairs, supported pre-purchasing three new natural gas engines and two new stormwater pumps, and performed a new gas engine submittal review to ensure compatibility of bid documents. Project bid documents were completed in November 2021. In parallel, the City advertised for prequalification of bidders in June 2021, with the goal of expediting the project schedule. Only one prospective bidder submitted. The City reached out to two other reputable pump station contractors who toured the Anza Pump Station. One bidder agreed to bid but required an extension to the submittal date which the City granted. Two bids were received with the second bid being 4% higher than the low bidder DW Nicholson Corporation whose construction contract was awarded at the 3/28/2022 Council Meeting. Active construction commenced on May 1, 2022.
The City applied for and received an Emergency Coastal Development Permit (ECDP) from the California Coastal Commission (CCC) related to installation of a new gas service line and third pump and engine at the pump station. The City determined the other required fire damage repairs were covered under the City’s current permit with the CCC related to repair and maintenance. The CCC recently denied the City’s request to extend the ECDP and has requested the City submit a regular Coastal Development Permit for this work, which staff is in the process of coordinating. The ECDP was denied because the CCC felt the City should be working on a regular Coastal Development Permit (CDP).
Previous Council Authorizations for the Anza Pump Station The following actions related to the Anza Pump Station were previously approved by Council and occurred at several Council meetings between 2020 and 2022, including authorization to execute a construction agreement for the Anza Pump Station Repair Project which occurred at the 3/28/22 Council Meeting; and authorization to execute a construction agreement for the New 2-inch Gas Service Line to serve the Anza Pump Station which occurred at the 9/26/22 Council Meeting. Costs for all prior actions are provided under the fiscal impact section of this report.
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The prior actions were as follows:
-Rebuild of damaged pump, purchase of pump and reinstallation -Consultant services for design services for the repair -Bathroom repairs
-Purchase of two engines
-Pump Station repair construction
-Purchase of third stormwater pump
-Purchase of third engine
-Consultant services for engineering services during construction -Consultant services for construction management for the repair -New gas service line construction
-Additional consultant services for engineering services during construction Additional Budget Authorization for Construction of the Anza Pump Station Repair Project The Anza Pump Station Repair Project (Project) has been under active construction since May 1, 2022, is approximately 70% complete, and is anticipated to be completed in October 2023.
COVID-induced supply chain issues and construction at a 70-year old facility with no record drawings have impacted both schedule and cost. The City’s strategy to address these issues consisted of: pre-purchasing long lead time equipment; and establishing a construction budget contingency of 20%.
The City’s strategy to help expedite Project schedule was to pre-purchase complex, long lead time mechanical equipment (gas engines and storm water pumps). This strategy was also prudent, given the cost savings of purchasing the equipment sooner rather than later in a marketplace whose costs were, and continue to be, spiraling upwards. Relative to the general contractor purchasing this equipment, the City’s pre-purchase strategy saved time (and money) but also experienced supply chain delays as well. By the end of December 2022, two new gas engines had been installed and by the end February 2023, City staff anticipates having all mechanical equipment delivered to the site with installation commencing soon after. A major Project schedule delay has to do with control panel delivery which is explained in more detail below and has pushed finalization of the Project, related to automation, to late fall.
Construction at a fire-damaged 70-year old facility without historical record drawings has proven to be challenging. As noted above, to mitigate concerns around pump station age and lack of record drawings, the City established a construction budget contingency of 20% at the start of the Project. This amount was discussed with the City’s Insurance Agent who noted the City should budget what it felt would allow for project completion including necessary Contract Change Orders (CCO). Although initially 20% was estimated as needed for completion, due to various issues it is now believed staff will need a 30% contingency to complete the work. The Table below summarizes the Contract Change Orders (CCOs) executed to date.
CCO Description Cost
1 Third Party concrete and welding testing $13,082.62
2 K-Rails to provide pedestrian safety $5,903.00
3 Additional Structural Beams for Steel & Concrete Roof $32,706.00 4 Rotate Stormwater Pump No. 4 to align with engine shaft $2,379.00 5 Plaster and concrete South interior wall depressed area $7,688.00 6 UPS Control Panel Addition $32,630.00
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7 Signal I/O Change for Engine-Control Panel (CP) Communication $16,462.00 8 Engine Exhaust Piping Insulation $21,183.00
9 Bathroom lighting, hand dryers, and motion sensors $46,909.00 10 Pump No. 3 Discharge Piping Slipliner and Repair $106,080.00 11 Revised Power & Control Connections Engines- PC Communication $177,098.00 Total $462,120.62
Related to CCO #10, after the fire, the only pump not seriously damaged at the pump station was the large, old engine driven pump. The City has kept the pump station operational by using this old large pump along with a rented engine from Herc rentals, as the original engine was damaged. The project design plans included only fire damaged pumps and it was determined the old engine driven pump also needed to be replaced. During construction, it was identified that the discharge pipe related to this old pump would need to be repaired by a process called sliplining. This work resulted in the cost associated with CCO #10.
Related to CCO #11, the original design showed engine local control panel power and control signal wiring (conduits) routed directly from the engine room to the Master Pump Station Power and Master Pump Station Control Panels, which are located in the southwest room of the Pump Station. At the start of construction, during layout, a communication protocol issue was discovered that required intermediate power and signal boxes for each engine to communicate with the Master Pump Station Control Panel. Purchase of these intermediate boxes and their conduits resulted in the cost associated with CCO #11. In summary, the construction project’s budget contingency has reached its original budget authority of 20% ($465,200), with approximately $3,000 remaining.
As stated above, the Project is approximately 70% complete. To date, the Project has installed the new steel roof (hatches will be installed at the end of the Project); two of the three natural gas engines; and other appurtenant equipment. The Project still needs to install the third new gas engine, followed by the third new pump. We anticipate this equipment arriving at the site at the end of February 2023 with installation in March 2023. Furthermore, the Project needs to install the Master Pump Station Power and Control Panels, then test and commission the system. Due to supply chain issue delays with the Master Pump Station Control Panel, the Project will be delivered in two stages: manual mode testing and commissioning of the engines and stormwater pumps first; followed by automatic mode testing and commissioning of engines and stormwater and pumps. The anticipated completion dates for these two milestones are as follows: manual mode testing and commissioning: end of May 2023 or early June 2023; and automatic mode testing and commissioning: end of September 2023 or early October 2023. To reach these milestones, based on continuing discussions with the general contractor, City staff anticipates additional contract change orders associated with the engines and their appurtenances such as necessary foundation strengthening. As the Pump Station is currently 70% complete, there may be other required CCO’s that come up during completion of the final 30% of the work.
Therefore, City staff has estimated that the level of effort to bring the Project from its current state of completion through testing and commissioning of the fully automated pump station (100% completion) will require an additional $232,600 (10% budget contingency). City staff’s goal is to bring the Project in below the above value, but based on experience to date, City staff recommends an additional 10% budget contingency to complete the Project.
Additional Construction Management Services
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The original Construction Management (CM) Services budget for the Anza Pump Station Repair Project was based on anticipated Project duration. The original Project budget authorization of $242,660, which included a 10% budget contingency, was based on achieving Project completion in January 2023. Currently, the Project is behind schedule. Furthermore, due to supply chain issue delays with the control panel, the Project will be delivered in two stages:
manual mode testing and commissioning of the engines and stormwater pumps first; followed by automatic mode testing and commissioning of engines and stormwater and pumps. The anticipated completion dates for these two milestones are as follows: manual mode testing and commissioning: end of May 2023 or early June 2023; and automatic mode testing and commissioning: end of September 2023 or early of October 2023. Ghirardelli Associates, Inc. (GHA) is providing CM services for the Project. Currently, the CM Services has $47,060 remaining in the budget, which includes the original budget contingency of 10%. Based on discussions with GHA, City staff anticipates approximately 300 hours of CM project management/administration and 300 hours of CM inspection or a total additional fee of $123,960. This fee minus the remaining budget of $47,060 equals $76,900. City staff recommends authorizing budget authority for additional CM services through Project completion in an amount not to exceed $88,435 which includes a fifteen percent (15%) budget contingency for Task Order No. 2 for any unforeseen conditions.
Project funding is anticipated to be reimbursable by insurance as described below in further detail.
Approval of the recommendations will allow staff to move forward with constructing improvements to complete the Project and thereby supporting restoration of the stormwater pump station that will protect the health and safety of persons and properties, including critical public infrastructure. Should the Council approve the recommended actions in this report, the project construction will be finalized. The City Manager recommends that the City Council approve the increased Project contingency and Task Order No. 2 to the construction services contract as discussed in this Council report.
ALTERNATIVE ACTION:
Council may choose not to approve the construction budget augmentation and construction management task order agreement; however, this will result in project delays, possible increase of construction costs and increased possibility of equipment failure at the pump station and could lead to catastrophic flooding events. Staff does not recommend this alternate action.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
Approval of the construction contract and supporting agreements is consistent with the following Council adopted Goals:
• Stewardship of City Infrastructure and Maintaining a Safe Community: This construction project will help facilitate the return of the Anza Pump Station to its pre-fire capacity, conveying storm water flows to the ocean to mitigate potential impacts of flooding including threatening the safety of residents and damaging private property or critical public infrastructure.
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FISCAL IMPACT:
The requested actions will increase the overall cost of the Anza Pump Station Project by $321,035 to a total of $5,326,081 (net of Self Insurance Retention limits). The City’s deductibles are $225,000 for PLAN JPA and $10,000 for American International Group (AIG).
The requested additional budget contingency and Construction Management Services also will be submitted for reimbursement to the City’s property insurance carrier, PLAN JPA. The total project use of funds for the Anza Pump Station Repair Project (C036) to date, including the recommended agreement approvals, is as follows:
Pump Rebuild & Installation $104,937.41
Bathroom Renovations $210,868.52
Schaaf & Wheeler Engineers for Repair Design $264,160.00 Pump Purchase & Installation $185,371.87
Two Caterpillar Engines Purchase $492,268.00
Anza Pump Station Repair Project Construction Cost $2,326,000.00 Anza Pump Station Repair Project Construction Contingency (20%) $465,200.00 Pump No. 3 Purchase & Installation (incl 10% conting.) $228,133.64 Third Caterpillar Engine Purchase (incl 10% conting.) $358,696.72 Anza Pump Station Repair Project Construction Engineering Support $105,630.00 Anza Pump Station Repair Project Construction Management (incl 10% conting.) $242,660.00 Anza Pump Station New Gas Service Line Construction $185,100.00 Anza Pump Station New Gas Service Line Construction Contingency (20%) $37,020.00 Anza Pump Station Repair Project - Additional Constr. Engineering Support (incl 15%) $34,000.00 Total Work Under Contract $5,240,046.16
Anza Pump Station Repair Project Additional Construction Contingency (10%) $232,600.00 Anza Pump Station Repair Project Additional Construction Management Services (incl 15%) $88,435.00 Total Work Proposed $321,035.00
Grand Total $5,561,081.16
Plan JPA ($ 225,000)
American International Group (AIG) ($ 10,000)
Total Insurance Deductible ($ 235,000)
Total Identified Insurance Reimbusement $5,326,081.16
ANZA PUMP STATION REPAIR PROJECT (C036)
Project Use of Funds - Previous Council Approved Completed/Under Contract Project Use of Funds - Work Proposed with this Approval ORIGINATED BY:
Public Works - Wastewater Division
ATTACHMENT LIST:
Attachment A: Agreement - Ghirardelli Associates Inc 1-9-2023 Task Order #2_Anza Pump Station Repair CM (PDF)
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Attachment B: Resolution - Authorizing Task Order No. 2 for Ghirardelli Assoc (PDF) Pacifica City Council 8
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA AUTHORIZING AN
INCREASED CONSTRUCTION CONTINGENCY BUDGET AUTHORITY FOR CONSTRUCTION
OF THE ANZA PUMP STATION REPAIR PROJECT
WHEREAS, consistent with the City of Pacifica’s Purchasing Policy (Administrative Policy No. 76), the City of Pacifica entered into a construction services agreement with DW Nicholson Corporation (“DWN”) for construction under the City Council’s purchasing authority; and
WHEREAS, the level of effort required to complete the construction for the Anza Pump Station Repair Project exceeded the estimates used to establish the original agreement amount plus contingency for the work; and
WHEREAS, the City Council of the City of Pacifica has considered the City Manager’s recommendation to approve the City’s construction services agreement with DWN for construction on March 28, 2022; and
WHEREAS, the Project is at about 70% completion, and City staff anticipates additional contract change orders associated with the engines and their appurtenances, such as necessary foundation strengthening.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Pacifica to:
1. Increase the construction contingency for the Anza Pump Station Repair Project by an additional $232,600 or 10% of the construction budget to the total contingency of $697,800 (30%), increasing the total project construction budget authority to $3,023,800; and
2. Authorize the City Manager to extend the term of the contract with DW Nicholson Corporation through October 31, 2023, and execute any additional construction change orders within the amended construction budget
• • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 13th day of February 2023, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
Tygarjas Twyrls Bigstyck, Mayor
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ATTEST: APPROVED AS TO FORM:
Sarah Coffey, City Clerk Michelle Kenyon, City Attorney