CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
11/25/2024
1 SUBJECT:
Move to adopt Resolution to Approve Additional Budget Authorization for Anza Pump Station Project for Substantial Completion
RECOMMENDED ACTION:
Move to Adopt Resolution for:
A. Adopt a Resolution to Increase the Anza Pump Station Repair Project construction contingency budget by $133,355.75 (5.5%) to the total contingency of $938,652.46 (40.5%), bringing the total construction authority to $3,265,966.75; and Authorize the City Manager to execute the close-out change order for the project.
B. Adopt a Resolution to Increase the Anza Pump Station Repair Project engineering services during construction (ESDC) contingency budget by $55,896 (53%) to the total contingency of (85%), bringing the total ESDC authority to $195,526; and Authorize the City Manager to execute the close-out change order for the project.
STAFF CONTACT:
Dan Patten, P.E., Engineering Manager - Wastewater
(650) 922-7248
[email protected]
Louis Sun, P.E., Deputy Director of Public Works
(650) 738-4662
[email protected]
John Mullins, Interim Director of Public Works
(650) 738-3767
[email protected]
BACKGROUND/DISCUSSION:
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.
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 Pacifica City Council 2
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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 continued since and is on the City Council’s November 25, 2024 agenda for termination.
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 the 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 determined that the damaged pump station could threaten the health and safety of persons and properties, including critical public infrastructure, which required immediate attention and constituted 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 the temporary repair of the pump station, developed bid documents to construct the necessary permanent repairs, supported the pre-purchasing of three new natural gas engines and two new stormwater pumps, and performed a new gas engine submittal review to ensure compatibility of bid documents. Active construction commenced on May 1, 2022. An emergency purchase agreement with Herc Rental for a temporary rental engine was approved on September 1, 2020, and on October 12, 2020, temporary measures were completed to allow for a non-standard system of pumping at the Anza Pump Station until final repairs are completed. This work included the temporary rental engine, a new pump, a transfer switch, a temporary roof, portable generator connections, and exterior double doors. The City was able to provide storm drain pumping and flooding prevention measures for the Anza Pump Station service area at all times after the fire damage.
The City’s strategy to help expedite the Project schedule was to pre-purchase complex, long lead time mechanical equipment (gas engines and stormwater 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. All three of the new pumps had been installed by the fall of 2023, and Pumps 1 and 4 conveyed the majority of the stormwater the pump station received that winter. Due to additional supply chain issues with the instrumentation and control system, the pump station was not ready to run in automatic mode (i.e. with the pumps controlled by the computer vs. City staff onsite full-time) until April of 2024. The pump station has two small sump pumps to pump water received at the pump station to irrigate the bioswales at Linda Mar State Beach. During the start-up of the sump pumps, issues were found with the electrical system and the pumps and electrical equipment had to be replaced. Additionally, outdoor portions of the natural gas piping were found to be corroded, and the City decided to upgrade this pipe to 316 stainless steel to reduce the risk of this reoccurring. The Project is substantially complete as of this November 25, 2024 Council Meeting.
Construction at a fire-damaged 70-year-old facility without historical record drawings and during the COVID Pandemic 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 Pacifica City Council 3
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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, staff will need a 40.5% contingency to complete the work. The Table below summarizes the Contract Change Orders (CCOs) included in this Council Report:
Number CCO Cost
34 Phase Converter Replacement $ 38,947
35 Sump Pump Replacement $ 39,622
36 Gas Pipe Improvements $ 5,000
37 Closeout Change Order $ 49,787
Total $ 133,356
Project funding is anticipated to be reimbursable by insurance as described below in further detail.
Engineering services were required during construction. The City issued Task Order 2 for Engineering Services During Construction (ESDC) to Schaaf and Wheeler on March 28, 2022, for an amount not to exceed $105,630. As construction progressed, the project required a greater than anticipated level of effort associated with equipment and material resubmittals; responding to contractor requests for information; coordination with the gas engine supplier; and support for small contractor change orders. Therefore, Task Order 3 was issued to Schaaf and Wheeler on February 13th, 2023 for additional support. Challenges on the project continued, and $55,895.53 was required to complete the engineering portion of the project or an 85% contingency of the originally awarded fee.
Total Engineering Services During Construction
Anza Pump Station Repair Project Construction Engineering Support $ 105,630 Anza Pump Station Repair Project - Additional Constr. Engineering Support (incl 15%)
$ 34,000
Anza Pump Station Repair Project - Final Engineering Support $ 55,896 Total $ 195,526
Approval of the recommendations will allow staff to complete improvements to complete the Project, thereby supporting the 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, project construction will be finalized.
The City Manager recommends that the City Council approve the increased Project contingency as discussed in this Council report.
This Change Order represents substantial completion of the contract with DWN Nicholson and the Anza Pump Station Repair Project. However, future projects at the Anza Pump Station may be required to improve the operations and the reliability of the pumping systems.
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. Staff does not recommend this alternate action.
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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.
FISCAL IMPACT:
The fiscal impacts associated with the Anza Pump Station Repair Project (C036) will be submitted for reimbursement to the City’s insurance carrier, PLAN JPA which includes the additional budget authorization as of this staff report. The requested actions will increase the overall cost of the Anza Pump Station Project by $189,251.28. The City’s deductibles are $225,000 for PLAN JPA and $10,000 for American International Group (AIG).
PLAN JPA has submitted a $2,377,821.31 payment to the City and currently, another $1,046,594.49 is approved and going through the reimbursement process. Staff is still working to finalize the remaining settlement payment with PLAN, and it is projected PLAN JPA will cover roughly 70% of the total cost. The 30% of the total costs that are not covered under PLAN are considered to be improvements and enhancements to Anza Pump Station. Such improvements and enhancements are the purchase and installation of an additional engine and pump for redundancy, advanced electronics and instrumentation, replacements of equipment and infrastructure located in the wet well area which was not affected by the fire, and other improvements to the Anza Pump Station which were not affected by the fire. A complete fiscal impact and insurance reimbursement report will be forthcoming in the future when staff brings the Notice of Completion to the City Council.
The requested additional budget contingency 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:
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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 (35%) $806,611.00 Pump No. 3 Purchase & Installation (including 10% contingency) $228,133.64 Third Caterpillar Engine Purchase (including 10% contingency) $358,696.72 Anza Pump Station Repair Project Construction Engineering Support $105,630.00 Anza Pump Station Repair Project Construction Management (including 10% Cont) $331,095.00 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 Construction Engineering Support (incl 15%) $34,000.00 Bay Power Startup Support $88,795.00
Beecher Engineering Inc. Startup Support $74,080.00
Total Work Under Contract $5,832,767.16
Anza Pump Station Repair Project Additional Construction Contingency (5.5%) $133,355.75 Anza Pump Station Repair Project Final Engineering Support $55,895.53 Total Work Proposed $189,251.28
Grand Total $6,022,018.44
Plan JPA ($225,000.00)
American International Group (AIG) ($10,000.00)
Total Insurance Deductible ($235,000.00)
Total Identified Insurance Requested $5,787,018.44
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 - Contract Change Order Anza Pump Station Repair Project (PDF) Attachment B - Schaaf & Wheeler Invoice Reduction and Project Closeout (PDF) Pacifica City Council 6
November 25, 2024
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA AUTHORIZING AN
INCREASED CONSTRUCTION CONTINGENCY AND ENGINEERING SERVICES DURING
CONSTRUCTION CONTINGENCY BUDGET AUTHORITY FOR CONSTRUCTION OF THE
ANZA PUMP STATION REPAIR PROJECT
WHEREAS, a local emergency existed in Pacifica in accordance with the proclamation thereof by the Director of Emergency Services on the 8th day of April, 2020 and its ratification by the City Council on the 13th day of April, 2020 as a result of fire at the Anza Pump Station, and after Public Works staff investigated, it was determined that the storm drain pumping system and roof/bathrooms were damaged during the fire.; and
WHEREAS, the engines were destroyed, and the pumps needed to be replaced. The damage to the pump station threatened and continues to threaten the safety of persons and properties within the watershed due to the risk of flooding without an operational pump station; and
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 City initiated Task Orders with Schaaf and Wheeler for Engineering Services during construction on March 28, 2022 and February 13, 2023.
WHEREAS, additional level of effort required to complete engineering services during construction were exceeded the original estimates used to establish the original agreement amount plus contingency for the work; and
WHEREAS, the Project is substantially complete, and City staff require a final-project closeout change order.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Pacifica, State of California to:
1. Increase the Anza Pump Station Repair Project construction contingency budget by $133,355.75 (5.5%) to the total contingency of $939.966.75 (40.5%), bringing the total construction authority to $3,265,966.75; and
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2. Increase the Anza Pump Station Repair Project engineering services during construction (ESDC) contingency budget by $55,896 (53%) to the total contingency of (85%), bringing the total ESDC authority to $195,526; and
3. Authorize the City Manager to execute the close-out change order for the project. • • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 25th day of November 2024, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
Sue Vaterlaus, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ ______________________________ Sarah Coffey, City Clerk Michelle Marchetta Kenyon, City Attorney