CITY COUNCIL STAFF REPORT
DATE: AUGUST 26, 2026 CONSENT CALENDAR
SUBJECT: APPROVE CONTRACT CHANGE ORDER NO. 9 WITH STEVE P. RADOS INC., IN THE AMOUNT OF $336,049.59, AND APPROVE AMENDMENT NO. 6 UNDER PROFESSIONAL SERVICE AGREEMENT NO. A9141 WITH
MWH CONSTRUCTORS INC., IN THE AMOUNT OF $21,296.00 FOR
CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR
WWTP DIGESTER NO. 2, WASTE GAS FLARE AND FILTRATE PUMP
STATION, CITY PROJECT CP 20-25 & 21-07
FROM: Scott C. Stiles, City Manager
BY: Engineering Services Department
SUMMARY:
Staff is requesting City Council approval of Contract Change Order No. 9 with Steve P.
Rados, Inc. (Rados) in the amount of $336,049.59 and approval of Amendment No. 6 to Professional Services Agreement No. A9141 with MWH Constructors, Inc. (MWH) in the amount of $21,296.00, including a time extension to October 31, 2026. The additional construction costs resulted from directing the Contractor to perform work necessary to maintain project continuity and ensure uninterrupted plant operations. MWH's agreement needs to be extended in order to continue providing construction management and project closeout services.
RECOMMENDATION:
1) Approve Contract Change Order No. 9 in the amount of $336,049.59 to Agreement A9137 with Steve P. Rados, Inc. for the WWTP Digester No. 2 Waste Gas Flare and Filtrate Pump Station, City Project No. 20-25 & 21-07 (“Project”). 2) Approve amendment No. 6 in the amount of $21,296.00 to Professional Services Agreement No. A9141, for a new not-to-exceed amount of $2,096,708.14 with MWH and extend the agreement expiration date to October 31, 2026. 3) Appropriate $357,345.59 from the Wastewater Fund to the project’s account. 4) Authorize the City Manager or his designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
The Public Integrity Disclosures from Rados and MWH are included as Attachment A.
City Council Staff Report
August 26, 2026 -- Page 2
Approve Rados CCO 9 and MWH Amendment No.6 for CP 20-25 & 21-07 BACKGROUND:
On May 12, 2022, the City Council awarded a construction contract to Rados (“Contractor”) and a Professional services agreement for Construction Management Services to MWH for the WWTP Digester No. 2 Waste Gas Flare and Filtrate Pump Station Project. The scope of work included replacing Digester No. 2, construction of a new gas holder, replacement of the existing waste gas flare and replacement of the filtrate pump station and filtrate pump station force main. Figure 1 below shows the worksite with the various component locations.
Figure 1 – Site Map
On July 21, 2022, construction of the Project commenced. The original construction contract awarded to Rados for the Project was $15,905,500, which has since undergone eight (8) prior change orders totaling $2,621,530.89. These change orders reflect adjustments to the scope of work, unforeseen field conditions, and other necessary revisions identified throughout the course of the Project.
Budget for the Construction Management Services with MWH agreement was $1,246,123.14. As the Project progressed, additional permitting needs, changing construction requirements, and other necessary work required modifications of the agreement. To date, five (5) prior amendments have been executed, totaling an increase of $829,289. These amendments were needed to support the construction management and regulatory activities throughout the duration of the Project.
City Council Staff Report
August 26, 2026 -- Page 3
Approve Rados CCO 9 and MWH Amendment No.6 for CP 20-25 & 21-07 STAFF ANALYSIS:
As of April 30, 2026, MWH’s construction management agreement expired. MWH sent an amendment request for a time extension through October 31, 2026, and an increase in funds totaling $21,296 to take the project to completion and closeout. The request is included as Attachment B.
MWH and City Staff reviewed four cost proposals from Rados, covering various work modifications for the Project. The work included the remediation of a sinkhole, the replacement of a three-way valve, relocation of a palm tree to accommodate the new gas flare installation, miscellaneous buried pipe alignment modifications to accommodate unidentified utilities encountered in the field, and gas flare pipe re-routing and modifications.
All proposals were found to be contractually compliant. Appropriate documentation was provided and labor, equipment, materials, subcontractor support, and markups were found to be within reasonable scope and cost. The cost of these modifications and extra work totals $336,049.59. No additional time is requested in this change order. The change order is included in Attachment C.
ENVIRONMENTAL ASSESSMENT:
In accordance with the California Environmental Quality Act (“CEQA”) Guidelines Section 15302 “Replacement or Reconstruction”, Class 2 projects consist of replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the replacement structure and will have substantially the same purpose and capacity as the structure replaced. Therefore, Staff have determined that the City of Palm Springs Wastewater Treatment Plant Digester No. 2, Waste Gas Flare and Filtrate Pump Station Improvement Project, City Project No. 20-25 & 21-07, is considered categorically exempt from CEQA.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Infrastructure and Facilities.
FISCAL IMPACT:
Amendment No. 6 will increase the total contract price by $21,296 resulting in a new total price of $2,096,708.14. Contract Change Order No. 9 will increase the contract by $336,049.59, resulting in a new total contract price of $18,863,080.48. An appropriation of $357,345.59 is required to cover the amendment and the Change order; sufficient funding is available in the Wastewater Fund balance.
City Council Staff Report
August 26, 2026 -- Page 4
Approve Rados CCO 9 and MWH Amendment No.6 for CP 20-25 & 21-07 REVIEWED BY:
Acting City Engineer: Francisco Jaime
Assistant City Manager: Flinn Fagg
City Manager: Teresa Gallavan for Scott Stiles
ATTACHMENTS:
Attachment A – MWH and Rados Public Integrity Disclosure Forms Attachment B – MWH Amendment Request
Attachment C – Rados Change Order No. 9