CITY OF SAN MATEO
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 7 Section Name: {{section.name}} Account Number: 72-4674 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: May 06, 2024
SUBJECT:
Underground Flow Equalization System – Contingency Amendment RECOMMENDATION:
Approve an increase to the contingency reserve associated with the Anderson Pacific Engineering Construction, Inc. construction contract for the Underground Flow Equalization System (UFES) project in the amount of $771,000, for a revised total contingency reserve of $5,671,000; and authorize the Public Works Director to issue change orders within the contingency amount.
BACKGROUND:
The Clean Water Program includes various projects to improve the City of San Mateo’s sanitary sewer system to improve flow management and increase capacity to prevent sanitary sewer overflows. Included in the Basins 2 and 3 project is the Underground Flow Equalization (UFES) project (Project), which consists of construction of a 5.3-million-gallon underground concrete wastewater holding structure beneath the San Mateo County Event Center’s parking lot and new sewers along Delaware Street and Saratoga Drive. Wet weather flows are designed to be conveyed toward UFES for temporary storage until the storm event is over and thus help prevent sanitary system overflows.
On May 4, 2020, Council awarded the UFES construction contract to Anderson Pacific Engineering Construction, Inc. (APEC) in the amount of $55,277,330; established a contingency reserve of $4,500,000; and authorized the Public Works Director to execute the agreement and issue change orders within the contingency amount. The contingency reserve was established to address and mitigate potential unknowns that may arise during construction and was approximately 8.14% of the agreement value.
On August 16, 2021, City Council approved Contract Change Order No. 4 to the UFES construction contract in the amount of $3,877,875 adding construction of approximately 745 linear feet of new 30-inch sewer on Delaware Street between 25th and 28th Avenues to connect the southern end of the original UFES construction contract scope to the northern end of the Delaware Relief Sewer construction package. Council also approved an increase to the contingency reserve in the amount of $400,000, to bring the total contingency reserve to $4,900,000. To date, approximately $4.68 million of the approved contingency has been utilized to issue necessary negotiated change orders for the Project. A summary of the executed contract change orders is included in Attachment 1.
The Project is nearing substantial completion and full beneficial use and operation by the City. However, the Project has encountered challenges during construction that resulted in additional work, including modifications to mechanical, electrical, and civil related construction activities that are required to achieve final completion of the Project. These additions will require contract change orders that will exceed the remaining contingency balance of $223,414. Staff is currently evaluating and negotiating the change order proposals submitted by APEC to complete the additional scope.
CITY OF SAN MATEO
To mitigate risks associated with potential delays in completing the remainder of the work and to provide flexibility for staff to negotiate and execute contract change orders in a timely manner, staff recommends increasing the contingency reserve by an additional $771,000 for a total contingency reserve of $5,671,000. This proposed $5,671,000 total contingency is still within the typical industry guideline of establishing a contingency that is approximately 10% of the construction contract amount.
BUDGET IMPACT:
Funding for this additional contingency amount is available within the Basins 2 & 3 Collection System Improvements (46s003) project.
ENVIRONMENTAL DETERMINATION:
The work addressed by this administrative report is being undertaken to support the Clean Water Program. This project is subject to the requirements of the California Environmental Quality Act (CEQA), the general components of which are included as part of the Final Programmatic Environmental Impact Report (Final PEIR) (SCH No. 201532006) that was prepared for the Clean Water Program. The Final PEIR was certified by City Council on June 6, 2016.
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 - Contract Change Order Summary
STAFF CONTACT
Tom Williams, Senior Engineer
[email protected]
(650) 522-7307
Deryk Daquigan, Deputy Public Works Director
[email protected]
(650) 522-7287