CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 15 Section Name: {{section.name}} Account Number: 72-4671 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: August 19, 2024
SUBJECT:
Wastewater Treatment Plant Upgrade Engineering Services During Construction – Amendment & Contingency Increase RECOMMENDATION:
Approve Amendment No. 11 to the agreement with HDR Engineering, Inc. for additional engineering services during construction for the Wastewater Treatment Plant Upgrade and Expansion Project in the amount of $1,607,808 for a new total agreement amount of $18,095,235; increase the contingency reserve by $320,000 for a new total contingency amount of $3,664,000; and authorize the Public Works Director to execute the amendment and issue change orders within the contingency amount.
BACKGROUND:
The City is currently under a Regional Water Quality Control Board Cease and Desist Order requiring improvements to its sewer collection system and Wastewater Treatment Plant (WWTP) to eliminate sanitary sewer overflows and unauthorized discharges of untreated or partially treated wastewater to San Francisco Bay. The Clean Water Program (CWP) includes several capital improvement projects that are currently under construction and intended to comply with the Cease and Desist Order. The WWTP Upgrade and Expansion Project (Project) is the largest of these projects, which will result in a new treatment plant for processing wastewater. The project designer is HDR Engineering, Inc. (HDR). As the project designer, HDR has also been contracted by the City to provide engineering services during construction (ESDC).
Construction of the Project by Sundt Construction, Inc. has been underway since May 2019. The Project is being delivered in three construction packages:
Package 1 - Site preparation: Work was substantially completed in July 2022 Package 2 - Foundation piles: Work was substantially completed in January 2022 Package 3 - WWTP process facilities, Administration Building, and Maintenance Warehouse: In progress Below is the history of the HDR ESDC agreement and the ten amendments to date:
June 2019, City Council approved an agreement with HDR to provide ESDC for Package 1 of the Project in the amount of $450,221.
June 2020, City Council approved Amendment No. 1 to include ESDC for Package 2 in the amount of $419,830. November 2020, City Council approved Amendment No. 2 to include ESDC for Package 3 in the amount of $12,273,376 and authorized a contingency reserve of $2,244,000 to address future scope needs. Using the contingency budget from Amendment 2, the Public Works Director executed six additional amendments (Nos. 3 through 8) to HDR’s agreement.
July 2023, City Council approved an increase in the contingency reserve by $1,100,000 to address additional scope needs.
Using the increased contingency budget, the Public Works Director executed two additional amendments (Nos. 9
and 10) to HDR’s agreement.
The total ESDC contract value awarded to HDR for Packages 1, 2, and 3, including the additional amendments using contingency funds is $16,487,427.
Currently, the contingency budget is fully expended.
The project schedule for HDR’s ESDC services for the ongoing Package 3 assumed an end date based on the Contractor’s original construction schedule with estimated final completion in August 2024. The current contractual Final Completion date for the Project is January 23, 2025; however, at the February 5, 2024 Council meeting, staff indicated the full project closeout was anticipated to be in August 2025, based on information known at the time. The Contractor recently forecasted that project completion may be delayed to October 2025. Per the contract, the Contractor has been asked to provide a recovery schedule to try to reduce delays and maintain the August 2025 completion date.
Amendment No. 11 is for an extension of ESDC services including project management, resident engineer, startup and commissioning assistance, design modifications, cost estimating, and change order cost reviews, through approximately June 2025. HDR submitted a proposal in the not-to-exceed amount of $1,607,808. Staff believe this fee to be reasonable for the level of effort and expertise required. This amendment will bring the total fee of the agreement with HDR to $18,095,235.
As noted previously, there is no remaining contingency budget at this time. Staff requests approval for increasing the contingency reserve by $320,000 to address potential future scope needs. The requested contingency increase is based on an August 2025 project close-out timeframe but additional budget may be needed to successfully complete the Project should the potential schedule delays beyond August 2025 materialize. Staff will continue to closely monitor costs and potential changes, and work to manage the overall cost impact within the approved contingency budget.
BUDGET IMPACT:
Sufficient funds are available in the WWTP and Flow Management Upgrade and Expansion Project (46t003) to award Amendment No. 11 to HDR’s agreement for engineering services during construction and the increase the contingency reserve.
ENVIRONMENTAL DETERMINATION:
The City prepared a Final Programmatic Environmental Impact Report (Final PEIR) in accordance with the California Environmental Quality Act (CEQA) (SCH No. 2015032006). The PEIR was certified by City Council on June 6, 2016. In accordance with CEQA, the Final PEIR serves as the primary environmental compliance document for implementation of the Clean Water Program. The City prepared an Addendum to the Final PEIR that were approved on July 16, 2018 (Addendum 1) and April 15, 2019 (Addendum 2). This work is within the scope of the project evaluated in the PEIR and Addenda.
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Amendment No. 11
STAFF CONTACT
Thomas Ruark, Project Manager II
[email protected]
650-522-7280
Deryk Daquigan, Deputy Director of Public Works
[email protected]
650-522-7287
Matt Fabry, Director of Public Works
[email protected]
650-522-7309