CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 14 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: April 07, 2025
SUBJECT:
Temporary Standby Generator for Dale Avenue Pump Station Upgrade – Contract Change Order RECOMMENDATION:
Approve Contract Change Order No. 8 to the Agreement with Herc Rentals, Inc. for a temporary emergency standby generator to support the Dale Ave Pump Station Upgrade project in an amount not to exceed $66,944.28, increasing the total agreement amount to $781,731.99; increase the contingency reserve by $22,350; extend the Agreement term to April 30, 2025; and authorize the Public Works Director to execute the change order in substantially the form presented and issue change orders within the contingency amount.
BACKGROUND:
The Basins 2 & 3 Collection System Improvements (Basins 2 & 3) is a Clean Water Program project that increases capacity and improves flow management to prevent sanitary sewer overflows in several areas throughout the City, including one at Dale Avenue Pump Station (DAPS). The DAPS Upgrade project included refurbishment of force mains, pump station equipment upgrades, and replacement of the existing emergency standby generator.
In October 2019, City Council awarded an agreement to Anvil Builders, Inc. (Anvil) to construct the DAPS Upgrade project.
Anvil’s scope of work is nearly complete; however, there is still ongoing work associated with installation of a permanent emergency standby generator. The emergency standby generator at DAPS is critical, providing backup power for the pumps and facility during power failures. DAPS is the City’s largest sewer pump station, with a significant portion of overall wastewater flow routed through the station. Due to Bay Area Air Quality Management District requirements to comply with the latest air quality emission standards, installation of new pollution abatement equipment for the generator is required. While installing the new generator and pollution abatement equipment, a temporary standby generator is required to ensure continuous power capability at the station.
In August 2022, City Council approved a $222,090.41 agreement with Herc Rentals, Inc. (Herc) to provide a temporary standby generator required to support the DAPS Upgrade Project throughout the remainder of Anvil’s efforts to install the permanent emergency standby generator. The Council also approved establishing a $110,046 contingency reserve in case of unforeseen conditions or delays. At the time of the agreement approval, the new permanent emergency generator was expected to be installed by the end of Summer 2023.
In July 2023, the Public Works Director utilized the contingency reserve to execute Contract Change Order No. 1, adding $107,170.16 to the agreement. This change order addressed additional costs not accounted for in the original quote and agreement, such as utilizing longer cables to relocate the temporary generator from the public right of way onto the DAPS site. Residential property owners adjacent to the DAPS site raised a concern that storing the temporary generator in the public right of way impacted residential parking, so the temporary generator was relocated onto the DAPS property to address this concern.
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In August 2023, City Council approved Contract Change Order No. 2 to increase the total agreement value by $107,216.64, to extend contract end date to January 2024 and approved an additional contingency reserve of $80,000. In February 2024, the Public Works Director utilized the contingency reserve to execute Contract Change Order No. 3 to extend the use of the temporary generator through April 2024 and increase the agreement value by $80,081.32.
In April 2024, City Council approved Contract Change Order No. 4 to increase the total agreement value by $66,565.48 and approved an increase in the contingency reserve of $45,000. In August 2024, the Public Works Director utilized the contingency reserve to execute Contract Change Order No. 5 to extend the use of the temporary generator through September 2024 and increase the agreement value by $43,887.90.
In September 2024, City Council approved Contract Change Order No. 6 to increase the total agreement value by $43,887.90 to extend the contract end date to November 2024 and approved a $45,000 increase to the contingency reserve. In December 2024, the Public Works Director utilized the continency reserve to execute Contract Change Order No. 7 to extend the use of the temporary generator through January 2025 and to increase the total agreement value by $43,887.90.
There have been continued challenges in completing installation of the permanent generator at DAPS due to continued supply chain delays and completion of seismic design updates that have extended the anticipated completion date to the end of March 2025. The permanent generator and ancillary pollution abatement equipment delivery was delayed due to vendor and weather issues. The permanent generator assembly was delivered in early February. Staff were negotiating credits with Herc to cover the extended costs of the temporary generator while the permanent generator was being installed to potentially avoid another contract change order. However, the vendor preferred to finalize the credit at the end of the rental term. Installation delays require the temporary generator to stay in place much longer than expected.
Even though the permanent generator is now installed, manufacturers’ representatives must be scheduled to test the specialized equipment before it can go into service. This created a further delay. This requires issuing Contract Change Order No. 8 to further extend the use of the temporary generator through end of April 2025. As a result, a total increase of $66,944.28 to the temporary generator agreement with Herc is required for February, March and to have the temporary generator available through the end of April 2025, when the start-up testing of the new permanent generator is expected to be complete.
Based on the above, staff recommends approval of Contract Change Order No. 8 to increase the value of the agreement by $66,944.28, for a revised total agreement amount of $781,731.99, and to extend the Agreement term not to exceed April 30, 2025. Staff also recommends adding $22,350 to the contingency reserve in case of any unforeseen delays associated with start-up testing and putting the new permanent generator into operation. The final testing and startup could be delayed due to manufacturers’ schedules.
To potentially reduce the payments below the requested increase amounts, staff are coordinating with the contractor to identify potential opportunities to commission the permanent generator and demobilize the temporary generator as soon as possible. In addition, staff are continuing to negotiate potential credits with Herc.
BUDGET IMPACT:
Sufficient funds are available in the Basins 2 and 3 Collection System Improvements Project (46s003) to fund this contract change order and the additional contingency.
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.
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NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Contract Change Order No. 8
STAFF CONTACT
Thomas W. Williams, Engineering Manager
[email protected]
(650) 522-7307