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: 11 Section Name: CONSENT CALENDAR Account Number: 72-4671 File ID: 25-10772 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: January 26, 2026
SUBJECT:
Wastewater Treatment Plant Immediate Action Projects Package III — Agreement RECOMMENDATION:
Award a professional services agreement to HDR Engineering, Inc. to provide Engineering Services During Construction (Phase 3) for Immediate Action Projects Package-III in an amount not to exceed $332,916; establish a contingency reserve of $50,000; and authorize the Public Works Director to execute the agreement in the substantially the form presented and approve any necessary change orders within the approved 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 improvements that are currently under construction and intended to comply with the Cease-and-Desist Order.
The Wastewater Treatment Plant Immediate Action Projects Package III (IAP-III) Project is a component of the CWP and includes improvements to the Wastewater Treatment Plant’s (WWTP) effluent pump station, site waste pump station, and plant-wide mechanical and electrical equipment, as well as replacement of effluent flowmeters and sludge heating and recirculation piping. The project is part of the CWP’s efforts to modernize the existing WWTP and maintain safe and reliable operations.
IAP-III engineering services were planned to be executed in three phases: Phase 1 - Project Analyses, Phase 2 - Detailed Design and Bid Phase Services, and Phase 3 - Engineering Services during Construction.
On September 16, 2019, City Council awarded a professional services agreement to HDR Engineering, Inc. (HDR) to provide design and engineering services for the IAP-III project. However, due to challenges with the project, an oversight was made where the agreement with HDR lapsed. Therefore, a new agreement with HDR needs to be executed to complete the IAP-III project. Below is a detailed timeline of the agreement and amendments with HDR and its current status:
1. On September 16, 2019, Council awarded the professional services agreement to HDR to proceed with Phase 1 - Project Analyses for an amount of $217,932.
2. On October 19, 2020, City Council approved Amendment No. 1 for HDR to complete Phase 2 – Detailed Design for an amount of $801,563. The total contract amount was $1,019,495. During Phase 2, the City issued two more amendments to include scope for additional improvements and to optimize coordination with the larger WWTP Upgrade & Expansion project, which is already under construction. Both Amendments No. 2 and 3 were no-cost-
CITY OF SAN MATEO
increase amendments as HDR estimated they could complete the additional scope within the existing contract amount.
3. In April 2022, the IAP-III Project was advertised for competitive bids, with only a single bid submitted that was significantly higher than HDR's engineering estimate. On June 20, 2022, City Council adopted a resolution to reject the bid and authorize staff to negotiate with the bidder. A contingency-funded Amendment No. 4 was executed for HDR to provide support during negotiations, update the design as needed, and support the bid phase for a second time for an amount of $80,000. The total contract amount was $1,099,495. In February 2023, the revised contract documents were advertised and on May 15, 2023, the construction contract was awarded to the responsive low bidder.
4. On 28 June 2023, City Council approved Amendment No. 5 for HDR to complete Phase 3 - Engineering Services during Construction for services for an amount of $422,000. The project term was scheduled to be completed by April 30, 2025. At this time, the cumulative agreement total was $1,521,495 and contingency reserve was $42,000.
Unforeseen site conditions and contractor setbacks has caused the project to be delayed. HDR’s agreement was not renewed in response to the delay in the required time frame, and the agreement expired by its terms. Due to this, the remaining project funds and contingency have expired.
For HDR to provide engineering services during construction for the remainder of the construction period (estimated to be completed in July 2026), a new agreement with an expiration of December 31, 2026, for an amount of $332,916 and contingency reserve of $50,000 is recommended to complete the project and cover any additional unforeseen issues as work progresses.
BUDGET IMPACT:
There are sufficient funds available to fund this agreement in the WWTP IAP Package III Project (46t010).
ENVIRONMENTAL DETERMINATION:
The proposed action is exempt from environmental review under the California Environmental Quality Act (CEQA), since entering on-call professional services agreements is an organizational or administrative activity that will not result in direct or indirect significant physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).) In addition, on June 6, 2016, the City Council certified a Final Programmatic Environmental Impact Report (Final PEIR) (SCH No. 2015032006), which serves as the primary environmental compliance document for implementation of the Clean Water Program. On July 16, 2018, the City approved Addendum 1 to the Final PEIR, and on April 15, 2019, Addendum 2. Any resultant capital improvement or operations and maintenance-related projects resulting from the on-call professional consulting services shall be reviewed on an individual basis or evaluated for consistency with the PEIR and Addenda.
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Agreement
STAFF CONTACT
Thomas Ruark, Senior Project Manager
[email protected]
650-522-7280
Thomas W. Williams, Engineering Manager
[email protected]
(650) 522-7307
CITY OF SAN MATEO
James O'Connell, Deputy Director of Public Works
[email protected]
650-522-7304