REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Execute a Settlement Agreement with Rosendin Electric Inc. and Zurich American Insurance Company and Take Any Other Action(s) Necessary to Resolve the City's Reimbursement Claim for Damage to the Lick Mill Pump Station related to the Citywide Emergency Generator Replacement - Phase 1 Project and Approve Related Budget Amendments
Report
BACKGROUND
On August 18, 2020, the City Council awarded a construction contract for the Citywide Emergency Generator Replacement - Phase 1 project to the lowest responsible bidder Rosendin Electric, Inc (Rosendin). The contract executed was for a total not-to-exceed amount of $3,363,510 and included removal and replacement of the emergency stand-by generators at nine City facilities: City Hall - East Wing, Emergency Operation Center, Radio Shop (at the Utilities Corporation Yard), Fire Station 1, 7, and 8, Parks Service Center, and Rambo and Lick Mill Storm Drain pump stations.
On Friday, January 19, 2024, during Rosendin's work on the Lick Mill Pump Station, the contractor mistakenly removed components of the Motor Control Center (MCC). The MCC functions as the central control system for the pump station. This error inadvertently disconnected power to the station's active pumps just ahead of a forecasted weekend rain event.
In the early morning of Monday, January 22, 2024, at approximately 3:30 a.m., on-call staff from the Water and Sewer Utilities Department received a high-water alarm from City dispatch. Upon arriving at the station, staff discovered that key MCC components had been dismantled, leaving Pump #2 and Pump #3 without power. City staff immediately contacted Rosendin's foreman, who returned to the site and attempted to reconnect the wiring and components. However, the contractor did not properly verify the wiring phasing before re-energizing the pumps, causing them to run in reverse. This reverse rotation resulted in extensive damage to th...
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