HomeMy WebLinkAbout2026-06-23; City Council; 08; Adjustment to the Funding for the Construction Contract for the Citywide Electrical Control Panel Replacement Project for Water and Wastewater FacilitiesCA Review TL
Meeting Date:
To:
From:
Staff Contact:
kyle.james@carlsbadca.gov, 442-339-5247
Stephanie Harrison, Utilities Manager
stephanie.harrison@carlsbadca.gov, 442-339-2310
Subject:
Electrical Control Panel Replacement Project for Water and Wastewater
Facilities
Districts:
Recommended Actions
1)Adopt a City Council resolution authorizing a reduction of $160,626 for the sewer
replacement fund’s portion of the construction contract with Technical Systems, Inc. for
the Citywide Electrical Control Panel Replacement Project to an amount not to exceed
$740,742 and setting the sewer replacement fund’s portion of the project contingency to
$148,000; and
2)Adopt a Carlsbad Municipal Water District Board of Directors resolution authorizing an
increase of $113,756 for the water replacement fund’s portion of the construction contract
with Technical Systems, Inc. for the Citywide Electrical Control Panel Replacement Project
to an amount not to exceed $2,141,834; authorizing an increase of $46,870 for the
recycled water replacement fund’s portion of the construction contract with Technical
Systems, Inc. for the Citywide Electrical Control Panel Replacement Project to an amount
not to exceed $873,124; and setting the water and recycled water replacement funds’
portion of the contingency for the project to $428,000 and $175,000, respectively.
Executive Summary
The City of Carlsbad and the Carlsbad Municipal Water District use a supervisory control and
data acquisition, or SCADA, system to remotely monitor and control municipal water, recycled
water, and wastewater infrastructure.
The city and the district are in the final phase of a project to replace the water and wastewater
SCADA system.
On Sept. 23, 2025, the City Council awarded a construction contract to Technical Systems, Inc.,
to replace electrical control panels citywide as part of this effort and the Carlsbad Municipal
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Water District, or CMWD, Board authorized the use of water and recycled water replacement
funds to pay the CMWD’s share of the contract costs. The contract was for $3,755,700, with the
sewer replacement fund paying for the wastewater portion of the contract costs.
The breakdown of costs allocated to each funding source for the construction contract in the
Fiscal Analysis section of the Sept. 23, 2025, staff report presented to the City Council was
based on a percentage split that was determined by the number of sewer, water and recycled
water sites in the project, and the contingency funding amount was set at 20% of the
construction cost for each funding source. The percentages were based on the estimated cost
breakdown identified in the engineer’s estimate for the project. (Engineer’s estimates are used
to obtain an estimate that will be as close to the actual costs as possible.)
As staff were preparing to start construction, they determined that the itemized bid submitted
by Technical Systems, Inc. provided actual costs for each sewer, water and recycled water site,
allowing costs to be allocated directly to the appropriate fund.
The recommended actions will only revise the funding allocations to reflect these actual costs.
There will be no change to the cost of the total contract or the project’s contingency amounts.
Staff request that the City Council and the CMWD Board authorize adjustments to clarify and
correct the funding for the construction costs and contingency for the project.
Explanation & Analysis
The City Council accepted bids and awarded a construction contract to Technical Systems, Inc.
for, the Citywide Electrical Control Panel Replacement Project for Water and Wastewater
Facilities, on Sept. 23, 2025, and the CMWD Board authorized the use of water and recycled
water replacement funds for the CMWD’s share of the contract costs.
Those funding allocations were based on percentage estimates derived from the engineer's
estimate. After the contract was awarded, staff determined that the contractor's itemized bid
provided actual costs for each sewer, water and recycled water site, allowing costs to be
allocated directly to the appropriate fund.
These funds are enterprise funds, which can only be spent on their specific purpose. Since the
enterprise funds are generated by sewer, water and recycled water rates, there is a legal
requirement to ensure that these funds are used appropriately for activities that support the
infrastructure that the ratepayers are paying for. Therefore, it is necessary to correct funding
allocations and ensure they match the actual expected expenditures for the respective sewer,
water and recycled water sites.
Additionally, because the contingency amount allocated to each fund is calculated as a
percentage of the construction contract, the proportional share allocated for each fund will also
be updated.
Staff recommend that the City Council authorize the reduction of the sewer replacement fund’s
portion of the construction contract with Technical Systems, Inc. to an amount not to exceed
$740,742 and set the contingency portion for the sewer replacement fund to a total amount of
$148,000, a total reduction of $192,626 from what was recommended in the Sept. 23, 2025
staff report.
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Staff recommend that the CMWD Board authorize the increase of the water replacement fund’s
portion of the construction contract with Technical Systems, Inc. to an amount not to exceed
$2,141,834 and set the contingency amount for the water replacement fund portion of the
project to a total amount of $428,000, a combined increase of $135,756 over what was
recommended in the Sept. 23, 2025 staff report.
Staff also recommend that the CMWD Board authorize the increase of the recycled water
replacement fund’s portion of the construction contract with Technical Systems, Inc. to an
amount not to exceed $873,124 and set the recycled water’s portion of the contingency
amount to $175,000, a combined increase of $56,870 over what was recommended in the Sept.
23, 2025 staff report.
Fiscal Analysis
As noted above, this is only a change to how the construction costs are distributed among the
funding sources. The total construction contract cost and total contingency amounts shown on
the Sept. 23, 2025, staff report remain the same.
This project is budgeted in Capital Improvement Program Project Nos. 5542-1, 5542-2, and
5542-3, which are respectively funded by the sewer replacement, water replacement and
recycled water replacement funds. There are sufficient funds available to make the requested
adjustments for the project.
A summary of the original and adjusted amounts for each funding source is shown below:
SCADA Improvements Project
Capital Improvement Program Project No. 5542-1 – Sewer
Electrical control panels – Wastewater lift stations
Expense
Construction Cost –
Technical Services,
Total construction
contract
-$192,626
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SCADA Improvements Project
Capital Improvement Program Project No. 5542-2 – Water
Electrical control panels – Water sites
Expense
Construction Cost –
Technical Services,
Total construction
contract
+$135,756
SCADA Improvements Project
Capital Improvement Program Project No. 5542-3 – Recycled Water
Electrical control panels – Recycled Water sites
Expense
Construction Cost –
Technical Services,
Total construction
contract
$991,254 $1,048,124 +$56,870
Next Steps
If approved by the City Council and the CMWD Board, staff will make corrections to the
purchase order to adjust the amounts encumbered from each CIP Project budget for
construction costs and encumber contingency costs.
Environmental Evaluation
The proposed action is not a “project” as defined by California Environmental Quality Act, or
CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require
environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal
activity and does not involve any commitment to any specific project which may result in a
potentially significant physical impact on the environment. The activity or projects for which
this budget is intended to fund may require preparation of an environmental document in
accordance with CEQA and CEQA Guidelines.
Exhibits
1.City Council resolution
2.CMWD Board resolution
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Exhibit 1 RESOLUTION NO. 2026-135 .
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING A REDUCTION OF $160,626 FOR THE SEWER
REPLACEMENT FUND’S PORTION OF THE CONSTRUCTION CONTRACT WITH
TECHNICAL SYSTEMS, INC. FOR THE CITYWIDE ELECTRICAL CONTROL PANEL
REPLACEMENT PROJECT TO AN AMOUNT NOT TO EXCEED $740,742 AND
SETTING THE SEWER REPLACEMENT FUND’S PORTION OF THE PROJECT
CONTINGENCY TO $148,000
WHEREAS, the City Council of the City of Carlsbad, California has determined it necessary,
desirable and in the public interest to replace the water and wastewater Supervisory Control and Data
Acquisition, or SCADA, system, Capital Improvement Program, or CIP, Project Nos. 5542-1, 5542-2 and
5542-3, or Project; and
WHEREAS, on Sept. 23, 2025, the City Council adopted Resolution No. 2025-209, awarding a
construction contract to Technical Systems, Inc., for the Citywide Electrical Control Panel Replacement
Project for Water and Wastewater Facilities in an amount not to exceed $3,755,700; and
WHEREAS, the cost allocations for the construction contract in the Sept. 23, 2025, staff report
were developed using a percentage split to estimate the portion to be paid by each funding source and
need to be adjusted to represent the actual amounts expected to be paid by each fund based on the
number and type of sites included in the Project; and
WHEREAS, adjusting the cost allocations for the construction contract will change the amount
of contingency to be withheld from each fund, but it will not change the total construction contingency
amount for the Project that was previously approved, which is $751,000; and
WHEREAS, staff request an adjustment of the amount allocated to each funding source for the
Project construction contract and contingency amounts.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.That the above recitations are true and correct.
2.That the City Council has determined that the proposed action is not a “project” as
defined by California Environmental Quality Act Section 21065, or CEQA, and CEQA
Guidelines Section 15378(b)(4) and does not require environmental review under CEQA
Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve
any commitment to any specific project which may result in a potentially significant
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physical impact on the environment. The activity or projects for which this budget is
intended to fund may require preparation of an environmental document in accordance
with CEQA and CEQA Guidelines.
3.That the City Council authorizes a reduction of $160,626 for the sewer replacement
fund’s portion of the construction contract with Technical Systems, Inc. from $901,368
to an amount not to exceed $740,742.
4.That $148,000 of the total construction contingency amount of $751,000 for the
Citywide Control Panel Replacement Project is authorized from the sewer replacement
fund, CIP Project No. 5542-1.
5.That the City Manager or designee is authorized to sign all other documents necessary
for regulatory compliance, to extend funding opportunities, or to otherwise implement
and finalize the Project, subject to the review and approval as to form by the Office of
the City Attorney.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City
of Carlsbad on the 23rd day of June, 2026, by the following vote, to wit:
AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS: None.
ABSTAIN: None.
ABSENT: None.
______________________________________
KEITH BLACKBURN, Mayor
______________________________________
SHERRY FREISINGER, City Clerk
(SEAL)
June 23, 2026 Item #8 Page 6 of 9
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Exhibit 2
RESOLUTION NO. 1810 .
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD
MUNICIPAL WATER DISTRICT, AUTHORIZING AN INCREASE OF $113,756 FOR
THE WATER REPLACEMENT FUND’S PORTION OF THE CONSTRUCTION
CONTRACT WITH TECHNICAL SYSTEMS, INC. FOR THE CITYWIDE ELECTRICAL
CONTROL PANEL REPLACEMENT PROJECT TO AN AMOUNT NOT TO EXCEED
$2,141,834; AUTHORIZING AN INCREASE OF $46,870 FOR THE RECYCLED
WATER REPLACEMENT FUND’S PORTION OF THE CONSTRUCTION
CONTRACT WITH TECHNICAL SYSTEMS, INC. FOR THE CITYWIDE ELECTRICAL
CONTROL PANEL REPLACEMENT PROJECT TO AN AMOUNT NOT TO EXCEED
$873,124; AND SETTING THE WATER AND RECYCLED WATER REPLACEMENT
FUNDS’ PORTION OF THE CONTINGENCY FOR THE PROJECT TO $428,000
AND $175,000, RESPECTIVELY
WHEREAS, the Carlsbad Municipal Water District, or CMWD, Board of Directors of the City of
Carlsbad, California has determined that it is necessary, desirable and in the public interest to replace
the water and wastewater Supervisory Control and Data Acquisition, or SCADA, system, Capital
Improvement Program, or CIP, Project Nos. 5542-1, 5542-2 and 5542-3, or Project; and
WHEREAS, on Sept. 23, 2025, the City Council adopted Resolution No. 2025-209, awarding a
construction contract to Technical Systems, Inc., for the Citywide Electrical Control Panel Replacement
Project for Water and Wastewater Facilities in an amount not to exceed $3,755,700; and
WHEREAS, on Sept. 23, 2025, the CMWD Board of Directors adopted Resolution No. 1782,
authorizing the water and recycled water replacement funds to pay the CMWD’s pro-rata share of the
costs for the water and recycled water portions of the construction services of the Project; and
WHEREAS, the cost allocations for the construction contract in the Sept. 23, 2025, staff report
and Resolution No. 1782 were developed using a percentage split to estimate the portion to be paid
by each funding source and need to be adjusted to represent the actual amounts expected to be paid
by each fund based on the number and type of sites included in the Project; and
WHEREAS, adjusting the cost allocations for the construction contract will change the amount
of contingency to be withheld from each fund, but it will not change the total construction contingency
amount for the Project that was previously approved, which is $751,000; and
WHEREAS, staff request an adjustment of the amounts allocated to the water and recycled
water replacement funds for the Project construction contract and contingency amounts.
NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board of the City
of Carlsbad, California, as follows:
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1.That the above recitations are true and correct.
2.That the CMWD Board has determined that the proposed action is not a “project” as
defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA
Guidelines Section 15378(b)(4) and does not require environmental review under CEQA
Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve
any commitment to any specific project which may result in a potentially significant
physical impact on the environment. The activity or projects for which this budget is
intended to fund may require preparation of an environmental document in accordance
with CEQA and CEQA Guidelines.
3.That the CMWD Board authorizes an increase of $113,756 for the water replacement
fund’s portion of the construction contract with Technical Systems, Inc. for the Citywide
Electrical Control Panel Replacement Project from $2,028,078 to an amount not to
exceed $2,141,834, and authorizes an increase of $46,870 for the recycled water
replacement fund’s portion of the construction contract with Technical Systems, Inc. for
the Citywide Electrical Control Panel Replacement Project from $826,254 to an amount
not to exceed $873,124.
4.That the CMWD’s water and recycled water portions of the contingency for the Project
are set to $428,000 and $175,000, respectively, and authorized from the water and
recycled water replacement funds, CIP Project Nos. 5542-2 and 5542-3, respectively.
5.That the Executive Manager or designee is authorized to sign all other documents
necessary for regulatory compliance, to extend funding opportunities, or to otherwise
implement and finalize the project, subject to the review and approval as to form by the
Office of the General Counsel.
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PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of Directors of
the Carlsbad Municipal Water District of the City of Carlsbad on the 23rd day of June, 2026, by
the following vote, to wit:
AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS: None.
ABSTAIN: None.
ABSENT: None.
______________________________________
KEITH BLACKBURN, President
______________________________________
SHERRY FREISINGER, Secretary
(SEAL)
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