TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Brian Crawford, Municipal Services Director
PREPARED BY: Garrett Strang, Capital Projects Program Manager
SUBJECT:
title
Acceptance of Additional CalOES Grant Funds for the Fire Station 1 and City Hall Emergency Generator Replacement Project, Request for Additional Construction Contingency, Finding of Exemption from CEQA
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ABSTRACT
The City of Murrieta has received supplemental grant funding for the Fire Station 1 and City Hall Emergency Generator Replacement Project from the California Office of Emergency Services (CalOES) Hazard Mitigation Grant Program. The purpose of this item is to accept the supplemental grant funding, appropriate additional funding using unassigned fund balance from General Fund Capital, authorize a First Amendment to the construction contract to increase the authorized contingency, and to find this project exempt from the California Environmental Quality Act.
RECOMMENDATION
recommendation
Adopt Resolution No. 26-4921 entitled: A Resolution of the City Council of the City of Murrieta, California, Accepting Additional California Office of Emergency Services (Cal OES) Hazard Mitigation Grant Program Funds as Part of the Fiscal Year (FY) 2023 Hazard Mitigation Grant Program in the Amount of $93,423.75; and Amend The Capital Improvement Plan (CIP) Budget For FY 2025/26 to Appropriate the Grant Funds of $93,423.75 and $31,141.25 from General Fund Capital Unassigned Fund Balance into CIP No. 10044 for Compliance with Grant Local Fund Match Requirements, and Amend The FY 2025/26 Operating Budget to Increase the Grant Revenues and Grant Expenditures Budgets;
Find this project to be exempt from CEQA and authorize a First Amendment to the Construction Contract between the City of Murrieta and Pramira, Inc., for construction of the Fire Station 1 and City Hall Emergency Generator Project CIP No. 10044 to increase the contract contingency by fifty percent (50%), in the amount of $262,261, for Contract Change Order work; and
Authorize the Director of Municipal Services, or designee, to approve Contract Change Orders not to exceed the approved construction contingency.
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PRIOR ACTION/VOTE
On February 7, 2023, the City Council adopted Resolution No. 23-4638, accepting the Fiscal Year 2023 Hazard Mitigation Assistance Grant Award and Amending the Fiscal Year 2022/23 Operating Budget to Allocate and Appropriate the Grant Funds and the Local Match Funds, including CIP No. 10044 (Vote: 5-0).
On May 7, 2024, the City Council awarded a construction contract for the Fire Station 1 and City Hall Emergency Generator Project, CIP No. 10044, to Pramira, Inc. for $524,521, with a 20% construction contingency for a total authorized amount of $629,425. (Vote: 5-0).
On June 3, 2025, the City Council approved Resolution No. 25-4836, approving the Capital Improvement Plan Budget for Fiscal Year 2025/26, and the Fiscal Years 2025/26 to 2029/30 Capital Improvement Plan, which included the Fire Station 1 and City Hall Emergency Generator Replacement Project, CIP No. 10044 (Vote 5-0).
STRATEGIC ALIGNMENT
The City Council's goal of maintaining a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency is associated with this Tier 1 project.
DISCUSSION
The City Hall and Fire Station 1 Emergency Generator Replacement Project, CIP No. 10044, is a critical city infrastructure project intended to replace, improve, and expand the emergency power backup systems for two essential City facilities. The existing backup generator serving City Hall was installed in 2006, configured to power only critical network infrastructure, resulting in limited ability for staff to maintain operations and continue delivering essential public services under emergency circumstances when the backup generator would be activated.
The backup generator serving Fire Station 1 was manufactured in June 1989 and was intended only to support the station's alerting system. It did not provide backup power to the Fire Administration Building or any other critical facility operations. Due to the age and limited capacity of both units, replacement and upgrades were deemed necessary.
To offset the cost of replacing these generators, staff applied for a Hazard Mitigation Grant Program from the California Office of Emergency Services (CalOES). On September 13, 2022, the City of Murrieta received a CalOES grant award of $307,500, with a required local fund match of $102,500. Due to construction bids coming in higher than originally estimated, on September 30, 2024, City staff submitted a request to CalOES for additional grant funding to supplement the rising construction costs. On December 29, 2025, City staff received a Notification of Approval for $93,423.75 in Supplemental CalOES grant funds, with a required local fund match of $31,141.25. A breakdown of the Hazard Mitigation Grant Program from CalOES Grant funding is shown below:
CalOES Grant Funding and Local Match Breakdown
|
Descriptions |
Grant Amount |
Local Match |
Totals: |
|
Original Grant Award |
$307,500 |
$102,500 |
$410,000 |
|
Supplemental Grant Award |
$93,423.75 |
$31,141.25 |
$124,565 |
|
Totals: |
$400,923.75 |
$133,641.25 |
$534,565 |
On May 7, 2024, the Construction Contract for the City Hall and Fire Station 1 Emergency Generator Replacement Project was awarded by the City Council to Pramira Inc., for $524,521, plus an authorized construction contingency of $104,903 (20%). Construction is currently underway, with substantial completion anticipated in May 2026.
Over the course of construction, several unforeseen conditions and insufficient engineering design have resulted in an expansion of the originally contracted scope of work, prompting the negotiation of a number of Contract Change Orders (CCOs) that have exceeded the original 20% construction contingency approved by City Council. The full fiscal impact of the expanded scope of work was not brought to the City's attention until construction was approximately 75% complete; however, this does not relieve staff of their responsibility for managing the budget of an ongoing construction project. Staff is responsible for tracking all change order work completed throughout construction, managing the project budget and tracking change order costs, and executing Contract Change Orders formally as the project progresses. Staff takes ownership of this mistake in not properly tracking CCO work, which further resulted in the need for the requested additional 50% contingency.
The additional scope of work for the generator at City Hall included reconstructing the concrete pad for the new generator, modifying the existing generator enclosure, and fabricating and installing a new enclosure gate and aesthetic screening.
The changes to the plans associated with Fire Station 1 consisted of design, fabrication, and installation of the generator exhaust outlet system, in addition to partial electrical redesign due to insufficient engineered drawings, provided at the time of bid, not accurately portraying the existing conditions and the full extent of new electrical needs necessary to fully support the new generator system.
Although there were apparent deficiencies in the original project design that prompted the need for Contract Change Orders, the City and the Contractor still had a responsibility to follow the formal Contract Change Order procedures identified in the Contract and Special Provisions. However, regardless of the extent of the changes in the scope of work and the additional costs incurred due to change orders, the additional work was necessary to complete the overall objective of the project and would have been required and cost the City equally regardless of whether or not there had been sufficient engineering design at the time of bid.
To reconcile the outstanding change order work between the City and the Contractor, staff requests that the City Council authorize a First Amendment to the contract, in a form approved by the City Attorney’s office, to authorize an additional 50% construction contingency in an amount not to exceed an additional0 $262,261.
Upon appropriation of the requested additional funds (CalOES Grant funds and General Fund Capital unassigned fund balance) into CIP No. 10044 and receipt of authorization for an additional construction contingency, staff will negotiate to reconcile all contract change order work and proceed with completing construction and closing out the project.
A summary of the overall project construction budget with the requested additional contingency is shown below:
Reconciled Overall Project Construction Budget
|
Description |
Amount |
|
Original Contract Award |
$524,522 |
|
Authorized Construction Contingency of Original Contract (20%) |
$104,903 |
|
Total Amount Authorized for Original Contract: |
$629,425 |
|
Additional Contingency Requested (50%) |
$262,261 |
|
Total Amount Authorized Including Additional Contingency Request |
$891,686 |
The additional construction contingency of $262,261 (50%) will be funded by the supplemental CalOES grant award, the required grant local match, previously established General Fund appropriation, and the requested additional allocation from General Fund Capital unassigned fund balance into CIP No. 10044. The First Amendment to the Construction Contract will authorize the expenditure of the not to exceed amount of $891,686.
PUBLIC NOTICING
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
CEQA AND REGULATORY OVERVIEW
This project is exempt from CEQA pursuant to Regulation 15301 as it results in a minor alteration to existing facilities.
FISCAL IMPACT
The original construction contract amount awarded was $524,522, plus an additional 20% contingency of $104,903. Staff recommends adopting the First Amendment to authorize an additional 50% contingency of $262,261, bringing the total authorized amount for the contract award plus contingency to $891,686.
Staff recommends the following changes to the CIP and Operating Budget:
• Amend the Capital Improvement Plan (CIP) Budget for FY 2025/26 to appropriate the grant funds of $93,423.75 and $31,141.25 from General Fund Capital unassigned fund balance into CIP No. 10044.
Funding will be available in CIP No. 10044 upon appropriation of the additional grant funding and General Fund funding.
ATTACHMENTS
ATT 1 - Resolution No. 26-4921
ATT 2 - Notification of Approval of Supplemental Funds - Cal OES Grant
ATT 3 - Contract Amendment for the Construction Contract Between the City of Murrieta and Pramira, Inc.