DEPARTMENT
Infrastructure Division
AGENDA NO.
10d
MEETING DATE
March 8, 2022
APPROVAL:
COMMISSION
SECRETARY
Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Construction Award: Consent Calendar
Project Manager: Brian Carlomagno
Approve Increase to Construction Duration Contingency for WW-639, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrades
Summary of
Proposed
Commission Action:
Approve an increase of 561 calendar days (approximately one year and seven months) to the contract duration contingency for Contract No. WW -639, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrades with Monterey Mechanical Co.; and authorize the General Manager to approve future modifications to the contract for a total contract duration of up to 1,769 consecutive calendar days (approximately four years and ten months), with no change to the contract amount.
Background: The existing co -generation engine generators at the Oceanside Water Pollution Control Plant (OSP) are over 20 years old and at the end of their useful life. They have experienced extensive downtime in recent years resulting in lost power -cost savings, high maintenance cost s, and additional demands on maintenance personnel. Although the existing engines could be kept in service with continued maintenance efforts, the replacement alternative to the existing cogeneration system would provide bette r reliability, full biogas utilization, and sustainable service.
On August 8, 2017, by Resolution No. 17-0184, this Commission approved Contract No. WW-639 to proceed with a loan agreement to receive Clean Water State Revolving Fund (CWSRF) loan financing.
On August 28, 2018, by Resolution No. 18-0143, this Commission awarded Contract No. WW-639, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrade s to Monterey Mechanical Co. in the amount of $38,449,000, and with a duration of 820 c onsecutive calendar days (approximately two years and three months).
Description of Scope
of Work:
The contract work is located at the OSP, 3500 Great Highway, San Francisco, CA. The contract work consists of:
Contract: WW-639, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrades Commission Meeting Date: March 8, 2022
• Replacing the gas storage vessel and digester gas conditioning equipment;
• Replacing the existing cogeneration Internal -Combustion units (IC engines) and associated controls;
• Provisioning ancillary exhaust gas conditioning and heat exchanger systems to comply with air board regulatory requirements, and maximize process efficiency and hot water production;
• Upgrading ventilation within the energy recovery building; • Replacing electrical gear at Sub -Station No. 5 including paralleling electrical gear and power system reliability improvements; and • Providing a stand-by diesel generator and a diesel fuel storage system.
Contract
Modifications
Changes and Modifications to the Contract:
Section 6.22(h) of the Administrative Code requires that any cumulative increase of the contract amount or duration in excess of 10% of the original contract amount or duration be approved by this Commission.
Modifications Nos. 1 through 4: Between October 25, 2019 and June 4, 2021, t he Construction Management Bureau (CMB) Manager issued Modification Nos. 1 to 4 which increased the contract amount by $2,064,153 and increas ed the contract duration by 80 consecutive calendar days (both within the 10% contingencies) to perform additional site mechanical utility work, digester gas mechanical pipe isolation, gas holder tank modifications, and HVAC/ electrical modifications,
for a total contract amount of
$40,513,153 and a total contract duration of 900 consecutive calendar days.
On March 23, 2021, by Resolution No. 21-0046, this Commission approved an increase of 306 calendar days to the contract duration contingency for a total contract duration of up to 1,208 consecutive calendar days, with no change in the contract amount.
Requested Increase to Contract Duration Contingency
Staff requests Commission approval to increase the existing contract duration contingency by 561 calendar days to provide time for the Contractor to complete the mechanical modifications, including installation of the cogeneration engine assemblies, motor control center equipment, and associated instrumentation within OSP800, which have experienced equipment delivery delays associated with supply chain breakdowns due to the impacts of the COVID -19 pandemic, and electrical modifications , for a total contract duratio n of up to 1,769 consecutive calendar days, with no
change to the contract amount.
Result of Inaction: A delay or denial approving this modification will impede completion of this sewer system improvement contract at an essential WWE facility in a timely manner, potientially jeopardizing critical equipment that supports permit compliance and essential process operations at the Oceanside Water Pollution Control Plant.
Contract: WW-639, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrades Commission Meeting Date: March 8, 2022
Budget & Costs: Funding: Wastewater Enterprise Sewer System Improvement Program Project No.: CWWSIPTPOP03, OSP Digester Gas Utilization Upgrade Original Contract Amount: $38,449,000
Original 10% Cost Contingency: 3,844,900
Total Contract Cost Limit: $42,293,900
Schedule: Notice-to-Proceed Date: November 26, 2018
Original Contract Duration: 820 consecutive calendar days Original 10% Duration Contingency: 82 calendar days
Approved Increase to Duration Contingency: 306 calendar days Requested Additional Duration Contingency: 561 calendar days Total Revised Contract Duration Limit: 1,769 consecutive calendar days
Compliance With
Chapter 14B: Local
Business Enterprise
Utilization and Non-
Discrimination In
Contracting
Ordinance:
The Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting requirement of 10% for this contract. The contractor committed to a LBE participation of 19.88% with its bid submittal.
Recommendation: SFPUC staff recommends that the Commission adopt the attached resolution.
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, On August 28, 2018, by Resolution No. 18- 0143, this Commission awarded Contract No. WW -639, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrades to Monterey Mechnanical Co.; and
WHEREAS, the Wastewater Enterprise Sewer System Improvement Program is funding Contract No. WW-639; and
WHEREAS, The construction contract Notice-To-Proceed date was November 26, 2018; and
WHEREAS, The original contract amount was for $38,449,000, and the original contract duration was 820 consecutive calendar days; and
WHEREAS, Section 6.22(h) of the San Francisco Administrative Code requires Commission approval for any cumulative increase in contract amount or duration in excess of 10% of the original contract amount or duration; and
WHEREAS, On March 23, 2021, by Resolution No. 21-0046, this Commission approved an increase of 306 calendar days to the contract duration contingency for a total contract duration limit of up to 1,208 consecutive calendar days, with no change in contract amount; and WHEREAS, Staff is requesting an increase of 561 calendar days to the contract duration contingency to provide the Contractor with time to complete the mechanical modifications, including installation of the cogeneration engine assemblies, motor control center equipment, and associated instrumentation within OSP800, which have experienced equipment deliver y delays associated with supply chain breakdowns due to COVID-19 and electrical modifications; and WHEREAS, Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 10% for this contract, and the contractor committed to 19.88% LBE participation in its bid submittal; and
WHEREAS, Funds are available from Project No. CWWSIPTPOP03, OSP Digester Gas Utilization Upgrade. and now, therefore, be it
RESOLVED, That this Commission hereby approves an increase of 561 calendar days to the existing contract duration contingency for Contract No. WW-639, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrades, for a total contract duration contingency of up to 949 calendar days; and be it
FURTHER RESOLVED, That this Commission hereby authorizes the General Manager , or the General Manager’s designee, to consider, and, if appropriate, to approve any future modifications to the contract duration for a total contract duration of up to 1,769 consecutive calendar days, with no change to the contract amount.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of March 8, 2022.
Secretary, Public Utilities Commission