DEPARTMENT Wastewater Enterprise
AGENDA NO.
9d
MEETING DATE
April 12, 2022
APPROVAL:
COMMISSION
SECRETARY
Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Construction Closeout: Consent Calendar
Contract Manager: Anna M. Roche
Accept Closeout with Modifications for Contract No. WW-663, Ocean Beach Coastal Erosion and Wastewater Infrastructure Protection
Summary of
Proposed
Commission Action:
Accept work performed by Azul Works Inc. for Contract No. WW-663, Ocean Beach Coastal Erosion and Wastewater Infrastructure Protection ; approve Modification No. 1 (Final) , decreasing the contract by $1,252,932, for a total contract amount of $1,608,618, with no change to the contract duration; and authorize final payment to the Contractor.
Background: On September 26, 2017 , by Resolution No. 17-0207, this Commission awarded Wastewater Enterprise Contract No. WW-663, Ocean Beach Coastal Erosion and Wastewater Infrastructure Protection , to Azul Works, Inc. The original contract amount was $2,861,550 and the original contract duration was 1,155 consecutive calendar days.
Description of Scope
of Work:
The contract work was located at Ocean Beach south of Sloat Boulevard in the City and County of San Francisco. The work consist ed of taking the following actions upon receipt of regulatory monitoring approval:
• Transporting sand from North Ocean Beach along the O’Shaughnessy seawall and placing it at erosion areas at South Ocean Beach. • Procuring and installing sandbags at any erosion hotspots and notches that may have developed after storms.
Modifications to the
Contract:
San Francisco Administrative Code s ection 6.22(h) require s Commission approval of any cumulative decrease in the contract value greater than 10% of the original contract amount. This modification will decrease the contract
value by more than 10%.
Modification No. 1 (Final) : Staff recommends this modification to decrease the contract amount by $1,252,932 to correspond with an adjustment of Contractor’s bid quantities of work to match actual completed quantities of work, which will result in a total contract amount of $1,608,618. Staff initiated Contract: WW-663, Ocean Beach Coastal Erosion and Wastewater Infrastructure Protection Commission Meeting Date: April 12, 2022
Contract work only when the annual Ocean Beach Monitoring Report identified erosion hot spots that required sand placement. As such, work was not needed for every year during the Contract duration, which resulted in a decrease in the amount of work performed.
Budget & Costs: Funding: Project No. CWWFAC01, Ocean Beach Climate Adaptation Project Original Award Amount: $2,861,550
Modification No. 1 (Final) Amount: ($1,252,932)
Total Revised Contract Amount: $1,608,618
Schedule: Notice-to-Proceed Date: January 2, 2018
Original Duration:1,155 consecutive calendar days
Modification No. 1 (Final) Duration: 0
Total Contract Duration: 1,155 consecutive calendar days
Compliance with
Chapter 14B: Local
Business Enterprise
and Non-
Discrimination in
Contracting
Ordinance:
The Contract Monitoring Division (CMD) established a Local Business Enterprise (LBE) participation requirement of 2020% for this contract. The Contractor’s bid committed to 20.16% LBE participation . CMD has determined that the contractor made a good faith effort to comply with its LBE subcontracting requirement by achieving 19.71% LBE participation.
Result of Inaction: A delay in closing out this contract will delay formal closeout of the project.
Recommendation: San Francisco Public Utilities Commission staff recommends that the Commission approve the closeout for WW-663, Ocean Beach Coastal Erosion and Wastewater Infrastructure Protection by the attached resolution.
Attachments: 1. CMD Memorandum
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) must protect critical infrastructure along Ocean Beach by relocating sand along Ocean Beach; and WHEREAS, On September 26, 2017, by Resolution No. 17- 0207, this Commission awarded Contract No. WW- 663, Ocean Beach Coastal Erosion and Wastewater Infrastruct ure Protection, in the amount of $2,861,550, to the responsible bidder that submitted the lowest responsive bid, Azul Works Inc. (“Contractor”); and
WHEREAS, On January 2, 2018, staff issued a notice -to-proceed to the Contractor , which started the 1,155 consecutive calendar days duration for Contract No. WW-663; and WHEREAS, the Contractor completed its work relocating sand along Ocean Beach under Contract No. WW -663 on January 29, 2020, which was with in the 1,155 consecutive calendar days Contract duration; and
WHEREAS, San Francisco Administrative Code s ection 6.22(h) requires the Commission to approve any cumulative decrease in the contract value greater than 10% of the original contract amount, and Modification No. 1 (Final) will reduce the Contract amount by more than 10%; and
WHEREAS, Staff recommends approval of Modification No. 1 (Final) to decrease the contract amount by $1,252,932 based on adjusting Contractor’s bid quantities of work to match Contractor’s actual completed quantities of work, for a total Contract amount of $1,608,618; and WHEREAS, The Contract Monitoring Division has determined that the contractor made a good faith effort to comply with the Local Business Enterprise (LBE) subcontracting requirement of 20% for this contract by achieving 19.71% LBE participation; now, therefore, be it
RESOLVED, That this Commission he reby accepts work performed by Azul Works, Inc., under Contract No. WW-663, Ocean Beach Coastal Erosion and Wastewater Infrastructure Protection, and approves Modification No. 1 (Final), decreasing the contract by $1,252,932, for a total final contract amount of $1,608,618, and with a total contract duration of 1,155 consecutive calendar days; and authorizes final payment to the contractor.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of April 12, 2022.
Secretary, Public Utilities Commission
Sand Excavation
Sand Placement
MAP Depicting Work Areas for Contract No. WW-663 Ocean
Beach Coastal Erosion and Wastewater Infrastructure Protection
London N. Breed, Mayor
Carmen Chu, City Administrator
Romulus Asenloo, Director
MEMORANDUM
Date: August 3, 2021
To: Anna Roche, Project Manager, SFPUC
From: Linda Rainaldi, Contract Compliance Officer, CMD
Subject: WW-663 Ocean Beach Coastal Erosion and Wastewater Infrastructure Protection CMD Closeout Memo
The Contract Monitoring Division (“CMD”) has determined that Azul Works, Inc. (“Azul”), the Prime Contractor for this project, has substantially complied with the LBE subcontracting requirements associated with this project.
At the time the project was advertised, an LBE subcontracting requirement of 20% was established. At the time of bid Azul’s Section 00435 (Subcontractor List) reflected an LBE subcontractor participation commitment of 20.16%. Azul was awarded the contract in the amount of $2,861,550.00. After 2 change orders, the final contract amount is $1,608,617.90. At closeout, the LBE subcontracting participation is as follows:
Subcontractor Status Scope of Work Original Credited
Contract Participation
Final Credited
Contract Participation
Capax Group Inc. LBE-WBE Bid Items 9 and
10 $180,000.00 6.20% $0.00 0.00%
Ace Drilling &
Excavation LBE-OBE Partial Excavation
and Trucking $355,000.00 12.40% $147,870.77 9.19%
Baird Trucking Inc. LBE-OBE Partial Trucking $30,000.00 1.04% $33,311.25 2.07% CMC Traffic Control LBE-WBE Traffic Control $15,000.00 0.52% $135,910.47 8.45% TOTAL $580,000.00 20.16% $317,092.49 19.71%
Per Azul, the SFPUC, and as confirmed by the subcontractor on the CMD Form 8, Capax Group Inc.’s listed scopes of work were eliminated by the SFPUC for this project.
Per Ace Drilling and Excavation’s CMD Form 8 the Prime’s overall contract was reduced, which impacted their ability to actualize the originally listed subcontract amount. Per the Prime the subcontractor was expected to perform during Phase 3 of the project, however, as confirmed by the SFPUC, the scope of work was cut from the project.
Based on the foregoing, CMD concurs with the closeout of this contract.
1155 Market Street, 4th Floor, San Francisco, CA 94103 Telephone (415) 581-2310; Fax (415) 581-2351
CONTRACT MONITORING DIVISION
OFFICE OF THE CITY ADMINISTRATOR