DEPARTMENT
Infrastructure
AGENDA NO.
10a
MEETING DATE August 23, 2022
APPROVAL:
COMMISSION
SECRETARY
Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Construction Contract Novation: Consent Calendar
Contract Manager: Randy Anderson
Approve the Novation of Contract HH-1000R Mountain Tunnel Improvement Project
Summary of
Proposed
Commission Action:
Approve the novation of Contract HH-1000R Mountain T unnel Improvement Project; and authorize the General Manager of the San Franci sco Public Utilities Commission to execute a Novation Agreement for the e xisting Contract from Michels Tunneling to Michels Trenchless, Inc.
Background: The Mountain Tun nel is part of the regional water system that conveys water from the Hetch Hetchy Reservoir , in Yosemite National Park, to the San Francisco Bay Area. Located in the foothills of the Sierra Nevada Mountains, the tunnel extends 19 miles from Early I ntake at Ki rkwood Powerhouse to Prie st Reservoir. The City construct ed the tunnel between 1917 and 1925. Past tunnel inspections indicated deteriorat ion of the lining and need for rehabilita tion to prevent lining collapse.
On October 20, 2020, by Resolution No. 22-0210, this Commission awarded Contract HH-1000R Mountain Tunnel Improvement Project to Michels Tunneling to rehabilitate the Mountain Tunnel and to upgrade related facilities to improve water flow control, water quality, and worker safety during maintenance access. The work includes concrete lining repair , contact grouting , concrete invert paving, a new flow control valving facility, new tunnel adits, new access portals, a new siphon extension, deep shafts , access road slope stabilization, environmental mitigations, and other site work and restoration.
The original contract amount is $ 138,973,189, with a duration of 2,160 consecutive calendar days.
As of August 28, 2022, Michels Tunneling will transition to Michels Trenchless, Inc., a wholly owned subsidi ary of M ICON Group , I nc. Michels Tunneling submitted a notice to the SFPUC of this change in corporate structure. Michels Trenchless, Inc. desires to cont inue providing services under t he existing contract.
This novation will be made in San Francisco, California, by and between Michels Contract: HH-1000R Mountain Tunnel Improvement Project
Commission Meeting Date: August 23, 2022
Tunneling, located at 16500 W. Rogers Drive, New Berlin, WI 53151 , and Michels T renchless, Inc. , located at 817 Main S treet, Browns ville, WI 53006.
The City is a party to the N ovation Agreement for the purposes of approving the novation.
Description of Scope
of Services:
The work under this agreement consists of:
• concrete lining repair;
• contact grouting;
• concrete invert paving;
• a new flow control valving facility;
• new tunnel adits;
• new access portals;
• a new siphon extension;
• deep shafts; and
• access road slope stabilization.
Contract Changes
and Modifications
San Francisco Administrative Code sectio n 6.22(h) requires that any cumulative increase of the cont ract amount or duration in excess of 10% of the original contract amount or duration be approved by this Commission.
Modification Nos . 1 to 4 increased the contract amount by $1,256,110 , for a total contract amount of $140,229,299, with no change to the contract duration.
Budget & Costs: Funding: SFPUC has allocated f unds for thi s agreement from Hetch Hetchy Water Capital Improvement Project CUH10221 funds.
Original Not-to-Exceed Amount: $138,973,189
Original Contingency: $13,897,319
Total Not-to-Exceed Amount: $152,870,508
Schedule: Original Duration: 2,160 consecutive calendar days Original Contingency: 216 calendar days
Total Approved Duration: 2,376 consecutive calendar days
Compliance with
Chapter 14B: Local
Business Enterprise
Utilization and Non-
Discrimination in
Contracting
Ordinance:
Set: The Contract Monitoring Division (CMD) established a Local Business Enterprise (LBE) subcontracting requirement of 3% for this contract.
Submitted: The contractor committed to 5.347% LBE participation in 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.
WHEREEAS, The San Francisco Public Utilities Commission (SFPUC) is in the process of rehabilitating the century-old Mountain Tunnel; and
WHEREAS, On October 20 , 2020, by Resolution No. 22-0210, this Commission awarded Contract No. HH-1000R Mountain Tunnel Improvement Project to Michels Tunneling to rehabilitate the Mountain Tunnel and upgrade related facilities to improve water flow contr ol, water quality, and worker safety during maintenance access; and
WHEREAS, Michels Tunneling has advi sed the SFPUC that effective August 28, 2022, Michels Tunneling will transition to Michels Trenchless, Inc. , a wholly-owned subsidiary of MICON Group, Inc., that will assume all obligations and liabilities of Michels Tunneling under Contract HH-1000R Mountain Tunnel Improvement Project; and WHEREAS, All the terms a nd conditions of Contr act HH-1000R Mountain Tunnel Improvement Project shall remain in full force and effect; now, therefore, be it RESOLVED, That this Commission hereby approves the novation of Contract HH- 1000R Mountain Tunnel Improvement Project with Michels Trenchless, Inc ., where Michels Trenchless, Inc., assumes all of Michels Tunneling’s obligations and responsibilities under the Contract and authorizes the General Manager to execute a Novation Agreement between Michels Tunneling and Michels Trenchless, Inc., in a form approved by the City Attorney.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting August 23, 2022.
Secretary, Public Utilities Commission