DEPARTMENT Infrastructure AGENDA NO. 10i
MEETING DATE August 23, 2022
APPROVAL:
COMMISSION
SECRETARY Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
\Construction Award: Consent Calendar
Contract Manager: Suzanne Huang
Award Contract No. WW-731 Various Locations Brick Sewer Improvements Summary of
Proposed
Commission
Action:
Approve the plans and specifications and award Contract No. WW-731 Various Locations Brick Sewer Improvements, in the amount of $10,542,103, and with a duration of 420 consecutive calendar day s (approximately one year and two months), to the responsible bidder that submitted the lowest responsive bid, Cratus Inc. to rehabilitate brick sewers located in the Chinatown, North Beach, Tenderloin, Nob Hill, and Cow Hollow Districts . This action constitutes the Approval Action for the Project analyzed in the statutory exemption under San Francisco Planning Department Case No. 2022.002008ENV for the purposes of the California Environmental Quality Act (CEQA) pursuant to Section 31.04(h) of the San Francisco Administrative Code. The Planning Department has determined that this action is exempt from the CEQA. If the item is approved, the Commission will rely on that determination to make its decision.
Background: The purpose of the Project is to rehabilitate sewers that are over 100-years old and identified to be at a high -risk of failure based on data in the San Francisco Public Utilities Commission’s (SFPUC) Condition System Assessment Management Program. The need for structural rehabilitation was further confirmed by the project team who observed fallen bricks and missing mortar in the existing brick sewers from closed-circuit televised videos.
Description of
Scope of Work:
The contract work is located in the Chinatown, North Beach, Tenderloin, Nob Hill, and Cow Hollow Districts.
The
contract work consists of:
• Rehabilitation of existing sewers (using cured -in-place-liners, slip lining or spray-mortaring construction methods).
• Replacement of some sewer laterals and associated appurtenances. • Rehabilitation of existing sewer manholes and installation of new sewer manholes.
Contract: WW-731 Various Locations Brick Sewer Improvements Commission Meeting Date: August 23, 2022
Budget & Costs: Funding: Project No. 10034715, Large Sewer Condition Assessment and Improvements
Engineer’s Estimate: $9,010,000
Award: $10,542,103
Schedule: Estimated Notice-to-Proceed Date: November 2022 Estimated Completion Date: January 2024
Contract Duration: Four hundred and twenty (420) consecutive calendar days (approximately one year and two months) ( 360 consecutive calendar days to Substantial Completion and an additional 60 consecutive calendar days to Final Completion).
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 6.00 % for this contract.
Submitted: The contractor committed to a LBE participation of 7.70 % with its bid submittal.
Environmental
Review:
The work under Contract No. WW-731 combines work remaining in the Tenderloin and Nob Hill Sewer Improvements project, and work in the Chinatown and North Beach Sewer Rehabilitation project, for contracting convenience.
On March 23, 2021 the San Francisco Planning Department determined the Tenderloin and Nob Hill Sewer Improvements project to be statutorily exempt from environmental review under CEQA Section 21080.21 (Case No. 2021- 002879ENV), because the proposed pipeline replacement will be in the public right of way and does not exceed one mile in length.
On February 8, 2022, this Commission approved a modification of Contract WW- 712 for the New Montgomery, Jessie, Minna, and Mission Streets Brick Sewer Rehabilitation project. This modification added some components of the Tenderloin and Nob Hill Sewer Improvements Project, to expedite w ork, reduce risk of failure, and avoid conflicts with upcoming Better Market Street Phase I construction. The Commission approval was the first Approval Action for the purposes of CEQA pursuant to Section 31.04(h) of the San Francisco Administrative Code for the Tenderloin and Nob Hill Sewer Improvements project statutory exemption.
On March 8, 2022 the San Francisco Planning Department determined the Chinatown and North Beach Sewer Rehabilitation project to be statutorily exempt from environmental review under California Environmental Quality Act (“CEQA”) Section 21080.21 (Case No. 2022 -002008ENV), because the proposed pipeline Contract: WW-731 Various Locations Brick Sewer Improvements Commission Meeting Date: August 23, 2022
replacement will be in the public right of way and does not exceed one mile in length.
Commission approval of Contract No. WW -731 constitutes the Approval Action for the purposes of CEQA pursuant to Section 31.04(h) of the San Francisco Administrative Code for the Chinatown and North Beach Sewer Rehabilitation project statutory exemption.
These exemptions can be found here: https://sfpuc.sharefile.com/d- s02198015649346bf9b27042f8e36330f
Bid History: Advertised: June 16, 2022
Bids Received: SFPUC received sealed bids from three (3) firms on July 14, 2022.
Bid Rank Bid Amount Bid
Preference
Compensable
Delay
Adjusted Bid Final
Rank
1. Cratus, Inc. $10,542,103.00 10% $15,000.00 $ 9,501,392.70 1
2. D’Arcy &
Harty
Construction,
Inc.
$11,475,777.00 10% $15,000.00
$
10,341,699.30
2 3. Mitchell
Engineering
$12,306,382.00 Not
Applicable
$6,000.00 $
12,312,382.00
3 Application of bid preferences in accordance with Chapter 14B of the San Francisco Administrative Code did not change the final ranking of the low bidder.
Result of Inaction: A delay or denial awarding this contract will prevent the rehabilitation of these aging and deteriorating sewers at the project location.
Recommendation: SFPUC staff recommends that the Commission adopt the attached resolution.
Attachments: 1. CMD Memorandum
Contract: WW-731 Various Locations Brick Sewer Improvements Commission Meeting Date: August 23, 2022
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) Condition System Assessment Management Program identifies San Francisco sewers that are over 100-years old and pose a high-risk of failure; and
WHEREAS, A SFPUC project team confirms the need for structural rehabilitation when it observed fallen bricks and missing mortar in the existing brick sewers from closed-circuit televised videos. The Program has identified sewers in rehabilitate brick sewers located in the Chinatown, North Beach, Tenderloin, Nob Hill, and Cow Hollow Districts of the City and County of San Francisco that meet this criteria and require rehabilitation; and WHEREAS, On June 16, 2022, the SFPUC advertised Contract No. WW-731 Various Locations Brick Sewer Improvements; and
WHEREAS, The Engineer’s Estimate is $9,010,000 for this construction contract work to rehabilitate brick sewers in in the Chinatown, North Beach, Tenderloin, Nob Hill, and Cow Hollow Districts; and
WHEREAS, The contract duration is 420 consecutive calendar days; and WHEREAS, On July 14, 2022, SFPUC received and publicly opened three bids; and WHEREAS, SFPUC staff and Contract Monitoring Division (CMD) reviewed the bidders and their bids for responsibility, responsiveness and application of bid preferences and determined that Cratus, Inc., was the responsible bidder that submitted the lowest responsive bid; and WHEREAS, CMD established a 6.00% Local Business Enterprise ( LBE) subcontracting requirement for this contract, and the contractor committed to a 7.70% LBE participation in its bid submittal; and
WHEREAS, Funds are available from Project No. 10034715, Large Sewer Condition Assessment and Improvements; and
WHEREAS, The work under Contract No. WW -731 combines work remaining in the Tenderloin and Nob Hill Sewer Improvements project, and work in the Chinatown and North Beach Sewer Rehabilitation project, for contracting convenience; and WHEREAS, On March 23, 2021 the Sa n Francisco Planning Department determined the Tenderloin and Nob Hill Sewer Improvements project to be statutorily exempt from environmental review under CEQA Section 21080.21 (Case No. 2021- 002879ENV) because the proposed pipeline replacement will be in the public right of way and does not exceed one mile in length; and WHEREAS, On February 8, 2022, this Commission approved a modification of Contract WW-712 for the New Montgomery, Jessie, Minna, and Mission Streets Brick Sewer Rehabilitation project; and t his modification added some components of the Tenderloin and Nob Hill Sewer Improvements Project, to expedite work, reduce risk of failure, and avoid conflicts with upcoming Better Market Street Phase I construction; and
WHEREAS, On March 8, 2022, the San Francisco Planning Department determined the Chinatown and North Beach Sewer Rehabilitation project to be statutorily exempt from environmental review under California Environmental Quality Act (“CEQA”) Section 21080.21 (Case No. 2022- 002008ENV) because the proposed pipeline replacement will be in the public right of way and does not exceed one mile in length; and WHEREAS, Commission approval of Contract No. WW -731 constitutes the Approval Action for the purposes of CEQA pursuant to Section 31.04(h) of the San Francisco Administrative Code for the Chinatown and North Beach Sewer Rehabilitation project statutory exemption; now, therefore, be it
RESOLVED, That this Commission hereby approves the plans and specifications and awards Wastewater Enterprise, SSIP Contract No. WW-731 Various Locations Brick Sewer Improvements, in the amount of $10,542,103, for a duration of 420 consecutive calendar days, to the responsible bidder that submitted the lowest responsive bid, Cratus, Inc.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of August 23, 2022.
Secretary, Public Utilities Commission
Edwin M. Lee, Mayor
Naomi M. Kelly, City Administrator
Romulus Asenloo, Director
30 Van Ness Avenue, Suite 200, San Francisco, CA 94102 Telephone (415) 581-2310; Fax (415) 581-2351
GENERAL SERVICES AGENCY
CONTRACT MONITORING DIVISION
MEMORANDUM
Date: August 2, 2022
To: Suzanne Huang, SFPUC
From: Kate Svyatets, CMD
Subject: WW-731 -- Various Locations Brick Sewer Improvements – REVISED CMD Review The Contract Monitoring Division (“CMD”) has reviewed the bids submitted for the above referenced project, applied the appropriate bid discounts, and determined responsiveness to the Chapter 14B pre- award requirements. A Local Business Enterprise (LBE) subcontracting requirement of 6% was established for this project:
The LBE subcontracting requirement is less than 20%, because there is a large amount of specialty work that involves cured in-place liner (CIPL) that only contractors with specific qualifying experiences can perform for this project. The main purpose of this project is to rehabilitate 5,676 LF of sewer mains along Powell, Leavenworth, Hyde, Geary, Columbus, Union, Montgomery, Commercial, Kearny and Franklin Streets using cured in-place liner (CIPL) as the main method of rehabilitation. The existing sewer lines are constructed of 3x5’ brick sewers. The CIPL rehabilitation method is a great option for areas where digging/trenching would be disruptive and impractical (Chinatown/North Beach/Tenderloin/Nob Hill area has very busy traffic corridors). The liner is inserted and cured using water and forms a replacement pipe.
Below is a summary of CMD’s review:
Firm LBE
Status Base Bid Compensable
Delay Bid Discount Adjusted Bid (with
Bid Discount)
Cratus, Inc.
SF LBE-
OBE
(Small)
$10,542,103 $15,000.00 10% =
$1,055,710.30 $9,501,392.70
D’Arcy & Harty
Construction,
Inc
SF LBE-
OBE
(Small)
$11,475,777 $15,000.00 10% =
$1,149,077.70 $10,341,699.30
Mitchell
Engineering
SBA-LBE
OBE $12,306,382 $6,000.00 N/A $12,312,382.00
Cratus, Inc. (“Cratus”) is the lowest responsive bidder. Cratus met the 6% LBE subcontracting requirement by listing the following LBE firms on Section 00 43 36 (Proposed Subcontractors Form):
LBE
Subcontractor Scope of Work LBE Status Listed
Amount
Amount
Credited
Participation
(based on
credited
amount)
Total Traffic
Control, Inc. G-3
SF-LBE
OBE
(Micro)
$400,000.00 $400,000.00 3.79%
CMC Traffic
Control
Specialists
SW-38
SF-LBE
WBE
(Small)
$20,000.00 $0* 0%
Ronald R Nelson
Contractor, Inc. SW-16 & SW-17
SF-LBE
OBE
(Micro)
$375,000.00 $375,000.00 3.56%
RK Engineering
PR-4, PR-5, PR-
6, PR-7, PR-8,
PR-9, PR-10, PR-
11, G-1, G-2, G-3
SF-LBE
OBE
(Micro)
$40,000.00 $37,225.00** 0.35%
TOTAL LBE Subcontracting Participation $835,000.00 $812,225.00 7.70% * Due to lack of CMD certification in the relevant certification category ** This LBE-credited amount includes the scopes in which RK Engineering is CMD-certified and that are not conditional bid items
Cratus also listed the following non-LBE subcontractor on Section 00 43 36:
Firm Scope of Work Status Listed Amount
Nor-Cal Pipeline Services Manhole and Lining Non-LBE $1,200,000.00 SAK Construction, LLC CIPL Non-LBE $2,600,000.00
TOTAL $3,800,000.00
Based on the foregoing, CMD has determined that Cratus has complied with the pre-award Chapter 14B requirements. Should you have any questions, or if I can be of further assistance, please do not hesitate to contact me at (415) 551-4335.