DEPARTMENT
Water Enterprise
AGENDA NO.
10f
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: Maria Mabutas
Approve the Novation of Contract WD-2851(I) 525 Golden Gate Avenue As-needed Mechanical Systems Inspection, Maintenance, and Repairs (2019-2021)
Summary of
Proposed
Commission Action:
Approve the novation of Contract WD-2851(I) 525 Golden Gate Avenue As - needed Mechanical Systems Inspection, Maintenance, and Repairs (2019 - 2021); and authorize the General Manager of the San Francisco Public Utilities Commission to e xecute a Novation Agreement for the existing contract from Envise to Southland Industries.
Background: On March 11, 2019 , the General Manager exercised his delegated authority under Resolution No. 09-0017 by awarding Contract WD-2851(I) 525 Golden Gate Avenue As-needed Mechanical Systems Inspection, Maintenance, and Repairs (2019-2021) to Envise to perform inspection, testing, and maintenance of the mechanical systems for the 525 Golden Gate Avenue, S an Francisco, CA 94102 high-rise building. The original contract amount is $550,000, with a duration of 1,095 consecutive calendar days (three years).
As of April 1, 2022, Envise was reintegrated into its parent company, Southland Industries. Southla nd Industries desires to continue providing services under the existing contract.
This novation will be made in San Francisco, California, by and between Envise, located at 12131 Western Avenue Garden Grove, CA 92841, and Southland Industries 33333 Western Ave Union City, CA 94587. The City is a party to the Novation Agreement for the purposes of approving the novation.
Description of Scope
of Services:
The work under this agreement consists of:
• perform inspection, testing, and maintenance of the me chanical systems;
• perform repairs on any mechanical system , or any portion thereof, that does not meet regulatory requirements; and
• repair services including the replacement of componen t equipment as needed.
Agreement: Maintenance and Repair and Upgrades of Sentinel UV Disinfection System Commission Meeting Date: August 23, 2022
Contract Changes
and Modifications:
On April 26, 2022, by Resolution 22 -0077, this Commission authorized an increase of $101,000 to the existing contract cost contingency and an increase of 730 calendar days to the exis ting contract duration contingency, for Water Enterprise Contract No. WD -2851(I), 525 Golden Gate Avenue As -Needed Mechanical Systems Inspection, Maintenance, and Repairs (2019- 2021), for a total contract cost contingency amount of up to $156,000 and a tot al contract duration contingency of 839 calendar days ; and authorized the General Manager, or the General Manager 's designee, to consider, and, i f appropriate, to approve any future modifications to the contract amount for a total contract amount of up to
$706,000, and a total contract duration of up to 1,934
consecutive calendar days.
Subsequently, the General Manag er’s designee executed a modifi cation increasing the contract by $101,000 from $550,000 to a total contract value of $651,000 and increased the contract duration by 730 calendar days from 1,095 consecutive calendar days for a total duration of
1,826 consecutive calendar
days.
Budget, Funding
and Costs:
Funding: The SFPUC has allocated f unds for this agreem ent from Water Enterprise operating funds.
Original Not-to-Exceed Amount: $550,000
Original Contingency: $55,000
Approved Contingency: $101,000
Total Not-to-Exceed Amount: $706,000
Schedule: Original Duration: 1,095 consecutive calendar days (three years) Original Contingency: 109 calendar days
Approved Contingency: 730 calendar days
Total Approved Duration: 1,934 consecutive calendar days (five years)
Compliance with
Chapter 14B: Local
Business Enterprise
Utilization and Non-
Discrimination in
Contracting
Ordinance:
The Contract Monitoring Division established no subconsulting requirement of Local Business Enterprise participation for these agree ments. T his remains unchanged.
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 Commissi on (SFPUC) owns a nd operates a high-rise office building at 525 Golden Gate Avenue in San Francisco; and WHEREAS, The SFPUC requires inspection, maintenance, and operation services for the building’s mechanical system in compliance with building regulations; and WHEREAS, On March 11, 2019, the General Manager exercised his delegated authority under Resolution No. 09-0017 by awarding Contract WD-2851(I) 525 Golden Gate Avenue As - needed Mechanical Systems Inspection, Maintenance, and Repairs (2019- 2021) to Envise to perform inspection, testing, and maintenance of the mechanical systems for the 525 Golden Gate Avenue, San Francisco, CA 94102 high rise building in the amount of $550,000 and for a duration of 1,095 consecutive calendar days (three years); and WHEREAS, On April 1, 2022, Envise was me rged into its parent company, Southland Industries, resulting in Southland Industries assuming all obligations and liabilities of Envise under Contract WD-2851(I) 525 G olden Gate Avenue As -needed Mechanical Systems Inspection, Maintenance, and Repairs (2019-2021); and
WHEREAS, Under a proposed novation from Envise to Southland Indust ries, all of the terms and conditions of Contract WD-2851(I) 525 Golden Gate Avenue As -needed Mechanical Systems Inspection, Maintenance, and Repairs (2019 -2021) will remain in full force and effect; now, therefore, be it
RESOLVED, That this Commission hereby consents to and approves the novation of Contract WD-2851(I) 525 Golden Gate Avenue As -needed Mechanical Systems Inspection, Maintenance, and Repairs ( 2019-2021), and authorizes the General Manager to negotiate and execute a Novation Agreement with Southland Industries and Envise, with Southland assuming all contractual obligations of Envise, 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