DEPARTMENT Infrastructure AGENDA NO. 11b
MEETING DATE October 11, 2022
APPROVAL:
COMMISSION
SECRETARY Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Construction Award: Consent Calendar
Contract Manager: Aileen Caylao
Award Contract No. WW-709R, Various Locations Sewer Replacement No. 13 Summary of
Proposed
Commission
Action:
Approve the plans and specifications and award Contract No. WW-709R, Various Locations Sewer Replacement No. 13, in the amount of $9,872,303, and with a duration of 460 consecutive calendar days (approximately one year and three months), to the responsible bidder that submitted the lowest responsive bid, M. Hernandez Construction, Inc., (dba) Hernandez Engineering, to replace/rehabilitate existing sewers on specific streets within the City and County of San Francisco. This action constitutes the Approval Action for the Project 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 San Francisco Public Utilities Commission (SFPUC) Wastewater Enterprise (WWE) inspected the existing sewers on the subject streets listed below within the City and County of San Francisco and determined they should be replaced.
Description of
Scope of Work:
The contract work locations are:
• Yacht Road from Marina Boulevard to End
• Lyon Street from Girard Road to End
• Palace of Fine Arts from Lyon Street to Lyon Street
• Marina Boulevard from Yacht Road to Baker Street
• Beach Street from Polk Street to End
• Jefferson Street from Larkin Street to Hyde Street
• Jefferson Street from Hyde Street to Leavenworth Street • Jefferson Street from Jones Street to Taylor Street
• Beach Street from Hyde Street to Columbus Avenue
• Columbus Avenue from Beach Street to Leavenworth Street • North Point Street from Hyde Street to Leavenworth Street • Columbus Avenue from Bay Street to North Point Street • North Point Street from Columbus Avenue to Jones Street Contract: WW-709R, Various Locations Sewer Replacement No. 13 Commission Meeting Date: October 11, 2022
• Jones Street from Beach Street to North Point Street
• Bay Street from Polk Street to Leavenworth Street
• Larkin Street from Francisco Street to Beach Street
• Bergen Alley from Hyde Street to End
The contract work consists of:
• Replacing existing sewers with approximately 85 linear feet of 12- inch diameter, 3,832 linear feet of 14 -inch diameter, 321 linear feet of 18 -inch diameter, and 584 linear feet of 22- inch diameter high-density polyethylene pipe (HDPE); and
• Cured-in-place lining of approximately 415 linear feet of existing 8-inch diameter, 34 linear feet of existing 10- inch diameter, 258 linear feet of existing 12-inch diameter, 34 linear feet of existing 16- inch diameter, 30 linear feet of existing 18- inch diameter, and 33 linear feet of existing 21- inch diameter sewers.
Budget & Costs: Funding: Project No. 10035615, Various Locations Sewer Replacement No. 13 • SFPUC WWE Renewal and Replacement (R&R) Program = $9,497,156 • SFPW Street Resurfacing Program = $375,147
Engineer’s Estimate: $8,820,000
Award: $9,872,303
Schedule: Estimated Notice-to-Proceed Date: January, 2023 Estimated Completion Date: April, 2024
Contract Duration: 460 consecutive calendar days (approximately one year and three months) (400 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 20% Local Business Enterprise (LBE) subcontracting requirement for this contract.
Submitted: The contractor committed to 20.26% LBE participation in its bid submittal.
Environmental
Review:
On March 9, 2022, the San Francisco Planning Department determined the Project to be categorically exempt from environmental review under California Environmental Quality Act (CEQA) Guidelines Section 15302, Class 2 Replacement or Reconstruction, under Case Number 2021-012243 ENV. The
exemption can be found here:
https://sfpuc.sharefile.com/d-se1d36703c6b841678792f377e87ebfc8
This action constitutes the Approval Action for the Project for the purposes of the CEQA pursuant to Section 31.04(h) of the San Francisco Administrative Code.
Bid History: Advertised: April 18, 2022
Contract: WW-709R, Various Locations Sewer Replacement No. 13 Commission Meeting Date: October 11, 2022
Bids Received: On June 2, 2022, SFPUC received and publicly opened four bids; staff determined that it was in the best interest of the City and County of San Francisco to reject all bids and re-advertise.
Re-advertised: July 20, 2022
Bids Received: On August 4, 2022, SFPUC received and publicly opened three bids as follows:
Bid Rank Bid Amount Bid
Preference
Adjusted Bid Final
Rank
1. Mitchell
Engineering
$9,007,284.44 10% $8,106,556.00 N/A
2. M. Hernandez
Construction,
Inc. (dba)
Hernandez
Engineering
$9,872,303.00 10% $8,885,072.70 1
3. Cratus, Inc. $10,151,771.00 10% $9,136,593.90 2
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.
On August 15, 2022, SFPUC issued a Notice of Non- Responsiveness to Mitchell Engineering for failing to meet the 20% LBE subcontracting requirement, based on CMD’s review.
As a result, M. Hernandez Construction, Inc. (dba) Hernandez Engineering was deemed the qualified responsible bidder that submitted the lowest responsive bid.
Result of
Inaction:
A delay or denial awarding this contract will increase the risk of sewer failure.
Recommendation: SFPUC staff recommends that the Commission adopt the attached resolution.
Attachments: 1. CMD Memorandum
Contract: WW-709R, Various Locations Sewer Replacement No. 13 Commission Meeting Date: October 11, 2022
WW-709R Various Locations Sewer Replacement No. 13 Location Map
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) inspected and determined that existing sewers on s pecific streets within the City and County of San Francisco need to be replaced; and
WHEREAS, On July 20, 2022, SFPUC advertised Contract No. WW-709R, Various Locations Sewer Replacement No. 13 to procure construction services for this sewer replacement and pavement restoration work; and
WHEREAS, The Engineer’s Estimate is $ 8,820,000 for this construction work to replace/rehabilitate existing sewers on specific streets within the City and County of San Francisco; and
WHEREAS, The Contract duration is 460 consecutive calendar days; and WHEREAS, On August 4, 2022, SFPUC received and publicly opened three bids; and WHEREAS, SFPUC staff and Contract Monitoring Division (CMD) review of the bids for responsibility, responsiveness, and application of bid preferences resulted in the establishment of M. Hernandez Construction, Inc., (dba) Hernandez Engineering as the re sponsible bidder that submitted the lowest responsive bid; and
WHEREAS, CMD established a 20% Local Business Enterprise ( LBE) subcontracting requirement for this contract, and the contractor committed to 20.26% LBE participation in its bid submittal; and
WHEREAS, Funds are available from Project No. 10035615, Various Locations Sewer Replacement No. 13; and
WHEREAS, On March 9, 2022, the San Francisco Planning Department determined the Project to be categorically exempt from environmental review under California Environmental Quality Act (CEQA) Guidelines Section 15302, Class 2 Replacement or Reconstruction, under Case Number 2021-012243ENV; and
WHEREAS, This action constitutes the Approval Action for the Project for the purposes of the CEQA pursuant to Section 31.04(h) of the San Francisco Administrative Code ; now, therefore, be it
RESOLVED, That this Commission hereby approves the plans and specifications and awards Contract No. WW-709R, Various Locations Sewer Replacement No. 13, in the amount of $9,872,303, for a duration of 460 consecutive calendar days, to the responsible bidder that submitted the lowest responsive bid, M. Hernandez Construction, Inc., (dba) Hernandez Engineering.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of October 11, 2022.
Secretary, Public Utilities Commission
London N. Breed, Mayor
Carmen Chu, City Administrator
Romulus Asenloo, Director
1155 Market Street, 4th Floor, San Francisco, CA 94103 Telephone (415) 581-2310 Fax (415) 581-2351
CONTRACT MONITORING DIVISION
CITY ADMINISTRATOR’S OFFICE
MEMORANDUM
Date: August 31, 2022
To: John Wong, Project Manager, SFPUC
Aileen Caylao, Project Manager, SFPUC
Frank Gennaccaro, Administrative Analyst, SFPUC
From: Linda Rainaldi, Contract Compliance Officer, CMD
Subject: CMD Award Review of WW-709R Various Locations Sewer Replacement No. 13
The Contract Monitoring Division (“CMD”) reviewed the bids submitted for the above referenced project, reviewed the appropriate bid discounts, and determined responsiveness to the Chapter 14B pre-award requirements. The Micro/Small-LBE subcontracting requirement is 20% for this project.
Below is a summary of CMD’s review.
Bid Discount
Bidder LBE Status Base Bid Bid Discount Total Bid
Mitchell Engineering SF LBE-OBE
(Small) $ 9,007,284.44 10% =
$900,728.44 $ 8,106,556.00
M. Hernandez
Construction, Inc. (dba)
Hernandez Engineering
SF LBE-MBE
(Micro) $ 9,872,303.00 10% =
$987,230.30 $ 8,885,072.70
Cratus, Inc. SF LBE-OBE
(Small) $ 10,151,771.00 10% =
$1,015,177.10 $ 9,136,593.90
LBE Subcontracting Participation Requirement
Mitchell Engineering, the low bidder, was deemed non-responsive. As a result, M. Hernandez Construction, Inc. (dba) Hernandez Engineering (“Hernandez”) became the lowest responsive bidder.
Hernandez met the 20% Micro/Small-LBE subcontracting requirement by listing the following Micro/Small-LBE firm on Section 00 43 36 (Subcontractor List):
Subcontractor Scope of Work LBE Status Listed Amount Credited Amount
Participation
(based on credited
amount)
Roadway
Construction
Mill – Fill &
Finished
Concrete
SF LBE-MBE
(Micro) $ 1,250,000.00 $ 1,250,000.00 12.66%
Baird Trucking Trucking
Services
SF LBE-OBE
(Micro) $ 450,000.00 $ 450,000.00 4.56%
JR Monterrosa Concrete Saw
Cutting
SF LBE-OBE
(Micro) $ 300,000.00 $ 300,000.00 3.04%
Total $2,000,000.00 $2,000,000.00 20.26%
Hernandez listed the following non-LBE subcontractors on Section 00 43 36:
Subcontractor Scope of Work LBE Status Listed Amount
Insituform Technologies CIPP Items Non-LBE $ 275,281.00 Total $ 275,281.00
Good Faith Outreach Requirements
Hernandez demonstrated that it met the GFE requirements under Approach A by exceeding the sum of the LBE subcontracting participation requirement established for this project by at least 35%.
Based on the foregoing, CMD has determined that Hernandez has complied with the pre-award Chapter 14B requirements. Should you have any questions, or if I can be of further assistance, please contact me at [email protected].