DEPARTMENT
Infrastructure
AGENDA NO.
11c
MEETING DATE
October 24, 2022
APPROVAL:
COMMISSION
SECRETARY
Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Construction Award: Consent Calendar
Contract Manager: Yolanda Quisao
Award Contract No. WD-2845, Cathodic Protection for Transmission Pipelines at Various Locations, Phase 2
Summary of
Proposed
Commission
Action:
Approve the plans and specifications , and award Contract No. WD-2845, Cathodic Protection for Transmission Pipelines at Various Locations, Phase 2, in the amount of $3,274,441, and with a duration of 730 consecutive calendar days (two years), to the responsible bidder that submitted the lowest responsive bid, EXARO Technologies Corporation to install cathodic protection to protect pipes from corrosion at various locations within the San Francisco Public Utilities Commission (SFPUC) water transmission system. This action constitutes the Approval Action for the Project for the purposes of the California Environmental Qualit y 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: Appropriate corrosion control is essential to extending the life of buried structures such as pipelines. S an Francisco Public Utilities Commission (SFPUC) water system transmission lines throughout the San Francisco Bay Area and Peninsula were evaluated and prioritized based on the level of existing corrosion at the time of inspection.
This project will implement the cathodic protection and control program as recommended in the Corrosion Control Master Plan completed in August 2010. There are two major components of the master plan: maintenance and construction. Locations prioritized with the highest level of corrosion were bundled such that improvements could be implemented through separate construction contracts over three phases. Phase 1 has 10 sites, Phase 2 has 11 sites, and Phase 3 will have 20 sites . Phase 1 construction was completed recently and this contract award is for construction of Phase 2.
Description of
Scope of Work:
The contract work locations are in Fremont, Newar k, Redwood City, Mountain View, Los Altos, Palo Alto, Stanford, and Menlo Park.
The contract work consists of:
• Furnishing and installing cathodic protection (CP) systems; Contract: WD-2845, Cathodic Protection for Transmission Pipelines at Various Locations, Phase 2 Commission Meeting Date: October 24, 2022
• Installing 11 rectifiers and anodes at a depth of approximately 300 feet; • Installing 250 testing stations for pipelines;
• Installing specialized galvanic and impressed current CP systems; • Installing remote monitoring units; and
• Installing isolation protection systems.
Budget & Costs: Funding: Project No. 10015071, Corrosion Control Engineer’s Estimate: $3,900,000
Award: $3,274,441
Schedule: Estimated Notice-to-Proceed Date: January 2023 Estimated Completion Date: December 2025
Contract Duration: 730 consecutive calendar days ( two years) (685 consecutive calendar days to Substantial Completion and an additional 45 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 3% Local Business Enterprise (LBE) subcontracting requirement for this contract.
Submitted: The contractor committed to 4.71% LBE participation in its bid submittal.
Environmental
Review:
On November 17, 2021, the San Francisco Planning Department determined the Project to be categorically exempt from environmental review under California Environmental Quality Act (CEQA) Guidelines Section 15301, Class 1 (Existing Facilities) under Case Number 2017-014288ENV. This exemption can be found here:
https://sfpuc.sharefile.com/d-s4f226ac527e14736aebf1a49cfc18c27
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: May 27, 2022
Bids Received: On August 18, 2022, SFPUC received and publicly opened five bids as follows:
Bid Rank Bid Amount Bid
Preference
Adjusted Bid Final
Rank
1. EXARO
Technologies
Corporation
$3,274,440.14 N/A $3,274,440.14 1
2. American
Construction
$3,295,316.00 N/A $3,295,316.00 2
Contract: WD-2845, Cathodic Protection for Transmission Pipelines at Various Locations, Phase 2 Commission Meeting Date: October 24, 2022
and Supply,
Inc.
3. Corrpro
Companies, Inc.
$3,571,450.00 N/A $3,571,450.00 3
4. Farwest
Corrosion
Control
$4,175,781.35 N/A $4,175,781.35 5
5. Mitchell
Engineering
$4,297,277.00 10% $3,867,549.30 4
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.
The responsible bidder submitting the lowest responsive bid is EXARO Technologies Corporation.
Recommendation: SFPUC staff recommends that the Commission adopt the attached resolution.
Attachments: 1. CMD Memorandum
Contract: WD-2845, Cathodic Protection for Transmission Pipelines at Various Locations, Phase 2 Commission Meeting Date: October 24, 2022
Location Map - WD-2845 Cathodic Protection for Transmission Pipelines at Various Locations
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) , under its Water Enterprise Capital Improvement Program, Water Transmission Program, inspected and identified the sites with highest potential for corrosion in the water transmission system and determined the existing pipelines in need of cathodic protection at various locations to be installed in three phases under three construction contracts; and
WHEREAS, On May 27, 2022, the SFPUC advertised Contract No. WD-2845, Cathodic Protection for Transmission Pipelines at Various Locations, Phase 2 for bid; and WHEREAS, The Engineer’s Estimate is $3,900,000 for this construction contract work to install 11 rectifiers with 300 feet deep well anodes, 250 test station and monitoring units, and other corrosion protection at 11 sites in the Bay Division Pipeline Nos. 1, 2, 3, and 4 and the Palo Alto Pipeline; and
WHEREAS, The contract duration is 730 consecutive calendar days; and WHEREAS, On August 18, 2022, SFPUC received and publicly opened five bids; and WHEREAS, SFPUC staff and Contract Monitoring Division (CMD) review of the bids for qualifications, responsibility, responsiveness, and application of bid preferences , resulted in the establishment of EXARO Technologies Corporation as the responsible bidder with the lowest responsive bid; and
WHEREAS, CMD established a 3% Local Business Enterprise ( LBE) subcontracting requirement for this contract, and the contractor committed to 4.71% LBE participation in its bid submittal; and
WHEREAS, Funds are available from the Water Enterprise, Water Transmission Program Project No. 10015071, Corrosion Control; and
WHEREAS, On November 17, 2021, the San Francisco Planning Department determined the Project to be categorically exempt from environmental review under California Environmental Quality Act (CEQA) Guidelines Section 15301, Class 1 (Existing Facilities) under Case Number 2017-014288ENV; 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. WD-2845, Cathodic Protection for Transmission Pipelines at Various Locations, Phase 2, in the amount of $3,274,441, for a duration of 730 consecutive calendar days, to the responsible bidder that submitted the lowest responsive bid, EXARO Technologies Corporation.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of October 24, 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: September 20, 2022
To: Yolanda Quisao, SFPUC
Elmer Cheung, SFPUC
Frank Gennaccaro, SFPUC
From: Jason Chow, CMD
Subject: REVISION #1—CMD Review for WD-2845 Cathodic Protection for Transmission Pipelines at Various Locations, Phase 2
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. An LBE subcontracting requirement of 3% was established for this project. Below is a summary of CMD’s review.
Bidder Status Base Bid Bid
Discount
Total Adjusted
Bid
EXARO Technologies
Corporation
Non-LBE $3,274,440.14
N/A $3,274,440.14
American Construction
and Supply, Inc.
Non-LBE $3,295,316.00
N/A $3,295,316.00
Corrpro Companies, Inc.
Non- LBE $3,571,450.00
N/A $3,571,450.00
Farwest Corrosion
Control
Non-LBE $4,175,781.35
N/A $4,175,781.35
Mitchell Engineering
SF LBE-OBE
(Small)
$4,297,277.00
10% $3,867,549.30
Exaro Technologies Corporation (“Exaro”) is the lowest responsive bidder. Exaro met the 3% LBE subcontracting requirement by listing the following LBE firms on Section 00 43 36 (Subcontractor List):
LBE
Subcontractor Scope of Work Status Listed
Amount
Amount
Credited
Participation
(based on
credited amount)
Rogers
Trucks/RTI Trucking & Hauling
SF LBE-
OBE
(Micro)
$91,760.00 $91,760.00 2.80%
Street
Sweeper Street Sweeping
SF LBE-
MBE
(Micro)
$32,360.00 $32,360.00 0.99%
CMC Traffic
Control Traffic Control SBA-LBE $47,120.00 $0 0%1
Ronan
Construction Paving
SF LBE-
OBE
(Micro)
$30,000 $30,000 0.92%
TOTAL $201,240 $154,120.00 4.71%
Exaro has also listed the following non-LBE subcontractors on Section 00 43 36:
Subcontractor Scope of Work Listed Amount
Pitcher Services LLC Drilling Anodes Wells at
11 Locations $474,930.00
Blocka Construction Electrical $25,000.00
TOTAL $499,930
Based on the foregoing, CMD has determined that Exaro has complied with the Chapter 14B pre-award requirements. Should you have any questions, please contact Jason Chow at (415) 554-3103.
1 Only firms certified as a Micro and/or Small LBE shall count towards meeting the LBE subcontracting participation requirement, not SBA-LBEs. CMC Traffic Control is certified as an SBA-LBE for Traffic Control (C-31). As such, CMC Traffic Control’s listed portion work cannot count towards meeting the LBE subcontracting participation requirement.