DEPARTMENT
Hetch Hetchy Water and Power
AGENDA NO.
7 MEETING DATE
January 10, 2023
APPROVAL:
COMMISSION
SECRETARY
Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Authorize First Amendment to Agreement: Regular Calendar Project Manager: Margaret Hannaford
Authorize First Amendment to Agreement with California Department of Fish and Wildlife for Permanent Water Recirculation System at the Moccasin Fish Hatchery
Summary of
Proposed
Commission Action:
Authorize the General Manager to execute, on behalf of the City and County of San Francisco, a First Amendment to the Agreement with the California Department of Fish and Wildlife (CDFW) regarding the construction, o
peration, and maintenance of a permanent water
recirculation system at the CDFW-owned and operated Moccasin Fish Hatchery that will allow for reduction in San Francisco Public Utilities Commission water deliveries to the Hatchery during shutdowns of the Hetch Hetchy Water and Power system and during droughts, to extend the Agreement duration by up to 12 months, to December 1, 2023, for a total duration of up to 36 months, with no change to the Agreement amount.
Background: The S an Francisco Public Uti lities Commission (SFPUC) owns and operates the Hetch Hetchy Water and Power System, with facilities including Moccasin Reservoir and Mountain Tunnel in Tuolumne County. The Moccasin Creek Fish Hatchery (Hatchery) is a trout production facility that is own ed and operated by the California Department of Fish and Wildlife (CDFW). The Hatchery is located on SFPUC-owned land that CDFW has leased since 1952
under three
successive lease agreements with the SFPU C. Under the t erms of the existing lease, which expired on July 1, 2012 and has been in holdover status since that date , CDFW may take water from Moccasin Reservoir for operation of the Hatchery at a rate of up to thirty (30) cubic feet per second (cfs), s ubject to certain reserved rights of the SFPUC.
On August 9, 2016, the SFPUC and CDFW entered into an agreement, approved by the Commission on the same da te by Resolution No. 16- 0169, to design, procure, and install a tempor ary water reuse system (Pilot R ecirculation System) at the Hatchery to be used durin g the January 3, 2017 to March 4, 2017 shutdown of Mountain Tunnel Agreement: First Amendment to the Agreement with California Department of Fish and Wildlife Commission Meeting Date: January 10, 2023
(2017 Shutdown) when SFPUC water deliveries to the Hatchery would be reduced. During the 2017 Shutdown, t he SFPUC delivered three (3) cfs of water to CDFW to operate the Hatchery with successful operation of the Pilot Recirculation System.
After the inspections conducted during the 2017 Shutdown, the SFPUC concluded that the rehabilitation of Mountain Tunnel would require annual 60- to 100-day shutdowns over a five (5) year period, leading to the Commission’s approval of the Mountain Tunnel Improvement Project . The Commission awarded construction contracts for the Mountain Tunnel I mprovement Project on October 13, 2020 by Resolution No. 20-0210.
Given the success of the Pilot R ecirculation System during the 2017 Shutdown, the SFPUC and CDFW entered into an agreement (Agreement), approved by the Commission on December 8, 2020 by Resolution No. 20-0243, under which the SFPUC will fund CDFW’s construction and installation of a larger ten (10) cfs capacity permanent water reuse system (Permanent Recirculation System) that CDFW will use during future Hetch Hetchy capit al and maintenance projects that might affect water flow to the Hatchery, s uch as the Mountain Tunnel Improvement Project . CDFW may also use the Permanent Recirculation System to comply with vol untary or mandatory water use restrictions adopted by the SF PUC during drought periods, as well as during emergencies . The Permanent Recirculation System will allow CDFW to oper ate the Hatc hery on thirteen (13) cfs of water while reducing SFPUC water deliveries to the Hatchery to three (3) cfs.
Under the Agreement, CDFW will use SFPUC funding in an amount not-to-exceed $2,600,000 to hire a contractor to construct and install the Permanent Recirculation System. CDFW will have sole ownership and responsibility for the operation and maintenance of the Permanent Recirculation System and will ensure that it is capable of operation during Hetch Hetchy maintenance and rehabilitation shutdown periods and during drought periods. The SFPUC will provide power service for the Permanent Recirculation System, including capital costs for delivery of power and provision of a temporary back- up generator whenever the SFPUC requests that CDFW use the Permanent Recirculation System. T he potential reduction in Hatchery water use during droughts or emergencies that is made possible through the SFPUC
’s funding the construction of the Permanent Recirculation System was a key m otivation for the SFPUC ’s participation in this Agreement.
Description of
Amendment:
The proposed Amendment would retroactively e xtend the term of the Agreement, which expired on December 1, 2022, by up to 12 months, from (a) “the earlier of December 1, 2022 or the date that City’s Board of Supervisors approves the New Lease for the Hatchery,” to (b) “the earlier of Decem ber 1, 2023 or the date that City’s Board of Agreement: First Amendment to the Agreement with California Department of Fish and Wildlife Commission Meeting Date: January 10, 2023
Supervisors approves the New Lease for the Hatcher y.” With this 12- month extension, the total Agreement duration will be 36 m onths.
The SFPUC and CDFW hope to finalize the New Lease for the Hatchery by the end of 2023.
The 12- month extension is necessary because CDFW has not yet secured a construction contract through the California Department of General Services to build the Permanent Recirculation System under the terms of the Agreement. The SFPUC has already provided 25% of its maximum funding contribution ($650,000) to CDFW, as that portion was due within 45 days of the Agreement’s execution in early 2021. The SFPUC has n ot provided the remaining 75% of its funding contribution ($1,950,000), as that portion is only due within 30 days following the SFPUC’s receipt of a letter from CDFW informing the SFPUC of the total estimated
costs of the project. CDFW will not
send that letter to the SFPUC until 30 days prior to its issuance of a Notice to Proceed for the construction of the system.
The Amendment would also extend, from the existing date of December 1, 2024 to the new date of December 1, 2025, the additional two -year p eriod that certain provisions of the Agreement will continue in force in the event that the New Lease for the Hatchery is not approved by the new date of December 1, 2023. T he Amendment would update the notic e provisions of the Agreement.
The Amendment does not increase the Agreement’s cost.
The Amendment would be effective as of December 1, 2022, subject to retroactive approval of the SFPUC and the State.
By this Commission a ction, staff is also asking t he Commission to delegate authority to the General Manager in three respects:
1. A delegation of authority to amend the Agreement again – in the event that CDFW requires additional time beyond
December 1, 2023 to complete construction of the Permanent Recirculation System – to further extend th e Agreem ent’s duration by another 12 months, to “the earlier of December 1, 2024 or the date that City’s Board of Supervisors approves the New Lease for the Hatchery.”
2. A delegati on of authority to amend the Agreement – in the event that the General Manager exercises the first delegated authority – to also further extend, from December 1, 2025 to December 1, 2026, the additional two- year period that certain provisions of the Agreement will continue in force in the event that the New Lease is not approved by the n
ew date of
December 1, 2024.
3. A delegation of authority to amend the Agreement – in the event that the General Manager exercises the first and second Agreement: First Amendment to the Agreement with California Department of Fish and Wildlife Commission Meeting Date: January 10, 2023
delegated authority – to include any necessary modifications to the Agreement and its exhibits tha t the Ge neral Manager, in consultation with the City Attorney, determines are in the best interests of the SFPUC, do not materially decrease the benefits to the SFPUC, and do not materially increase the obligations or liabilities of the SFPUC.
Parties to Agreement: California Department of Fish and Wildlife (CDFW) and the San Francisco Public
Utilities Commission (SFPUC)
Purpose: Permanent Water Recirculation System at
the Moccasin Fish Hatchery
Location: Moccasin Fish Hatchery
Amendment
Commencement
Date:
December 1, 2022, subject to approval of
the SFPUC and CDFW
Result of Inaction: A delay in authorizing this First Amendment will result in a delay in the construction, operation, and maintenance of a permanent water recirculation system at the CDFW-owned and operated Moccasin Fish Hatchery and the realization of associated operation and water supply benefits to the SFPUC.
Budget & Costs: The Amendment will not increase the cost of the Agreement as approved by this Commission on December 8, 2020 by Resolution No. 20-0243. Funding for the Agreement will be provided by the Mountain Tunnel Improvement Project.
Schedule: The proposed Amendment will be effective following Commission approval and execution by the SFPUC and CDFW. The Agreement, as amended, will end on the earlier of December 1, 2023 or the date that the San Francisco Board of Supervisors approves the New Lease for the Hatchery under San Francisco Charter section 9.118.
Environmental
Review:
On November 18, 2020, CDFW, the lead a gency under the California Environmental Quality Act (CEQA), filed a Notice of Exemption (NOE) with the State Clearinghouse stating that the Mo ccasin Creek Fish Hatchery Permanent Recirculati on Project is categorically exempt from environmental review unde r CEQA Guidelines Section 15301, C lass 1 ( Existing Facilities ). This NOE can be fo und here:
https://sfpuc.sharefile.com/d-s5015665934794fd7a7102ded93399cb8.
Recommendation: SFPUC staff recommends that the Commission adopt the attached resolution.
Attachment: 1. Agreement
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) owns and operates the Hetch Hetchy Water and Power System, with f acilities inclu ding Moccasin Reservoir and Mountain Tunnel in Tuolumne County; and
WHEREAS, The California Department of Fish and Wildlife (CDFW) owns and operates the Moccasin Creek Fish Hatchery (Hatchery), a trout production facility that is located on SFPUC-owned land that CDFW has leased from the SF PUC since 1952 under three successive lease agreements; and
WHEREAS, Under the terms of the existing lease, which expired on July 1, 2012 and has been in holdover status since that date , CDFW may take water f rom Moccasin Reservoir for operation of the Hatchery at a rate of up to thirty cubic feet per second (cfs), subject to certain reserved rights of the SFPUC; and
WHEREAS, On August 9, 2016, the Ci ty and CD FW entered into an agreement, approved by the Commission on the same date by Resolution No. 16- 0169, to fund the design and installation of a temporary water reuse system at the Hatchery to be used during the January 2017 to March 2017 Mountain Tunnel shutdown; and
WHEREAS, The temporary water re use system operated successfully during the 2017 Mountain Tunnel shutdown, reducing water deliveries from Moccasin Reservoir to the Hatchery to three (3) cfs; and
WHEREAS, Given this success, the SFPUC and CDFW determined that the construction and installation of a larger capacity permanent water recirculation system (Permanent Recirculation System) would allow the Hatchery to operate on a limited water supply of three (3) cfs during future Hetch Hetchy capital and maintenance projects that might affe ct water flow to the Hatchery, such as the Mountain Tunnel Improvement Project, and during emergencies, as well as to comply with voluntary or mandatory water use restr ictions adopted by the SFPUC during drought periods; and
WHEREAS, On January 29, 2021, the SFPU C and C DFW entered into an agreement (Agreement), approved by this Commission on December 8, 2020 by Resolution No. 20-0243, under which the SFPUC would provide up to $2,600,000 in funding to CDFW to hire a contractor to co nstruct and install the Permanent Recirculation System at the Hatchery, whi ch CDFW would own, operate, and maintain, in order to facilitate reductions in Hatchery water use during future Hetch Hetchy maintenance and rehabilitation activities as well as during droughts and emergencies, while allowing CDFW to maintain fish production at the Hatchery; and
WHEREAS, On November 18, 2020, CDFW , the lead ag ency under the California Environmental Quality Act (CEQA), filed a Notice of Exempt ion (NOE) with the State Clearinghouse stating that the Moccasin Creek Fish Hatchery Permanent Recirculation Project is categorically exempt from environmental review under CEQA Guidelines Section 15301, C lass 1 (Existing Facilities); and
WHEREAS, The SFPUC and CDFW propose to amend the Agreement, which expired on December 1, 2022, to retroactively extend the Agreement’s term by up to 12 months, from (a) “the earlier of Dec ember 1, 2022 or the date that City’s Board of Supervisors approves the New Lease for the Hatchery,” to (b) “the earlier of December 1, 2023 or the date that City ’s Board of Supervisors approves the New Lease for the Hatchery,” for a total Agreemen t duration of up to 36 months (First Amendment); and
WHEREAS, The 12-month extension in the Firs t Amendment is necessary because CDFW has not yet secured a construction contract through the California Department of General Services to build the Permanent Recirculation System under the terms of the Agreement; and
WHEREAS, The First Amendment would also extend, from the existing date of December 1, 2024 to the new date of December 1, 2025, the additional two- year period that certain provisions of the Agreement will continue in force in the event that the New Lease for the Hatchery is not approved by the new date of December 1, 2023; and
WHEREAS, This First Amendment will not increase the Agreement’s not-to-exceed amount; now, therefore be it
RESOLVED, That the Commission authorizes the General Manager of the San Francisco Public Utilities Commis sion t o execute the First Amendment to the Agreemen t with the California Department of Fish and Wildlife for the construction, operation, and maintenance of a permanent water recirculation system at the Moccasin Fish Hatchery , to (1) retroactively extend the Agreement duration by up to 12 months, from December 1, 2022 to December 1, 2023, for a total Agreement duration of up t o 36 months, with no change to the Agreement cost, and (2) extend by 12 months , from December 1, 2024 to De cember 1, 2025, the additional t wo-year period that certain provisions of the Agreement will continue in force in the event that the New Lease for the Hatchery is not approved by the new date of December 1, 2023; and be it
FURTHER RESOLVED, That in the event that CDFW requires add itional time beyond December 1, 2023 to complete construction of the Permanent Recirculation System, the Commission delegates to the General Manager the authority to approve an amendment that (1) further extends the duration of the Agreement by up to a n additional 12 months, to December 1, 2024, for a total Agreement duration of up to 48 months; (2) further extends by up to an additional 12 months, to December 1, 2026, the additional two -year period tha t certain provisions of the A greement will continue in force in the event that the New Lease is not approved by the new date of December 1, 2024; and (3) includes any necessary modifications to the Agreement and its exhibits that the General Manager, in co nsultation with the City Atto rney, determines are in the best interests of the SFPUC, do not materially decrease the benefits to the SFPUC, and do not materially increase the obligations or liabilities of the SFPUC.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of January 10, 2023.
Secretary, Public Utilities Commission
STATE OF CALIFORNIA - DEPARTMENT OF GENERAL SERVICES
STANDARD AGREEMENT - AMENDMENT
STD 213A (Rev. 4/2020) AGREEMENT NUMBER
R2040004
AMENDMENT NUMBER
01CHECK HERE IF ADDITIONAL PAGES ARE ATTACHED PAGES12
Purchasing Authority Number
SCO ID: 3600-R2040004-A1
1. This Agreement is entered into between the Contracting Agency and the Contractor named below:
CONTRACTING AGENCY NAME
California Department of Fish and Wildlife
CONTRACTOR NAME
San Francisco Public Utilities Commission
2. The term of this Agreement is:
START DATE
January 29, 2021
THROUGH END DATE
December 1, 2023
3. The maximum amount of this Agreement after this Amendment is:
$2,600,000.00 | Two Million Six Hundred Thousand Dollars and Zero Cents
4. The parties mutually agree to this amendment as follows. All actions noted below are by this reference made a part of the Agreement and incorporated herein:
Standard Agreement R2040004, originally made and entered into on January 29, 2021, is hereby amended as of December 1, 2022 subject to CDFW Approval and SFPUC Approval, in the following particulars and no others:
1) STD 213, Item 2 - "The term of this agreement" is modified by:
a) deleting the existing start date of "Upon Approval" and inserting the start date of "January 29, 2021", which is the date the Standard Agreement was in fact approved; and
b) deleting the existing end date of "December 1, 2022" and inserting a new end date of "December 1, 2023" (resulting in an extension of one (1) year). 2) Exhibit A - Scope of Work:
a) The first sentence of Section VII (Term) is amended by deleting the phrase "shall terminate upon the earlier of December 1, 2022 or the date that City's Board of Supervisors approves the New Lease," and in inserting in its place the phrase "shall terminate upon the earlier of December 1, 2023 or the date that City's Board of Supervisors approves the New Lease"; b) The second sentence of Section VII (Term) is amended by deleting the phrase “the following provisions of this Agreement shall continue in force for an additional two year period beyond the term (through December 1, 2024) in the event that the New Lease is not approved by December 1, 2022,” and inserting in its place the phrase “the following provisions of this Agreement shall continue in force for an additional two year period beyond the term (through December 1, 2025) in the event that the New Lease is not approved by December 1, 2023”; and c) Section XV (Notice) is amended by deleting an outdated contact address for CDFW Staff Counsel John Long and inserting in its place an updated contact address.
The modifications described in 2.a, 2.b, and 2.c above are shown in the redlined amended version of Exhibit A - Scope of Work attached to this Standard Agreement - Amendment.
Except as expressly modified by this Amendment, all other terms and conditions of the original Standard Agreement and its exhibits shall remain the same and in full force and effect.
IN WITNESS WHEREOF, THIS AGREEMENT HAS BEEN EXECUTED BY THE PARTIES HERETO.
CONTRACTOR
CONTRACTOR NAME (if other than an individual, state whether a corporation, partnership, etc.) San Francisco Public Utilities Commission
CONTRACTOR BUSINESS ADDRESS
525 Golden Gate Avenue, 13th Floor
CITY
San Francisco
STATE
CA
ZIP
94102
PRINTED NAME OF PERSON SIGNING
Dennis Herrera
TITLE
General Manager
CONTRACTOR AUTHORIZED SIGNATURE DATE SIGNED
STATE OF CALIFORNIA - DEPARTMENT OF GENERAL SERVICES
STANDARD AGREEMENT - AMENDMENT
STD 213A (Rev. 4/2020) AGREEMENT NUMBER
R2040004
AMENDMENT NUMBER
01CHECK HERE IF ADDITIONAL PAGES ARE ATTACHED PAGES12
Purchasing Authority Number
SCO ID: 3600-R2040004-A1
STATE OF CALIFORNIA
CONTRACTING AGENCY NAME
California Department of Fish and Wildlife
CONTRACTING AGENCY ADDRESS
P.O. Box 944209
CITY
Sacramento
STATE
CA
ZIP
94244
PRINTED NAME OF PERSON SIGNING
Melinda Peacock
TITLE
Assistant Deputy Director of Business Operations
CONTRACTING AGENCY AUTHORIZED SIGNATURE DATE SIGNED
CALIFORNIA DEPARTMENT OF GENERAL SERVICES APPROVAL EXEMPTION (If Applicable) SCM Volume 1, Section 5.81 A.1.b.i.
California Department of Fish and Wildlife Agreement Number: R2040004 Exhibit A – Scope of Work . San Francisco Public Utilities Commission
–
“ ”
“ ”
Hetch Hetchy Water and Power’s facilities include Moccasin Dam and “ ”
City and CDFW are collectively referred to as “Parties” in this Exhibit A.
“ ”
“ ”
Parties intend to enter into a successor lease (“New Lease”) for the Hatchery premises
“provided that the rate of flow of water taken
shall not at any time exceed 30 cubic feet per second” (cfs). The City for use “in
” “
”
Notwithstanding CDFW’s right to take water from Moccasin Reservoir under Section 5 of
California Department of Fish and Wildlife Agreement Number: R2040004 Exhibit A – Scope of Work . San Francisco Public Utilities Commission
(“ ”)
“ ” City’s
“ ”
for the City’s funding contribution under that agreement
Mountain Tunnel (“Mountain Tunnel Improvement Project”)
“
”
“ ”
that is made possible through City’s funding the
California Department of Fish and Wildlife Agreement Number: R2040004 Exhibit A – Scope of Work . San Francisco Public Utilities Commission
’s
Services Inc. (“Stantec”)
DFW’s design criteria
Hatchery Permanent Recirculation Project (“Project”) is categorically exempt under the California Environmental Quality Act (“CEQA”)
refers to the City’s total contri
California Department of Fish and Wildlife Agreement Number: R2040004 Exhibit A – Scope of Work . San Francisco Public Utilities Commission
towards CDFW’s costs for construction and
of the City’s Funding Contribution ($650,000).
costs. Within thirty (30) days following the City’s receipt of CDFW’s letter, the City will As explained above in Section IV(A), the City’s total contribution of
California Department of Fish and Wildlife Agreement Number: R2040004 Exhibit A – Scope of Work . San Francisco Public Utilities Commission
from Contractor(s), showing the accounting of CDFW’s expenditures from the City CDFW’s
to audit CDFW’s accounting records
City’s
be available hereunder without prior written authorization certified by the City’s the City’s Mayor and Board of Supervisors do not appropriate funds for such funds are not certified by the Controller. The City’s obligations hereunder shall CDFW’s assumption of risk of possible non
using CDFW’s design
California Department of Fish and Wildlife Agreement Number: R2040004 Exhibit A – Scope of Work . San Francisco Public Utilities Commission
using CDFW’s design criteria
withstanding the City’s agreement to
Recirculation System using CDFW’s design criteri
of the Permanent Recirculation System that exceed the City’s total funding
California Department of Fish and Wildlife Agreement Number: R2040004 Exhibit A – Scope of Work . San Francisco Public Utilities Commission
at City’s sole cost
eports to the City regarding CDFW’s progress in
California Department of Fish and Wildlife Agreement Number: R2040004 Exhibit A – Scope of Work . San Francisco Public Utilities Commission
related to CDFW’s decision to adjust its operations at the Hatchery, including, but not limited to, CDFW’s determination to evacuate fish from the Hatchery.
City’s Board of Supervisors approves
California Department of Fish and Wildlife Agreement Number: R2040004 Exhibit A – Scope of Work . San Francisco Public Utilities Commission
CDFW’s
name as an additional insured “the City and County of San Francisco, its officers, agents and employees”; and the underlying insurance policy(ies) shall provide that it CDFW’s contract(s) with Contractor(s) shall contain language CDFW’s contract(s) with Contractor(s) shall contain provisions CDFW’s contract(s) with Contractor(s) shall contain language requiring from, or in any way connected with, Contractor’s or any of its agent’s obligations,
California Department of Fish and Wildlife Agreement Number: R2040004 Exhibit A – Scope of Work . San Francisco Public Utilities Commission
related costs, and City’s costs of investigating any claims against the City.
The City’s
Stantec’s
CDFW’s
CDFW’s or any of its Contractor’s or
agent’s obligations, acts, or omissions under this Agreement. The foregoing indemnity and City’s costs of investigating any claims against the City
California Department of Fish and Wildlife Agreement Number: R2040004 Exhibit A – Scope of Work . San Francisco Public Utilities Commission
California Department of Fish and Wildlife Agreement Number: R2040004 Exhibit A – Scope of Work . San Francisco Public Utilities Commission