DEPARTMENT
Infrastructure Division
AGENDA NO.
6c
MEETING DATE
February 14, 2023
APPROVAL:
COMMISSION
SECRETARY
Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Construction Closeout with Modification: Consent Calendar Project Manager: Ada Zhu
Closeout with Modifications for Contract No. WD-2686, Auxiliary Water Supply System Pumping Station No.1 Improvements
Summary of
Proposed
Commission Action:
Accept work performed by NTK Construction, Inc. for Contract No.
WD-2686, Auxiliary Water Supply System Pumping Station No.1 Improvements (2014); approve Modification No. 15 (Final), increasing the contract by $416,257, for a total contract amount of $10,230,400, and increasing the contract duration by 1,828 consecutive calendar days (approximately five years), for a total contract duration of 2,538 consecutive calendar days (approximately six years and 11 months) to complete various additional work approved under previous modifications to resolve a generator vibration issue , and to perform final contract reconciliation ; and authorize final payment to the contractor.
Background: The purpose of Contract WD -2686 was to install four new diesel engines, a new electrical generator, and related architectural, electrical, mechanical, plumbing, and structural improvements at Auxiliary Water Supply System (AWSS) Pumping Station No. 1.
On August 12, 2014, by Resolution No. 14-0124, the San Francisco Public Utilities Commission (SFPUC) awarded Contract No. WD- 2686, Auxiliary Water Supply System Pumping Station No.1 Improvements (2014), to NTK Construction, Inc. The original contract amount was $7,847,000 and the original contract duration was 580 consecutive calendar days.
Description of Scope
of Work:
The contract work was located at AWSS Pumping Station No. 1, 698 Second Street, San Francisco . The work under this contract consist ed of architectural, electrical, mechanical, plumbing, and structural improvements. Work include d installation of four new diesel engines to drive existing seawater pumps, installation of a new electric Contract: WD-2686, Auxiliary Water Supply System Pumping Station No.1 Improvements (2014) Commission Meeting Date: February 14, 2023
generator, repl acement of pipes and valves , and associated improvements to power and control systems.
This contract fell under the SFPUC Project Labor Agreement.
Changes to the
Contract under
Modification(s):
On January 12, 2016, by Resolution No. 16 -0003, the Commission approved an increase to the cost contingency in the amount of $600,000 for a total revised contract amount of up to $9,231,700, and an increase to the duration contingency in the amount of 72 calendar days for a total revised contract duration of up to 710 consecutive calendar days.
Modification Nos. 1- 8 increased the contract amount by $1,315,805 and increased the contract duration by 130 consecutive calendar days , to account for parking costs, lease of air monitor device, additional roof replacement, generator engine length modification, fuel system replacement design, relocation of the generator engine control panel, engine factory witness testing and hardwiring the engine control panel signal, fuel system replacement construction, bypass valve repair, fan coil unit motor repair, duct smoke detector, data fan relocation, roof work and warranty extension, roof drain work, metal floor plates, and concrete pad, for a total contract amount of $9,162,805, and a total contract duration of 710 consecutive calendar days.
On May 23, 2017, by Resolution No.17- 0113, the Commission approved an increase to the cost contingency in the amount of $1,500,000 for a total revised contract amount of up to $10,731,700, and an increase to the duration contingency in the amount of 548 calendar days for a total revised contract duration of up to 1,258 consecutive calendar days.
Modification Nos. 9-14 increased the contract amount by $651,338 to account for flood lights, water damage repair, stucco and copper flashing, gate valves, gland seal drain hoses, roof edge flashing, revised Generator strategy, extend ed engine run time, relocation of HVAC connection, additional acoustical insulation, wall enclosure modification, resolution of air quality issue, start-up testing changes and additional allowance, for a total contract cost of $9,814,143.
On February 13, 2018, by Resolution No. 18- 0019, the Commission approved an increase to the duration contingency in the amount of 180 calendar days for a total revised contract duration of up to 1,438 consecutive calendar days, with no change in the contract amount.
On September 25, 2018, by Resolution No. 18-0156, the Commission approved an increase to the duration continency in the amount of 215 calendar days for a total revised
contract duration of up to 1,653
consecutive calendar days , with no change in the contract a mount.
Contract: WD-2686, Auxiliary Water Supply System Pumping Station No.1 Improvements (2014) Commission Meeting Date: February 14, 2023
1,653 consecutive calendar days would have all owed a final contract completion date of April 30, 2019.
A generator vibration issue was discovered in March 2018 that resulted in loosening of bolts and bolts shearing off ; the contractor performed the initial repair under warranty. Startup testing was completed by April 30, 2019. However, the warranty repairs were unsuccessful, and the vibration issue resurfaced in 2020. Between February 2020 and March 2021, during the pandemic with restrictions on in-person site visits and travel, the manufacturer worked with the P roject Engineer to troubleshoot and determine the most feasible and expeditious solution.
The manufacturer recommended replacing the contract-specified belt- driven pump with an electric -driven pump to reduce vibrations . The project team concluded that since the AWSS Pump Station No. 1 is an emergency facility and needed to stay operational while construction was being performed on AWSS Pump Station No. 2, the mos t expeditious method to repair the vibration issue was to p erform the work under this contract. The vibration issue w as considered an unforeseen condition, and t he contractor replace d the pump under a change order . Concurrent with these items, the SFPUC and the contractor reached a negotiated resolution for extended overhead and time extension w hich served to minimize the SFPUC ’s
exposure to
greater costs. The agreed upon Final Completion date , established as the completion of the physical work, was on September 30, 2021. The Pump Station No. 1 generator resolution is also a test case for AWSS Pump Station No. 2 generator, which has the same design and issue.
Pump Station No. 1’s repair resolution served as a tem plate for Pump Station No. 2’s resolution with reduced engineering cost and schedule impact.
Modification No. 15 (Final): Staff recommends approval to increase the contract amount by $416,257, and increase the contract duration by 1,828 consecutive calendar days, to complete work approved under previous modifications to resolve a generator vibration issue , and to perform final contract reconciliation, for a total contract amount of $10,230,400 and a total contract duration of 2,538 consecutive calendar days.
Because the delay was not due to the fault of the contractor; no basis exists to assess liquidated damages for delay against NTK Construction, Inc..
Funding, Budget &
Costs:
Funding: Project No. 10029710, AWSS Pumping Station No.1 Original Award Amount: $7,847,000
Modification No.1-14 Amount: $1,967,143
Modification No.15 (Final) Amount: $416,257
Total Revised Contract Amount: $10,230,400
Schedule: Notice-to-Proceed Date: October 20, 2014
Contract: WD-2686, Auxiliary Water Supply System Pumping Station No.1 Improvements (2014) Commission Meeting Date: February 14, 2023
Location map:
Original Duration: 580 consecutive calendar days
Modification No.1-14 Duration: 130 consecutive calendar days Modification No. 15 (Final) Duration: 1,828 consecutive calendar days
Total Revised Contract Duration: 2,538 consecutive calendar days
Compliance With
Chapter 14B: Local
Business Enterprise
Utilization And Non-
Discrimination In
Contracting
Ordinance:
The Contract Monitoring Division (CMD) established a Local Business Enterprise (LBE) subcontracting goal of 16 % for this contract. The contractor committed to a LBE subcontractor participation of 19.22% with its bid submittal. The CMD has determined that the contractor complied with its LBE subcontracting goal by achieving a final LBE participation of 25.91%.
Recommendation: SFPUC staff recommends that the Commission adopt the attached resolution.
Attachments: 1. CMD Memorandum
Pumping Station No.1
Contract: WD-2686, Auxiliary Water Supply System Pumping Station No.1 Improvements (2014) Commission Meeting Date: February 14, 2023
Pumping Station No.1
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) required rehabilitation of the Auxiliary Water Supply System (A WSS) Pumping Station No.1 to provide fire suppression after a seismic event; and
WHEREAS, Contractor NTK Construction, Inc. has completed its work for Contract No.
WD-2686, Auxiliary Water Supply System Pumping Station No.1 Improvements (2014); and WHEREAS, On August 12, 2014, by Resolution No. 14-0124, the Commission awarded Contract No. WD -2686, Auxiliary Water Supply System Pumping Station No.1 Improvements (2014), to the responsible bidder submitting the lowest responsive bid, NTK Construction, Inc., in the original contract amount of $7,847,000; and
WHEREAS, October 20, 2014 was the construction contract Notice-to-Proceed date, with an original schedule of 580 consecutive calendar days, and the contractor completed the contract work in 2,538 consecutive calendar days on September 30, 2021; and WHEREAS, On January 12, 2016, by Resolution No. 16-0003, the Commission approved an increase to the cost contingency in the amount of $600,000 for a total revised contract amount of up to $9,231,700, and an increase to the duration contingency in the amount of 72 c onsecutive calendar days for a total revised contract duration of up to 710 consecutive calendar days; and WHEREAS, Modification Nos . 1-8 increased the contract amount by $1,315,805 and increased the contract duration by 130 consecutive calendar days to account for parking costs, lease of air monitor device, additional roof replacement, generator engine length modification, fuel system replacement design, relocation of the generator engine control panel, engine factory witness testing and hardwiring the engine control panel signal, fuel system replacement construction, bypass valve repair, fan coil unit motor repair, duct smoke detector, data fan relocation, roof work and warranty extension, roof drain work, metal floor plates, and concrete pad, for a total contract amount of $9,162,805, and a total contract duration of 710 consecutive calendar days; and
WHEREAS, On May 23, 2017, by Resolution No.17-0113, the Commission approved an increase to the cost contingency in the amount of $1,500,000 for a total revis ed contract amount of up to $10,731,700, and an increase to the duration contingency in the amount of 548 calendar days for a total revised contract duration of up to 1,258 consecutive calendar days; and WHEREAS, Modification Nos. 9-14 increased the contract amount by $651,338 to account for flood lights, water damage repair, stucco and copper flashing, gate valves, gland seal drain hoses, roof edge flashing, revised Generator strategy, extended engine run time, relocation of HVAC connection, additional acoustical insulation, wall enclosure modification, resolution of air quality issue, start -up testing changes and additional allowance, for a total contract amount of $9,814,143; and
WHEREAS, On February 13, 2018, by Resolution No. 18-0019, the Commission approved an increase to the duration contingency in the amount of 180 consecutive calendar days for a total revised contract duration of up to 1,438 consecutive calendar days, with no change in the contract amount; and
WHEREAS, On September 25, 2018, by Resolution No. 18- 0156, the Commission approved an increase to the duration continency in the amount of 215 consecutive calendar days for a total revised contract duration of up to 1,653 consecutive calendar days, with no change in the contract amount; and
WHEREAS, Staff recommends approval of Modification No. 15 (Final) to increase the contract amount by $416,257, and increase the contract duration by 1 ,828 consecutive calendar days, to complete various additional work approved under previous modifica tions, to resolve a generator vibration issue, and to perform final contract reconciliation, for a total contract amount of $10,230,400 and a total contract duration of 2,538 consecutive calendar days; and WHEREAS, The Contract Monitoring Division has determined that the contractor has made a good faith effort to comply with the Local Business Enterprise (LBE) subcontracting goals of 16% for this contract by achieving a final LBE participation of 25.91%; now, therefore, be it RESOLVED, That this Commission hereby accepts work performed by NTK Construction, Inc. under Contract No. WD-2686, Auxiliary Water Supply System Pumping Station No.1 Improvements (2014) ; approves Modification No. 15 (Final), for an increase of $416,257, for a total contract amount of $10,230,400, and a duration increase of 1,828 consecutive calendar days, for a total contract duration of 2,538 consecutive calendar days; and authorizes final payment to the contractor.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of February 14, 2023.
Secretary, Public Utilities Commission