DEPARTMENT
Infrastructure
AGENDA NO.
6c
MEETING DATE
March 28, 2023
APPROVAL:
COMMISSION
SECRETARY
Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Construction Modification: Consent
Contract Manager: Ryan Freeborn
Approve Increases to Construction Amount and Duration Contingencies for Contract No.
WD-2717, College Hill Reservoir Outlet Structure and Pipeline
Summary of Proposed
Commission Action:
Approve an increase of $6,550,000 to the contract cost contingency, and an increase of 270 calendar days (approximately nine months) to the contract duration contingency for Contract No. WD-2717, College Hill Reservoir Outlet Structure and Pipeline , with Ranger Pipelines Inc., to entirely replace the College Hill Reservoir roof ’s wooden substructure and associated plywood sheathing rather than up to thirty- five percent of the plywood sheathing anticipated at the time of bid due to the discovery of unforeseen conditions after draining the reservoir, which allowed for a more robust inspection; and authorize the General Manager to approve future modifications to the contract for a total contract amount of up to $19,948,546 and a total contract duration of up to 1,100 consecutive calendar days (approximately three years).
Background: San Francisco Public Utilities Commission (SFPUC) is currently implementing a phased program to improve the reliability of the water distribution system from College Hill Reservoir to San Francisco General Hospital to withstand a major seismic event. This project addresses essential seismic improvements within the reservoir and reservoir inlet and outlet pipelines.
On June 8, 2021, by Resolution No. 21-0093, the Commission awarded Contract No. WD -2717, College Hill Reservoir Outlet Structure and Pipeline to Ranger Pipelines Incorporated . The original contract amount was $12,180,497, and the original contract duration was 755 consecutive calendar days.
Description of Scope of
Work:
The contract work location is in San Francisco's Bernal Heights district and the contract work consists of:
• Installation of a new control valve vault;
• Replacement of reservoir inlet and outlet piping;
Contract: WD-2717, College Hill Reservoir Outlet Structure and Pipeline Commission Meeting Date: March 28, 2023
• Replacement of the first section of transmission pipelines for the College Hill system up to Cortland Avenue; and
• Miscellaneous piping, security, site access, electrical, instrumentation, and water quality improvements.
Changes and
Modifications to the
Contract:
Modification Nos. 1 to 2 increased the contract amount by $305,761 (within the original contingency ) to perform additional potholing, support needed shutdown of water transmission pipelines, acceleration costs for welded steel pipe fabrication related to resequencing of work scope, concrete valve vault elevation changes, removal of additional trees within the work scope area, third-party baseline survey/inspection of adjacent residences prior to work start, network switch equipment revisions, and 16-inch welded steel pipe outlet pipe revisions, for a total contract amount of $12,486,258 with no change to the contract duration.
Recommendation to Increase to Contract Cost and Duration Contingency
Staff re commends an increase of $6,550,000 to the existing cost contingency and an increase of 270 calendar days to the existing duration contingency to replace the existing College Hill Reservoir roof ’s wooden substructure and plywood sheathing, for a total contract amount of up to $19,948,546, and a total contract duration of up to 1,100 consecutive calendar days.
SFPUC replaced the reservoir’s roof membrane, roof plywood sheathing, and portions of the roof substructure approximately 20 years ago. The original scope of this project included replacement of the reservoir roof membrane and approximately thirty -five percent ( 35%) of the plywood sheathing and none of the substructure based on the limited visual inspection during design while the reservoir was filled and in service.
Once the reservoir was shut down and drained for the planned outlet structure improvements and fully accessible to visual inspection, the entire reservoir roof substructure , including roof beams, joists, and plywood sheathing were found to be severely deteriorate d and in need of replacement. Due to water quality concerns , the reservoir roof’s passive vents were sealed after the previous renovation project , which may have contributed to the deterioration observed. The increased contract contingency will provide for replacement of all roof beams, joists, and the remaining sixty-five percent (65%) of the plywood sheathing which was not in th e original contract. Passive ventilation, with considerations for water quality protection, will be restored as part of the roof substructure replacement.
Budget & Costs: Funding: Project No. 100015223, College Hill Reservoir Outlet Structure and Pipeline
Original Contract Amount: $12,180,497
Original 10% Cost Contingency: $1,218,049
Contract: WD-2717, College Hill Reservoir Outlet Structure and Pipeline Commission Meeting Date: March 28, 2023
Approved Increase to Cost Contingency: $0
Requested Additional Cost Contingency: $6,550,000
Total Revised Contract Cost Limit: $19,948,546
Schedule: Notice-to-Proceed Date: September 27, 2021
Original Contract Duration: 755 consecutive calendar days Original 10% Duration Contingency: 75 calendar days
Approved Increase to Duration Contingency: 0 calendar days Requested Additional Duration Contingency: 270 calendar days Total Revised Contract Duration Limit: 1,100 consecutive calendar days
Environmental Review: On November 14, 2019, 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 2019-013203ENV.
Modifications to the P roject include in- kind replacement of the reservoir roof wood joist substructure and plywood sheathing. On February 24, 2023, under Case Number 2019- 013203ENV and pursuant to San Francisco Administrative Code subsection 31.08(i), the Planning Department determin ed that these modifications are not substantial, and the modified project remains categorically exempt under CEQA and does not require further environmental review.
The CEQA exemption and determination that modifications are not substantial can be found here: https://sfpuc.sharefile.com/d- s259f78a79ae64d2babac16c46cd5aec5
Compliance with
Chapter 14B: Local
Business Enterprise
Utilization and Non-
Discrimination In
Contracting Ordinance:
The Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting requirement of 20% for this contract.
The contractor committed to a LBE participation of 22.49% with its bid submittal.
Recommendation: SFPUC staff recommends that the Commission adopt the attached resolution.
Contract: WD-2717, College Hill Reservoir Outlet Structure and Pipeline Commission Meeting Date: March 28, 2023
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, After the start of work on the College Hill Reservoir seismic improvements project, the contractor drained the reservoir and discovered more significant and previously unknown damage to the reservoir roof’s wooden substructure and associated plywood sheathing requiring entire replacement rather than the previously anticipated partial repair; and WHEREAS, The San Francisco Public Utilities Commission (SFPUC) desires to construct seismic improvements within the College Hill Reservoir and reservoir inlet and outlet in order to improve the reliability of the water distribution system from College Hill Reservoir to San Francisco General Hospital to withstand a major seismic event; and WHEREAS, On June 8, 2021, by Resolution No. 21-0093, the Commission awarded the Contract No. WD-2717, College Hill Reservoir Outlet Structure and Pipeline to Ranger Pipelines Incorporated, and
WHEREAS, The construction cont ract Notice-to-Proceed date was September 27, 2021; and
WHEREAS, The original contract amount was for $12,180,497 and the original contract duration was 755 consecutive calendar days; and
WHEREAS, Modification No. 1 increas ed the contract amount by $305,761 to perform additional potholing, support needed shutdown of water transmission pipelines, acceleration costs for welded steel pipe fabrication related to resequencing of work scope, concrete valve vault elevation changes, r emoval of additional trees within the work scope area, 3rd party baseline survey/inspection of adjacent residences prior to work start, network switch equipment revisions, and 16-inch welded steel pipe outlet pipe revisions, for a total contract amount of $12,486,258 with no change to the contract duration; and
WHEREAS, Staff recommends an increase of $6,550,000 to the contract cost contingency and an increase of 270 calendar days to the contract duration contingency to entirely replace the existing College Hill Reservoir roof ’s wooden substructure and associated plywood sheathing (rather than up to 35 percent of the plywood sheathing that was in the contract documents), which was replaced over 20 years ago and now needs replacement; and WHEREAS, the Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 20% for this contract, and the contractor committed to a
22.49% LBE participation with its bid submittal; and
WHEREAS, Funds are available from Project No. 100015223, College Hill Reservoir Outlet Structure and Pipeline; and
WHEREAS, On November 14, 2019, 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 2019-013203ENV; and
WHEREAS, On February 24, 2023, under Case Number 2019-013203ENV and pursuant to San Francisco Admini strative Code subsection 31.08(i), the Planning Department determined that modifications to the Project proposed under this action are not substantial, and the modified project remains categorically exempt under CEQA and does not require further environmental review; now, therefore, be it
RESOLVED, That this Commission hereby a pproves an increase of $6,550,000 to the existing cost contingency and an increase of 270 calendar days to the existing duration contingency, for Contract No. WD -2717, College Hill Reservoir Outlet Structure and Pipeline , with Ranger Pipelines Inc., for a total contract cost contingency of $7,768,049 and a total contract duration contingency of 345 calendar days; and be it
FURTHER RESOLVED, That this Commission hereby authorizes the General Manager or the General Manager’s designee to consider and, if appropriate, to approve any future modifications to the contract amount for a total contract amount of up to $19,948,546, and a total contract duration of up to 1,100 consecutive calendar days.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of March 28, 2023.
Secretary, Public Utilities Commission