DEPARTMENT
Infrastructure
AGENDA NO.
5b
MEETING DATE
June 13, 2023
Last updated: 02.01.2023
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Contract/Project Manager: Tim Parkan
Approve Increase to Duration Contingency for DB-121R2, Moccasin Powerhouse Generator Rehabilitation Project
Summary of Proposed
Commission Action:
Approve an increase of 365 calendar days to the duration contingency for Contract No. DB-121R2, Moccasin Powerhouse Generator Rehabilitation Project, with General Electric Renewable Energy, due to delays in the supply chain for long lead items ; and authorize the General Manager or the General Manager’s designee, to approve future modifications to the contract for a new total c ontract duration of up to 1,567 consecutive calendar days.
Background: The City and County of San Francisco completed work on Moccasin Powerhouse Generators No. 1 and No. 2 in 1969. They generate a combined maximum output of 110 Megawatts. The average generation from Moccasin Powerhouse is approximately 430 gigawatt hours per year or 25 percent of the total generation from the Hetch Hetchy Water and Power system. The generator units at Moccasin Powerhouse have exceeded their life expectancy by 20 years. The generator units are in critical need of repair to continue operating.
The Hetch Hetchy water supply provides water to 2.7 million residential, commercial, and industrial customers in the Bay Area.
Approximately one-third of the delivered water goes to retail customers in San Francisco. Because the Hetch Hetchy supply flows through the Moccasin Powerhouse, its generators act as a flow regulating facility.
Water delivery to the C ity depends on the generators being in use and online. If one generator fails, the San Francisco Public Utilities Commission (SFPUC) could deliver water to the Bay Area from the Hetch Hetchy Reservoir through the remaining generator; however, redundancy would be significantly compromised, and the additional stress place on the second generator could cause it to fail. If both generators fail, there is a generator bypass on each generator to divert a limited flow of water around the generator; however, this system was not designed for extended use and can fail prior to the generators being rehabilitated. If both generators and generator bypass systems fail, SFPUC water deliveries from the Tuolumne River to the Bay Area would cease until the facilities could be repaired.
Agenda Title: DB-121R2, Moccasin Powerhouse Generator Rehabilitation Project Commission Meeting Date: June 13, 2023
On May 11 , 2021, by Resolution No. 21 -0078, the Commission awarded Contract No. DB -121R2, Moccasin Powerhouse Generator Rehabilitation Project, to General Electric Renewable Energy . The original contract amount was $26,271,805 and the original contract duration was 1,093 consecutive calendar days.
DB-121R2 Shutdown Outage #1 was scheduled to begin November 28, 2022 (Milestone 2) and end with partial utilization of Generator Unit 2 on March 28, 2023 (Milestone 3). Due to delays to the rotor and stator shelter delivery, material procurement, water availability, and site coordination/preparedness, staff determined that Shutdown Outage #1 could not be safely completed within the contractual milestones.
Proceeding past the scheduled outage end date would have created operational risks and would have jeopardized reliability of water delivery during the water runoff season beginning in April 2023.
SFPUC staff and General Electric Renewable Energy agreed to postpone the start of Shutdown Outage #1 by approximately one calendar year. This also aligns the schedule of this project to the expected water delivery date in the Mountain Tunnel Project Schedule.
This water is necessary for the testing and commissionin g of the
Powerhouse Generator Units after the rehabilitation. During negotiations, the City asked General Electric Renewable Energy for a new baseline schedule that would account for reliable water availability and would meet all other contractual requirem ents.
Hetch Hetchy
Water and Power Operations, Project Management, and other project team members reviewed and approved t he new proposed baseline schedule. The project team, in partnership with General Electric Renewable Energy, postponed the Shutdown Outage #1 and postponed liquidated damages to ensure a successful Outage #1 and return to water delivery service on time. There is no cost increase to the SFPUC and no basis to assess liquidated damages to General Electric Renewable Energy for missing the original Shutdown Outage #1 and delaying the completion of Outage #2 by 365 calendar days.
Scope of Contract: The Contract work location is the Moccasin Powerhouse in Moccasin, California.
The Contract work consists of designing, manufacturing, and installation of:
• Stator Frame;
• Stator Core;
• Windings;
• Rehabilitation work on the rotor; and
• Relay protection upgrades for two hydro-generation units at the Moccasin Powerhouse.
Agenda Title: DB-121R2, Moccasin Powerhouse Generator Rehabilitation Project Commission Meeting Date: June 13, 2023
Modifications to the
Contract:
Proposed Modification No. 1: Staff recommends Commission approval of a 365-calendar day increase to the duration contingency and Commission action to authorize the General Manager, or the General Manager’s designee, to approve future modifications to the contract for a new total contract duration of up to 1,567 consecutive calendar days.
Funding and Costs: Funding Source:
Hetch Hetchy Water and Power
10014086, Moccasin Powerhouse and Generator Step -Up
Rehabilitation
Original Contract Amount: $26,271,805
Original 10% Cost Contingency: $2,627,180
Total Contract Cost Limit: $28,898,985
Schedule: Notice-to-Proceed Date: June 21, 2021
Original Contract Duration: 1,093 consecutive calendar days Original 10% Duration Contingency: 109 calendar days
Requested Additional Duration Contingency: 365 calendar days Requested Revised Contract Duration Limit : 1,567 consecutive calendar days
Local Business
Enterprise Participation
and Non-Discrimination
In Contracting:
Pursuant to Chapter 14B of the San Francisco Administrative Code, due to the specialized nature of this work, Contract Monitoring Division has waived subcontracting goals for this agreement.
Agenda Title: DB-121R2, Moccasin Powerhouse Generator Rehabilitation Project Commission Meeting Date: June 13, 2023
Contract work location is the Moccasin Powerhouse in Moccasin, CA
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, On May 11, 2021, by Resolution No. 21- 0078, the Commission awarded Contract No. DB-121R2, Moccasin Powerhouse Generator Rehabilitation Project , to General Electric Renewable Energy; and
WHEREAS, The original contract amount was for $26,271,805 and the original contract duration was 1,093 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was June 21, 2021; and WHEREAS, Staff recommends a 365 calendar day increase to the contract duration contingency due to delays in the supply chain for long lead items that prevented the ability to complete work during the planned outage window, which caused a one year delay until the next outage opportunity to complete the rehabilitation of the two hydro-generation units at the Moccasin Powerhouse; and
WHEREAS, The project team, in partnership with contractor General Electric Renewable Energy , postponed the Shutdown Outage #1 and postponed liquidated damages to ensure a successful Outage #1 and return to water delivery service on time; there is no cost increase for this change order the SFPUC will not assess liquidated damages f or missing the original Shutdown Outage #1; and
WHEREAS, The Contract Monitoring Division has waived C hapter 14B of the San Francisco Administrative Code subcontracting goals for this project due to the specialized nature of this work; and
WHEREAS, Funds are available from Project No. 10014086, Moccasin Powerhouse and Generator Step-Up Rehabilitation; now, therefore, be it RESOLVED, That this Commission hereby approves an increase of 365 calendar days to the existing contract duration contingency for Contract No. DB -121R2, Moccasin Powerhouse Generator Rehabilitation Project, for a total cont ract duration contingency of up to 474 calendar days; and be it
FURTHER RESOLVED, That this Commission hereby authorizes the General Manager, or the General Manager’s designee, to approve any future modifications to the contract duration for a total contract duration of up to 1,567 consecutive calendar days, with no change to the contract amount.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of June 13, 2023.
Secretary, Public Utilities Commission