DEPARTMENT Infrastructure
AGENDA NO.
5e
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: Jimmy Leong
Award Contract No. HH-1011, O’Shaughnessy Dam Instream Flow Release Valve Replacement
Summary of Proposed
Commission Action:
Award Contract No. HH-1011, O’Shaughnessy Dam Instream Flow Release Valve Replacement (Project), to the responsible bidder that submitted the lowest responsive bid, Sierra Mountain Construction, Inc., in the amount of $5,960,000, and with a term of 636 consecutive calendar days (approximately one year and nine months), to replace and improve the Instream Flow Release Valve system at O’Shaughnessy Dam. This action constitutes the Approval Action for the Project for the purposes of the California Environmental Quality Act ( CEQA) pursuant to San Francisco Administrative Code section 31.04(h). The Planning Department determined that the Project is exempt from the CEQA. The Commission will rely on that determination to make its decision on this action.
Background The Instream Flow Release Valve System includes a pair of valves that control water flow releases from Hetch Hetchy Reservoir to the Tuolumne River in order to achieve environmental benefits required by agreements with the Bureau of Land Management and the National Park Service.
The two existing 36- inch Larner -Johnson valves that regulate flow releases from the dam to the Tuolumne River are approximately 100 years old. In 2019, SFPUC staff inspected the condition of these valves and found severe damage. Staff has curtailed flow releases from one of the valves since 2019 to avoid further damage and potential failure.
The objective of the Project is to replace and improve the existing release valves at O’Shaughnessy Dam to restore reliable and safe operation and maintain compliance with the environmental flow release requirements.
Scope of Contract: The Contract work location is at O’Shaughnessy Dam in Yosemite National Park, Tuolumne County.
The Contract work consists of:
Agenda Title: Contract No. HH-1011, O’Shaughnessy Dam Instream Flow Release Valve Replacement Commission Meeting Date: June 13, 2023
• Remove and relocate existing stairways, ladder, and walkways to provide construction access near the location of the valve system.
• Install two 36-inch diameter knife gate valves and other devices to isolate and dewater the existing valve system from the 108-inch diameter diversion pipe.
• Install a new gantry crane to support the replacement and to perform future maintenance of the instream flow release valves • Demolish and remove two existing 36-inch diameter Larner Johnson needle valves and piping.
• Install two 48-inch axial control valves and associated piping and concrete anchors.
• Install new electrical conduits and wiring.
• Furnish and install steel walkways and platforms.
Funding and Costs: Funding Source: Hetch Hetchy Capital Improvement Program Project No.: 10032903, O’Shaughnessy Dam Outlet Works Phase 1 Engineer’s Estimate: $11,000,000
Award: $5,960,000
Schedule: Advertised: March 13, 2023
Estimated Notice-to-Proceed Date: September 2023
Estimated End Date: June 2025
Duration: 636 consecutive calendar days (approximately one year and nine months) (546 consecutive calendar days to Substantial Completion and an additional 90 consecutive calendar days to Final Completion)
Bid History Advertised: March 13, 2023
Bids Received: On April 13, 2023, SFPUC received sealed bids from three firms.
CMD determined that none of the bidders are eligible for Local Business Enterprise (LBE) bid discount in accordance with Chapter 14B of the San Francisco Administrative Code.
Below is the bid summary.
Firm
Base Bid
Amount
Compensable
Delay
LBE Bid
Discount
Adjusted
Bid with
compensable
delay
Final
Rank
Sierra
Mountain
Construction,
Inc.
$5,960,000 $30 N/A $5,960,030 1
Mountain
Cascade, Inc. $8,640,000 $30,000 N/A $8,670,000 2
Agenda Title: Contract No. HH-1011, O’Shaughnessy Dam Instream Flow Release Valve Replacement Commission Meeting Date: June 13, 2023
Mitchell
Engineering $11,571,000 $15,000 N/A $11,586,000 3
On April 20, 2023, the SFPUC received a bid protest letter from Mountain Cascade Inc. against Sierra Mountain Construction, Inc. The SFPUC staff and City Attorney’s Office reviewed Mountain Cascade Inc.’s protest letter dated April 20, 2023, and Sierra Mount ain Construction’s response letter dated April 27, 2023. On May 16, 2023, SFPUC issued a Protest Determination Letter denying Mountain Cascade Inc.’s protest of Sierra Mountain Construction, Inc.’s bid and confirming that Sierra Mountain Construction, Inc. is the responsible bidder that submitted the lowest responsive bid.
Environmental Review:
On December 2, 2022 , the San Francisco Planning Department determined the Project to be categorically exempt fr om environmental review under the CEQA Guidelines section 15301, Class 1 (Existing Facilities) and section 15302, Class 2 (Replacement or Reconstruction) (Case No. 2022-004533ENV).
The exemption determination can be found here:
https://sfpuc.sharefile.com/d-s423b4c77a11143fb826fafc2ce30a0cc
This action constitutes the Approval Action for the Project for the purposes of the CEQA pursuant to San Francisco Administrative Code section 31.04(h).
Local Business
Enterprise Participation
and Non-Discrimination
In Contracting:
The Contract Monitoring Division established a 8.00% Local Business Enterprise (LBE) subcontracting requirement for this contract. Sierra Mountain Construction, Inc. committed to 11.47% LBE participation with its bid submittal.
Attachment: 1. CMD Memorandum
Agenda Title: Contract No. HH-1011, O’Shaughnessy Dam Instream Flow Release Valve Replacement Commission Meeting Date: June 13, 2023
Location Map
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) is responsible for operating O’Shaughnessy Dam in Yosemite National Park, Tuolumne County. As a part of Dam operations, the instream flow release valve system provides controlled environmental flow releases from Hetch Hetchy Reservoir, as required by agreements with the United States Bureau of Land Management and the National Park Service; and
WHEREAS, In 2019, SFPUC staff inspected the condition of the two instream flow release valves and found severe damage. Staff has curtailed flow releases from one of the valves to avoid further damage and potential failure and only one remains in operation; and WHEREAS, On March 13, 2023, SFPUC advertised Contract No. Contract No. HH-1011, O’Shaughnessy Dam Instream Flow Release Valve Replacement; and WHEREAS, The Engineer’s Estimate is $ 11,000,000.00 for this construction work to replace and improve the existing instream flow release system at O’Shaughnessy Dam; and WHEREAS, The contract duration is 636 consecutive calendar days; and WHEREAS, On April 13, 2023, the SFPUC received and publicly opened three bids; and WHEREAS, SFPUC staff and Contract Monitoring Division (CMD) review of the bids for qualifications, responsibility, responsiveness and the application of bid discount resulted in the establishment of Sierra Mountain Construction, Inc. as the responsible bidder with the lowest responsive bid; and
WHEREAS, CMD established a 8.00% Local Business Enterprise (LBE) subcontracting requirement for this contract, and Sierra Mountain Construction, Inc. committed to 11.47% LBE participation in its bid submittal; and
WHEREAS, On December 2, 2022, the San Francisco Planning Department determined the Project to be categor ically exempt from environmental review under the California Environmental Quality Act Guidelines section 15301, Class 1 (Existing Facilities) and section 15302, Class 2 (Replacement or Reconstruction) (Case No. 2022-004533ENV); and
WHEREAS, Funds are available from Project No. 10032903, O’Shaughnessy Dam Outlet Works Phase 1; now, therefore, be it
RESOLVED, That this Commission hereby awards Contract No. Contract No. HH -1011, O’Shaughnessy Dam Instream Flow Release Valve Replacement , in the amount of $5,960,000, and for a duration of 636 consecutive calendar days, to the responsible bidder that submitted the lowest responsive bid, Sierra Mountain Construction, Inc.
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
London N. Breed, Mayor
Carmen Chu, City Administrator
Stephanie Tang, Director
1155 Market Street, 4th Floor, San Francisco, CA 94103 Telephone (415) 581-2310 Fax (415) 581-2351
CONTRACT MONITORING DIVISION
OFFICE OF THE CITY ADMINISTRATOR
MEMORANDUM
Date: May 15, 2023
To: Jimmy Leong, SFPUC
Jesse Acedillo, SFPUC
Ken Leung, SFPUC
Gary Hom, SFPUC
From: Kate Mundhenk, CMD
Subject: HH-1011 -- O'Shaughnessy Dam Instream Flow Release Valves Replacement -- CMD Bid Review
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. A Local Business Enterprise (LBE) subcontracting requirement of 8% was established for this project.
The 8% LBE subcontracting requirement is established due to the remote location of the project and because the scope requires highly skilled trades with limited LBE availability, such as large diameter pipes and valves installation, gantry crane installation, and rigging heavy equipment through a vertical shaft to a tunnel.
Below is a summary of CMD’s review:
Firm LBE
Status Base Bid Compensable
Delay
LBE Bid
Discount
Adjusted Bid with
Compensable Delay
(with Bid Discount
applied)
Sierra Mountain
Construction, Inc. Non-LBE $5,960,000.00 $30.00 Not
Applicable $5,960,030.00
Mountain
Cascade, Inc. Non-LBE $8,640,000.00 $30,000.00 Not
Applicable $8,670,000.00
Mitchell
Engineering Non-LBE $11,571,000.00 $15,000.00 Not
Applicable $11,586,000.00
Sierra Mountain Construction, Inc. (“Sierra Mountain Construction”) is the lowest responsive bidder.
Sierra Mountain Construction met the 8% LBE subcontracting requirement by listing the following LBE firms on Section 00 43 36 (Proposed Subcontractors Form):
LBE
Subcontractor Scope of Work LBE Status Listed
Amount
Amount
Credited
Participation
(based on
credited
amount)
Pacific
Engineering &
Construction,
Inc.
Partial Pipe Install,
Partial Valve Install,
Partial Crane Service,
Partial Water
Treatment Plant
Services
SF LBE
OBE-
(Micro)
$650,000.00 $650,000.00 10.91%
Mission City
Rebar Furnish & Install Rebar
PUC LBE-
OBE
(Small)
$33,545.00 $33,545.00 0.56%
TOTAL LBE Subcontracting Participation $683,545.00 $683,545.00 11.47%
Sierra Mountain Construction also listed the following non-LBE subcontractor on Section 00 43 36:
Firm Scope of Work Status Listed Amount
Gold Electric, Inc. Electrical Non-LBE $50,000.00
TOTAL $50,000.00
Good Faith Efforts Requirements
Sierra Mountain Construction utilized Approach A (35% Approach) on CMD Form 2B to meet the Good Faith Efforts (“GFE”) Requirements.
Sierra Mountain Construction demonstrated that it met the GFE requirements under Approach A by exceeding the LBE subcontracting participation requirement established for this project by at least 35%.
Based on the foregoing, CMD has determined that Sierra Mountain Construction has complied with the pre-award Chapter 14B requirements. Should you have any questions, or if I can be of further assistance, please do not hesitate to contact me at (415) 551-4335.