DEPARTMENT Infrastructure Division AGENDA NO. 5j -
Amended Resolution
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: Brian Carlomagno
Approve Increase to Construction Contract Cost and Duration Contingency for Contract No. WW-639, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrades Summary of Proposed
Commissio
n Action:
Approve an increase of $5,000,000 to the contract cost contingency and an increase of 228 calendar days (approximately eight months) contract duration contingency, for Contra ct No. WW-639, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrades, with Monterey Mechanical Co., due to COVID-19 associated equipment delivery delays and related supply chain breakdowns, and additional electrical modifications within building 800; and authorize the General Manager to approve future modifica tions to the contract for a total contract amount $47,293,900 and a total contract duration up to 1,997 consecutive calendar
days (approximately five years and six months).
Background: The existing co-generation engine ge nerators at the Oceansi de Water Pollution Control Plant are over 20 years old and at the end of their useful life. They have experienced extensive downtime in recent years resulting in lost power cost savings, high maintenance costs, and additional demands on maintenance personnel. Although the existing engines could be kept in service wi th continued maintenance efforts, the replacement alternative to the existing cogeneration system would provide better reliability, full biogas utilization, and ultimately sustainable service.
On August 8, 2017, by Resolution No. 17-0184, the Commission approved this project to proceed with the loan agreement to receive Clean Water State Revolving Fund loan financing.
On August 28, 2018, by Resolution 18-0143, the Commission awarded this Contract No. WW-639, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrade, to Monterey Mechanical Co. The original contract amount wa s $38,449,000 and the total contract duration was 820 consecutive calendar days (approximately two years and three months).
Agenda Title: WW-639, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrades Commission Meeting Date: June 13, 2023
Scope of Contract: The contract work is lo
cated at the Oceanside Water Pollution Control
Plant located at 3500 Great Highway San Francisco, California. The contract work consists of:
Replacement of the gas storage vessel and digester gas conditioning equipment;
Replacement of the existing cogeneration Internal-Combustion units (IC engines) and associated controls;
Provide ancillary exhaust gas conditioning system and heat exchanger systems to comply with regulatory air board
requirements, maximize proce ss efficiency and hot water production;
Upgrade ventilation within the energy recovery building; Replace electrical gear at Sub-Station No. 5; provide paralleling electrical gear and power system reliability improvements; and Provide stand-by diesel generator and diesel fuel storage s
ystem.
Modifications to the
Contract:
Proposed Modification No. 8: Staff recommends seeking Commission authorization to increase the Contract by $5,000,000 and extend the Contract by 228 consecutive calendar days, due to COVID- 19 associated equipment delivery delays and related supply chain breakdowns, and additional electrical modifications within building 800, increasing the total not-to-exceed contract amount of the Contract to $47,293,900 and extending total Contract time to 1,997 consecutive calendar days.
Modifications Nos. 1-7 were issued increasing the contract amount by $3,840,493 (within the original contingency) and additional 210 consecutive calendar days to perfor m site mechanical utility work, digester gas mechanical pipe isol ation, gas holder tank modifications, HVAC and electrical modifications increasing the total contract amount to $42,289,493 and increasing the c ontract duration to 1,030 consecutive calendar days.
On March 23, 2021, by Resolution No. 21-0046, the Commission approved an increase of 306 consecutiv e calendar days to the contract duration contingency for a total cont ract duration limi t of up to 1,208 consecutive calendar days, with no change in the contract amount.
On March 8, 2022, by Resolution No. 22-0050, the Commission approved an increase of 561 consecutiv e calendar days to the contract duration contingency for a total cont ract duration limi t of up to 1,769 consecutive calendar da
ys, with no change in the contract amount.
Agenda Title: WW-639, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrades Commission Meeting Date: June 13, 2023
Funding and Costs:
Funding Source: Wastewater Capital Improvement fund 10029737, Oceanside Water Pollution Control Plant Digester Gas Handling Utilization Upgrade
Original Contract Amount: $38,449,000
Original 10% Cost Contingency: $3,844,900
Approved Increase in Cost Contingency: $0
Requested Additional Cost Contingency: $5,000,000
Total Cost Contingency Amount: $ 8,844,900
Total Revised Contract Cost Limit: $47,293,900
Schedule: Notice-to-Proceed Date: November 26, 2018
Orig
inal Contract Duration: 820 consecutive calendar days
Original 10% Duration Contingency: 82 calendar days
Approved Increase to Duration Contingency: 867 calendar days Requested Additional Duration Contingency: 228 calendar days Total Duration Contingency: 1,177 calendar days
Total Revised Contract Duration Limit: 1,997 consecutive calendar days
Local Business
Enterprise Participation
and Non-Discrimination
In Contracting:
The Contract Monitoring Division established a 10% Local Business Enterprise (LBE) subcontracting re quirement for this contract. The contractor committed to a 19.88% LB E participation with its bid submittal.
Agenda Title: WW-639, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrades Commission Meeting Date: June 13, 2023
Oceanside Water Pollution Control Plant
3500 Great Highway, San Francisco, CA 9413
2 PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Fr
ancisco Public Utili ties Commission (SFPUC) is reconstructing energy recovery systems at Oceanside Water Pollution Control plant including replacement of the gas storage vessels, digester gas conditioning equipment cogeneration Internal-Combustion units, electrical power distribution systems, and associated controls, ancillary exhaust gas conditioning system and heat exchanger systems; and
WHEREAS, On August 8, 2017, by Resoluti on No. 17-0184, the Commission approved this project to proceed with the loan agreement to receive Clean Water State Revolving Fund loan financing; and
WHEREAS, On August 28, 2018, by Resolu tion No. 18-0143, the Commission awarded Contract No. WW-639, Oceanside Water Pollu tion Control Plant Digester Gas Utilization Upgrades to Monterey Mechanical Co.; and
WHEREAS, The original contract amount was for $38,449,000 and the original contract duration was 820 Consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was November 26, 2018; and WHEREAS, On March 23, 2021, by Resoluti on No. 21-0046, the Commission approved an increase of 306 calendar days to the contract duration contingency for a total contract duration limit of up to 1,208 consecutive calendar days, with no change in contract amount; and WHEREAS, On March 8, 2022, by Resoluti on No. 22-0050, the Commission approved a 561 calendar day increase to the contract duration contingency for a total contract duration limit of up to 1,769 consecutive calendar days, with no change in contract amount; and WHEREAS; Staff recommends increasing the cost and schedule contingency due to COVID-19 associated equipment delivery delays and related supply chain breakdowns, and additional electrical modifications within building 800; and WHEREAS, Staff recommends a $5,000,000 contract continge ncy increase, and a 228 calendar day (approximately eigh t months) contract duration contingency to finalize the installation of the new cogeneration and electrical equipment within Building 800; and WHEREAS, Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 10% for this contract, and the contractor committed to 19.88% LBE participation 19.88with its bid submittal; and
WHEREAS, Funds are available from Pr oject No. 10029737, Oceanside Water Pollution Control Plant Digester Gas Handling Utilization Upgrade; now, therefore, be it RESOLVED, That this Commission hereby approves an increase of $5,000,000$5,000,000 to the existing contract cost contingency and an increase of 228 calendar days to the existing contract duration contingency, for Wastewater Capital Improvement fund funded Contract No.
WW-639, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrades, for a total contract cost contingency amount of up to $ 8,844,900 and a total contract duration contingency of 1,177 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 $47,293,900, and a total contract duration of up to 1,997 consecutive calendar days.
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