DEPARTMENT
Infrastructure
AGENDA NO.
5c
MEETING DATE
September 20, 2023
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Jimmy Leong
Approve Increase of the Contract Cost Contingency for Contract No. HH-1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A
Summary of
Proposed
Commission Action:
Approve a $4,000,000 increase to the contract cost contingency for Contract No. HH-1005, San Joaquin Pipeline Valve and Safe Entry Improvements:
Phase 1A, with Sierra Mountain Construction, Inc., to allow procurement of 15 large diameter valves for Phase 2 , for a total c ontract amount of up to $15,879,454, with no change to the contract duration.
Background: The San Joaquin Pipeline system delivers water from Hetch Hetchy to the San Francisco Bay Area. San Joaquin Pipeline Nos. 1, 2, and 3 consist of three parallel transmission pipelines (completed in 1932, 1953, and 1968 respectively) that cross the San Joaquin Valley from the west of Foothill
Tunnel at Oakdale Portal to the east of Coast Range Tunnel at Tesla Portal, a distance of approximately 48 miles. A fourth partial pipeline (completed in 2012) consists of a 6.4- mile segment of pipe downstream of Oakdale and another 11-mile segment upstream of Tesla Portal.
Given the critical function of the San Joaquin Pipelines, SFPUC staff and contractors must enter the pipelines regularly to perform condition assessment, maintenance, and repair work. A recent hydraulic study shows that several of the existing valves in the San Joaquin Pipelines are under-rated for the surge pressures that could be triggered from an unplanned closure of the valves at the downstream Tesla Ultraviolet Treatment Facility. For safety reasons, the SFPUC initiated this capital project, San Joaquin Pipeline Valve and Safe Entry Improvements, to replace the under -
rated valves; provide
pipeline isolations for safe personnel entry; and allow shutdown of any or all sections of the San Joaquin Pipelines without a complete system shutdown.
SFPUC will implement the project in four phases, specifically Phases 1A, 1B, 2, and 3.
On March 8, 2022, by Resolution No. 22-0047, this Commission award ed Contract No. HH- 1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A to Sierra Mountain Construction, Inc., in the amount of $10,799,504 and for a duration of 852 consecutive calendar days.
Agenda Title: HH-1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A Commission Meeting Date: September 20, 2023
Scope of Contract: The contract work locations are at Oakdale Portal and the Emery, Roselle, and Pelican Crossover Vaults in Stanislaus County, and at Tesla Portal in San Joaquin County.
The scope of work includes the following:
• Tesla and Oakdale Portals
o Site grading, excavation, and shoring.
o Furnish and install SJPL 2 Removable Spool Piece (RSP) vault, thrust block, shear keys, and drainage systems at each location. o Replace a 12.5-foot-long section of SJPL 2 with a RSP at each location.
• Tesla Valve House
o Replace existing 60-inch butterfly valve, gearbox, and actuator with a new higher pressure-rated 60-inch diameter metal seated triple offset butterfly valve, gearbox, and actuator.
o Replace existing 24-inch diameter gate valve with a new higher pressure-rated 24-inch gate valve, flanges, gear box, and actuator.
o Replace existing SJPL 2 main concrete pipe support saddle. o Install new SJPL 2 bypass steel pipe support.
o Perform associated electrical work.
o Perform software programming for operation of the new butterfly and bypass valves.
• Emery, Roselle, and Pelican Crossover Vaults
o At each location, replace existing 36-inch diameter butterfly valves on the crossover line between SJPL 2 and SJPL 3 with two modified higher pressure-rated 36-inch diameter knife gate valves.
o At each location, replace existing 42-inch diameter butterfly valves on the crossover line between SJPL 2 and SJPL 3 with two modified higher pressure-rated 42-inch diameter knife gate valves.
o At each location, install new crossover steel pipe supports, platform framing, grating, and railing.
o Perform associated electrical work.
o Perform software programming for operation of the new knife gate valves.
Modifications to the
Contract:
Recommended Increase to Contract Cost Contingency: Staff recommends the Commission increase the c ontract cost contingency by $4,000,000, to allow for procurement of 15 large diameter valves , increasing the total contract contingency to $5,079,950, for a new total not -to-exceed contract amount of $15,879,454. The additional cost contingency for the contractor to pre-purchase 15 large diameter valves for Phase 2 work to meet the planned system outage scheduled for December 2024 to March 2025. These 15 large diameter valves are similar to the large diameter valves already in the existing contract HH-1005. The pre -purchase is necessary to meet the Phase 2 Agenda Title: HH-1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A Commission Meeting Date: September 20, 2023
shutdown schedule because of a lengthier design duration and the long lead times for the large diameter valves due to the current industry- wide supply chain delay issues. Staff will transfer these 15 large diameter valves to the future Phase 2 contractor for installation.
Modification No. 1: Effective July 31, 2023, the SFPUC modified the contract by $904,691, within the current contract contingency, for change orders authorizing an accelerated work schedule to meet the shortened winter shutdown duration, structural modification s, and other miscellaneous items, increasing the total contract value to $11,704,195.
Funding and Costs: Funding Source: Hetch Hetchy Capital Improvement Program 10035575, San Joaquin Pipelines Valve and Safe Entry Improvements
Original Contract Amount: $10,799,504
Original 10% Cost Contingency: $1,079,950
Requested Additional Cost Contingency: $4,000,000
Total Revised Contract Cost Limit: $15,879,454
Schedule: Notice-to-Proceed Date: May 16, 2022
Original Contract Duration: 852 consecutive calendar days Original 10% Duration Contingency: 85 calendar days
Requested Additional Duration Contingency: 0 calendar days Total Contract Duration Limit: 937 consecutive calendar days
Environmental
Review:
On July 9, 2009, the San Francisco Planning Commission certified the Final Environmental Impact Report for the San Joaquin Pipeline System Project (Case Number 2007.0118E ). On July 14, 2009, by Resolution No. 09-0119, this Commission approved the San Joaquin Pipeline System Project and adopted findings (CEQA Findings), including the Statement of Overriding Considerations and a Mitigation Monitoring and Reporting Program required by the California Environmental Quality Act (CEQA).
On January 27, 2022, the San Francisco Planning Department issued a Minor Project Modification to the Final Environmental Impact Report , determining
that no supplemental environmental review was needed beyond the Minor Project Modification, to include work associated with the San Joaquin Valve and Safe Entry Improvements Phases 1A, 1B and 2. The work under Contract No. HH-
1005, San Joaquin Pipeline Valve and Safe Entry Improvements Phases 1A, 1B and 2 are within the scope of the project authorized under the Final Environmental Impact Report and Minor Project Modification.
The Final Environmental Impact Report , Minor Project Modificatio n to the Final Environmental Impact Report, Resolution No. 09- 0119, CEQA Findings, and the Mitigation Monitoring and Reporting Program can be found here:
Agenda Title: HH-1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A Commission Meeting Date: September 20, 2023
https://sfpuc.sharefile.com/d-s6d1e909a956141eab188fde5eef920f5
Local Business
Enterprise
Participation and
Non-Discrimination
In Contracting:
The Contract Monitoring Division established a 8% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to 11.03% LBE participation with its bid submittal.
Agenda Title: HH-1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A Commission Meeting Date: September 20, 2023
SITE LOCATION MAP – HH-1005 SAN JOAQUIN PIPELINE VALVE AND SAFE ENTRY IMPROVEMENTS - PHASE 1A
Legend
Site Locations
San Joaquin Pipeline Configuration
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) owns and operates four San Joaquin Pipelines that have been in service ranging from 10 to 90 years. SFPUC must enter the pipelines regularly to perform condition assessment, maintenance, and repair work. A hydraulic study shows that several of the existing valves in the San Joaquin Pipelines are under - rated for the surge pressure that could be triggered from an unplanned closure of the valves at the downstream Tesla Ultraviolet Treatment Facility. For safety reasons, the SFPUC initiated the capital project, San Joaquin Pipeline Valve and Safe Entry Improvements, to replace the under rated valves; provide pipeline isolation for safe personnel entry; and allow shutdown of any or all sections of the San Joaquin Pipelines without a complete system shutdown. SFPUC will implement the project in phases, specifically Phases 1A, 1B, 2 and 3; and WHEREAS, On March 8, 2022, by Resolution No. 22-0047, the Commission awarded Contract No. HH-1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A to Sierra Mountain Construction, Inc.; and
WHEREAS, The original contract amount was for $10,799,504 and the original contract duration was 852 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was on May 16, 2022; and WHEREAS, Modification No. 1 increased the contract amount by $904,691 to perform accelerated work during the compressed timeframe of the 2023 system shutdown and for various other equipment structural changes, for a total contract amount of $11,704,195, with no change to the contract duration; and
WHEREAS, Staff recommends an increase of $4,000,000 to the contract cost contingency to allow for early procurement of 15 large diameter valves for the future Phase 2 contract due to a lengthier design duration, supply chain delays and a limited shutdown window for installation; and WHEREAS, Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 8% for this contract, and the contractor committed to 11.03% LBE participation in its bid submittal; and
WHEREAS. On July 9, 2009, the San Francisco Planning Commission certified the Final Environmental Impact Report for the San Joaquin Pipeline System Project (Case Number 2007.0118E); and
WHEREAS, On July 14, 2009, by Resolution No. 09-0119, this Commission approved the San Joaquin Pipeline System Project and adopted findi ngs (CEQA Findings), including the Statement of Overriding Considerations and a Mitigation Monitoring and Reporting Program required by the California Environmental Quality Act (CEQA); and
WHEREAS, On January 27, 2022, the San Francisco Planning Department issued a Minor Project Modification to the Final Environmental Impact Report to include work associated with the San Joaquin Valve and Safe Entry Improvements Phase s 1A, 1B and 2 determining that no
supplemental environmental review was needed beyond the Minor Project Modification; and
WHEREAS, The work under Contract No. HH-1005, San Joaquin Pipeline Valve and Safe Entry Improvements Phases 1A, 1B and 2 are within the scope of the project authorized under the Final Environmental Impact Report and Minor Project Modification; and WHEREAS, The San Francisco Planning Department is the custodian of records, located in File No. 2007.0118E, at 49 South Van Ness Avenue, Suite 1400, San Francisco, California; and WHEREAS, The Project files, including the Final Environmental Impact Report, Minor Project Modification to the Final Environmental Impact Report, Resolution No. 09- 0119, CEQA Findings and the Mitigation Monitoring and Reporting Program have been made available for review by this Commission and the publi c, and those files are part of the record before this Commission; and
WHEREAS, This Commission has reviewed and considered the information contained in the Final Environmental Impact Report, the findings contained in SFPUC Resolution Number 09- 0119, the Minor Project Modification to the Final Environmental Impact Report and all written and oral information provided by the Planning Department, the public, relevant public agencies, SFPUC and other experts and the administrative files for the Project; and WHEREAS, Funds are available from Hetch Hetchy Capital Improvement Program Project No. 10035575, San Joaquin Pipelines Valve and Safe Entry Improvements; now, therefore, be it
RESOLVED, This Commission has reviewed and considered the Final Environmental Impact Report and the Minor Project Modification and the record as a whole, finds that the Final Environmental Impact Report is adequate for its use as the decision–making body for the Project and incorporates the CEQA findings contained in Resolution Number 09 -0119 by this reference thereto as though set forth in this Resolution; and be it FURTHER RESOLVED, That this Commission hereby a pproves an increase of $4,000,000 to the existing contract cost contingency for Hetch Hetchy Capital Improvement Program funded Contract No. HH- 1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A, for a total contract cost contingency amount of up to $5,079,950, and a new contract amount of up to $15,879,454, with no change to the contract duration.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of September 20, 2023.
Secretary, Public Utilities Commission