DEPARTMENT
Infrastructure
AGENDA NO.
7e
MEETING DATE
October 10, 2023
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Barbara Palacios
Approve Increase of the Contract Duration Contingency for Contract No. WD-2776, San Francisco Westside Recycled Water Treatment Facility at Oceanside Plant
Summary of
Proposed
Commission Action:
Approve an increase of 800 consecutive calendar days (approximately two years and three months) to the contract duration contingency for Contract No.
WD-2776, San Francisco Westside Recycled Water Treatment Facility at Oceanside Plant, with S.J. Amoroso Construction Co., Inc., resulting in a new contract duration limit of up to 2,980 consecutive calendar days (approximately eight years and two months), to allow for the replacement of critical equipment for the facility, with no change to the contract amount.
Background: The Westside Recycled Water Project is a key water supply project for the San Francisco Public Utilities Commission (SFPUC). The primary objectives of the Project are to: (1) create a new recycled water supply of up to two million gallons per day, (2) expand and diversify the SFPUC water supply portfolio, and (3) reduce the use of potable water for irrigation by use of recycled water.
The Recycled Water Treatment Facility is one of the four major construction contracts of the Westside Recycled Water Pro ject, which also includes the construction of approximately 7.7 miles of new recycled water pipeline (Contract No. WD-2798), a new recycled water pump station and reservoir in Golden Gate Park (Contract No. WD -2797), and retrofits of the irrigation systems in Golden Gate Park and Lincoln Park Golf Course (Contract No.
WD-2852R).
On May 9, 2017, by Resolution No. 17- 0108, this Commission award ed Contract No. WD-2776, San Francisco Westside Recycled Water Treatment Facility at Oceanside Plant , to S.J. A moroso Construction Co., Inc., in the amount of $87,597,000 and for a duration of 1,230 consecutive calendar days.
On June 8, 2021, by Resolution 21- 0091, this Commission approved an increase to the construction duration contingency of 457 consecutive calendar days, increasing the total construction duration contingency to 580 calendar days for a total revised contract duration of up to 1,810 consecutive calendar days, with no change in the contract amount.
On September 27, 2022, by Resolution 22-0169, this Commission approved an increase to the construction duration contingency of 370 consecutive Agenda Title: WD-2776, San Francisco Westside Recycled Water Treatment Facility at Oceanside Plant Commission Meeting Date: October 10, 2023
calendar days, increasing the total construction duration contingency to 950 calendar days for a total revised contract duration of up to 2,180 consecutive calendar days, with no change in the contract amount.
Scope of Contract: The contract work is located in the City of San Francisco between Ocean Beach and Lake M erced in the far -southwest corner of the City and consists of the following:
• Construction of a new two- story reinforced concrete recycled water treatment facility, with underground equalization storage. • Construction of a secondary effluent pump station and piping. • Installation of treatment process equipment including membrane filtration, reverse osmosis treatment, and ultraviolet light disinfection, and related systems such as clean -in-place chemical systems, mechanical piping, electrical, and instrumentation and controls. • Demolition and reconfiguration of existing chemical storage room, including construction of new chemical containment systems, tanks, and metering pumps, piping, chemical off -
loading facilities, and
related appurtenances.
• Construction of a transmission pump station.
• Yard piping for treatment facility overflow and reverse osmosis concentrate, and recycled water conveyance.
• Utilities relocation, staging area preparation, and other miscellaneous work to provide a fully -functional treatment facility and pumping system.
Modifications to the
Contract:
Modifications Nos. 1 to 44: The SFPUC modified the contract within the approved contingencies for cost and duration, increasing the contract amount by $6,312,584 and increasing the contract duration by 118 consecutive calendar days , to address changes to pipeline and valve materials of construction and methods of support, addition of valves, modifications to pipeline alignment , revise chemical pipe routing , additional costs for field assembly of microfiltration system, miscellaneous modifications to the membrane filtration clean -in-place systems , additional field service for the membrane system and air compressors, changes to architectural features such as doors, stairs, and guardrails, changes to equipment for seismic anchorage, provide programming modifications to the control system to historize data and integrate control with project WD -2797, reimburse the Contractor for the Builder’s Risk Insurance premium, procure Automatic Device Configuration (ADC) for the Motor Control Centers (MCC), restoration of concrete curbs and sidewalks, paving and ramps , and other mechanical, electrical, instrumentation and control, plumbing, fire system, and heating, ventilation and air conditioning work, for a revised contract amount of $93,909,584 and a revised contract duration of 1,348 consecutive calendar days.
Recommended Increase to Contract Duration Contingency: Staff recommends that the Commission approve an increase to the contract duration contingency by 800 calendar days to allow for the replacement of critical Agenda Title: WD-2776, San Francisco Westside Recycled Water Treatment Facility at Oceanside Plant Commission Meeting Date: October 10, 2023
equipment that has prematurely failed due to corrosion, to complete the plant commissioning process, and to provide sufficient contingency to address other potential unanticipated changes through the remainder of the construction effort, increasing the total contract duration contingency to 1,750 calendar days and the contract duration limit to 2,980 consecutive calendar days. While Staff is currently negotiatin g a contract time extension for past work, Staff recommends approval of additional contract duration contingency to allow for completion of remaining work, including the replacement of the failed equipment. The additional duration contingency is needed fo r the contractor to replace the four variable frequency drives (VFDs) associated with the reverse osmosis pumps and other related VFD components , which have an estimated procurement lead time of eighteen months. Staff suspects that the design of the exhaust ductwork associated with the VFDs allowed excessive moisture to collect within the equipment, which created a highly corrosive environment leading to equipment failure. A third -
party consultant is
reviewing t he ventilation design t o confirm the cause of the failure and recommend solutions to prevent future corrosion. Contractor must replace the VFDs prior to completing the plant’s commissioning process, which was interrupted and postponed when the equipment was discovered to be non- functional. The commissioning process is estimated to take approximately six months to complete once the Contractor procures, installs and tests the new replacement equipment.
Funding and Costs: Funding Source: Water Enterprise Capital Improvement Program 10015242, Westside Recycled Water Project
Original Contract Amount: $87,597,000
Original 10% Cost Contingency: $8,759,700
Requested Additional Cost Contingency: $0
Total Contract Cost Limit: $96,356,700
Schedule: Notice-to-Proceed Date: October 18, 2017
Original Contract Duration: 1,230 consecutive calendar days Original 10% Duration Contingency: 123 calendar days
Approved Increase to Duration Contingency: 827 calendar days Requested Additional Duration Contingency: 800 calendar days Total Contract Duration Limit: 2,980 consecutive calendar days
Local Business
Enterprise
Participation and
Non-Discrimination
In Contracting:
The Contract Monitoring Division established a 16% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to 17.64% LBE participation with its bid submittal.
Agenda Title: WD-2776, San Francisco Westside Recycled Water Treatment Facility at Oceanside Plant Commission Meeting Date: October 10, 2023
Figure – Westside Recycled Water Project
WD-2776 Westside
Recycled Water Treatment
Facility at Oceanside Plant
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) Westside Recycled Water Treatment Facility at the Oceanside Plant is one of the four major construction contracts of the Westside Recycled Water Project, which also includes the construction of approximately 7.7 miles of new recycled water pipeline (Contract No. WD-2798), the construction of a new recycled water pump station and reservoir in Golden Gate Park (Contract No. WD -2797), and the construction of irrigation retrofits in Golden Gate Park and Lincoln Park Golf Course (Contract No. WD-2852R). The purpose of the Westside Recycled Water Project is to (1) create a new recycled water supply of up to two million gallons per day; (2) expand and diversify the SFPUC water supply portfolio; and (3) reduce the use of potable water for irrigation by providing recycled water; and
WHEREAS, On May 9, 2017, by Resolution No. 17- 0108, the Commission awarded Contract No. WD-2776, San Francisco Westside Recycled Water Treatment Facility at Oceanside Plant, to S.J. Amoroso Construction Co., Inc.; and
WHEREAS, The original contract amount was for $87,597,000, and the original contract duration was 1,230 consecutive calendar days; and
WHEREAS, The construction contract Notice-to-Proceed date was October 18, 2017; and WHEREAS, On June 8, 2021, by Resolution 21- 0090, this Commission approved an increase of 457 calendar days to the contract duration contingency for a total contact duration limit of up to 1,810 consecutive calendar days, with no change in the contract cost contingency; and WHEREAS, On September 22, 2022, by Resolution 22-0169, this Commission approved an increase of 370 calendar days to the contract duration contingency for a total contact duration limit of up to 2,180 consecutive calendar days, with no change in the contract cost contingency; and
WHEREAS, Modifications No. 1 through 44 increased the Contract amount within the contract cost contingency by $6,312,584 and increased the contract duration ( within the contract duration contingency) by 118 consecutive calendar days; and WHEREAS, Staff recommends an increase of 800 calendar days to the contract duration contingency to provide time for replacement of the four variable frequency drives (VFDs) associated with the reverse osmosis pumps and related VFD components, and to provide sufficient contingency to address other potential unanticipated changes through the remainder of the construction effort; and
WHEREAS, Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 16% for this contract, and the contractor committed to 17.64% LBE participation in its bid submittal; and
WHEREAS, Funds are available from Project No. 10015242, Westside Recycled Water Project; now, therefore be it
RESOLVED, That this Commission hereby approves an increase of 800 calendar days to the existing contract duration contingency for Contract No. WD -2776, San Francisco Westside Recycled Water Treatment Facility at Oceanside Plant, for a revised contract duration contingency of 1,750 calendar days and a new contract duration limit of 2,980 calendar days, with no change to the contract cost contingency.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of October 10, 2023.
Secretary, Public Utilities Commission