DEPARTMENT
Infrastructure Division
AGENDA NO.
6b
MEETING DATE
January 9, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Jimmy Leong
Award Contract No. HH-1009, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 3 – Tesla Surge Tower
Summary of
Proposed
Commission Action:
Award Contract No. HH-1009, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 3 – Tesla Surge Tower , to the responsible bidder that submitted the lowest responsive bid, Mountain Cascade, Inc., in the amount of $11,051,305, and with a duration of 452 consecutive calendar days (approximately one year and three months) to build a surge tower and perform associated work at Tesla Portal at the western end of the San Joaquin Pipeline System.
Background: San Joaquin Pipeline (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 east of Foothill Tunnel at Oakdale Portal to the west of Coast Range Tunnel at Tesla Portal, a distance of approximately 48 miles. A fourth partial pipeline (Pipeline 4 completed in 2012) consists of a
6.4-mile segment of pipe downstream of Oakdale and another 11-mile segment upstream of Tesla Portal. The Pipelines deliver Hetch Hetchy water to the San Francisco Bay Area. The pipelines have been in service ranging from 11 to 91 years. San Francisco Public Utilities Commission (SFPUC) staff members and contractors need to enter the pi pelines regularly to perform condition assessment, maintenance, and repair work.
A recent hydraulic study shows that several of the existing valves in the San Joaquin Pipeline s may be under-rated in design pressur e tolerance for the potential water system surge pressure that could be triggered from a n unplanned closure of the valves at the downstream Tesla Ultraviolet Treatment Facility. For safety reasons, the SFPUC initiated this capital project to increase the pressure rating of the valves, install an open -ended surge tower to avoid any system over -pressurization resulting from surges and/or valve closures, provide safe pipeline isolations for personnel entry into the Pipelines, and allow shutdown of any section of the Pipelines without a complete system shutdown.
Staff has been implementing the project in phases, specifically phases 1A, 1B, 2A, 2B&C, and 3. Contract No. HH-1009 is for the improvement work of Phase 3, to construct a new surge tower and ancillary facilities.
Contract: HH-1009, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 3 – Tesla Surge Tower Commission Meeting Date: January 9, 2024
Scope of Contract: The Contract work location is at Tesla Portal in San Joaquin County.
The Contract work consists of:
• Furnish and install 880 linear feet of 60- inch diameter welded steel surge pipe, fittings, and appurtenances.
• Furnish and install an approximately 63foot tall steel surge tower including a 60-inch diameter steel pipe surge shaft, a 132-inch diameter steel exterior shroud, and a reinforced concrete thrust block, and a transition spillway.
• Furnish and install a water recirculation system including a prefabricated pump building and the associated mechanical, electrical, and plumbing work.
• Demolish and rebuil d approximately 195 line ar feet of existing reinforced concrete spillway.
• Construct other associated works including drainage improvements, grading, fencing, a new gravel access road, and removal of the old abandoned underground pipes.
Funding and Costs: Funding Source: Hetchy Capital Improvement Program, Project No. 10035575, SJPL Valve and Safe Entry Improvements
Engineer’s Estimate: $16,500,000
Award Amount: $11,051,305
Schedule: Estimated Notice-to-Proceed Date: April 2024
Estimated Completion Date: July 2025
Contract Duration: 452 consecutive calendar days (392 consecutive calendar days to Substantial Completion and an additional 60 consecutive calendar days to Final Completion)
Bid History: Advertised: September 21, 2023
Bids Received: SFPUC received sealed bids from seven firms on November 2, 2023, as follows:
Bid Rank
Base Bid
Amount
LBE Bid
Discount Adjusted Bid
Final
Rank
1. Mountain Cascade, Inc.
(Mountain Cascade) $11,051,305 N/A $11,051,305 1
2. Sierra Mountain
Construction, Inc.
(Sierra Mountain)
$11,060,600 N/A $11,060,600 2
3. Shimmick Construction
Company, Inc. $11,486,900 N/A $11,486,900 3
4. Steve P. Rados, Inc. $11,615,150 N/A $11,615,150 4
Contract: HH-1009, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 3 – Tesla Surge Tower Commission Meeting Date: January 9, 2024
5. Anvil Builders Inc. $12,925,520 N/A $12,925,520 5
6. Ranger Pipelines, Inc. $14,189,000 N/A $14,189,000 6
7. Mitchell Engineering $14,744,890 2% $14,499,992.20 7
Protest: On November 9, 2023, the SFPUC received a protest letter from Sierra Mountain Construction, Inc., protesting the bid submitted by Mountain Cascade, Inc. On November 16, 2023, Mountain Cascade submitted a response letter to the SFPUC . On November 29, 2023, a fter review of the protest and response, the Contract Administration Bureau, in consultation with the City Attorney and the Contract Monitoring Division, issued a determination letter denying the protest and determined Mountain Cascade, Inc. , to be the responsible bidder that submitted the lowest responsive bid. On November 30, 2023, the SFPUC received a letter from Sierra Mountain objecting to the determination. On December 13, 2023, a fter further review, the Contract Administration Bureau, in consultation with the City Attorney and the Contract Monitoring Division, issued a final response letter denying Sierra Mountain’s objection and uphold ing the previous determination issued on November 29, 2023. Mountain Cascade, Inc., remains the responsible bidder that submitted the lowest responsive bid.
Environmental
Review:
On December 18, 2008, the San Francisco Planning Commission certified the Final Environmental Impact Report for the San Joaquin Regional Water Quality Improvement Proj ect (Case Number 2007.0427E). On December 18, 2008, by Resolution Number 08- 0234, this Commission approved the Tesla Treatment Facility and Lawrence Livermore Water Quality Improvement projects which were included in the scope of work analyzed in the Final Environmental Impact Report and, as required by the California Environmental Quality Act (CEQA), adopted findings including a statement of overriding considerations (CEQA Findings) and the Mitigation Monitoring and Reporting Program.
On December 19, 2023 , the San Francisco Planning Department issued an Addendum to the Final Environmental Impact Report for the addition of a new surge shaft (above-ground tower) and related facilities at the Tesla Treatment Facility, and a recirculation system to prevent stagnant water from sitting in the proposed new 60-inch surge pipeline.
The work under this contract is within the scope of the Project authorized under the Final Environmental Impact Report and Addendum.
The Final Environmental Impact Report, Addendum, Resolution No. 08-0234, and the CEQA Findings and Mitigation Monitoring and Reporting Program can be found here:
https://sfpuc.sharefile.com/d-s12fde2cfc5a646509b7864fb2b4138b2
Contract: HH-1009, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 3 – Tesla Surge Tower Commission Meeting Date: January 9, 2024
Local Business
Enterprise
Participation and
Non-Discrimination
in Contracting
The Contract Monitoring Division established 9.0% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to 9.78% LBE participation in its bid submittal.
Attachment: Contract Monitoring Division Memorandum
Contract: HH-1009, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 3 – Tesla Surge Tower Commission Meeting Date: January 9, 2024
SITE LOCATION MAP
HH-1009 SAN JOAQUIN PIPELINE VALVE AND SAFE ENTRY IMPROVEMENTS PHASE 3
TESLA SURGE TOWER
Work will occur at Tesla Portal
Project Location 01 in the map below (circled)
HH-1009 Contract Work Location
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 (Pipelines) that have been in service ranging from 1 1 to 91 years. The SFPUC 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 Pipelines may be under-rated in design pressure tolerance for potential water system surge pressures that could be triggered by 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 increase the pressure rating of the valves, install an open-ended surge tower to avoid any system over -pressurization resulting from surges and/or valve closures, provide safe pipeline isolations for personnel entry, and allow shutdown of any sections of the Pipelines without a complete system shutdown. Staff is implementing the project in phases, specifically Phases 1A, 1B, 2A, 2B&C, and 3. C onstruction contract HH -1009 is for the improvement work of Phase 3, to construct a new surge tower and ancillary facilities; and
WHEREAS, On September 21, 2023, the SFPUC advertised Contract No. HH-1009, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 3 – Tesla Surge Tower; and WHEREAS, The Engineer’s Estimate is $16,500,000 for this construction contract work to build a surge tower and perform associated work at Tesla Portal; and WHEREAS, The contract duration is 452 consecutive calendar days; and WHEREAS, On November 2, 2023, SFPUC received and publicly opened seven bids; and WHEREAS, SFPUC staff and Contract Monitoring Division (CMD) reviewed the bids for price, bid responsiveness, and bidder responsibility and determined that Mountain Cascade, Inc., was the responsible bidder that submitted the lowest responsive bid; and WHEREAS, CMD established a Local Business Enterprise ( LBE) subcontracting participation of 9.0% for this contract, and the contractor committed to 9.78% LBE subcontracting participation in its bid submittal; and
WHEREAS, Funds are available from Project No. 10035575, San Joaquin Pipeline Valve and Safe Entry Improvements; and
WHEREAS, On December 18, 2008, the San Francisco Planning Commission certified the Final Environmental Impact Report for the San Joaquin Regional Water Quality Improvement Project (Case Number 2007.0427E); and
WHEREAS, On December 18, 2008, by Resolution Number 08- 0234, this Commission approved the Tesla Treatment Facility and Lawrence Livermore Water Quality Improvement projects which were included in the scope of work analyzed in the Final Environmental Impact Report and, required by the California Environmental Quality Act (CEQA), adopted findings including a statement of overriding considerations (CEQA Findings) and the Mitigation Monitoring and Reporting Program; and
WHEREAS, On December 20, 2023, the San Francisco Planning Department issued an Addendum to the Final Environmental Impact Report for the addition of a new surge shaft (above - ground towe r) and related facilities at the Tesla Treatment Facility , and a recirculation system to prevent stagnant water from sitting in the proposed new 60-inch surge pipeline; and WHEREAS, The work under this contract is within the scope of the Project authorized under the Final Environmental Impact Report and Addendum; and
WHEREAS, The San Francisco Planning Department is the custodian of records, located in the file for Case Number 2007.0427E at 49 South Van Ness Avenue, Suite 1400, San Francisco, California, 94103, which have been made available for review by this Commission and the public, 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 and Addendum, the CEQA Findings and Mitigation Monitoring and Reporting Program contained in Resolution Number 08-0234, and all written and oral information provided by the San Francisco Planning Department, the public, relevant public agencies, San Francisco Public Utilities Commission staff and other experts, and the administrative files for the Project; now, therefore, be it
RESOLVED, This Commission finds that the record as a whole is adequate for its use as the decision–making body for the Project and incorporates the CEQA Findings and Mitigation Monitoring and Reporting Program contained in Resolution Number 08-0234 by this reference thereto as though set forth in this Resolution; and be it
FURTHER RESOLVED, This Commission further finds that since the Final Environmental Impact Report as modified by the Addendum were finalized, there have been no substantial Project changes and no substantial changes in Project circumstances that would require major revisions to them due to the involvement of new significant environmental effects or an increase in the severity of previously identified significant impacts, and there is no new information of substantial importance that would change the conclusions set forth in them; and be it FURTHER RESOLVED, That this Commission hereby awards Contract No. HH-1009, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 3 – Tesla Surge Tower, in the amount of $11,051,305, for a duration of 452 consecutive calendar days, to the responsible bidder that submitted the lowest responsive bid, Mountain Cascade, Inc.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of January 9, 2024.
Secretary, Public Utilities Commission
City & County of San Francisco
London N. Breed, Mayor
Office of the City Administrator
Carmen Chu, City Administrator
Contract Monitoring Division
Stephanie Tang, Director
1155 Market Street, 4th Floor, San Francisco, CA 94103
Telephone (415) 581-2310 General Email [email protected]
MEMORANDUM
Date: November 30, 2023
To: Jimmy Leong, SFPUC
From: Jason Chow, CMD
Subject: CMD’s Review
HH-1009 San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 3—Tesla Surge Tower
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. The Micro/Small-LBE subcontracting participation requirement is 9% for this project. Below is a summary of CMD’s review.
Bid Discount
Bidder
(PeopleSoft:
Supplier/Supplier ID)
LBE Status,
Type and Size
(PS: LBE and
LBE Size)
Base Bid
(PS: Maximum
Amount)
Bid Discount Adjusted Bid
with LBE
Bid Discount
Mountain Cascade, Inc. Non-LBE $11,051,305 N/A $11,051,305 Sierra Mountain
Construction, Inc.
Non-LBE $11,060,600 N/A $11,060,600
Shimmick Construction
Company, Inc.
Non-LBE $11,486,900 N/A $11,486,900
Steve P. Rados, Inc. Non-LBE $11,615,150 N/A $11,615,150 Anvil Builders Inc. Non-LBE $12,925,520 N/A $12,925,520 Ranger Pipelines Inc. Non-LBE $14,189,000 N/A $14,189,000 Mitchell Engineering SBA-LBE $14,744,890 2% $14,449,992.20
LBE Subcontracting Participation Requirement
Mountain Cascade, Inc. (“Mountain Cascade”) is the lowest responsive bidder. Mountain Cascade met the 9% Micro/Small LBE subcontracting requirement by listing the following Micro/Small LBE firms on Section 00 43 36 (Subcontractor List):
Subcontractor Scope of Work
LBE Status,
Type and Size
Listed
Amount
(PS: Amount
($)/Responsibl
e for)
Credited
Amount
Credited
Participation
(PS: Percent
LBE (%))
R & W Contractors
Inc Concrete and Rebar PUC LBE- MBE
(Micro) $1,080,400 $1,080,400 9.78%
TOTAL $1,080,400 $1,080,400 9.78%
Mountain Cascade also listed the following non-LBE subcontractor(s) on Section 00 43 36.
Subcontractor Scope of Work
Listed Amount
(PS: Amount
($)/Responsible
for)
Participation
Certified Coatings Company Paintings and Coating $582,500 5.27% Blocka Construction Inc. Electrical $431,000 3.90%
TOTAL $1,013,500 9.17%
Good Faith Efforts Requirements
Mountain Cascade satisfied the GFE requirements under Approach B by listing the Micro-LBE firm: R&W Contractors, Inc.
Based on the foregoing, CMD has determined that Mountain Cascade 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) 554-3103.