DEPARTMENT
Infrastructure Division
AGENDA NO.
6b
MEETING DATE
February 27, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Jimmy Leong
Award Contract No. HH-1012, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 2A
Summary of
Proposed
Commission
Action:
Award Contract No. HH-1012, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 2A , to the responsible bidder that submitted the lowest responsive bid, Sierra Mountain Construction, Inc., in the amount of $5,602,000, and with a duration of 421 consecutive calendar days (approximately one year and two months) , to replace crossover and inline valves associated with San Joaquin Pipeline No. 1 at the Pelican, Emery, and Roselle crossover vaults.
Background: San Francisco Public Utilities Commission (SFPUC) 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 Foothil l 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 se gment upstream of Tesla Portal. The Pipelines deliver Hetch Hetchy water to the San Francisco Bay Area.
The pipelines have been in service for a duration ranging from 11 to 91 years.
SFPUC staff members and contractors need to 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 may be under -
rated in design pressure tolerance for the
potential water system 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 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-1012 is for the improvement work of Phase 2A, to replace the crossover and inline valves
associated with San Joaquin
Pipeline No. 1 at the Emery, Roselle, and Pelican crossover vaults.
Agenda Title: HH-1012, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 2A Commission Meeting Date: February 27, 2024
Scope of
Contract:
The Contract work locations are at the Emery, Roselle, and Pelican crossover vaults.
The Contract work consists of:
• Replacing an existing 60-inch butterfly valve with a new higher rated City-furnished 60-inch butterfly valve at each crossover vault. • Replacing an existing single crossover valve with two new higher rated City-furnished knife gate valves in each crossover pipe. • Performing structural, electrical, instrumentation & control, and other works associated with the new valves.
Funding and
Costs:
Funding Source: Hetchy Capital Improvement Program
Project No. 10035575, San Joaquin Pipeline Valve and Safe Entry Improvements Engineer’s Estimate: $7,500,000
Award Amount: $5,602,000
Schedule: Estimated Notice-to-Proceed Date: June, 2024
Estimated End Date: August, 2025
Duration: 421 consecutive calendar days (361 consecutive calendar days to Substantial Completion and an additional 60 consecutive calendar days to Final Completion)
Bid History:
Advertised: November 28, 2023
Bids Received: SFPUC received sealed bids from six firms on January 11, 2024, as follows:
Bid Rank
Base Bid
Amount
LBE
Bid
Discoun
t Adjusted Bid
Final
Rank
1. Sierra Mountain
Construction, Inc. $5,602,000 N/A $5,602,000 1
2. Mountain Cascade,
Inc. $5,925,648 N/A $5,925,648 2
3. TNT Industrial
Contractors $6,542,820 N/A $6,542,820 3
4. Shimmick
Construction
Company, Inc.
$7,130,000 N/A $7,130,000 4
5. Western Water
Constructors $7,400,000 N/A $7,400,000 5
6. Mitchell Engineering $8,494,500 N/A $8,494,500 6
Agenda Title: HH-1012, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 2A Commission Meeting Date: February 27, 2024
Contract Monitoring Division determined that none of the bidders are eligible for a bid discount.
Environment
al Review:
On October 30, 2008, the San Francisco Planning Commission certified the Final Program Environmental Impact Report (Program EIR) (Case Number 2005.0159E) for the Water System Improvement Program.
On July 9, 2009, the San Francisco Planning Commission certified the Final Environmental Impact Report (Final EIR) for the San Joaquin Pipeline System Project (Case Number 2007.0118E), which is tiered from the 2008 Program EIR.
On July 14, 2009, by Resolution No. 09-0119, this Commission approved the San Joaquin Pipeline System Project and adopted California Environmental Quality Act (CEQA) findings (CEQA Findings), including the Statement of Overriding Considerations and a Mitigation Monitoring and Reporting Program required by the CEQA.
On January 27, 2022, the San Francisco Planning Department issued a Minor Project Modificatio n to the Final EIR, determining that no supplemental environmental review was needed beyo nd 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 -1012, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 2A is within the scope of the project authorized under the Final EIR and Minor Project Modification.
The 2008 Program EIR can be found here: https://sfplanning.org/environmental- review-
documents?title=Water+System+Improvement+Program&field_environmental_ review_categ_target_id=212&items_per_page=10
Th
e Final EIR, Minor Project Modification to the Final EIR, Resolution No. 09- 0119, CEQA Findings, and the Mitigation Monitoring and Reporting Progra m can be found here: https://sfpuc.sharefile.com/d-
s6d1e909a956141eab188fde5eef920f5
Local
Business
Enterprise
Participation
and Non-
Discriminati
on In
Contracting:
The contract Monitoring Division established a 8% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to
8.57% LBE participation with its bid submittal.
Attachment: Contract Monitoring Division Memorandum
Agenda Title: HH-1012, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 2A Commission Meeting Date: February 27, 2024
SITE LOCATION MAP
HH-1012 SAN JOAQUIN PIPELINE VALVE AND SAFE ENTRY IMPROVEMENTS PHASE 2A
Work will occur at Emery, Roselle, and Pelican Crossover Vaults Project Locations in the map below (circled)
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 for durations ranging from 11 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 downs tream 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 s ystem 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 has been implementing the project in phases, specifically Phases 1A, 1B, 2A, 2B&C, and 3. Construction contract HH - 1012 is for the improvement work of Phase 2A, to replace the crossover and inline valves associated with San Joaquin Pipeline No. 1 at the Emery, Roselle, and Pelican crossover vaults; and
WHEREAS, On November 28, 2023, SFPUC advertised Contract No. HH-1012, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 2A; and WHEREAS, The Engineer’s Estimate is $ 7,500,000 for this construction work to replace crossover and inline valves associated with San Joaquin Pipeline No. 1 at Emery, Roselle, and Pelican crossover vaults; and
WHEREAS, The Contract duration is 421 consecutive calendar days; and WHEREAS, On January 11, 2024, SFPUC received and publicly opened six bids; and WHEREAS, SFPUC staff and Contract Monitoring Division (CMD) reviewed the bids and the application of bid preferences and determined that Sierra Mountain Construction, Inc., is the responsible bidder with the lowest responsive bid; and
WHEREAS, CMD established a 8 % Local Business Enterprise (LBE) subcontracting requirement for this contract, and Sierra Mountain committed to 8.57% LBE participation in its bid submittal; and
WHEREAS, On October 30, 2008, the San Francisco Planning Commission certified the Final Program Environmental Impact Report (Program EIR) (Case Number 2005.0159E) for the Water System Improvement Program; and
WHEREAS. On July 9, 2009, the San Francisco Planning Commission certified the Final Environmental Impact Report (Final EIR) for the San Joaquin Pipeline System Project (Case Number 2007.0118E), which is tiered from the 2008 Program EIR; and
WHEREAS, On July 14, 2009, by Resolution No. 09-0119, this Commission approved the San Joaquin Pipeline System Project and adopted California Environmental Quality Act (CEQA) findings (CEQA Findings), including the Statement of Overriding Considerations and a Mitigation Monitoring and Reporting Program required by the 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-1012, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 2A is within the scope of the project authorized under the Final EIR 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 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, 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 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 EIR, the findings contained in SFPUC Resolution Number 09- 0119, the Minor Project Modification to the Final EIR 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 Project No. 10035575, San Joaquin Pipeline Valve and Safe Entry Improvements; now, therefore, be it
RESOLVED, That this Commission has reviewed and considered the Final EIR and the Minor Project Modification and the record as a whole, finds that the Final EIR 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 further finds that since the F inal EIR as modified by the Minor Project Modification 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- 1012, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 2A, in an amount of $5,602,000, and a duration of 421 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 February 27, 2024.
Secretary, Public Utilities Commission
City & County of San Francisco
London N. Breed, Mayor
Office of the City Administrator
Carmen Chu, City Administrator
Stephanie Tang, Director
Contract Monitoring Division
MEMORANDUM
Date: January 24, 2024
To: Jeremy Sahagian, SFPUC
Jimmy Leong, SFPUC
Joseph Buitrago, SFPUC
From: Adriana Duran, CMD
Subject: HH-1012 San Joaquin Pipeline Valve and Safe Entry Improvement Phase 2
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. An LBE subcontracting participation requirement of 8% was established for this project.
The requirement is less than 20% because most of the work is specialized installation of large diameter valves and appurtenances. In addition, constraints such as the location of the work sites (spread across San Joaquin Valley from Vernalis to Oakdale) and the construction timeframe (limited to 60-100 days during a yearly water system shut down) reduces the number of subcontractors available to perform work on the contract.
Below is a summary of CMD’s review.
Bidder Status Base Bid LBE Bid
Discount
Adjusted Bid with
Bid Discount
Sierra Mountain
Construction, Inc.
Non- LBE $5,602,000 N/A $5,602,000
Mountain Cascade, Inc. Non-LBE $5,925,648 N/A $5,925,648 TNT Industrial Contractors Non-LBE $6,542,820 N/A $6,542,820 Shimmick Construction
Company
Non- LBE $7,130,000 N/A $7,130,000
Western Water Constructors Non-LBE $7,400,000 N/A $7,400,000 Mitchell Engineering Non-LBE $8,494,500 N/A $8,494,500
Sierra Mountain Construction, Inc. (“SMCI”) is the lowest responsive bidder. “SMCI” met the 8% LBE subcontracting participation requirement by listing the following LBE firms on Document 00 43 36 (Subcontractor List):
LBE
Subcontractor Scope of Work Status Listed
Amount
Amount
Credited
Participation
(based on
credited
amount)
Pacific
Engineering &
Construction, Inc.
Furnish & Partial
Installation of
mechanical
Piping
SF LBE- OBE
(Micro) $477,000 $477,000 8.52%
Harris Hoisting
Partial Crane &
Rigging Services
(partial)
SF LBE- WBE
(Micro) $3,000 $3,000 0.05%
TOTAL $480,000 $480,000 8.57%
SMCI also listed the following non-LBE subcontractors on Document 00 43 36:
Subcontractor Scope of Work Listed Amount
Con J. Franke Electric Electrical $1,064,700
Jeffco Painting &
Coating Inc. Painting & Coating $50,000
TOTAL: $1,114,700
Good Faith Efforts Requirements
SMCI utilized Approach B (inclusion of Micro-LBEs) on CMD Form 2B to meet the Good Faith Efforts (“GFE”) Requirements.
At the time of bid, SMCI demonstrated that it met the GFE requirements under Approach B by listing the Micro-LBE firm: Harris Hoisting.
Based on the foregoing, CMD has determined that Sierra Mountain Construction, Inc. has complied with the Chapter 14B pre-award requirements. Should you have any questions, please contact Adriana Duran at [email protected].