DEPARTMENT
Infrastructure
AGENDA NO.
6a
MEETING DATE
March 12, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Ada Zhu
Approve Increase to Construction Duration Contingency for Contract No. DB-130 Bay Corridor Transmission and Distribution (BCTD) – Phase 3 (2019)
Summary of
Proposed
Commission Action:
Approve an increase of 684 calendar days (approximately one year and 11 months) to the contract duration contingency for Contract No. DB-130 Bay Corridor Transmission and Distribution (BCTD) – Phase 3 (2019), with Beta Engineering California, LP., increasing the contract duration up to 1,479 consecutive calendar days (approximately four years), with no change to the contract amount, for administrative purposes to allow the completion of contractor- delayed construction activities and commissioning/ testing to mitigate the risk of unplanned outages , and to conduct additional owner-requested distribution cable testing to reduce the likelihood of further impact to customers upon system reenergization.
Background: The San Francisco Public Utilities Commission (SFPUC) is building a high voltage electrical transmission and distribution system in the Southeast portion of the City and County of San Francisco to serve existing and future customers with large power needs. This is one of three subprojects to complete the transmission and distribution system. Under this contract , the contractor is installing:
• a new BCTD electrical substation at 1535 Davidson Avenue (near Quint Street);
• new potable water pipeline on Davidson Avenue from the substation to Rankin Street;
• a new storm drain on Davidson Avenue from substation to Rankin Street;
• electrical transmission cables in existing duct banks and vaults from Pacif ic Gas & Electric ( PG&E) Potrero
Substation (Illinois Street and 23 rd Street) to the 1535 Davidson Avenue substation; and
• electrical distribution cables and equipment in existing duct banks and vaults from the 1535 Davidson Avenue substation to connections near the Southeast Plant, Bruce Flynn Pump Station, Booster Pump Station, Pier 70, Mariposa Pump
Station, and Seawall Lot 337.
Agenda Title: DB-130 Bay Corridor Transmission and Distribution (BCTD) – Phase 3 (2019) Commission Meeting Date: March 12, 2024
On February 25, 2020, by Resolution No. 20-0047, this Commission awarded Contract No. DB- 130 Bay Corridor Transmission and Distribution (BCTD) – Phase 3 (2019) and authorized pre - construction services only pending completion of environmental review.
The original contract amount was $59,939,750, and the original contract duration was 396 consecutive calendar days.
On April 28, 2020, by Resolution No. 20-0078, this Commission approved the project and authorized the release of funds for the construction phase.
On April 13, 2021, by Resolution No. 21-0052, this Commission approved an increase of 360 calend ar days to the existing contract duration contingency, for a total contract duration contingency of 399 calendar days and a total contract duration of up to 795 consecutive calendar days, with no change to the contract amount.
Scope of Contract: The contract work is located in the Southeast portion of San Francisco on Davidson Avenue from the new Bay Corridor
Transmission and Distribution substation at 1535 Davidson Avenue (near Quint Street) to Rankin Street; Rankin Street from Davidson Avenue to Evans Avenue; and Illinois Street and 23rd Street from the PG&E Potrero Substation to the new 1535 Davidson Avenue substation.
The contract work consists of:
• Bay Corridor Transmission & Distribution (BCTD) – new electrical substation on Davidson Avenue ne ar Quint Street, San Francisco.
• BCTD electrical cable and equipment installation in selected portions of duct banks and vaults installed under other contracts.
• Install potable water pipe, hydrants, valves, and associated items on Davidson Avenue and Rankin Street.
Modifications to the
Contract:
Modification Nos. 1 to 22: The SFPUC modified the contract within the approved cost contingency, increasing the contract amount by $1,717,959.03, and increased the contract duration by 215 calendar days, in accordance with Resolution No. 21-0052, to address unforeseen site civil and structural redesign and relocation of transformer firewall and facilities; installa
tion of additional
potable water and sewer infrastructure; reconciliation of actual material quantities; upgrades to electrical instrumentation and controls; and installation and testing of additional transmission electrical cables and equipment, including a new three-way junction inside vault E-13 for University of California San Francisco (UCSF) Agenda Title: DB-130 Bay Corridor Transmission and Distribution (BCTD) – Phase 3 (2019) Commission Meeting Date: March 12, 2024
connection, a distributed temperature sensing system at the 1535 Davidson Avenue substation, and additional coordination and scheduling with PG&E to install electrical conductors in duct banks at the PG&E Potrero Switchyard , for a total contract amount of $61,657,709.03 and total contract duration of 611 consecutive calendar days.
Recommended Increase to Contract Duration Contingency:
Staff recommends Commission authorization to approve an increase of 684 calendar days to the contract duration contingency, for a total contract duration limit of 1,479 consecutive calendar days (approximately four years), with no change to the contract amount.
The additional duration will provide time necessary for completion of contractor-delayed design and construction activities , including commissioning/testing, warranty repair and component replacement on the Gas Insulated Switchgear and 25 kiloampere (kA) vacuum fault interrupters, to mitigate the risk of unplanned outages, and to conduct additional owner -requested distribution cable testing to reduce the likelihood of further impact to customers upon system reenergization.
The project requires the recommended duration contingency increase for administrative purposes. Specifically, the City’s PeopleSoft accounting system requires set durations for all contracts; it does not recognize that construction contracts do not end until the contractor has completed the work. If the work is not completed by the end of the contract’s specified duration, the accounting system does not permit the processing and payment of invoices for work performed . Adding duration contingency is an administrative work around to address the limitations of the accounting system. For this project, Staff is closely monitoring the contractor’s progress and documenting reasons for delays in completion. Granting the recommended duration contingency increase does not excuse the contractor’s delays. At the end of the project, Staff will determine whether delay incidents entitle the contractor to compensable or non- compensable time extensions and/or w hether c ontractor is liable to the City for liquidated damages for delay.
Funding and Costs: Funding: Hetchy Power Capital Fund and Wastewater Capital Fund, Project No. 10014227, Bay Corridor Transmission and Distribution (BCTD) Project
Original Contract Amount: $59,939,750
Original 10% Cost Contingency: $5,993,975
Requested Additional Cost Contingency: $0
Total Contract Cost Limit: $65,933,725
Schedule: Notice-to-Proceed Date: June 10, 2020
Agenda Title: DB-130 Bay Corridor Transmission and Distribution (BCTD) – Phase 3 (2019) Commission Meeting Date: March 12, 2024
Original Contract Duration: 396 consecutive calendar days Original 10% Duration Contingency: 39 calendar days
Approved Increase to Duration Contingency: 360 calendar days Requested Additional Duration Contingency: 684 calendar days Total Revised Contract Duration Limit: 1,479 consecutive calendar days
Local Business
Enterprise
Participation and
Non-Discrimination
In Contracting:
The Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting requirement for 15% for design and 10% for construction for this contract. The contractor committed to 33.51% LBE participation for design and 23.99% LBE participation for construction in its bid submittal.
Agenda Title: DB-130 Bay Corridor Transmission and Distribution (BCTD) – Phase 3 (2019) Commission Meeting Date: March 12, 2024
Location map:
Bay Corridor Transmission & Distribution (BCTD) Duct Bank Alignment and Davidson Substation
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) is building a high voltage electrical transmission and distribution system in the Southeast portion of the City and County of San Francisco to serve existing and future customers with large power needs; and WHEREAS, On February 25, 2020, by Resolution No. 20-0047, the Commission approved the award of Contract No. DB-130 Bay Corridor Transmission and Distribution (BCTD) – Phase 3 (2019) to Beta Engineering California, LP. , and authorized the c ontractor to commence pre - construction services only pending completion of environmental review of the proposed project; and
WHEREAS, On April 28, 2020, by Resolution No. 20- 0078, the Commission approved the project and authorized the release of contract funds for construction services; and WHEREAS, The construction contract amount was for $59,939,750, and the construction contract duration was 396 consecutive calendar days; and WHEREAS, On June 10, 2020, SFPUC issued t he construction contract Notice-to- Proceed; and
WHEREAS, On April 13, 2021, by Resolution No. 21-0052, the Commission approved an increase of 360 calendar days to the existing contract duration contingency, for a total contract duration contingency of 399 calendar days and a total contract duration of up to 795 consecutive calendar days, with no change to the contract amount; and WHEREAS, Modification Nos. 1 through 22 increased the contract amount by $1,717,959.03, within the approved cost contingency, and increased the contract duration by 215 calendar days, in accordance with Resolution No. 21-0052, to address unforeseen site civil conditions and for structural redesign and reloca tion of firewall and facilities; installation of additional potable water and sewer infrastructure; reconciliation of actual material quantities; upgrades to electrical instrumentation and controls; and installation and testing of additional transmission electrical cables and equipment, including a new three -way junction inside vault E- 13 for UCSF connection, a distributed temperature sensing system at the 1535 Davidson Avenue substation, and additional coordination and scheduling with Pacific Gas & Electric (PG&E) to install electrical conductors in duct banks at the PG&E Potrero Switchyard , for a total contract amount of $61,657,709.03, and total contract duration of 611 consecutive calendar days; and WHEREAS, Staff recommends approval of an
increase of 684 calendar days to the contract
duration contingency for administrative purposes to provide time for the contractor to complete contractor-delayed construction activities and commissioning/testing, to mitigate the risk of unplanned outages, and conduct additional owner -requested distribution cable testing, for a total contract duration limit of 1,479 consecutive calendar days, with no change to the contract amount; and
WHEREAS, Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation requirement for 15% design and 10% construction for this c ontract, and the contractor committed to a 33.51% LBE participation for design and 23.99% LBE participation for construction with its bid submittal; and
WHEREAS, Funds are available from Project No. 10014227, Bay Corridor Transmission and Distribution (BCTD) Project; now, therefore be it
RESOLVED, That this Commission hereby approves
an increase of 684 calendar days to
the existing contract duration contingency for Contract No. DB-130 Bay Corridor Transmission and Distribution (BCTD) – Phase 3 (2019) , for a total contract duration contingency of 1,083 calendar days, and new contract duration limit up to 1,479 consecutive calendar days , with no change to the contract amount.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of March 12, 2024.
Secretary, Public Utilities Commission