DEPARTMENT Hetch Hetchy Water and Power
AGENDA NO. 6b
MEETING DATE
March 12, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Contract Manager: Ethan O. Billigmeier
Approve Closeout and Authorize Final Payment for Contract No. HH-1004.C Master As- Needed Tree Services-Hetch Hetchy with Capax Ground, Inc.
Summary of
Proposed
Commission Action:
Approve the closeout of Contract No. HH-1004.C Master As -Needed Tree Services-Hetch Hetchy with Capax Ground, Inc. with Capax Group, Inc.; and authorize final payment to the contractor in the amount of $17,175.
Background: The San Francisco Public Utilities Commission (SFPUC) required as-needed tree services to increase the scope and scale of tree and vegetation removal projects at various locations on or near SFPUC property and rights -of-way.
The scope of work includes providing as -
needed tree and plant
removal/management services, tree removal, pruning, stump grinding, and tree service-related access work including clearing roads.
On February 22, 2022, by Resolution No. 22-0038, this Commission awarded four Master As- Needed Tree Services Contracts, HH- 1004.A, HH -1004.B, HH-1004.C, and HH -1004.D, each with a not -to-exceed agreement capacity of $9,700,000, and for a duration of 1,826 consecutive calendar days. This closeout involves only HH-1004.C.
On Ja nuary 3, 2023, under Contract No. HH- 1004.C, SFPUC issued Task Order One to Capax Group, Inc., for a task order amount of $3 43,500 and a task order duration of 30 consecutive calendar days.
On August 1, 2023, the contractor successfully completed its work under Task Order One.
In November 2023, the contractor notified the SFPUC that the firm was shutting down and could not continue to perform work under HH-1004.C. The contractor requested the SFPUC to close out its contract and release the retention amount of $17,175 (5% of $343,500) for services performed under Task Order One.
Scope of Contract: Task Order One work was located at the Early Intake Compound in Tuolumne County.
The Contract work consisted of:
Agenda Title: HH-1004.C Master As-Needed Tree Services-Hetch Hetchy with Capax Ground, Inc.
Commission Meeting Date: March 12, 2024
• Removal of approximately 259 trees over 12-feet tall adjacent to the 230 kilovolt (kV) transmission lines; and
• Clearing vegetation and applying herbicide on brush under 12- feet tall on approximately 14 acres adjacent to the 230kV lines.
Modifications to the
Contract:
None.
Funding and Costs: Funding Source: Hetch Hetchy Water and Power Maintenance funds
Task Order 1 Amount: $343,500
Total Final Contract Amount: $343,500
Payment To Date: $326,325
Retention: $17,175
Schedule: Notice-to-Proceed Date: April 7, 2023
Original Contract Duration: 1,826 consecutive calendar days Total Final Contract Duration Limit: 267 consecutive calendar days
Local Business
Enterprise
Participation and
Non-Discrimination
In Contracting:
The Contract Monitoring Division established a 5% Local Business Enterprise (LBE) subcontracting requirement for this contract. The Contractor committed to 7% LBE participation with its bid submittal.
Attachment: 1. Contract Monitoring Division Memo
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, On February 22, 2022, by Resolution No. 20-0038, The San Francisco Public Utilities Commission (SFPUC) awarded Contract No. HH -1004.C, Master As- Needed Tree Services – Hetch Hetchy, to Capax Group, Inc. (Capax); and WHEREAS, On January 3, 2023, under Contract No. HH -1004.C, SFPUC issued Task Order One to Capax for a task order amount of $343,500 and a task order duration of 30 consecutive calendar days; and
WHEREAS, Task Order One Notice to Proceed date was April 7, 2023; and WHEREAS, Capax completed all work under Task Order One to satisfactory standards; and
WHEREAS, Capax has received payment for work performed under Task Order One in the amount of $326,325 with $17,175 withheld for retention as provided under the contract; and WHEREAS, In November 2023, Capax notified the SFPUC that Capax was going out of business and would not be able to perform future task orders under HH-1004.C; and WHEREAS, Capax has requested SFPUC to close Contract No. HH -1004.C and release the remaining $17,175 retention payment as provided under the contract; and WHEREAS, The Contract Monitoring Division established a 5% Local Business Enterprise (LBE) subcontracting requirement for this contract, Capax committed to 7 % LBE participation in its bid submittal, and CMD has determined that Cap ax, has made a good faith effort to substantially comply with the LBE subcontracting requirements associated with this project by achieving 7.18% LBE participation; now, therefore, be it RESOLVED, That this Commission hereby approves the closeout of Contract No. HH- 1004.C Master As-Needed Tree Services-Hetch Hetchy with Capax Ground, Inc.; and authorize s final payment to the contractor in the amount of $17,175.
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
City & County of San Francisco
London N. Breed, Mayor
Office of the City Administrator
Carmen Chu, City Administrator
Contract Monitoring Division
Stephanie Tang, Director
MEMORANDUM
Date: January 22nd, 2024
To: Ethan Billigmeier, Project Manager, SFPUC
From: Michelle Kassatly, Contract Compliance Officer, CMD
Subject: Rev. 1 Closeout for HH-1004.C Master As-Needed Tree Services – Hetch Hetchy (PeopleSoft Contract ID: 1000026614)
The Contract Monitoring Division (“CMD”) has determined that Capax Group, Inc. (“Capax”), the prime contractor, has made a good faith effort to substantially comply with the LBE subcontracting requirements associated with this project.
At the time the project was advertised, a Micro/Small-LBE subcontracting participation requirement of 5% was established. Capax’s Section 00 43 36 reflected a Micro/Small-LBE subcontracting participation of 7%. Capax was awarded one project on the contract in the amount of $343,500. The final contract amount is $343,500. Capax’s Micro/Small-LBE subcontracting participation is as follows:
Firm LBE Status, Type
and Size Scope of Work
Original
Credited
Contract
Participation
Final Credited
Contract
Participation
Yerba Buena
Engineering &
Construction Inc.
SF LBE-MBE (Small)
Heavy Equipment
Operator, Ground
Labor Support
7% 7.18%
TOTAL 7% 7.18%
Based on the foregoing, CMD concurs with the closeout of this contract.