Biosolids Digester Facilities Project - WW-647R Contract Amendment Stephen Robinson, AGM Infrastructure and Carolyn Chiu, Senior Project Manager 1 March 12, 2024
Presented to the San Francisco Public Utilities Commission 2 Agenda Item
Amend WW-647R CM/GC Contract with MWH Constructors/ Webcor Builders JV • Requesting Commission Approval:
• Increase contract value by $407 million for a revised contract cost limit of $2,253 million,
• Add 60 consecutive days to contract duration and
• Add 51 consecutive days to contract duration contingency for a total revised contract duration limit of 4,212 consecutive calendar days (11.5 years) • Contract Amendment:
• Reflects the current cost and construction schedule
• Within the project budget and schedule in the recently Commission – approved 10-Year CIP and Financial Plan
3 Project Budget: $ 2,673 M
FY 25-34 10-year Plan: $ 300 M increase
• All Trade Bid Packages have been procured and
buyout of major facilities completed.
• Cost increase is due to market conditions during
procurement such as reduced bid competition and
higher material costs due to supply chain
challenges.
• Construction of digester tanks, solid pretreatment
building, and dewatering building
are underway. Construction is ~50% complete.
Southeast Plant Biosolids Digester Project (BDFP)
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Planning through Bid & Award Construction Close Out
Project Schedule:
Construction of digester tanks
Cost in $ millions Previous Budget Change Proposed Revised Budget
CMGC (WW-647R Contract)
Construction Cost Limit
$ 1,846 $ 407 $ 2,253
Other Construction Cost $ 114 - $107 $ 7
Project Delivery Cost $ 413 $ 0 $ 413
TOTAL PROJECT COST $ 2,373 $ 300 $ 2,673
Biosolids Project – Budget
4 SEWER SYSTEM IMPROVEMENT PROGRAM | Grey. Green. Clean.
WW-647R CM/GC Contract Amendment
with MWH Constructors/ Webcor Builders JV
Request $407M Increase to Contract Amount
5 Cost in $ millions Current
Contract
Proposed
Amendment No. 6
Proposed
Amended
Contract
Pre-Construction $ 46 $ 0 $ 46
Construction $ 1,332 $ 309 $ 1,641
General Conditions $ 142 $ 5 $ 147
General Requirements, Fees,
Bonds, Insurance, Reimbursables
$ 231 $93 $ 324
CM/GC Contingency $ 36 $ 0 $ 36
Total Contract Amount $ 1,787 $ 407 $ 2,194
Contract Change Contingency $ 59 $ 0 $ 59
Total Contract Limit $ 1,846 $ 407 $ 2,253
SEWER SYSTEM IMPROVEMENT PROGRAM | Grey. Green. Clean.
WW-647R CM/GC Contract Amendment
with MWH Constructors/ Webcor Builders JV
Request 111 Days to Contract Duration Limit
6 Current Contract Proposed
Amendment No. 6
Proposed
Amended Contract
Contract Duration 3,848 days 60 days 1 3,908 days
Contract Duration
Contingency
253 days 51 days 2 304 days
Total Contract
Duration Limit
4,101 days 111 days 4,212 days
1. The 60 day increase in contract duration was to address additional foundation work needed beneath the Solids Pretreatment Building
2. The added Contract Duration Contingency to address potential future project close out items Summary - Construction Bid Packages
7 WW-647R Contract No. of
Packages
Scope 1 – Demolition and
Site Prep
4 Scope 2 – New Biosolids
Construction
64 General Requirements
(Site-wide Support Services)
37 TOTAL 105
Package Value (Millions) No. of
Packages
Less than $10 M 77
$10 M to $30 M 10
$30 M to $75 M 14
$75 M to $150 M 2
Greater than $150 M 2
TOTAL 105
Market Conditions Impacted Recent Construction Bid Packages - Examples 8 Items No. of
Packages
Bid Cost
(million)
Variance from
Cost Estimate
(million)
Electrical Packages 5 $ 303 $ 90
Mechanical Packages 7 $ 447 $ 73
Metal Packages 7 $ 61 $ 34
Interior and Exterior Buildings 3 $ 75 $ 35
Equipment 1 $ 39 $ 12
Current Construction
9 • Mechanical, electrical, plumbing installations are in progress in pipe galleries, digester basement and
solids pretreatment facility
• Peak construction to begin in fall 2024
• $16M Social Impact Partnership (SIP) commitment
• Exceeding local hire and LBE requirements
SEWER SYSTEM IMPROVEMENT PROGRAM | Grey. Green. Clean.
Local Hire (LH)
• City’s Local Hire Requirement 30% of Project work hours • Current LH Participation 34% of Project work hours
Local Hire Apprentice Participation
• City’s Requirement 50% of Project work hours by Apprentices • Current LH Apprentice Participation 61% of Project work hours by Apprentices LBE Participation
• LBE Participation Requirement 12%
• Current LBE Participation 17%
• Number of LBE Firms 94 LBE firms awarded $318 million Biosolids Project Local Hire and LBE Participation
Through December 2023
10 Biosolids Project
Hiring Program
SEWER SYSTEM IMPROVEMENT PROGRAM | Grey. Green. Clean. 11 • Requesting Commission Approval:
• Increase contract value by $407 million for a revised contract cost limit of $2,253 million,
• Add 60 consecutive days to contract duration and
• Add 51 consecutive days to contract duration contingency for a total revised contract duration limit of 4,212 consecutive calendar days • Contract Amendment:
• Reflects the current cost and construction schedule
• Within the project budget and schedule in the recently Commission –approved 10-Year CIP and Financial Plan
WW-647R CM/GC Contract Amendment No. 6
with MWH Constructors/ Webcor Builders JV
SEWER SYSTEM IMPROVEMENT PROGRAM | Grey. Green. Clean.
THANK YOU
sfpuc.org/ssip
sepbiosolids.com
Biosolids Project
Hiring Program
DEPARTMENT Infrastructure AGENDA NO. 7
MEETING DATE March 12, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Project Manager: Carolyn Chiu
Approve Amendment No 6 to Contract No. WW-647R, Southeast Water Pollution Control Plant Biosolids Digester Facilities Project
Summary of
Proposed
Commission
Action:
Approve Amendment No. 6 to Contract No. WW -647R, Southeast Water Pollution Control Plant Biosolids Digester Facilities Project ( Biosolids Project), with MWH Constructors/Webcor Builders Joint Venture (Construction Manager/General Contractor or CM/GC), increasing the c ontract amount by $407,000,000, increasing the contract duration by 60 consecutive calendars days, and increasing the c ontract duration contingency by 51 consecutive calendars days, resulting in a revised contract cost limit of $ 2,253,383,149 and a revised contract duration limit of 4,212 consecutive calendar days (approximately 11 years and six months), to align the scope and cost of the Biosolids Project with the competitively procured subcontractor work packages and to maintain the current project schedule.
Background: The existing digesters and solids handling facilities at the Southeast Water Pollution Control Plant (SEP) utilize outdated technology that is at the end of its useful life span. The Biosolids Project is replacing the SEP’s aging infrastructure in order to maintain long-term regulatory compliance and system reliability.
On May 9, 2017, by Resolution No. 17-0110, this Commission awarded Wastewater Enterprise CM/GC Contract No. WW -647R, Southeast Water Pollution Control Plant Biosolids Digester Facilities t o MWH Constructors/Webcor Builders Joint Venture and authorized the commencement of pre-construction services for the project. The original contract amount was $938,785,526 and the original contract duration was 2,534 consecutive calendar days.
On March 13, 2018, by Resolution No. 18- 0042, this Commission adopted the CEQA Findings, including the Statement of Overriding Considerations, and the Mitigation Monitoring and Reporting Program, approved the Biosolids Project and authorized the General Manager to proceed with construction of the project under Contract No. WW-647R.
Project construction began in 2019 and is now well underway at nearly 50% construction completion. Highlights of the construction progress include:
• Completion of site preparation, including the relocation of existing utilities and demolition of existing infrastructure at the project site.
Contract: WW-647R, Southeast Water Pollution Control Plant Biosolids Digesters Facilities Commission Meeting Date: March 12, 2024
• Completion of s horing excavation, earthwork, pile foundation and other below-ground work for the major biosolids infrastructure. • The construction of the large digester vessels is progressing and water leakage testing is proceeding in two of the five digesters. • The CM/GC has initiated m echanical, electrical and plumbing installations in the digester basement, solids pretreatment building, chemical feed/No 2 water facilities and pipe galleries.
• The CM/GC has com pleted procurement of the major subcontractor construction packages.
Staff recommends approval of proposed Amendment No. 6 to Contract No. WW- 647R to allow the construction to proceed in alignment with the scope and cost of the procured work packages and to maintain the current project schedule. The construction cost increase is due to market conditions , such as reduced competition during bidding and on-going supply chain challenges , encountered during the recent procurement of the major trade bid packages, which resulted in higher than anticipated costs. The updated/increased construction cost s are included in the recent Commission-adopted Fiscal Year (FY) 2025-2034 10-Year Capital and Financial Plans.
For additional background information and a timeline of the project and contract history, please see the attached Memorandum.
Scope of
Contract:
The construction work is located adjacent to the SEP at 1800 and 1801 Jerrold Avenue (the former Central Shops and Asphalt Plant, respectively) and within portions of SEP in San Francisco (see Figure 1 for a location map).
The scope of work under Contrac t No. WW -647R consists of pre -construction and construction services by the CM/GC.
The CM/GC performed the pre-construction services during the design phase in collaboration with the design team. Completed services included:
• constructability reviews;
• development of plans for phasing/sequencing of work;
• organizing the work into subcontractor bid packages;
• planning for procurement of subcontractors; and
• construction cost estimating.
The Construction services include two scopes, Scope I and II:
Scope I: Site Preparation
Staff issued the Scope I Notice -to-Proceed (NTP) on August 26, 2019. The CM/GC has completed the Scope I work, and t he CM/GC achieved final completion on June 25, 2021. Scope I work included:
• Site Preparation for Construction.
• Relocation of existing utilities and demolition of existing above and below-grade infrastructure at the project site.
Contract: WW-647R, Southeast Water Pollution Control Plant Biosolids Digesters Facilities Commission Meeting Date: March 12, 2024
Scope II: Construction of New Biosolids Facilities
Staff issued the Scope II NTP on July 1, 2020. Scope II work is ongoing and the anticipated final construction completion is scheduled for summer 2028.
Scope II work includes:
• Deep excavation and installation of structural shoring systems; • Multi-story Solids Pretreatment Building;
• Thermal Hydrolysis process;
• Five 1.7-million-gallon concrete digester tanks;
• Multi-story Biosolids Dewatering Building;
• Steam generation facility;
• Emergency waste gas flares;
• Odor control systems;
• Underground pipe galleries and pipe trenches;
• Electrical structures and ductbanks;
• Distributed Control Systems and instrumentation;
• Site landscaping, grading and paving; and
• Streetscape improvements to Quint Street and Jerrold Avenue.
Amendments to
the Contract:
Amendment Nos. 1 and 2: On November 26, 2019 , the SFPUC executed Amendment No. 1, to increase the pre -construction phase amount from $6,069,749 to $35,069,749, without increasing the overall contract amount or duration. The SFPUC later executed Amendment No. 2 on October 15, 2020, to increase the pre- construction phase value from $35,069,749 to $60,569,749 without increasing the overall contract value or duration. These increases in the pre-construction services were required due to an extended design phase, and to provide addition al constructability review, cost estimating, and additional investigative field work not possible prior to the vacancy of the Central Shops area for the project.
Amendment No. 3: On October 27, 2020, by Resolution No. 20-0215 , the Commission approved Ame ndment No. 3, which did not change the contract amount or the contract duration. Amendment No. 3 revis ed Sections 4.02 and
5.03 of Contract No. WW -647R to reflect the SFPUC’s project funding requirements, certification of funds by the Controller, and the incremental encumbrance of funds through purchase orders for the CM/GC’s performance of work.
Amendment No. 4: On February 9, 2021, by Resolution No. 21-0024 , the Commission approved Amendment No. 4 to modify the project scope, schedule, and budget consi stent w ith t he Commission -adopted 2020 Sewer System Improvement Program Baseline Scope, Schedule and Budget. Amendment No. 4 increased the contract by $350,394,026 for a total contract amount of up to
$1,289,179,552 and increased the contract duration by 693 consecutive calendar days to increase the contract duration from 2,534 consecutive calendar days (approximately six years and 11 months) for a total contract duration of 3,227 consecutive days (approximately eight years 10 months).
Contract: WW-647R, Southeast Water Pollution Control Plant Biosolids Digesters Facilities Commission Meeting Date: March 12, 2024
Amendment No. 5: On June 28, 2022, by Resolution No. 22 -0123, the Commission approved Amendment No. 5 to modify the scope, schedule, and budget to conform with the Commission approved FY 2022- 23 Capital Plan.
Amendment No. 5 increased the contract amount by $498,103,597, and increased the contract duration by 621 consecutive calendar days, for a total contract amount of $1,787,283,149 and a total contract duration of 3,848 consecutive calendar days (approximately 10 years and seven months), and modified scope of work and terms and conditions.
Recommended Am endment No. 6: Staff recommends approval of Amendment No. 6 to increase the Contract by $407,000,000, for a total contract amount of up to $2,194,283,149, to reflect the increase in construction costs. As of December 2023, the CM/GC has procured a ll major trade bid packages and buyout of the biosolids facilities has been completed. The construction cost increase is due to market conditions, such as reduced competition during bidding and on-going supply chain challenges encountered during the recent procurement of the major trade bid packages.
The
request to add 60 consecutive calendar days to the contract duration is to address the added time to incorporate additional below- ground reinforcement (pile cap rebars) into the foundation of the Solids Pretreatment Building
The request to add 51 consecutive calendar days to the contract d uration contingency allows additional time to address potential construction close out items.
The table below provides a summary of the Proposed Amendment No. 6
Summary - WW-647R Contract with Proposed Amendment No. 6 Item
Current
Contract
Amount
Proposed
Amendment
No.6 Amount
Revised
Contract
Amount
Pre-Construction $46,407,513 --- $46,407,513
Construction $1,332,088,686 $308,717,866 $1,640,806,552 General Conditions $142,222,368 $5,159,634 $147,382,002 General Requirements,
Fees, Bonds, Insurance,
Reimbursables
$230,464,582 $93,122,500 $323,587,082
CM/GC Contingency 1 $36,100,000 --- $36,100,000
WW-647R Contract
Amount $1,787,283,149 $407,000,000 $2,194,283,149
Contract Cost
Contingency 2 $59,100,000 --- $59,100,000
Contract: WW-647R, Southeast Water Pollution Control Plant Biosolids Digesters Facilities Commission Meeting Date: March 12, 2024
Total WW-647R
Contract Limit $1,846,383,149 $407,000,000 $2,253,383,149 Notes: 1. CM/GC Contingency addresses work coordination and/or scope gaps between bid packages and trade subcontractors.
2. Contract Cost Contingency addresses changes to construction scope, budget and/or schedule.
Funding and
Costs:
Funding Source: Wastewater Capital Improvement Fund. Project No. 10015796, Biosolids Digester Facilities Project.
The Biosolids Digester Facilities Project has received low-cost funding from (1) Water Infrastructure Finance and Innovation Act loans executed with the United States Environmental Protection Agency, and (2) a Clean Water State Revolving Fund loan, executed with the California State Water Resources Control Board.
Original Award Amount: $ 938,785,526
Approved Amendment Nos. 1-5 Amount: $ 848,497,623
Approved Contract Amount: $ 1,787,283,149
Proposed Amendment No. 6 Amount: $ 407,000,000
Total Contract Amount: $ 2,194,283,149
Contract Cost Contingency: $ 59,100,000
Total Revised Contract Cost Limit: $ 2,253,383,149
Schedule: Pre-Construction Notice-To-Proceed Date: October 30, 2017 Scope I - Construction Notice-To-Proceed Date: August 26, 2019 Scope II - Construction Notice-To-Proceed Date: July 1, 2020
Original Contract Duration: 2,534 consecutive calendar days Approved Increase to Contract Duration: 1,314 consecutive calendar days Recommended Additional Contract Duration: 60 consecutive calendar days Total Revised Contract Duration: 3,908 consecutive calendar days
Original 10% Contract Duration Contingency: 253 calendar days Recommended Additional Contract Duration Contingency: 51 calendar days Total Revised Contract Duration Contingency: 304 consecutive calendar days
Total Revised Contract Duration Limit: 4,212 consecutive calendar days
Environmental
Review:
On March 8, 2018, in Motion No. M -20129, the Planning Commission certified the Biosolids Digester Facilities Project Final Environmental Impact Report Contract: WW-647R, Southeast Water Pollution Control Plant Biosolids Digesters Facilities Commission Meeting Date: March 12, 2024
(EIR) (Case No. 2015 -000644ENV), prepared pursuant to the California Environmental Quality Act (CEQA).
On March 13, 2018, by Resolution No. 18- 0042, this Commission adopted the CEQA Findings, including the Statement of Overrid ing Considerations, and the Mitigation Monitoring and Reporting Program, and approved the project.
Subsequent to the Final EIR, the Planning Department reviewed project scope changes and determined them to be within the scope of the Final EIR, for approval by staff and/or this Commission . Approval of this Amendment No. 6 increases the contract duration and amount to complete the previously approved project, inclusive of prior amendments. This action is within the scope of the project analyzed in the Final EIR, and no additional environmental review is required.
The EIR, CEQA Findings, Mitigation Monitoring and Reporting Program , and Resolution No. 18- 0042 can be found here: https://sfpuc.sharefile.com/d - s2b0788c13f1a47039900cf40901ab698
Local Business
Enterprise
Participation and
Non-
Discrimination In
Contracting:
The Contract Monitoring Division (CMD) established a 12% Local Business Enterprise (LBE) subconsulting/subcontracting participation requirement for this contract.
MWH Constructors/Webcor Builders JV submitted a Certificate of Commitment to meet the LBE subconsulting/subcontracting participation requirement of 12% over the life of the contract.
Attachments: 1. Contract Monitoring Division Memorandum
2. Memorandum - Biosolids Digester Facilities Project – Background and Construction Contract History
Contract: WW-647R, Southeast Water Pollution Control Plant Biosolids Digesters Facilities Commission Meeting Date: March 12, 2024
FIGURE 1 – Location of Southeast Water Pollution Control Plant
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) has undertaken a major project to address its aging infrastructure at the Southeast Water Pollution Control Plant and to replace existing digesters and biosolids handling facilities that use outdated technology and are at the end of their useful life span. By this project, the SFPUC seeks to maintain long -term regulatory compliance and system reliability; and
WHEREAS, In June 2016, the General Manager recomm ended Construction Manager/General Contractor (CM/GC) as the best project delivery method to successfully complete the Biosolids Digester Facilities Project (Biosolids Project); and WHEREAS, On May 9, 2017, by Resolution No. 17-0110, this Commission award ed Wastewater Enterprise CM/GC Contract No. WW-647R, Southeast Water Pollution Control Plant Biosolids Digester Facilities Project to MWH Constructors/Webcor Builders Joint Venture , and authorized the commencement of only pre-construction services under the contract; and WHEREAS, On March 8, 2018, in Motion No. M -20129, the Planning Commission certified the Final Environmental Impact Report (EIR) for the Biosolids Project (Case No. 2015- 000644ENV), prepared pursuant to the California Environmental Quality Act (CEQA); and WHEREAS, On March 13, 2018, by Resolution No. 18- 0042, this Commission, adopted the CEQA Findings, including the Statement of Overriding Considerations and the Mitigation Monitoring and Reporting Program, approved the Biosolids Project , and authorized the General Manager to proceed with construction of the project under Contract No. WW-647R; and WHEREAS, Subsequent to the EIR, the Planning Department review ed project scope changes and determined them to be within the scope of the Final EIR, for approval by staff and/or this Commission; and
WHEREAS, Staff recommends a pproval of Amendment No. 6 to increase the contract amount to complete the previously approved project, inclusive of prior amendments, su ch that this action is within the scope of the project analyzed in the Final EIR, and no additional environmental review is required; and
WHEREAS, The San Francisco Planning Department is the custodian of records, located in File No. 2015-000644ENV , 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 EIR, Resolution No. 18-0042, the 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 CEQA Findings contained in Resolution No. 18- 0042, 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, On April 17, 2018, by Resolution No. 109- 18, the San Francisco Board of Supervisors adopted the CEQA Findings for the Project, authorizing the City Controller to release project funds for construction; and
WHEREAS, On October 30, 2017, the San Francisco Public Utilities Commission (SFPUC) issued the pre -construction Notice -to-Proceed and, on August 26, 2019, issued the construction Notice-to-Proceed; and
WHEREAS, The original contract amount was $938,785,526 and the original contract duration was 2,534 consecutive calendar days; and
WHEREAS, On November 26, 2019, and October 15, 2020, SFPUC issued Amendment Nos. 1 and 2, respectively, which increased the pre-construction services amount from $6,069,749 to $35,069,749, and then to $60,569,749, with no change to the overall contract amount or duration; and
WHEREAS, On October, 27, 2020, by Resolution No. 20-0215, this Commission approved Amendment No. 3 to Contract No. WW -647R with MWH Constructors/Webcor Builders Joint Venture to revise S ections 4.02 and 5.03 of the Contract regarding project funding, Controller certification of funds, and incremental encumbrances to reflect a multi-year, incremental approach to encumbering funds for work on the project, with no change to the contract amount or duration; and
WHEREAS, On February 9, 2021, by Resolution No. 21-0024, this Commission approved Amendment No. 4 to Contract No. WW-647R, increasing the contract amount by $350,394,026, and increasing the contract duration by 693 consecutive calendar days, for a total contract amount of $1,289,179,552, and a total contract duration of 3,227 consecutive calendar days, and modifying the scope of work and terms and conditions; and
WHEREAS, On July 27, 2021, by Resolution No. 21-0123, this Commission authorized the General Manager to enter into negotiations to reduce scope and price through either a contract modification or partial termination for convenience for Contra ct No. WW -647R with MWH Constructors/Webcor Builders Joint Venture, and to return to the Commission at a later date, following the negotiations with the CM/GC, to recommend a project delivery strategy for the completion of the Biosolids Project and to seek approval of any recommended actions; and WHEREAS, On October 12, 2021, SFPUC staff presented the Commission with a project update and a recommendation to continue with the CM/GC delivery approach under Contract No.
WW-647R for best cost certainty given anticipated market and site conditions; and WHEREAS, On June 28, 2022, by Resolution No. 22-0123, this Commission approved Amendment No. 5 to Contract No. WW -647R, increasing the contract amount by $498,103,597, and increasing the contract duration by 621 consecutive calendar days, for a total contract amount of $1,787,283,149 and a total contract duration of 3,848 consecutive calendar days, and modifying scope of work and terms and conditions; and
WHEREAS, Staff recommends approval of proposed Amendment No. 6 to Contract No.
WW-647R, increasing the contract amount by $407,000,000 to address the increase in construction costs due to market conditions, for a total contract amount of $2,194,283,149, and to increase the construction cost contingency by $59,100,000, for a total contract cost limit of $2,253,383,149, and
WHEREAS, Staff recommends the addition of 60 consecutive calendar days to the contract duration to address additional foundation work under the solids pre treatment building, and the addition of 51 consecutive calendar days to the contract duration contingency, increasing the total contract duration limit to 4,212 consecutive calendar days; and
WHEREAS, The Contract Monitoring Division established a project-wide Local Business Enterprise (LBE) 12% subcontracting participation requirement for this contract, and the Contractor has committed to meeting this LBE requirement over the life of the contract; now, therefore be it
RESOLVED, This Commission has reviewed and considered the EIR and the record as a whole, finds that the EIR 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 No. 18-0042 by this reference thereto as though set forth in this Resolution; and, be it FURTHER RESOLVED, This Commission finds that since finalization of the EIR , 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 approves Amendment No. 6 to Contract No. WW -647R, Southeast Water Pollution Control Plant Biosolids Digester Facilities, with MWH Constructors/Webcor Builders Joint Venture, increasing the contract amount by $407,000,000 for a total contract amount of $ 2,194,283,149, with a contract cost contingency of $59,100,00, the total contract cost limit is up to $2,253,383,149; and, be it FURTHER RESOLVED, That this Commission hereby approves an increase of 60 consecutive calendar days to the contract duration and an increase of up to 51 consecutive calendar days to the contract duration contingency to Contract No. WW-647R, Southeast Water Pollution Control Plant Biosolids Digester Facilities, with MWH Constructors/Webcor Builders Joint Venture, for a total contract duration limit of up to 4,212 consecutive calendar days.
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 29, 2024
To: Carolyn Chiu, SFPUC
Ryan Cayabyab, SFPUC
Rowena Domingo, MWH/Webcor JV
From: Kate Mundhenk, CMD
Subject: CMD’s Modification No. 3 (SFPUC’s Amendment No. 6) for WW-647R - Southeast Water Pollution Control Plant Biosolids Digester Facilities
The San Francisco Public Utilities Commission (“SFPUC”) has requested to amend the contract amount for the subject Contract. This Amendment will increase the contract amount by $407,000,000 for a total contract amount of $2,194,283,149. The subject Amendment will include the following scopes:
• Construction Cost (increased costs due to bid climate, market conditions for labor and materials) • General Conditions and General Requirements (added General Conditions and General Requirements consistent with current and anticipated needs of project) • Fees, Bonds, Insurance, Reimbursables (proportional to cost of construction work.)
LBE Subcontractor/Subconsultant (“Sub”) Participation at Time of Proposal
The LBE sub participation requirement for the entire contract is 12%. At the time of proposal, the CM/GC Prime Contractor, MWH Constructors/Webcor Builders Joint Venture (“MWH/Webcor JV”), submitted 1) the CMD Form 2A: CMD Contract Participation Form (Pre-Construction Services Only) reflecting an LBE participation commitment of 0.04% for the Pre-Construction phase of the contract, and 2) a Certificate of Commitment agreeing to achieve the remaining balance of the total 12% overall requirement during the Construction phase of the contract through various trade packages, general conditions, etc.
LBE Subcontracting Participation to Date
Per SOLIS, the LBE sub participation achieved on this contract as of January 29, 2024 is as follows:
Total Invoiced To-Date Total LBE Invoiced To-Date
LBE Participation %
(Based on Invoiced To-Date)
$977,218,487.87 $161,348,877.54 16.51%
The LBE sub participation is calculated based on invoiced to-date amounts on ongoing trade packages, Negotiated Support Services (“NSS”), pre-construction work, General Conditions/General Requirements (GC/GR), and other work. See Exhibit A below for a breakdown and LBE participation achieved on trade packages with LBE requirements, GC/GR, and other work.
Per MWH/Webcor JV, on twelve of the awarded trade packages, the LBE subcontractors’ work has not started yet.
The current achieved LBE sub participation exceeds the 12% LBE sub participation commitment; however, it is anticipated that the LBE sub participation percentage will decrease as more highly specialized scopes of work occur during construction. Based on the cumulation of the awarded values and LBE commitments of the trade packages, the MWH/Webcor JV is currently on track to meet its 12% overall LBE sub participation commitment.
Projected Total LBE Participation for Entire Contract, Including SFPUC’s Amendment No. 6 (CMD’s Modification No. 3)
MWH/Webcor JV has confirmed that it will meet its 12% original overall LBE sub participation commitment for the entire contract based on the revised total contract amount of $2,194,283,149, as follows:
Total Contract Amount
(Including SFPUC Amendment
No.6)
Total LBE Amount
Projected
LBE % Projected
(Including SFPUC Amendment
No.6)
$2,194,283,149 $276,462,950 12.60%
Due to the nature of CM/GC contracts, not all the trade packages have been developed and bid out to- date. The MWH/Webcor JV has developed an LBE utilization strategy to ensure the LBE sub participation commitment is met at contract closeout. The MWH/Webcor JV has informed CMD that it will take into consideration its LBE sub participation commitment when bidding out remaining trade packages to ensure maximum LBE participation. The MWH/Webcor JV will continue to submit the updated trade bid package plan monthly to ensure the project stays on track to meet the overall LBE sub participation commitment.
Throughout the term of the contract, SFPUC staff and/or MWH/Webcor JV must continue to notify CMD of any proposed subcontractor additions and/or substitutions prior to the proposed subcontractor starting work on the project.
Contingent upon the conditions set forth above, CMD concurs with this Amendment. Should you have any questions, please contact Kate Mundhenk at 415-551-4335.
Exhibit A
WW-647R - LBE Participation to Date on Trade Packages with LBE Requirements, Negotiated Support Services (“NSS”), General Conditions, and Preconstruction Services1
Contract (Trade
Package, General
Requirements, etc.)
Total Authorized
to Date, $, SOLIS
LBE
Commitm
ent, %
Total Invoiced to
Date, $, SOLIS
LBE Invoiced to
Date, $, SOLIS
LBE % (Based
on Invoiced
To-Date)
T-40.07 Odor
Control $26,990,527.96 25.78% $4,092,152.45 $88,238.50 2.16% T-40.06 - Process
Mechanical Supply
& Installation
$37,435,046.32 13.40% $16,363,007.63 $2,713,630.74 16.58% T-40.03 - Process
Mechanical B615 $19,209,989.00 10.86% $720,507.50 $0.00 0.00% T-40.02 - Process
Mechanical & HVAC $109,345,579.05 12.38% $57,286,050.89 $1,797,387.55 3.17% T-40.01 - Process
Mechanical $67,301,702.49 12.52% $40,316,916.87 $6,548,107.10 16.44% T-33.04 - Yard
Piping (B615
Laterals)
$1,968,851.43 100% $335,600.00 $335,600.00 100.00%
T-33.03 Yard Piping
(8600 Laterals) $1,775,000.00 92.62% $273,000.00 $273,000.00 100.00% T-33.02 Yard Piping
Phase 2 $5,399,515.00 64.03% $5,295,393.04 $2,496,088.61 47.14% T-33.01 - Yard
Piping $2,467,000.00 26.83% $0.00 $0.00 0.00%
T-32.01 - Final Site
Finishes
$34,945,300
(planned)
80%
(planned) -- -- --
T-31.06 - Shoring
Demolition $1,561,365.57 100% $453,744.49 $453,744.49 100.00% T-31.05 Shoring,
Excavation &
Subgrade Prep.
Package 2
$1,590,607.42 95.49% $1,221,921.00 $1,130,588.84 92.53% T-31.04 - Building
600 Bracing
Removal
$563,735.20 80.06% $544,335.27 $379,039.76 69.63%
T-31.03 Piling
Foundations $9,253,193.32 50.96% $9,047,410.20 $4,305,394.38 47.59% T- 31.01 Earthwork,
Piling Foundation
and Site Wide
Dewatering
$216,414,191.65 13.62% $214,493,019.04 $31,075,825.10 14.49% T-26.07
Construction
Temporary Power
Supply and
Installation
$10,092,567.36 37.48% $10,059,267.63 $4,427,077.76 44.01%
1 Per the SFPUC’s SOLIS invoicing system
Contract (Trade
Package, General
Requirements, etc.)
Total Authorized
to Date, $, SOLIS
LBE
Commitm
ent, %
Total Invoiced to
Date, $, SOLIS
LBE Invoiced to
Date, $, SOLIS
LBE % (Based
on Invoiced
To-Date)
T-26.04 Electrical
Installation Package
4 $13,405,710.63 14.51% $5,541,921.98 $685,103.19 12.36% T-26.03 - Electrical
Package $81,860,826.04 13.33% $21,391,670.71 $0.00 0.00% T-26.02 Electrical
Installation
Package-3
$39,687,754.00 13.45% $18,241,944.39 $1,903,486.17 10.43% T-26.01 Electrical
Installation Package
2 $34,258,363.10 16.29% $15,480,774.60 $0.00 0.00%
T-22.03 Area &
Building Services
Supply and
Installation
$6,464,531.03 100% $2,392,899.46 $2,392,899.46 100.00% T-22.02 Area and
Building Services
Plumbing Supply
and Installation-
Package 2
$8,382,408.76 17.00% $4,965,399.87 $996,138.10 20.06%
T-22.01 - Plumbing $5,644,677.42 17.00% $4,554,958.00 $806,568.58 17.71% T-21.01 - Fire
Suppression $10,462,285.32 20.08% $3,426,070.14 $570,000.00 16.64% T-09.10 - Interior
Finishes Package
Building 615
$8,982,699
(planned)
40%
(planned) -- -- --
T-09.07 - Metal
Panel System $2,285,550.00 12.46% $142,326.00 $0.00 0.00% T-09.06 - Specialty
Coating $4,583,519.00 15.00% $95,632.00 $0.00 0.00%
T-09.05 - Painting &
Coating $1,047,515.00 25.09% $215,864.00 $124,539.18 57.69% T-09.03 - Curtain
Wall $1,328,035.85 18.65% $93,176.00 $0.00 0.00%
T-09.02 - Interior
Finishes Package
$30,832,897
(planned)
60%
(planned) -- -- --
T-07.15 - Exterior
Skin Systems Supply
& Installation
(B615)
$837,049.80 36.11% $23,971.00 $0.00 0.00%
T-07.14 - Interior &
Exterior Glazing $1,162,790.00 30.06% $60,640.00 $0.00 0.00% T-07.13 - B615
Roofing
$899,118
(planned)
15%
(planned) -- -- --
T-07.11 - B600
Sheetmetal Roofing
$2,485,170
(planned)
15%
(planned) -- -- --
T-07.09 - Exterior
Panel Systems $1,866,541.27 28.04% $624,450.25 $32,047.56 5.13% T-07.08 - Interior &
Exterior Glazing
(B600)
$1,850,165.90 33.69% $129,650.00 $0.00 0.00%
Contract (Trade
Package, General
Requirements, etc.)
Total Authorized
to Date, $, SOLIS
LBE
Commitm
ent, %
Total Invoiced to
Date, $, SOLIS
LBE Invoiced to
Date, $, SOLIS
LBE % (Based
on Invoiced
To-Date)
T-07.05 Below
Grade
Waterproofing
$1,491,732.49 20.00% $1,142,639.77 $496,988.18 43.49% T-07.04 - Applied
Fireproofing $59,539.00 7.74% $4,035.00 $0.00 0.00%
T-07.03 - Sheet
Metal and Standing
Seam Roofing
$796,116.49 15.53% $79,942.32 $0.00 0.00%
T-07.02 -
Membrane Roofing $256,000.00 21.09% $9,500.00 $0.00 0.00% T-07.01 - Below
Grade and At Grade
Waterproofing
$3,297,359.88 10.20% $2,603,949.71 $331,242.00 12.72%
T-05.05 Misc.
Metals Supply &
Installation
B615/B613
$3,953,672.86 12.89% $1,299,843.10 $0.00 0.00%
T-05.03 Structural
Steel B615 $5,369,809.13 18.00% $2,095,678.91 $0.00 0.00% T-05.02 Misc,
Metals Supply and
Installation Package
2 $22,609,413.56 25.00% $7,458,450.68 $140,420.69 1.88% T-05.01 -
Miscellaneous
Metals & Structural
Steel
$8,709,374.13 20.01% $4,639,704.67 $287,147.73 6.19%
T-03.08 Structural
Concrete Facilities -
B606, B607 &
Trench K package
$1,141,967.90 60.02% $0.00 $0.00 0.00%
S2-605-T-03.06 Str
Conc Pack 4 $1,542,622.00 100% $73,713.00 $73,713.00 100.00% T-03.05 - Buildings
610, 921 & 913
Architectural/Struct
ural Build-Out &
Doors
$15,818,685.00 71.20% $8,783,194.34 $6,096,245.34 69.41% T-03.04 - Digester
Tanks $62,700,022.52 14.56% $59,915,736.37 $9,107,713.47 15.20% T-03.03 Structural
Concrete Package 3 $36,910,172.20 15.00% $19,500,998.78 $5,058,129.95 25.94% T-03.02 Structural
Concrete Package 2 $63,949,415.00 15.15% $50,726,882.98 $5,367,718.68 10.58% T-03.01 - Concrete
Main Package $33,457,376.99 15.80% $31,867,592.08 $2,322,918.84 7.29% T-02.01 Demolition
and Excavation $1,835,344.06 100% $1,803,594.82 $1,803,594.82 100.00% T-31.01 - Earthwork,
Piling Foundation
and Site Wide
Dewatering
$216,414,191.65 13.62% $214,493,019.04 $31,075,825.10 14.49%
Contract (Trade
Package, General
Requirements, etc.)
Total Authorized
to Date, $, SOLIS
LBE
Commitm
ent, %
Total Invoiced to
Date, $, SOLIS
LBE Invoiced to
Date, $, SOLIS
LBE % (Based
on Invoiced
To-Date)
Scope 1, EOP 2B -
Electrical Ductbank
and Vaults
$2,765,325.95 43.31% $2,765,325.95 $1,172,062.92 42.38% Scope 1, EOP 1D -
Sewer Relocation
Pile Foundations
$2,945,387.04 10.17% $2,945,387.04 $563,876.29 19.14% Scope 1, EOP 1C -
Demolition and Site
Preparation
$32,618,746.00 81.32% $32,618,746.00 $27,622,752.72 84.68% Scope 1, EOP 1A –
36" Sewer
Relocation Project
$6,504,293.04 91.28% $6,504,293.04 $6,229,901.04 95.78% T-01.02 -
Commissioning and
Startup Services
$27,520,000
(planned)
2%
(planned) -- -- --
Total for Trade
Packages to Date $1,357,308,345.78 21.55% $889,215,902.01 $161,284,755.84 18.14% 01-PreCon Svc
Biosolid Digester $46,407,513.40 -- $46,407,513.40 $4,2 48,795.34 9.16% NSS - Construction
Services $25,681,211.20 -- $22,486,915.53 $11 ,013,718.24 48.98% NSS - Professional
Services $6,598,639.32 -- $6,189,155.79 $5,0 22,992.39 81.16% S1-General
Conditions $33,241,749.79 -- $33,241,749.79 $3,4 70,287.68 10.44% S2-General
Conditions $69,027,186.45 -- $54,932,334.45 $6,8 48,766.92 12.47% Total for PreCon,
NSS, GC to Date $180,956,300.16 $163,257,668.96 $30,604,560.57 18.75%
525 Golden Gate Avenue, 9th Floor
San Francisco, CA 94102
T 415.554.3289
[email protected]
OUR MISSION: To provide our customers with high-quality, efficient and reliable water, power and sewer services in a manner that values environmental and community interests and sustains the resources entrusted to our care.
ATTACHMENT 1
MEMORANDUM
DATE: February 22, 2024
SUBJECT: Biosolids Digester Facilities Project – Background and Construction Contract History (In support of the March 12, 2024 Commission Item - Approve Amendment No. 6 to Contract No. WW-647R, Biosolids Digester Facilities Construction Manager/General Contractor
The memorandum provides project background information and a timeline of events leading to the proposed Amendment No. 6 to Contract No. WW -647R, Southeast Water Pollution Control Plant Biosolids Digester Facilities Construction Manager/General Contractor (CM/GC) Agreement with MWH Contractors/ Webcor Builders Joint Venture.
The Biosolids Digester Facilities Project (BDFP) is the highest- cost construction project undertaken by the San Francisco Public Utilities Commission (SFPUC). The existing digesters and solids-handling facilities at the Southeast Water Pollution Control Plant (SEP) have outdated technology and are currently operating at the end of their useful life spans. The BDFP is replacing this aging infrastructure to maintain long -term regulatory compliance and system reliability. The new replacement biosolids digester facilities include solids thickening, digestion pretreatment, anaerobic digestion, biogas utilization, dewatering, odor control, automated control systems, and related ancillary processes. The new facilities will promote sustainabi lity and full beneficial use of biosolids and biogas, and it will reduce aesthetic, odor and noise impacts on the neighborhood.
In June 2016, the General Manager recommended Construction Manager/General Contractor (CM/GC) as the best project delivery met hod to successfully complete the BDFP. Under the CM/GC approach, the general contractor reviews design documents during the design phase (pre-construction) for constructability and provides construction cost estimates and bidding strategies that reflect anticipated construction activities and sequencing, site conditions, labor productivity and market conditions. The CM/GC advertises and awards a series of subcontractor bid packages throughout the construction phase.
1282818213-03_12_2024_mtg__attachment_bdfp__ww_647r_background_memo_22feb2024 Page 2
On May 9, 2017, by Resolution 17 -0110, this Commission awarded CM/GC Contract No. WW - 647R to MWH Constructors/Webcor Builders Joint Venture (MWH/Webcor JV). At that time, the Commission authorized the MWH/Webcor JV to commence with pre -construction services only. The CM/GC performed pre-construction services during the design phase in collaboration with the design team, and it provided input related to constructability reviews, phasing/sequencing of work, bid planning and procurement, and construction cost estimating.
On March 13, 2018, by Resolution No. 18- 0042, this Commission approved the BDFP, adopted California Environmental Quality Act (CEQA) findings, including the Statement of Overriding Considerations and the Mitigation and Monitoring Reporting Program for the Project, an d authorized the General Manager to proceed with construction of the project under Contract No.
WW-647R.
On August 26, 2019, SFPUC issued the Construction Notice -to-Proceed (NTP) to MWH - Webcor JV for Scope I construction, which consist ed of site prepara tion, relocation of existing utilities and demolition of existing above and below grade infrastructures at the project site.
In October 2019, the construction cost estimates and schedule at the 95% design phase came in significantly higher than expected, based on estimates developed prior to contract award in 2017, with a longer construction duration exceeding the 2018 Sewer System Improvement Program (SSIP) baseline budget and schedule. The CM/GC attributed the higher cost to site constraints/logistics, existing soil conditions, design progression and market conditions. The complexity and constrained site conditions also led to a longer than anticipated construction duration. A clearer definition of the site conditions was not available earlier during design and/or at the development of the 2018 SSIP budget. The CM/GC conducted e xtensive field investigations when the SFPUC obtained access/ownership to the project sites. Staff, consultants and the CM/GC conducted an extensive cost reduction eff ort to identify potential cost savings to mitigate the project cost and schedule impacts. SFPUC maintained the original project goals and Levels of Service without any changes.
The SFPUC made the following major scope changes to pursue cost reductions:
• Improvements to the contract and design documents that are more reflective of a CM/GC approach and remove unintended constraints that could impact productivity and efficiency;
• Better and more efficient strategy for the odor control system; • Deletion of the two maintenance buildings from the BDFP; • Addition of a new Steam Generation facility to support the thermal hydrolysis process; and
• Deletion of the energy recovery facility and consideration of an alternate biogas end- use that would provide the highest value for the digester gas and potentially lower capital cost.
On February 25, 2020, staff presented the Com mission with a BDFP update on this budget/schedule exceedance and the related cost reduction effort.
1282818213-03_12_2024_mtg__attachment_bdfp__ww_647r_background_memo_22feb2024 Page 3
On July 1, 2020, SFPUC issued Construction NTP to MWH-Webcor JV for Scope II of the WW- 647R contract. The Scope II work includes the new biosolids digester facilities (i.e., the balance of the BDFP construction). To date, major construction is underway at the project site.
On December 22, 2020, by Resolution No. 20- 0248, this Commission adopted and approved the 2020 SSIP Baseline Scope, Schedule and Budget which includes the revised BDFP scope, budget, and schedule. The total project budget for the BDFP is $1,680,693,000 wit h a construction duration of approximately seven years.
On December 30, 2020, the BDFP designer issued the last signed design package, completing the 100% design for the new biosolids facilities.
On February 9, 2021, by Resolution No. 21- 0024, this Commission approved Amendment No. 4 to the WW -647R contract increasing the contract by $350,394,026 for a total contract value of up to $1,289,179,552 for pre -construction and construction services, and increasing the contract duration by 693 consecutive calendar days for a total contract duration of 3,227 consecutive days, to reflect the current BDFP scope, schedule, and budget included in the Commission - adopted 2020 SSIP Baseline Scope, Schedule and Budget.
On March 5, 2021, in response to the receipt of bids for electrical and mechanical installation work that came in at a cost much higher than expected, SFPUC suspended the MWH -Webcor JV’s bid procurement activities to allow SFPUC staff time to re -assess the current BDFP’s bidding approach and project delivery method. SFPUC lifted the bid suspension in June of 2021 to allow the CM/GC to re-start bidding procurement for the new digester f acilities only (a subset of the project), while the SFPUC staff continued to evaluate next steps.
As a part of these next steps, SFPUC staff hired an independent cost estimating team to develop a bottom -up construction cost to complete the balance of the BDFP construction. This independent cost estimate took into account market conditions (e.g. due to COVID -19), si te constraints and construction approach. The CM/GC vetted this independent cost estimate, which ultimately became the basis for the updated BDFP budget that Staff included in the Commission- adopted Fiscal Year (FY) Capital Budget and 10- Year Capital and Financial Plans for FY 2022- 23 through 2031-32.
Concurrently, on July 27, 2021, by Resolution No. 21- 0123, this Commission authorized the General Manager to enter into negotiations to reduce scope and price through either a contract modification or partial termination for convenience for Contract No. WW -647R with MWH - Webcor JV, and to return to the Commission at a later date, following the negotiations with the CM/GC to recommend a project delivery strategy for the completion of the BDFP and seek approval of any recommended actions.
In the months that followed the bid suspension, due to changes to the MWH -Webcor JV leadership staff and BDFP organizational structure, a more collaborative project team maximized the benefits of a CM/GC delivery approach and achieved positive bid results during the recent digester procurement. Because of this, SFPUC staff recommended to the Commission on October 12, 2021, that the BDFP continue with the CM/GC delivery approach under WW-647R
1282818213-03_12_2024_mtg__attachment_bdfp__ww_647r_background_memo_22feb2024 Page 4
and proceed with a more competiti ve and revised bidding strategy (similar to what SFPUC implemented for the digester procurement) for the construction of the remaining biosolids facilities. When compared with other possible delivery approaches to project implementation , staff determined that maintaining the current CM/GC approach under the WW -647R contract was the most viable means to ensure cost certainty and to maximize construction and site logistic efficiencies. Hence, SFPUC and CM/GC, with consistent coordination and collaboration among staff, developed, advertised, and awarded subcontractor bid packages taking into account market and project conditions.
On June 28, 2022, by Resolution No. 22-0123, this Commission approved Amendment No. 5 to WW-647R contract, increasing the contract amount by $498,103,597, and increasing the contract duration by 621 consecutive calendar days, for a total contract amount of $ 1,787,283,149 and a total contract duration of 3,848 consecutive calendar days, to reflect the current project scope, schedule, and budget; revised General Conditions, fees, insurance costs, and general requirements; and increase in the CM/GC contingency to meet anticipated construction needs.
This amendment was in alignment with the approved Fiscal Year (FY) 2022 -23 Capital Budget, Wastewater Enterprise 10-Year Capital Plan for FY 2022- 23 through FY 2031- 32 and 10- Year Financial Plan for FY 2022-23 through FY 2031-32