DEPARTMENT
Infrastructure Division
AGENDA NO.
7d
MEETING DATE
May 14, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Brian Carlomagno
Approve Increase to Construction Cost and Duration Contingency for Contract No. WW- 639, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrades
Summary of Proposed
Commission Action:
Approve an increase of $ 7,000,000 to the cost contingency and an increase of 596 calendar days (approximately one year and eight months) to the duration contingency for Contract No. WW -639, Oceanside Water Pollutio n Control Plant Digester Gas Utilization Upgrades, with Monterey Mechanical Co., for a new contract duration limit of up to 2,593 consecutive calendar days (approximately seven years and one month) and a contract amount limit of up to $54,293,900.
The proposed contingency increase will address additional costs for a cogeneration system , associated mechanical and electrical system modifications and related PG&E electrical interconnection equipment compliance, and to allow additional time for the contractor to procure long-lead mechanical and electrical equipment to comply with PG&E electrical interconnection requirements.
Background: The existing co -generation engine generators at the San Francisco Public Utilities Commission (SFPUC) Wastewa ter Enterprise Oceanside Water Pollution Control Plant (OSP) are over 20 years old and at the end of their useful life. The existing engine generators have experienced extensive downtime in recent years resulting in lost power, high maintenance cost s, and additional demands on maintenance personnel. Although the existing engines could be kept in service with continued maintenance efforts, the replacement alternative to the existing cogeneration system would provide better reliability, full biogas utilization, and more sustainable services.
On August 8, 2017, by Resolution No. 17- 0184, this Commission approved this project to proceed with the loan agreement to receive Clean Water State Revolving Fund loan financing.
On November 26, 2018 , by Resolution 18- 0143, this Commission approved the award of Contract No. WW -639, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrade, to Monterey Mechanical Co. The original contract amount was $38,449,000 and the total contract duration
was 820 consecutive calendar days
(approximately two years and three months).
Agenda Title: WW-639, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrades Commission Meeting Date: May 14, 2024
On March 23, 2021, by Resolution No. 21- 0046, this Commission approved an increase of 306 consecutive calendar days to the contract duration contingency for a total contract du ration limit of up to 1,208 consecutive calendar days, with no change in the contract amount.
On March 8, 2022, by Resolution No. 22- 0050, this Commission approved an increase of 561 consecutive calendar days to the contract duration contingency for a tot al contract duration limit of up to 1,769 consecutive calendar days, with no change in the contract amount.
On June 13, 2023, by Resolution No. 23- 0117, this Commission approved an increase of $5,000,000 to the existing contract cost contingency and an in crease of 228 consecutive calendar days to the contract duration contingency for a total contract cost contingency amount of up to $8,844,900 and a total contract duration contingency of up to 1,997 consecutive calendar days.
SFPUC has included t he updated/increased construction costs in the recent Commission -adopted Fiscal Year (FY) 2025- 2034 10- Year Capital and Financial Plans.
Scope of Contract: The original contract work location is at the OSP located at 3500 Great Highway in the City and County of San Francisco.
The contract work consists of:
• Replacement of the gas storage vessel and digester gas conditioning equipment;
• Replacement of the existing cogeneration Internal -Combustion units and associated controls;
• Provide ancillary exhaust gas conditioning system and heat exchanger systems to comply with regulatory air board
requirements, maximize process efficiency and hot water production;
• Upgrade ventilation within the energy recovery building; • Replace electrical gear at Sub-Station No. 5; provide paralleling electrical gear and power system reliability improvements; and • Provide stand-by diesel generator and diesel fuel storage system.
Modifications to the
Contract:
Modifications Nos. 1-14 increased the contract amount by $3,840,493 (within the original contingency) and the contract duration by 210 consecutive calendar days, in accordance with Resolution No. 21-0046, to perform site mechanical utility work, digester g as mechanical pipe isolation, gas holder tank modifications, HVAC and electrical modifications increasing the total contract amount to $42,289,493 and increasing the contract duration to 1,030 consecutive calendar days.
Agenda Title: WW-639, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrades Commission Meeting Date: May 14, 2024
Recommended Increase to Contract Cost and Duration
Contingency: Staff recommends the Commission approve an increase to the cost contingency by $7,000,000, and an increase to the duration contingency 596 consecutive calendar days , to address additional cost for cogeneration system, associated mechanical and electrical system modifications and related PG&E electrical interconnection equipment compliance and to allow additional time for the contractor to procure long-lead mechanical and electrical equipment to comply with PG&E electrical interconnection requirements , increasing the total contract cost limit up to $54,293,900 and total contract duration limit up to 2,593 consecutive calendar days.
Funding and Costs: Funding Source: Wastewater Capital Improvement Program. Project No. 10029737, OSP Digester Gas Handling Utilization Upgrade Original Contract Amount: $38,449,000
Original 10% Cost Contingency: $3,844,900
Approved Increase in Cost Contingency: $5,000,000
Requested Additional Cost Contingency: $7,000,000
Total Revised Contract Cost Limit: $54,293,900
Schedule: Notice-to-Proceed Date: November 26, 2018
Original Contract Duration: 820 consecutive calendar days Original 10% Duration Contingency: 82 calendar days
Approved Increase to Duration Contingency: 1,095 calendar days Requested Additional Duration Contingency: 596 calendar days Total Revised Contract Duration Limit: 2,593 consecutive calendar days
Local Business
Enterprise Participation
and Non-Discrimination
in Contracting:
The Contract Monitoring Division established a 10% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to 19.88% LBE participation with its bid submittal.
Agenda Title: WW-639, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrades Commission Meeting Date: May 14, 2024
Oceanside Water Pollution Control Plant
3500 Great Highway, San Francisco, CA 94132
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) is reconstructing energy recovery systems at its Wastewater Enterprise Oceanside Water Pollution Control Plant (OSP), including replacement of the gas storage vessel s, digester gas conditioning equipment cogeneration Internal -Combustion units , electrical power distribution systems, and associated controls, ancillary exhaust gas conditioning system and heat exchanger systems; and WHEREAS, On August 8, 2017, by Resolution No. 17-0184, this Commission approved this project to proceed with the loan agreement to receive Clean Water State Revolving Fund loan financing; and
WHEREAS, On November 26, 2018, by Resolution No. 18-0143, the Commission awarded Contract No. WW-639, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrades to Monterey Mechanical Co.; and
WHEREAS, The original contract amount was $38,449,000 and the original contract duration was 820 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was November 26, 2018; and WHEREAS, On March 23, 2021, by Resolution No. 21- 0046, the Commission approved an increase of 306 calendar days to the duration contingency for a total contract duration limit of up to 1,208 consecutive calendar days, with no change in contract amount; and WHEREAS, On March 8, 2022, by Resolution No. 22-0050, the Commission approved an increase of 561 calendar days to the duration contingency for a total contract duration limit of up to 1,769 consecutive calendar days, with no change in contract amount; and WHEREAS, On June 13, 2023, by Resolution No. 23-0117, this Commission approved an increase of $5,000,000 to the existing cost contingency and an increase of 228 consecutive calendar days to the duration contingency for a total cost contingency amount of up to $8,844,900 and a total duration contingency of up to 1,997 consecutive calendar days; and WHEREAS, Staff recommends an increase of $7,000,000 to the cost contingency and an increase of 596 calendar days to the duration contingency to address additional cost s for the cogeneration s ystem, associated mechanical and electrical system modifications , and related PG&E electrical interconnection equipment compliance , and to allow additional time for the contractor to procure long- lead mechanical and electrical equipment to comply with PG&E electrical interconnection requirements; and
WHEREAS, Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 10% for this contract, and the contractor committed to 19.88% LBE participation with its bid submittal; and
WHEREAS, Funds are available from Wastewater Capital Improvement Program, Project No. 10029737, OSP Digester Gas Handling Utilization Upgrade; now, therefore, be it
RESOLVED, That this Commission hereby approves an increase of $7,000,000 to the existing cost contingency and an increase of 596 calendar days to the existing duration contingency for Contract No. WW -639, Oceanside Water Pollution Contr ol Plant Digester Gas Utilization Upgrades, with Monterey Mechanical Co., for a total cost contingency amount of $15,844,900 and a total duration contingency of 1,773 calendar days, for a total contract amount limit of up to $54,293,900 and a total contract duration limit of up to 2,593 consecutive calendar days.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of May 14, 2024.
Secretary, Public Utilities Commission