DEPARTMENT
Infrastructure
AGENDA NO.
7g
MEETING DATE
May 28, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Construction Modification: Consent Calendar
Project Manager: Jon Cantu
Accept Closeout, Approve Modification, and Authorize Final Payment for Contract No.
WD-2819, As-Needed Water Main Replacement At Various Locations, No. 2
Summary of
Proposed
Commission Action:
Accept work performed by Hernandez Engineering under Contract No.
WD-2819, As-Needed Water Main Replacement At Various Locations, No. 2; approve Modification No. 5 (Final) decreasing the contract amount by $3,888,160, for a total contract amount of $ 6,911,683 to adjust the final contract quantities to match the actual quantities , with no change to the contract duration for a total contract duration of 1,825 consecutive calendar days (approximately five years) ; and authorize final payment to the contractor.
Background: The work under this contract was part of the San Francisco Public Utilities Commission (SFPUC) Water Enterprise Local
Conveyance/Distribution System Program to replace, repair, and upgrade water mains. The work under this contract consist ed of performing as - needed water main replacement.
On November 14, 2017, by Resolution No. 17-0233, this Commission awarded Contract No. WD-2819, As -Needed Water Main Replacement At Various Loc ations, No. 2, to Hernandez Engineering. The original contract was $10,799,843, and the original contract duration was 1,095 consecutive calendar days.
On May 11, 2021, by Resolution 21- 0070, this Commission approved an increase of 173 calendar days to the duration contingency, for a total duration contingency of 282 calendar days, and a total contract duration of up to 1,377 consecutive calendar days, with no change to the contract amount.
On November 23, 2021, by Resolution 21- 0174, this Commission approved an increase of 181 calendar days to the duration contingency, for a total duration contingency of 463 calendar days, and a total contract duration of up to 1,558 consecutive calendar days, with no change to the contract amount.
On Sept ember 13, 2022, by Resolution 22- 0153, this Commission approved an increase of 267 calendar days to the duration contingency, Agenda Title: WD-2819, As-Needed Water Main Replacement At Various Locations, No. 2 Commission Meeting Date: May 28, 2024
for a total duration contingency of 730 calendar days, and a total contract duration of up to 1,825 consecutive calendar days, wit h no change to the contract amount.
Scope of Contract: The c ontract work is located within the City and County of San Francisco, including Yerba Buena Island and Treasure Island , and within certain San Francisco Public Utilities Commission easements or properties on the Peninsula and in the East Bay.
The contract work consist ed of as-needed water main installation of 4 - inch diameter to 16- inch diameter ductile iron pipe, 1- inch diameter and 2-inch diameter service piping, and pavement restoration work.
Modifications to the
Contract:
Modification Nos. 1 to 4: The SFPUC modified the Contract increasing the contract duration by 730 consecutive calendar days, in accordance with Resolutions 21- 0070, 21- 0174, and 22- 0153, to allow SFPUC to continue replacing existing water mains as needed at various locations while a new as -needed contract goes through the solicitation and approval process, to complete the final locations of planned water main replacement under this contract, and to complete design and construction of curb ramps and final pavement restoration for a total contract duration of 1,825 consecutive calendar days , with no change to the contract amount.
Modification No. 5 (Final): Staff recommends the Commission approve a decrease in the contract amount by $3,888,160, to adjust the final contract quantities to match the ac tual quantities, for a total contract amount of $6,911,683, with no change to the contract duration.
Funding & Costs: Funding: Project No. CUW280PR A9 (10015212), As-Needed Water Main Replacement at Various Location – No.2
Original Contract Amount: $10,799,843
Modifications 1-4 Amount: $0
Modification No. 5 (Final): ($3,888,160)
Total Final Contract Amount: $6,911,683
Schedule: Notice-to-Proceed Date: March 26, 2018
Original Contract Duration: 1,095 consecutive calendar days Modifications 1-4 Duration: 730 consecutive calendar days Modification No. 5 (Final): 0 consecutive calendar days Total Final Contract Duration: 1,825 consecutive calendar days
Compliance with
Chapter 14B: Local
Business Enterprise
Utilization and Non-
Discrimination in
Contracting
Ordinance:
The Contract Monitoring Division established a 12% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to 17.58% LBE participation with its bid submittal.
CMD has determined that the Contractor complied with its LBE subcontracting obligation by achieving a final LBE subcontractor participation of 18.02%.
Agenda Title: WD-2819, As-Needed Water Main Replacement At Various Locations, No. 2 Commission Meeting Date: May 28, 2024
Attachment: 1. Contract Monitoring Division Memorandum
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, On November 14, 2017, by Resolution No. 17- 0233, this Commission award ed Contract No. WD-2819, As -Needed Water Main Replacement At Various Locations, No. 2 to Hernandez Engineering; and
WHEREAS, The construction contract Notice-to-Proceed date was March 26, 2018; and WHEREAS, The original contract amount was for $10,799,843 and the original contract duration was 1,095 consecutive calendar days; and
WHEREAS, On May 11, 2021, by Resolution No. 21-0070, this Commission approved an increase of 173 calendar days to the contract duration contingency for a total contract duration limit of up to 1,377 consecutive calendar days, with no change to the contract amount; and WHEREAS, On November 23, 2021, by Resolution No. 21-0174, this Commission approved an increase of 181 calendar days to the contract duration contingency for a total contract duration limit of up to 1,558 consecutive calendar days, with no change to the contract amount; and WHEREAS, On September 13, 2022, by Resolution No. 22- 0153, this Commission approved an increase of 267 calendar days to the contract duration contingency for a total contract duration limit of up to 1,825 consecutive calendar days, with no change to the contract amount; and WHEREAS, Modifications Nos . 1-4 increased the contract duration by 730 consecutive calendar days , increasing the total contract duration to 1,825 consecutive calendar days , with no change to the contract amount; and
WHEREAS, Staff recommends approval of Modification No. 5 (Final) to decrease the contract amount by $3,888,160, to adjust the contract quantities to match the actual quantities, for a total contract amount of 6,911,683, with no change to the contract duration; and WHEREAS, The contractor, Hernandez Engineering, has completed the work scope under Contract No. WD-2819, As-Needed Water Main Replacement At Various Locations, No. 2; and WHEREAS, Contract Monitoring Division determined that the Contractor substantially complied with the established Local Business Enterprise (LBE) subcontracting participation requirement of 12% for this contract by achieving a final LBE subcontractor participation of 18.02%; and
WHEREAS, Funds are available from Project No. CUW280PR A9 (10015212), As -Needed Water Main Replacement at Various Locations – No. 2; now therefore, be it
RESOLVED, That this Commission hereby accepts the work performed by Hernandez Engineering under Contract No. WD-2819, As -Needed Water Main Replacement At Various Locations, No. 2; approves Modification No. 5 (Final), decreasing the contract amount by $3,888,160 for a total contract amount of $6,911,683, with no change to the contract duration, for a total contract duration of 1,825 consecutive calendar days; and authorizes final payment to the contractor.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of May 28, 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: April 12, 2024
To: Jon Cantu, SFPUC
Brian Barry, SFPUC
Lisa Chau, SFPUC
From: Kate Mundhenk, CMD
Subject: Closeout for WD-2819-As-Needed Water Main Replacement at Various Locations - No. 2
The Contract Monitoring Division (“CMD”) has determined that Hernandez Engineering has substantially complied with the LBE subcontracting requirements associated with this project.
At the time the project was advertised, CMD established an LBE subcontracting requirement of 12%. The Prime’s Document 00 43 36 reflected an LBE subcontracting participation of 17.58%. Hernandez Engineering was awarded the contract in the amount of $10,799,843.00, which was reduced by $3,888,160.03 for a total amount of $6,911,682.97. Hernandez Engineering’s LBE subcontracting participation at closeout is as follows:
Firm Scope of Work LBE Status Original Credited Contract Participation
Final Credited Contract
Participation
Roadway
Construction Mill & Fill
SF LBE
MBE
(Micro)
$500,000 4.63% $475,442.00 6.88%
JR Monterrosa Saw Cutting
SF LBE
MBE
(Micro)
$100,000 0.93% $63,915.48 0.92%
Baird Trucking Trucking SF LBE OBE
(Micro) $50,000 0.46% $9,872.50 0.14%
Ronald R Nelson
Contractor
Concrete
(partial)
SF LBE OBE
(Micro) $1,248,500 11.56% $0.00 0.00%
Ace Drilling
Drilling for
Cathodic
Protection
SF LBE OBE
(Micro) -- -- $36,000.00 0.52%
R&S
Construction ADA Ramps
SF LBE
MBE
(Micro)
-- -- $660,486.05 9.56%
TOTAL LBE Subcontractor Participation $1,898,500 17.58% $1,245,715.53 18.02%
CMD Contract Compliance Officer had several phone meetings and correspondence with the Prime Contractor, Hernandez Engineering, regarding the shortfall in LBE subparticipation. Hernandez Engineering
also met with Ronald Nelson and discussed the reasons for this subcontractor’s non-utilization. Due to the as- needed nature of this project, and because the total amount was reduced by the SFPUC, some of the scopes of work were not requested by the SFPUC or were requested in quantities smaller than projected. For Ronald R Nelson Contractor’s non-utilization, the Prime Contractor reported the following:
“As part of original LBE participation, we listed Ronald Nelson, for 10" concrete street restoration.
The work resulted in small quantities that would not allow the subcontractor to meet production and would operate at a loss. Most of the 10" concrete provided through PP #12 has been smaller areas spread across several task orders. For example, the one location with significant 10" concrete on Castro/Lloyd required each panel to be replaced one at a time to allow the residents in the small alleyway access to driveways.”
Regarding Baird Trucking’s participation, per the Prime Contractor: “Original contract amount and scope was reduced by over 35% resulting in less trucking. Some of the original waterline work/AC paving work was changed to curb ramp scope, originally not included in the contract.”
As such, Hernandez Engineering confirmed to the SFPUC/CMD that the originally listed LBE subcontractors have been offered the maximum available amount in their respective scopes. To recover and to maximize the LBE subcontracting participation on this contract, in good faith, Hernandez Engineering added two more new LBE subcontractors (Ace Drilling and R&S Construction) to this project.
Based on the foregoing, CMD concurs with the closeout of this contract. Should you have any questions, or if I can be of further assistance, please do not hesitate to contact me at (415) 551-4335.