DEPARTMENT
Infrastructure Division
AGENDA NO.
11 MEETING DATE
June 25, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Contract Manager: Derek Adams
Award Contract No. WW-743, Geary Boulevard Sewer and Water Improvements Phase 2
Summary of
Proposed
Commission
Action:
Award Contract No. WW-743, Geary Boulevard Sewer and Water Improvements Phase 2 , to the responsible bidder that submitted the lowest responsive bid, Cratus, Inc., in the amount of $45,957,035, and with a duration of 1,034 consecutive calendar days, to replace, rehabilitate and relocate existing aging sewer and water facilities and install traffic control conduits on Geary Boulevard between 32nd Avenue and Stanyan Street. Approval of the sewer and water components of the Project constitutes the Approval Action for the purposes of the California Environmental Q uality Act (CEQA), pursuant to San Francisco Administrative Code section 31.04(h). The Planning Department has determined that the Project is exempt from the CEQA. The Commission will rely on that determination to make its decision on this action.
Background: The Geary Boulevard Sewer and Water Improvements Project, Phase 2 is an interdepartmental effort to rehabilitate and replace aging sewer and water infrastructure in coordination with planned San Francisco Municipal Transportation Agency ( SFMTA) and San Francisco Public Works (SFPW) surface improvements on Geary Boulevard between 32nd Avenue and Stanyan Street, which will include surface improvements including new signage and striping, pedestrian bulbs, and curb-to-curb repaving.
The San Francisco Public Utilities Commission ( SFPUC) has assessed the condition of both sewer and water utilities along this Geary Boulevard corridor and identified aging assets to be rehabilitated or replaced prior to the SFMTA and SFPW surface work. In addition to sewer and water work, the project will also be installing traffic control conduit on behalf of the SFMTA to s upport its future transit improvements and providing some base repairs on behalf of SFPW.
The SFPUC, SFMTA, and SFPW will enter into a Memorandum of Understanding (MOU) to formalize cost-sharing and improved coordination.
The MOU will cover proportional sharing of construction costs and associated soft costs, and procedures for change orders, for both Contract No. WW-743 and the future SFMTA and SFPW surface work projects. Staff plans to return to the Commission in the future to seek authorization to enter into this MOU.
Agenda Title: WW-743, Geary Boulevard Sewer and Water Improvements Phase 2 Commission Meeting Date: June 25, 2024
Scope of
Contract:
The contract work location is along Geary Boulevard from 32nd Avenue to Stanyan Street in the Richmond district of the City and County of San Francisco.
The contract work consists of:
• Replacing, rehabilitating, and relocating existing sewers; • Replacing and rehabilitating sewer laterals and associated appurtenances; • Replacing, rehabilitating, and relocating existing water mains; • Replacing and rehabilitating water laterals and associated appurtenances; • Installing new SFMTA fiber optic traffic control conduit; and • Base repair and paving associated within new utility trenches.
Funding & Costs: Funding Source: Funding is split between Wastewater Enterprise Sewer System Improvement Program , Water Enterprise Local Conveyance/ Distribution System Program, SFMTA, and SFPW.
• SFPUC: $43,093,662
o $16,644,501 from Sewer System Improvement Program , Project No. 10041084, Geary Boulevard Sewer Impro vements Phase 2 Construction
o $26,449,161 from Water Enterprise Local
Conveyance/Distribution System Program, Project No. 10015139, WD-2708 Geary/11th to 35th
• SFMTA: $2,395,160 for fiber optic conduits
• SFPW: $468,213 for roadway base repair
Engineer’s Estimate: $47,042,983
Award: $45,957,035
SFPUC, SFMTA, and SFPW will finalize and coordinate the precise cost - share amount and procedures for Contract No. WW-743 in a future MOU.
The SFPUC has submitted an application for Water Infrastructure Financing and Innovation Act (WIFIA) funding from the U.S. Environmental Protection Agency (EPA) to provide low-interest financing for eligible project costs. If EPA selects the project for this funding program, staff will return to the Commission to request approval to enter into a funding agreement.
Schedule: Estimated Notice-to-Proceed Date: September 2024 Estimated Final Completion Date: July 2027
Contract Duration: 1,034 consecutive calendar days ( approximately two years and 10 months ) (974 consecutive calendar days to Substantial Completion and 60 consecutive calendar days to Final Completion)
Local Business
Enterprise
Participation and
Non-
The Contract Monitoring Division (CMD) established a 14.00% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to 15.85% L BE subcontractor participation in its bid submittal.
Agenda Title: WW-743, Geary Boulevard Sewer and Water Improvements Phase 2 Commission Meeting Date: June 25, 2024
Discrimination in
Contracting:
Environmental
Review:
On November 8, 2023, the San Francisco Planning Department determined the sewer and water components of the Project including repaving to be categorically exempt from environmental review under the CEQA Guidelines section 15302, Class 2 Replacement or Reconstruction, under Case Number 2023-005315ENV.
Approval of these components of the Project constitutes the Approval Action for the purposes of the CEQA, pursuant to San Francisco Administrative Code section 31.04(h).
On August 25, 2008, t he City and County of San Francisco , Municipal Transportation Agency, Department of Parking and Traffic determined the fiber optic component of the Project to be categorically exempt from environmental review under the CEQA Guidelines section 15301, Class 1 (Existing Facilities), section 15302 Class 2 (Replacement or Reconstruction), and section 15303, Class 3 (New Construction or Conversion of Small Structures).
The above-mentioned exemption determinations can be found here: link.
Bid History: Advertised: March 28, 2024
Bids Received: On May 16, 2024, the SFPUC received and publicly opened six bids as follows:
Bid Rank Bid Amount
Compensable
Delay
(30-day
Duration)
LBE Bid
Discount
SIP
Discount
Adjusted
Bid
Final
Rank
1. Cratus,
Inc. $45,957,035 $500 N/A N/A $45,972,035 1
2. JMB
Construction,
Inc.
$48,456,445 $500
N/A N/A $48,471,445 2
3. M Squared
Construction,
Inc.
$49,918,938 $100 N/A N/A $48,921,938 3
4. NTK
Construction,
Inc.
$52,849,956 $500 N/A 3.29% $51,125,699 4
5. Mitchell
Engineering $53,795,347 $1,000
N/A 3.97% $51,688,481 5
Agenda Title: WW-743, Geary Boulevard Sewer and Water Improvements Phase 2 Commission Meeting Date: June 25, 2024
6. Ranger
Pipelines, Inc. $55,454,396 $3,000 N/A N/A $55,544,396 6
Application of Social Impact Partnership Program bid preferences did not change the final ranking of the low bidder.
Application of San Francisco Administrative Code Chapter 14B bid preferences did not change the final ranking of the low bidder.
Because the SFPUC anticipates that potential unforeseen conditions or other factors outside of the contractor’s control may impact the schedule, Staff included a requirement in the Invitation for Bids for bidders to provide a daily compensable time extension rate. At the bid opening, Staff announced that SFPUC would use the value of 30 days to calculate the Compensable Delay bid adjustment amount. Staff used the daily rate from the bids to determine the total Compensable Delay values shown in the table above by multiplying the bidder’s daily rate times 30. The Adjusted Bid value in the table above is the sum of the Base Bid and Compensable Delay less any applicable Local Business Enterprise and Social Impact Partnership Program bid discounts.
Staff used the Adjusted Bid value to compare and rank the bids to determine the lowest bidder. However, the contract award amount is the Base Bid value (not the Adjusted Bid value) and, if the Commission awards the Contract, the bidder’s daily compensable delay rate will become a term of the Contract.
Attachment: 1. Contract Monitoring Division Memorandum
Geary Boulevard Sewer and Water Phase 2
Agenda Title: WW-743, Geary Boulevard Sewer and Water Improvements Phase 2 Commission Meeting Date: June 25, 2024
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) is undertaking the Geary Boulevard Improvements Projects Phase 2 in coordination with other City and County of San Francisco departments to replace, rehabilitate and relocate sewer and water utilities and install traffic control conduits on Geary Boulevard before planned surface improvements by the San Francisco Municipal Transportation Agency (SFMTA) and San Francisco Public Works (SFPW); and
WHEREAS, On March 28, 2024, the SFPUC advertised Contract No. WW-743, Geary Boulevard Sewer and Water Improvements Phase 2; and
WHEREAS, The Engineer’s Estimate is $47,042,983 for this construction contract work to replace, rehabilitate and relocate existing aging sewer and water facilities and install traffic control conduits on Geary Boulevard between 32nd Avenue and Stanyan Street; and WHEREAS, The contract duration is 1,034 consecutive calendar days; and WHEREAS, On May 16, 2024, SFPUC received and publicly opened six bids; and WHEREAS, Staff and the Contract Monitoring Division (CMD) reviewed the bids and the application of bid preferences and determined that Cratus , Inc., is the responsible bidder that submitted the lowest responsive bid; and
WHEREAS, CMD established a 14.00% Local Business Enterprise (LBE) subcontracting requirement for this contract , and Cratus , Inc., committed to 15.85% LBE subcontractor participation in its bid submittal; and
WHEREAS, SFPUC has submitted an application for Water Infrastructure Financing and Innovation Act (WIFIA) funding from the Environmental Protection Agency (EPA) to provide low-interest financing for eligible project costs. If EPA selects the project for funding, Business Services will return to the Commission to request approval to enter into a funding agreement; and WHEREAS, On November 8, 2023, the San Francisco Planning Department determined the sewer and water components of the Project including repaving to be categorically exempt from environmental review under the CEQA Guidelines s ection 15302, Class 2 Replacement or Reconstruction, under Case Number 2023-005315ENV; and
WHEREAS, On August 25, 2008, the City and County of San Francisco Municipal Transportation Agency, Department of Parking and Traffic determined the fiber optic component of the Project to be categorically exempt from environmental review under the CEQA Guidelines section 15301, Class 1 (Existing Facilities), s ection 15302 Class 2 (Replaceme nt or Reconstruction), and s ection 15303, Class 3 (New Construction or Conversion of Small Structures); and
WHEREAS, Funds are available from Project No. 10041084, Geary Boulevard Sewer Improvements Phase 2 Construction, and Project No. 10015139, WD -2708 Geary/11 th to 35th;
now, therefore, be it
RESOLVED, That this Commission hereby awards Contract No. WW-743, Geary Boulevard Sewer and Water Improvements Phase 2 , in the amount of $45,957,035, and for a duration of 1,034 consecutive calendar days, to the responsible bidder that submitted the lowest responsive bid, Cratus, Inc.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of June 25, 2024.
Acting Commission 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
1455 Market Street, Suite 16A, San Francisco, CA 94103
Telephone (415) 581-2310 General Email [email protected]
MEMORANDUM
Date: May 31, 2024
To: Derek Adams, SFPUC
Jon Cantu, SFPUC
From: Adriana Duran, CMD
Subject: WW-743 Geary Boulevard Sewer and Water Improvements Phase 2 – CMD Award Memo
The Contract Monitoring Division (“CMD”) has reviewed the bids submitted for the above referenced project, applied the appropriate bid discounts, and determined responsiveness to the Chapter 14B pre-award requirements. The Micro/Small-LBE subcontracting participation requirement is 14% for this project.
The LBE subcontracting requirement is less than 20%, due to the scope entails Cured- In-Place Lining of exiting sewer pipes. There are only a few specialty contractors in the area that perform this type of work, as it requires specialized materials and methods.
Below is a summary of CMD’s review.
Bid Discount
Bidder
LBE
Status,
Type and
Size
Base Bid
Compensable
Delay
LBE Bid
Discount
Adjusted Bid
with
Compensable
Delay, LBE
and SIP
Bid Discount
Cratus, Inc. Non-LBE $45,957,035 $45,972,035 Not eligible $45,972,035 JMB Construction,
Inc. Non-LBE $48,456,445 $48,471,445 Not eligible $48,471,445 M Squared
Construction, Inc. SF-LBE $48,921,938 $48,921,938 Not
applicable $48,921,938
NTK Construction,
Inc. Non-LBE $52,864,956 $52,864,956 Not eligible $51,125,6991 Mitchell
Engineering Non-LBE $53,825,347 $53,825,347 Not eligible $51,688,4812 Ranger Pipelines,
Inc. Non-LBE $55,454,396 $55,544,396 Not eligible $55,544,396
1 NTK Construction, Inc. received a SIP bid discount of 3.29% 2 Mitchell Engineering received a SIP bid discount of 3.97%
LBE Subcontracting Participation Requirement
Cratus, Inc. (“ Cratus”) is the lowest responsive bidder. Cratus met the 14% Micro/Small LBE subcontracting requirement by listing the following Micro/Small LBE firm s on Section 00 43 36 (Subcontractor List):
Subcontractor Scope of
Work
LBE Status,
Type and
Size
Listed Amount Credited
Amount
Credited
Participation
Liffey Electric, Inc. Electrical
Work
SF LBE-OBE
(Small) $1,266,220.00 $1,236,220.00 2.69%*
RK Engineering, Inc. Flat Work
(Partial)
SF LBE-OBE
(Micro) $160,000.00 $160,000.00 0.35%
Dr. Traffic Control,
LLC
Traffic
Control
SF LBE-MBE
(Micro) $500,000.00 $500,000.00 1.09%
Crana Trucking, LLC Trucking
(Partial)
SF LBE-OBE
(Micro) $150,000.00 $150,000.00 0.33%
Devaney Engineering PR-3 SF LBE-OBE
(Micro) $4,800,000.00 $4,800,000.00 10.44%
Ronald R. Nelson Concrete
Structures
SF LBE-OBE
(Micro) $440,000.00 $440,000.00 0.96%
TOTAL $7,316,220.00 $7,286,220.00 15.85%
*Per CMD Form 6 submitted, Liffey Electric, Inc. (“Liffey”) Indicated that it will further subcontract out Saw Cutting to a firm TBD in the amount of $30,000.00 which this dollar amount will be deducted from the LBE credited total amount of $1,266,220.00.
Cratus also listed the following non-LBE subcontractors on Section 00 43 36.
Subcontractor Scope of Work Listed Amount Participation SAK Construction, LLC CIPL $2,710,770 5.90%
H&R Plumbing and Drain
Cleaning, Inc. Mortar Work $41,800 0.09%
Easy Flow, LLC CIPP Laterals $200,000 0.44%
Robotic Sewer Solutions,
Inc. Top Hats $100,000 0.22%
S&S Trucking Trucking (Partial) $10,000 0.02%
TOTAL $3,062,570 6.67%
Good Faith Efforts Requirements
Cratus utilized Approach C (Good Faith Negotiations) on CMD Form 2B to meet the Good Faith Efforts (“GFE”) Requirements. Cratus demonstrated that it met the GFE requirements under Approach C by achieving at least 50 points.
Based on the foregoing, CMD has determined that Cratus has complied with the pre -award Chapter 14B requirements. Should you have any questions, or if I can be of further assistance, please do not hesitate to contact me at [email protected].