DEPARTMENT
Infrastructure
AGENDA NO. 6g
MEETING DATE
August 13, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Contract/Project Manager: Jimmy Leong
Approve an Increase to Cost Contingency for Contract No. DB-121R2, Moccasin Powerhouse Generator Rehabilitation
Summary of
Proposed
Commission Action:
Approve an increase of $2,150,000 to the cost contingency for Design Build Contract No. DB-121R2, Moccasin Powerhouse Generator Rehabilitation, with General Electric Renewable Energy, to include improvements to the generator fire protection system, anticipated changes based on lessons learned from the first unit rehabilitation performed during the last outage, and unforeseen modifications that may be r equired to complete the second generator rehabilitation work, for a revised cost limit up to $31,048,985, with no change to the contract duration.
Background: The City and County of San Francisco completed work on Moccasin Powerhouse Generators No. 1 and No. 2 in 1969 . Together t hey generate a combined maximum output of 110 Megawatts. The average generation from Moccasin Powerhouse is approximately 430 gigawatt hours per year or 25 percent of the total generation from the
San Francisco Public Utilities
Commission (SFPUC) Hetch Hetchy Water and Power system. The generators at Moccasin Powerhouse have exceeded their life expectancy by 20 years and are in critical need of repair to continue operating.
The Hetch Hetchy water supply provides water to 2.7 million residential, commercial, and industrial customers in the Bay Area. Approximately one - third of the delivered water goes to retail customers in San Francisco. Because the Hetch Hetchy supply flows through the Moccasin Powerhouse, its generators act as a flow regulating facility. Water delivery to the City depends on the generators being in use and online. If one generator fails, the SFPUC could deliver water to the Bay Area from the Hetch Hetchy Reservoir through the remaining generator; however, redundancy would be significantly compromised, and the additional stress place d on the second generator could cause it to fail. If both generators fail, there is a gener ator bypass on each generator to divert a limited flow of water around the generator; however, this system was not designed for extended use and can fail prior to the generators being rehabilitated. If both generators and generator bypass systems fail, SFPUC water deliveries from the Tuolumne River to the Bay Area would cease until the facilities could be repaired.
Agenda Title: DB-121R2, Moccasin Powerhouse Generator Rehabilitation Commission Meeting Date: August 13, 2024
On May 11, 2021 , by Resolution No. 21 -0078, the Commission awarded Design Build Contract No. DB-121R2, Moccasin Powerhouse Generator Rehabilitation, to General Electric Renewable Energy . The original contract amount was $26,271,805 and the original contract duration was 1,093 consecutive calendar days.
On June 13, 2023, by Resolution No. 23-0108, th e Commission approved an increase to the duration contingency of up to 365 calendar days, for a total revised duration limit of up to 1,567 consecutive calendar days , with no change to the contract amount.
Scope of Contract: The contract work location is in Moccasin, California.
The contract work consists of designing, manufacturing, and installation of:
• Stator Frame;
• Stator Core;
• Windings;
• Rehabilitation work on the rotor; and
• Relay protection upgrades for two hydro- generation units at the Moccasin Powerhouse.
Modifications to the
Contract:
Design Phase Modifications Nos 1-3: Staff issued Modification Nos. 1-3 to encumber the full contract value with no changes to the contract amount or contract duration.
Construction Phase Modifications Nos. 1-13: Staff issued Modification Nos. 1-13, increasing the contract amount by $1,089,708 (within the original 10% contingency) and increased the contract duration by 365 consecutive calendar days, in accordance with Resolution No. 23-0108, to replace surface air coolers and bearing oil coolers , re-rating and inspection of gantry crane , changes to the protection and control design, add additional cable to provide proper length for future upcoming project, repairs to the turbine shaft collars, perform single unit retardation testing, design of the fire suppression system, and ensure that the protection engineer be available on site during the Unit 2 Blackout Outage , for a total contract amount of $ 27,361,513 , and a total
contract duration of 1,567 consecutive calendar days.
Recommended Increase to Cost Contingency: Staff recommends the Commission approve an increase of $2,150,000 to the cost contingency, to include improvements to the generator fire protection system , anticipated changes based on lessons learned from the first unit rehabilitation performed during the last outage, and unforeseen modifications that may be required to complete the second generator rehabilitation work, for a revised amount of up to $31,048,985, with no change to the contract duration.
Funding and Costs: Funding Source: Hetchy Capital Improvement Program , Project No. 10014086, Moccasin Powerhouse and Generator Step-Up Rehabilitation
Original Contract Amount: $26,271,805
Agenda Title: DB-121R2, Moccasin Powerhouse Generator Rehabilitation Commission Meeting Date: August 13, 2024
Original 10% Cost Contingency: $2,627,180
Approved Increase in Cost Contingency: $0
Recommended Additional Cost Contingency: $2,150,000
Total Revised Cost Limit: $31,048,985
Schedule: Notice-to-Proceed Date: June 21, 2021
Original Contract Duration: 1,093 consecutive calendar days Original 10% Duration Contingency: 109 calendar days
Approved Increase to Duration Contingency: 365 calendar days Recommended Additional Duration Contingency: 0
Total Revised Duration Limit: 1,567 consecutive calendar days
Local Business
Enterprise
Participation and
Non-Discrimination
in Contracting:
Pursuant to Chapter 14B of the San Francisco Administrative Code, Contract Monitoring Division has waived subcontracting goals for this construction contract due to the specialized nature of the work.
Agenda Title: DB-121R2, Moccasin Powerhouse Generator Rehabilitation Commission Meeting Date: August 13, 2024
Project Site
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WH
EREAS, The San Francisco Public Utilities Commission (SFPUC) is undertaking a public work project to rehabilitate the Moccasin Powerhouse Generators that have been in operation since 1969 and are critical components of the Hetch Hetchy Water and Power system.
WHEREAS, On May 11, 2021, by Resolution No. 21-0087, the Commission awarded Design Build Contract No. DB-121R2, Moccasin Powerhouse Generator Rehabilitation to General Electric Renewable Energy; and
WHEREAS, The original contract amount was for $26,271,805 and the original contract duration was 1,093 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was June 21, 2021; and WHEREAS, On June 13, 2023, by Resolution No. 23-0108, the Commission approved an increase of 365 calendar days to the duration contingency for a total duration limit of up to 1,567 consecutive calendar days, with no change in contract amount; and WHEREAS Staff issued Design Phase Modification Nos. 1-3 to encumber the full contract value with no change to the contract amount or contract duration; and WHEREAS Staff issued Construction Phase Modification Nos. 1- 13, increasing the contract amount by $1,089,708 (within the original 10% contingency) and increased the contract duration by 365 consecutive calendar days, in accordance with Resolution No. 23-0108, for a total contract amount of $27,361,513, and a total contract duration of 1,567 consecutive calendar days; and
WHEREAS, Staff recommends an increase of $2,150,000 to the cost contingency to include improvements to the generator fire protection system, anticipated changes based on lessons learned from the first unit rehabilitation performed during the last outage, and unforeseen modifications that may be required to complete the second generator rehabilitation work, for a revised amount of up to $31,048,985, with no change to the contract duration; and WHEREAS, The Contract Monitoring Division has waived C hapter 14B of the San Francisco Administrative Code subcontracting goals for this project due to the specialized nature of this work; and
WHEREAS, Funds are available from Hetchy Capital Improvement Program funded Project No. 10014086, Moccasin Powerhouse and Generator Step -Up Rehabilitation ; now, therefore, be it
RESOLVED, That this Commission hereby approves an increase of $2,150,000 to the existing cost contingency for Design Build Contract No. DB -121R2, Moccasin Powerhouse Generator Rehabilitation, for a total cost contingency amount of up to $ 4,777,180, and a total revised cost limit of up to $31,048,985, with no change to the contract duration.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of August 13, 2024.
Director of Commission Affairs,
San Francisco Public Utilities Commission