DEPARTMENT Infrastructure AGENDA NO. 6i
MEETING DATE August 13, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Jimmy Leong
Approve Increase to the Cost and Duration Contingencies for Contract No. HH-1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A Summary of
Proposed
Commission Action:
Approve an increase of $300,000 to the cost contingency and an increase of 151 calendar days to the duration contingency for Contract No. HH-1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A, with Sierra Mountain Construction, Inc., for a revised cost limit of $16,179,454 (including contingency) and a revised duration limit of 1088 calendar days (approximately three years), due to longer lead time to procure additional 15 large diameter valves for Phase 2 , to perform more robust quality assurance inspections of the new valves, and to complete the work during the upcoming 2024-2025 outage.
Background: The San Francisco Public Utilities Commission (SFPUC) San Joaquin Pipeline system delivers water from Hetch Hetchy to the San Francisco Bay Area. San Joaquin Pipeline Nos. 1, 2, and 3 consist of three parallel transmission pipelines (completed in 1932, 1953, and 1968 respectively) that cross the San Joaquin Valley from the west of Foothill Tunne l at Oakdale Portal to the east of Coast Range Tunnel at Tesla Portal, a distance of
approximately 48 miles. A fourth partial pipeline (completed in 2012) consists of a 6.4- mile segment of pipe downstream of Oakdale and another 11 -mile segment upstream of Tesla Portal.
Given the critical function of the San Joaquin Pipelines, SFPUC staff and contractors must enter the pipelines regularly to perform condition assessment, maintenance, and repair work. A recent hydraulic study showed a number of the existing valves in the San Joaquin Pipelines are under-rated for the surge pressures that could be triggered from an unplanned closure of the valves at the downstream Tesla Ultraviolet Treatment Facility. For safety reasons, the SFPUC initiated this capital project, San Joaquin Pipeline Valve and Safe Entry Improvements, to replace the under -
rated valves; provide
pipeline isolations for safe personnel entry; and allow shutdown of any or all sections of the San Joaquin Pipelines without a complete system shutdown.
SFPUC will implement the project in four phases, specifically Phases 1A, 1B, 2, and 3.
On March 8, 2022, by Resolution No. 22-0047, this Commission awarded Contract No. HH-1005, San Joaquin Pipeline Valve and Safe Entry Agenda Title: HH-1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A Commission Meeting Date: August 13, 2024
Improvements: Phase 1A , to Sierra Mountain Construction, Inc. , in the amount of $10,799,504 and with a contract duration of 852 consecutive calendar days.
On September 20, 2023, by Resolution No. 23-0155, this Commission approved an increase of $4,000,000 to the cost contingency, for a total cost contingency of up to $5,079,950, and a revised cost limit of up to $15,879,454, with no change to the contract duration.
Scope of Contract: The contract work locations are at Oakdale Portal and the Emery, Roselle, and Pelican Crossover Vaults in Stanislaus County, and at Tesla Portal in San Joaquin County.
The
scope of work includes the following:
• Tesla and Oakdale Portals
o Site grading, excavation, and shoring;
o Furnish and install SJPL 2 Removable Spool Piece (RSP) vault, thrust block, shear keys, and drainage systems at each location; and
o Replace a 12.5 -foot-long section of SJPL 2 with a RSP at each location.
• Tesla Valve House
o Replace existing 60 -inch butterfly valve, gearbox, and actuator with a new higher pressure- rated 60-inch diameter metal seated triple offset butterfly valve, gearbox, and actuator;
o Replace existing 24 -inch diameter gate valve with a new higher pressure-rated 24-inch gate valve, flanges, gear box, and actuator; o Replace existing SJPL 2 m ain concrete pipe support saddle; o Install new SJPL 2 bypass steel pipe support;
o Perform associated electrical work; and
o Perform software programming for operation of the new butterfly and bypass valves.
• Emery, Roselle, and Pelican Crossover Vaults
o At each location, replace existing 36- inch diameter butterfly valves on the crossover line between SJPL 2 and SJPL 3 with two modified higher pressure-rated 36-inch diameter knife gate valves; o At each location, replace existing 42 -inch diameter butterfly valves on the crossover line between SJPL 2 and SJPL 3 with two modified higher pressure-rated 42-inch diameter knife gate valves; o At each location, install new crossover steel pipe supports, platform framing, grating, and railing;
o Perform associated electrical work; and
o Perform software programming for operation of the new knife gate valves.
Modifications to the
Contract:
Modification No. 1-8: Staff issued Modification Nos. 1 -8, increasing the contract amount by $4,419,099, in accordance with Resolution No. 23-0155, to cover acceleration costs for the 2023 outage, pre-purchase of Phase 2 valves and actuators, and other changes that were necessary to complete the work Agenda Title: HH-1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A Commission Meeting Date: August 13, 2024
during the 2023-2024 outage, increasing the total contract amount to $15,218,603, with no change of contract duration.
Recom
mended Increase to Contract Cost Contingency: Staff recommends the Commission approve an increase of $300,000 to the cost contingency and 151 calendar days to the duration contingency due to longer lead time to procure additional 15 large diameter valves for Phase 2, perform more robust quality assurance inspections of the new valves, and to complete the work in the upcoming 2024-2025 outage, for a revised cost limit of up to $16,179,454, and a revised duration limit of 1088 calendar days.
Funding and Costs: Funding Source: Hetchy Capital Improvement Program , Project No. 10035575, SJPL Valve and Safe Entry Improvements
Or
iginal Contract Amount: $10,799,504
Original 10% Cost Contingency: $1,079,950
Approved Increase in Cost Contingency: $4,000,000
Recommended Additional Cost Contingency: $300,000
Total Revised Cost Limit: $16,179,454
Schedule: Notice-to-Proceed Date: May 16, 2022
Original Contract Duration: 852 consecutive calendar days Original 10% Duration Contingency: 85 calendar days
Approved Increase to Duration Contingency: N/A
Recommended Additional Duration Contingency: 151 calendar days Total Revised Duration Limit: 1088 consecutive calendar days Local Business
Enterprise
Participation and
Non-Discrimination
in Contracting:
The Contract Monitoring Division established an 8% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to 11.03% LBE participation with its bid submittal.
Attachment: 1. Site Location Map
Agenda Title: HH-1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A Commission Meeting Date: August 13, 2024
SITE LOCATION MAP – HH-1005 SAN JOAQUIN PIPELINE VALVE AND SAFE ENTRY IMPROVEMENTS - PHASE 1A
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WH
EREAS, The San Francisco Public Utilities Commission (SFPUC) owns and operates four San Joaquin Pipelines (SJPLs) that have been in service ranging from 12 to 92 years. SFPUC must enter the pipelines regularly to perform condition assessment, maintenance, and repair work.
A hydraulic study shows that a number of the existing valves in the SJPLs are under-rated for the surge pressure that could be triggered from an unplanned closure of the valves at the downstream Tesla Ultraviolet Treatment Facility. For safety reasons, the SFPUC initiated the capital project, San Joaquin Pipeline Valve and Safe Entry Improvements, to replace the under -rated valves; provide pipeline isolations for a safe personnel entry; and allow shutdown of any or all sections of the SJPLs without a complete system shutdown. SFPUC will implement the project in phases, specifically Phases 1A, 1B, 2A, 2, and 3; and
WHEREAS, On March 8, 2022, by Resolution No. 22-0047, the Commission awarded Contract No. HH-1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A , to Sierra Mountain Construction, Inc.; and
WHEREAS, The original contract amount was for $10,799,504 and the original contract duration was 852 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was on May 16, 2022; and WHEREAS, On September 20, 2023, by Resolution No. 23-0155, the Commission approved an increase of $4,000,000 to the cost contingency, for a total cost contingency of up to $5,079,950, and a revised cost limit of up to $15,879,454, with no change to the contract duration; and
WHEREAS, Modification Nos. 1- 8 increas ed the contract amount by $4,419,099, in accordance with Resolution No. 23-0155, for a total contract amount to $15,218,603, with no change of contract duration; and
WHEREAS, Staff recommends an increase of $ 300,000 to the cost contingency and an increase of 151 calendar days to the existing duration, due to longer lead time of the additional 15 large diameter valves for Phase 2, to perform more robust quality assurance inspections of the new valves, and to complete the work during the upcoming 2024-2025 outage; and WHEREAS, The Contract Monitoring D ivision established a Local Business Enterprise (LBE) subcontracting participation of 8% for this contract, and the contractor committed to
11.03% LBE participation with its bid submittal, and this amount remains unchanged; and WHEREAS, Funds are available from Hetchy Capital Improvement Program, Project No. 10035575, SJPL Valve and Safe Entry Improvements; now, therefore, be it RESOLVED, That this Commission hereby approves an increase of $ 300,000 to the existing cost contingency and an increase of 151 calendar days to the existing duration contingency, for Contract No. HH -1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1 A, for a total cost contingency of up to $5,379,950 and a total duration contingency of up to 236 consecutive calendar days, for a revised cost limit of $16,179,454 and a revised duration limit of 1088 calendar days.
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