DEPARTMENT
Infrastructure Division
AGENDA NO.
12 MEETING DATE
January 14, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Project Manager: Jimmy Leong
Approve Increases in Cost and Duration Contingencies for Contract No. HH-1012, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 2A
Summary of Proposed
Commission Action:
Approve increases of $2,300,000 to the cost contingency and 205 calendar days to the duration contingency for Contract No. HH- 1012, San Joaquin Pipeline Valve and Safe Entry Improvement s Phase 2A , with Sierra Mountain Construction Inc., for a revised cost limit of $8,462,200 and a revised duration limit of 668 consecutive calendar days (approximately one year and 10 months ), to allow for the pre-purchase, quality assurance, and lead time of seven large diameter valves and actuators for Phase 2B work, which will take place under another contract during the upcoming 2025- 2026 planned system outage.
Background: The San Francisco Public Utilities Commission ’s (SFPUC) San Joaquin Pipeline (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 east of Foothill Tunnel at Oakdale Portal to the west of Coast Range Tunnel at Tesla Portal, a distance of approximately 48 miles. A fourth partial pipeline (Pipeline No. 4, completed in 2012) consists of a 6.4-mile segment of pipe downstream of Oakdale and another 11- mile segment upstream of Tesla Portal. The Pipelines deliver Hetch Hetchy water to the San Francisco Bay Area. The P ipelines have been in service for a duration ranging from 12 to 92 years. SFPUC staff members and contractors need to enter the P
ipelines regularly to perform condition assessment,
maintenance, and repair work.
A recent hydraulic study shows that several of the existing valves in the San Joaquin Pipelines may be under -rated in design pressure tolerance for the potential water system surge pressure that could be triggered from an unplanned closure of the valves at the SFPUC’s downstream Tesla Treatment Facility. For safety reasons, the SFPUC initiated the San Joaquin Pipeline Valve and Safe Entry Improvement Project (Project) to increase the pressure rating of the valves; install an open-ended surge tower to avoid any system over -pressurization resulting from surges and/or valve closures ; Agenda Title: HH-1012, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 2A Commission Meeting Date: January 14, 2025
provide safe pipeline isolations for personnel entry into the Pipelines ; and allow shutdown of any section of the Pipelines without a complete system shutdown.
Staff has been implementing the Project in multiple phases, specifically phases 1A, 1B, 2A, 2B&C, and 3. Contract No. HH -1012 is for the improvement work of Phase 2A, to replace the crossover and inline valves associated with San Joaquin Pipeli ne No. 1 at the Emery, Roselle, and Pelican crossover vaults.
On February 27, 2024, by Resolution No. 24- 0036, this Commission awarded Contract No. HH-1012, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 2A , to Sierra Mountain Construction Inc., in the amount of $5,602,000 and for a duration of 421 consecutive calendar days.
Scope of Contract: The Contract work locations are at the Emery, Roselle, and Pelican crossover vaults in Stanislaus County.
The Contract work consists of:
• Replacing an existing 60-inch butterfly valve with a new higher rated City-furnished 60-inch butterfly valve at each crossover vault. • Replacing an existing single crossover valve with two new higher rated City-furnished knife gate valves in each crossover pipe. • Performing structural, electrical, instrumentation and control, and other works associated with the new valves.
Modifications to the
Contract:
Recommended Increase s to Cost and Duration Contingenc ies: Staff recommends that the Commission approve (1) an increase of $2,300,000 to the existing cost contingency, for a revised cost limit of $8,462,200, and (2) an increase of 205 calendar days to the existing duration contingency, for a revised duration limit of 668 consecutive calendar days (approximately one year and 10 months), to allow for the pre -purchase, quality assurance, and lead time of seven large diameter valves and actuators for Phase 2B work , which will take place under another contract during the upcoming 2025- 2026 planned system outage.
Funding and Costs: Funding Source: Hetchy Capital Improvement Program Project No. 10035575, San Joaquin Pipeline Valve and Safe Entry Improvements
Original Contract Amount: $5,602,000
Original 10% Cost Contingency: $560,200
Requested Additional Cost Contingency: $2,300,000
Total Revised Contract Cost Limit: $8,462,200
Schedule: Notice-to-Proceed Date: May 13, 2024
Agenda Title: HH-1012, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 2A Commission Meeting Date: January 14, 2025
Original Contract Duration: 421 consecutive calendar days Original 10% Duration Contingency: 42 calendar days
Requested Additional Duration Contingency: 205 calendar days Total Revised Contract Duration Limit: 668 consecutive calendar days
Environmental
Review:
On October 30, 2008, the San Francisco Planning Commission certified the Final Program Environmental Impact Report (Program EIR) (Case No. 2005.0159E) for the Water System Improvement Program.
On July 9, 2009, the San Francisco Planning Commission certified the Final Environmental Impact Report (Final EIR) for the San Joaquin Pipeline System Project (Case No. 2007.0118E), which is tiered from the 2008 Program EIR . On July 14, 2009, by Resolution No. 09- 0119, this Commission approved the San Joaquin Pipeline System Project and adopted California Environmental Quality Act (CEQA) findings (CEQA Findings), including the Statement of Overriding Considerations and a Mitigation Monitoring and Reporting Program required by CEQA.
On January 27, 2022, the San Francisco Planning Department issued a Minor Project Modificatio n to the Final EIR, determining that no supplemental environmental review was needed beyond the Minor Project Modification, to include work associated with the San Joaquin Valve and Safe Entry Improvements Phases 1A, 1B, and 2.
The work under the proposed modifications to Contract No. HH -1012, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 2A , is within the scope of the project authorized under the Final EIR and Minor Project Modification.
The Program EIR, CEQA findings , and Mitigation Monitoring and Reporting Program can be found at the following link :
https://sfpuc.sharefile.com/public/share/web-
sc700700e116449f881c511c8079aaa3e
The Final San Joaquin Pipeline System Project EIR, Minor Project Modification to the Final EIR, Resolution No. 09-0119, CEQA Findings, and the Mitigation Monitoring and Reporting Program can be found at the following link: https://sfpuc.sharefile.com/d-
s6d1e909a956141eab188fde5eef920f5
Local Business
Enterprise Utilization
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 an 8.57% LBE subcontractor participation with its bid submittal and this amount remains unchanged.
Agenda Title: HH-1012, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 2A Commission Meeting Date: January 14, 2025
HH-1012 SAN JOAQUIN PIPELINE VALVE AND SAFE ENTRY IMPROVEMENTS PHASE 2A
Work will occur at Emery, Roselle, and Pelican Crossover Vaults Project Locations in the map below (circled)
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) owns and operates four San Joaquin Pipelines (Pipelines) that have been in service for durations ranging from 12 to 92 years , and t he SFPUC must enter the pipelines regularly to perform condition assessment, maintenance, and repair work; and
WHEREAS, A recent hydraulic study shows that several of the existing valves in the Pipelines may be under -rated in design pressure tolerance for potential water system surge pressures that could be triggered by an unplanned closure of the valves at the downstream Tesla Treatment Facility; and
WHEREAS, For safety reasons, the SFPUC initiated the San Joaquin Pipeline Valve and Safe Entry Improvements Project (Project), to increase the pressure rating of the valves; install an open-ended surge tower to avoid any system over -pressurization resulting from surges and/or valve closures; provide safe Pipeline isolations for personnel entry ; and allow shutdown of any sections of the Pipelines without a complete system shutdown; and
WHEREAS, SFPUC staff has been implementing the Project in phases, specifically Phases 1A, 1B, 2A, 2B&C, and 3, and c onstruction Contract No. HH-1012, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 2A, is for the improvement work of Phase 2A, to replace the crossover and inline valves associated with San Joaquin Pipeline No. 1 at the Emery, Roselle, and Pelican crossover vaults; and
WHEREAS, On February 27, 2024, by Resolution No. 24-0036, this Commission awarded Contract No. HH-1012, San Joaquin Pipeline Valve and Safe Entry Improvement s Phase 2A, to Sierra Mountain Construction Inc.; and
WHEREAS, The original contract amount was for $5,602,000 and the original contract duration was 421 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was May 13, 2024; and
WHEREAS, Staff recommends (1) an increase of $2,300,000 to the existing cost contingency, for a revised cost limit of $8,462,200, and (2) an increase of 205 calendar days to the existing duration contingency, for a revised duration limit of 668 consecutive calendar days (approximately one year and 10 months), to allow for the pre-purchase, quality assurance, and lead time of seven large diameter valves and actuators for Phase 2B work, which will take place under another contract during the upcoming 2025-2026 planned system outage; and
WHEREAS, The Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 8% for this contract, the contractor committed to a n LBE subcontractor participation of 8.57% with its bid submittal, and this amount remains unchanged; and
WHEREAS, On October 30, 2008, the San Francisco Planning Commission certified the Final Program Environmental Impact Report (Program EIR) (Case No. 2005.0159E) for the Water System Improvement Program; and
WHEREAS, On July 9, 2009, the San Francisco Planning Commission certified the Final Environmental Impact Report (Final EIR) for the San Joaquin Pipeline System Project (Case No. 2007.0118E), which is tiered from the 2008 Program EIR; and
WHEREAS, On July 14, 2009, by Resolution No. 09-0119, this Commission approved the San Joaquin Pipeline System Project and adopted California Environmental Quality Act (CEQA) findings (CEQA Findings), including the Statement of Overriding Considerations and a Mitigation Monitoring and Reporting Program required by CEQA; and
WHEREAS, On January 27, 2022, the San Francisco Planning Department issued a Minor Project Modification to the Final EIR to include work associated with the San Joaquin Valve and Safe Entry Improvements Phases 1A, 1B, and 2,
determining that no supplemental environmental
review was needed beyond the Minor Project Modification; and
WHEREAS, The work under the proposed modifications to Contract No. HH-1012, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 2A, is within the scope of the project authorized under the Final EIR and Minor Project Modification; and
WHEREAS, The San Francisco Planning Department is the custodian of records, located in File No. 2007.0118E, at 49 South Van Ness Avenue, Suite 1400, San Francisco, California 94103, which have been made available for review by this Commission and the public, and those files are part of the record before this Commission; and
WHEREAS, Staff has made t he Project files, including the Final EIR , Minor Project Modification to the Final EIR , Resolution No. 09- 0119, CEQA Findings and the Mitigation Monitoring and Reporting Program available for review by this Commission and the public, and those files are part of the record before this Commission; and
WHEREAS, This Commission has reviewed and considered the information contained in the Final EIR , the CEQA F indings, SFPUC Resolution No. 09-0119, the Minor Project Modification to the Final EIR , and all written and oral information provided by the Planning Department, the public, relevant public agencies, SFPUC and other experts, and the administrative files for the Project; and
WHEREAS, Funds are available from Project No. 10035575, San Joaquin Pipeline Valve and Safe Entry Improvements; now, therefore, be it
RESOLVED, This Commission has reviewed and considered the Final EIR , the Minor Project Modification, and the record as a whole, and it finds that the Final EIR is adequate for its use as the decision –making body for the Project and incorporates the CEQA findings by this reference thereto as though set forth in this Resolution; and be it
FURTHER RESOLVED, This Commission further finds that since the F inal EIR as modified by the Minor Project Modification were finalized, there have been no substantial Project changes and no substantial changes in Project circumstances that would require major revisions to them due to the involvement of new significant environmental effects or an increase in the severity of previously identified significant impacts, and there is no new information of substantial importance that would change the conclusions set forth in them; and be it
FURTHER RESOLVED, That this Commission hereby a pproves an increase of $2,300,000 to the existing cost contingency and an increase of 205 calendar days to the existing duration contingency, for Contract No. HH-1012, San Joaquin Pipeline Valve and Safe Entry Improvements Phase 2A, for a total contract cost limit of $8,462,200, and a total contract duration limit of 668 consecutive calendar days (approximately one year and 10 months).
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of January 14, 2025.
Director of Commission Affairs
San Francisco Public Utilities Commission