DEPARTMENT
Infrastructure Division
AGENDA NO.
16 MEETING DATE
February 11, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Contract/Project Manager: Ryan Freeborn
Approve Increase to Duration Contingenc y for Contract No. WD-2717, College Hill Reservoir Outlet Structure and Pipeline
Summary of Proposed
Commission Action:
Approve an increase of 560 calendar days to the duration contingency for Contract No. WD-2717, College Hill Reservoir Outlet Structure and Pipeline, with Ranger Pipelines Incorporated, for a revised duration limit of up to 1,660 consecutive calendar days (approximately four years and seven months), with no change to the contract amount, due to delays associated with Pacific Gas and Electric Company, r equiring a change during the construction contract from wholesale electric rate tariff to retail rate tariff for the site, resulting in the need for a revised permanent power service application, subsequently causing delays in fabricating and installing electrical panels, and delays to startup, testing, and site energization.
Additional contingency is also requested for fabrication and installation of a Pacific Gas and Electric Company meter-pedestal prior to site energization.
Background: The San Francisco Public Utilities Commission (SFPUC) is currently implementing a phased program to improve the reliability of the water distribution system from College Hill Reservoir to San Francisco General Hospital to withstand a major seismic event. This project addresses essential seismic improvements within the reservoir and reservoir inlet and outlet pipelines.
On June 8, 2021, by Resolution No. 21- 0093, this Commission awarded Contract No. WD-2717, College Hill Reservoir Outlet Structure and Pipeline to Ranger Pipelines Incorporated , in the amount of $12,180,497 and for a duration of 755 consecutive calendar days.
On March 28, 2023, by Resolution No. 23- 0062, the Commission approved an increase of $6,550,000 to the existing cost contingency and an increase of 270 calendar days to the existing duration contingency, for a total contract amount of up to $19,948,546 and a total contract duration of up to 1,100 consecutive calendar days.
Agenda Title: WD-2717, College Hill Reservoir Outlet Structure and Pipeline Commission Meeting Date: February 11, 2025
Scope of Contract: The contract work location is in San Francisco's Bernal Heights district, and the contract work consists of:
• Installation of a new control valve vault;
• Replacement of reservoir inlet and outlet piping;
• Replacement of the first section of transmission pipelines for the College Hill system up to Cortland Avenue; and
• Miscellaneous piping, security, site access, electrical, instrumentation, and water quality improvements.
Modifications to the
Contract:
Modification Nos. 1 to 2: Staff issued Modification Nos. 1 and 2, increasing the contract amount by $305,761, within the original cost contingency, to perform additional potholing, support needed shutdown of water transmission pipelines, acceleration costs for welded steel pipe fabrication related to resequencing of work scope, concrete valve vault elevation changes, removal of additional trees within the work scope area, third- party baseline survey/inspection of adjacent residences prior to work start, network switch equipment revisions, and 16-
inch welded steel pipe outlet pipe
revisions, for a total contract amount of $12,486,258, with no change to the contract duration.
Modification Nos. 3 through 8: Staff issued Modification Nos. 3 through 8, in accordance with Resolution No. 23-0062, increasing the contract amount by $6,233,968 and increasing the contract duration by 240 calendar days, for work associated with replacing the existing wooden substructure of the roof of College Hill Reservoir and associated plywood sheathing; additional work and materials associated with utility conflicts; and additional costs associated with roofing material price escalation
, for a total contract amount of
$18,720,226 and a total contract duration of 995 days.
Recommended Increase to Contract Duration Contingency : Staff recommends Commission authorization to approve an increase to the duration contingency of 560 calendar days for additional time necessary to address Pacific Gas and Electric Company’s (PG&E) delays, including to procure and install a PG &E meter pedestal; complete installation of permanent power by PG&E; perform startup and testing; and reservoir filling and water quality testing , with no change to the contract amount, for a new duration limit of up to 1,660 consecutive calendar days.
Funding and Costs: Funding Source: Project No. 100015223 , College Hill Reservoir Outlet Structure and Pipeline
Original Contract Amount: $12,180,497
Original 10% Cost Contingency: $1,218,049
Agenda Title: WD-2717, College Hill Reservoir Outlet Structure and Pipeline Commission Meeting Date: February 11, 2025
Approved Increase in Cost Contingency: $6,550,000
Total Revised Contract Cost Limit: $19,948,546
Schedule: Notice-to-Proceed Date: September 27, 2021
Original Contract Duration: 755 Consecutive calendar days Original 10% Duration Contingency: 75 calendar days
Approved Increase to Duration Contingency: 270 calendar days Remaining Duration Contingency: 105 calendar days
Requested Additional Duration Contingency: 560 calendar days Total Revised -Duration Limit: 1,660 consecutive calendar days
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division established a 20% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to a 22.49% LBE subcontractor participation with its bid submittal, and this amount remains unchanged.
Agenda Title: WD-2717, College Hill Reservoir Outlet Structure and Pipeline Commission Meeting Date: February 11, 2025
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) is constructing seismic improvements within the College Hill Reservoir and reservoir inlet and outlet in order to improve the reliability of the water distribution system from College Hill Reservoir to San Francisco General Hospital to withstand a major seismic event; and
WHEREAS, On June 8, 2021, by Resolution No. 21- 0093, the Commission awarded Contract No. WD-2717, College Hill Reservoir Outlet Structure and Pipeline, to Ranger Pipelines Incorporated, in the amount of $12,180,497 and for a duration of 755 consecutive calendar days; and
WHEREAS, The date of the construction contract Notice -to-Proceed was September 27, 2021; and
WHEREAS, Modification Nos. 1 and 2 to Contract No. WD-2717 increased the contract amount by $305,761, to perform additional potholing, support needed shutdown of water transmission pipelines, acceleration costs for welded steel pipe fabrication related to resequencing of work scope, concrete valve vault elevation changes, removal of additional trees within the work scope area, third party baseline survey/inspection of adjacent residences prior to work start, network switch equipment revisions, and 16-inch welded steel pipe outlet pipe revisions, for a total contract amount of $12,486,258, with no change to the contract duration, and within the original contract cost contingency; and
WHEREAS, After the start of work on the College Hill Reservoir seismic improvements project, the contractor drained the reservoir and discovered more significant and previously unknown damage to the wooden substructure of the roof of the reservoir and associated plywood sheathing, requiring entire replacement rather than the previously anticipated partial repair; and
WHEREAS, On March 28, 2023, by Resolution No. 23- 0062, the Commission approved an increase of $6,550,000 to the existing cost contingency and an increase of 270 calendar days to the existing duration contingency, for a total contract amount of up to $19,948,546 and a total contract duration of up to 1,100 consecutive calendar days; and
WHEREAS, Modification Nos. 3 through 8, in accordance with Resolution No. 23- 0062, increased the contract amount by $6,233,968 and increased the contract duration by 240 calendar days, for work associated with replacing the existing wooden substructure of the roof of College Hill Reservoir and associated plywood sheathing; additional work and materials associated with utility conflicts; and additional costs associated with roofing material price escalatio n, for a total contract amount of $18,720,226 and a total contract duration of 995 days; and
WHEREAS, Staff recommends an increase of 560 calendar days to the existing duration contingency, for additional time to procure and install a Pacific Gas and Electric ( PG&E) meter pedestal; complete installation of permanent power by PG &E; perform startup and testing; and reservoir filling and water quality testing, with no change to the contract amount, for a new contract duration limit of 1,660 consecutive calendar days; and
WHEREAS, The Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 20% for this contract, the contractor committed to an LBE subcontractor participation of 22.49% with its bid submittal, and this remains unchanged; and
WHEREAS, Funds are available from Project No. 100015223, College Hill Reservoir Outlet Structure and Pipeline; now, therefore, be it
RESOLVED, That this Commission hereby approves an increase of 560 calendar days to the existing duration contingency for Contract No. WD -2717, College Hill Reservoir Outlet Structure and Pipeline , for a total duration contingency of up to 905 consecutive calendar days, and a new contract duration limit 1,660 consecutive calendar days , with no change to the total contract amount.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of February 11, 2025.
Director of Commission Affairs
San Francisco Public Utilities Commission