DEPARTMENT
Infrastructure Division
AGENDA NO.
12 MEETING DATE
February 25, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Project Manager: Yolanda Quisao
Approve Increase to the Construction Duration Contingency for Contract No. WD-2845, Cathodic Protection for Transmission Pipelines at Various Locations, Phase 2
Summary of Proposed
Commission Action:
Approve an increase of 3 65 calendar days to the duration contingency for Contract No. WD -2845, Cathodic Protection for Transmission Pipelines at Various Locations, Phase 2, with EXARO Technologies Corporation, for a revised duration limit of 1,168 consecutive calendar days (approximately three years and three months), with no change to contract amount, to provide additional time to complete remaining contract work due to Pacific Gas and Electric Company delays in providing utility power service.
Background: The work performed through this contract is essential to address the San Francisco Public Utilities Commission ( SFPUC) Water Enterprise ’s asset management and preventive maintenance efforts to extend the useful lifetime of buried water facility assets and reduce unplanned outages.
A corrosion master plan was prepared to determine the adequacy of corrosion protection for existing water transmission pipelines in the Water Enterprise Regional Water System. The master plan identified corrosion potential and vulnerabilities from local ground conditions such as corrosive soil and stray electric current for 230 miles of transmission pipelines.
Improvement projects were prioritized from the master plan based on recommendations to repair inadequacies , provide improvements for optimum corrosion protection, and sequence appropriately within the Water Enterprise Capital Improvement Program. Locations were broken down into three phases. The scopes of work are similar for all three phases.
Phase 1 work is complete, which included 10 sites for the installation of cathodic protection test stations, rectifiers with 300-foot- deep anodes, and appropriate connections to transmission pipelines located in San Francisco, South San Francisco, San Bruno, and Millbrae.
Phase 2 construction work is in progress under Contract No. WD -2845, Agenda Title: WD-2845, Cathodic Protection for Transmission Pipelines at Various Locations, Phase 2 Commission Meeting Date: February 25, 2025
which includes 11 sites with locations in Fremont, Newark, Redwood City, Mountain View, Los Altos, Palo Alto, Stanford, and Menlo Park.
Phase 3 is currently in design and includes 19 sites with locations in San Francisco, South San Francisco, Daly City, Millbrae, Burlingame, Hillsborough, Sunol, Mountain View, and Menlo Park.
On October 24, 2022, by Resolution No. 22-0179, this Commission awarded Contract No. WD -2845, Cathodic Protection for Transmission Pipelines at Various Locations, Phase 2, to EXARO Technologies. The original contract amount was $3,274,441, and the original contract duration was 730 consecutive calendar days.
Scope of Contract: The contract work for this Phase 2 Contract No. WD -2845 consists of installation of cathodic protection systems, test stations , and 11 rectifiers with 300 feet deep anodes connected to the transmission pipelines located in Fremont, Newark, Redwood City, Mountain View, Los Altos, Palo Alto, Stanford, and Menlo Park.
Construction under Contract No. WD-2845 is ongoing and is approximately 90% complete as of the end of January 2025.
Modifications to the
Contract:
Modification No. 1: On February 20, 2024, Staff issued Modification No. 1, increasing the contract amount by $22,444.41, within the original contingency, for a revised contract amount of $3,296,886, with no change to the contract duration, to address additional drilling cost due to differing underground conditions at various cathodic protection sites.
Recommended Increase to Contract Duration Contingency : Staff recommends the Commission approve additional duration contingency of 365 calendar days, for a new duration limit of 1,168 consecutive calendar days (approximately three years and two months), with no change to the contract amount, to provide additional time to complete remaining contract work due to Pacific Gas and Electric Company (PG&E) delays in providing utility power service.
Funding and Costs: Funding Source: Water Enterprise, Project No. 10015071, Corrosion Control
Original Contract Amount: $3,274,441
Original 10% Cost Contingency: $327,444
Modified Increases to Contract Amount: $22,444.41
Remaining Contingency Amount: $304,999.59
Requested Additional Cost Contingency: $0
Total Cost Limit: $3,601,885
Agenda Title: WD-2845, Cathodic Protection for Transmission Pipelines at Various Locations, Phase 2 Commission Meeting Date: February 25, 2025
Schedule: Notice-to-Proceed Date: March 13, 2023
Original Contract Duration: 730 consecutive calendar days Original 10% Duration Contingency: 73 calendar days
Modified Increases to Contract Duration: 0 calendar days Remaining Duration Contingency: 73 calendar days
Requested Additional Duration Contingency: 365 calendar days Total Revised Duration Limit: 1,168 consecutive calendar days
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division established a 3% Local Business Enterprise (LBE) subcontracting requirement for this c ontract. The contractor committed to 4.71% LBE subcontractor participation with its bid submittal, and this amount remains unchanged.
Agenda Title: WD-2845, Cathodic Protection for Transmission Pipelines at Various Locations, Phase 2 Commission Meeting Date: February 25, 2025
SITE MAP
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) inspected and identified the sites with the highest potential for corrosion in the water transmission system and determined the existing pipelines in need of cathodic protection at various locations to be installed in three phases under three construction contracts; and
WHEREAS, On May 27, 2022, by Resolution No. 21- 0179, this Commission awarded Contract No. WD-2845, Cathodic Protection for Transmission Pipelines at Various Locations, Phase 2, to EXARO Technologies Corporation; and
WHEREAS, The original c ontract amount was for $3,274,441 and the original c ontract duration was 730 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was March 13, 2023; and
WHEREAS, On February 20, 2024, staff issued Modification No. 1, increasing the contract amount by $22,441.41, within the original contingency, to allow staff to process change orders for contractor to perform additional drilling due to differing underground conditions at various cathodic protection sites, for a revised contract amount of $3,296,886, with no change to the contract duration; and
WHEREAS, Staff recommends approval of an increase of 3 65 calendar days to the duration contingency, for a new contract duration limit of 1, 168 consecutive calendar days (approximately three years and three months), with no change to the contract amount, to provide additional time to complete remaining contract work due to P acific Gas and E lectric Company delays in providing utility power service; and
WHEREAS, Contract Monitoring Division established a 3% Local Business Enterprise (LBE) subcontracting participation requirement for this contract, and the contractor committed to
4.71% LBE subcontractor participation with its bid submittal, and this remains unchanged; and
WHEREAS, Funds are available from Water Enterprise, Project No. 10015071 – Corrosion Control; now, therefore, be it
RESOLVED, That this Commission hereby approves an increase of 365 calendar days to the existing duration contingency for Contract No. WD -2845, Cathodic Protection for Transmission Pipelines at Various Locations, Phase 2, with EXARO Technologies Corporation, for a total duration contingency of up to 438 calendar days and a revised duration limit of 1,168 consecutive calendar days, with no change to the contract amount.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of February 25, 2025.
Director of Commission Affairs
San Francisco Public Utilities Commission