DEPARTMENT
Infrastructure Division
AGENDA NO. 9
MEETING DATE
March 11, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Project Manager: Jimmy Leong
Award Contract No. HH-1016, San Joaquin Pipeline Valve and Safe Entry Improvements Phases 2B and 2C
Summary of Proposed
Commission Action:
Award Contract No. HH-1016, San Joaquin Pipeline Valve and Safe Entry Improvements Phases 2B and 2C, to the responsible bidder that submitted the lowest responsive bid, Ranger Pipelines Incorporated, in the amount of $50,296,818, and with a contract duration of 1,204 consecutive calendar days (approximately three years and four months), to replace inline valves and install removable spool pieces at crossover vaults (Emery, Roselle, and Pelican) and at the P4J T ie-in, to provide safe pipeline isolations for personnel entry into the pipelines.
Background: The San Francisco Public Utilities Commission (SFPUC) Water Enterprise 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 4 completed in 2012) consists of a 6.4- mile segment of pipe downstream of Oakdale a nd another 11 -mile segment upstream of Tesla Portal. The Pipelines deliver Hetch Hetchy water to the San Francisco Bay Area. The pipelines have been in service ranging from 13 to 93 years. SFPUC staff and contractors need to enter the pipelines 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 downstream Tesla Ultraviolet Treatment Facility. For safety reasons, the SFPUC initiated this capital project to increase the pressure rating of the valves, install an open- ended surge tower to avoid any system over -pressurization resulting from surge s and/or valve closures, 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 phases, specifically phases 1A, 1B, 2A, 2B and 2C, and 3. Contract No. HH -1016 is for the improvement Agenda Title: HH-1016, San Joaquin Pipeline Valve and Safe Entry Improvements Phases 2B and 2C Commission Meeting Date: March 11, 2025
work of Phases 2B and 2C, focusing on replacing inline valves and installing new removable spool pieces at the crossover vaults (Emery, Roselle, and Pelican) and at the tie-in location between San Joaquin Pipeline #3 and San Joaquin Pipeline #4.
Scope of Contract: The contract work locations are at Emery, Roselle, and Pelican crossover vaults.
The contract work consists of:
• Replacing three existing 60-inch and three existing 72-inch in-line butterfly valves with a new higher rated valves at Emery, Roselle, and Pelican crossover vaults.
• Installing twenty removable spool pieces and reinforced concrete vaults at the three crossover vaults and Pipeline No. 4 Tie-in. • Replacing two existing crossover valves with four new higher rated knife gate valves between Pipelines Nos. 3 and 4 at Pelican crossover.
• Performing structural, electrical, instrumentation & control, and other works associated with the new valves and removable spool pieces.
Funding and Costs: Funding Source: Hetchy Capital Improvement Program Project No. 10035575, San Joaquin Pipeline Valve and Safe Entry Improvements
Engineer’s Estimate: $57,000,000
Award Amount: $50,296,818
Schedule: Estimated Notice-to-Proceed Date: May 2025
Estimated End Date: August 2028
Duration: 1,204 consecutive calendar days (1,114 consecutive calendar days to Substantial Completion and an additional 90 consecutive calendar days to Final Completion)
Agenda Title: HH-1016, San Joaquin Pipeline Valve and Safe Entry Improvements Phases 2B and 2C Commission Meeting Date: March 11, 2025
Bid History:
Advertised: November 21, 2024
Bids Received: SFPUC received bids from five firms on January 16, 2025, as follows:
Bid Rank
Base Bid
Amount
Daily Rate for
Compensable
Delay
(21-day
Duration)
Local
Business
Enterprise
(LBE) Bid
Discount
SIP Bid
Discount
Adjusted
Bid
1. Ranger
Pipelines
Incorporated
$50,296,818 $2,400 N/A N/A $50,347,218
2. Mountain
Cascade, Inc. $53,616,009 $1,000 N/A N/A $53,637,009
3. Sierra
Mountain
Construction,
Inc./Obayashi
Joint Venture
$58,905,600 $1 N/A 4.00% $56,549,396
4. Anvil
builders, Inc. $60,591,550 $1,500 N/A 3.11% $58,737,673
5. Steve P.
Rados, Inc. $75,016,500 $13,000 N/A N/A $75,289,500
According to Contract Monitoring Division, none of the bidders are eligible for LBE bid discount.
Because the SFPUC anticipates that potential unforeseen conditions or other factors outside of the contractor’s control may impact the schedule, Staff included a requirement in the Invitation for Bids for bidders to provide a daily compensable time extension rate. At the bid opening, Staff announced that SFPUC would use the value of 21 days to calculate the Compensable Delay bid adjustment amount. Staff used the daily rate from the bids to determine the total Compensable Delay values shown in the table above by multiplying the bidder’s daily rate times 21. The Adjusted Bid value in the table above is the sum of the Base Bid and Compensable Delay less any applicable Social Impact Partnership (SIP)
Program bid discounts. Staff
used the Adjusted Bid value to compare and rank the bids to determine the lowest bidder. However, the contract award amount is the Base Bid value (not the Adjusted Bid value) and, if the Commission awards the contract, the bidder’s daily compensable delay rate will become a term of the contract.
Protest:
On January 31, 2025, the SFPUC received two protest letters from Sierra Mountain Construction, Inc. - Obayashi Joint Venture , protesting the bids submitted by Ranger Pipelines Incorporated and Mountain Cascade, Inc .
After review of the protest s, the Contract Administration Bureau , in consultation with the City Attorney and the Contract Monitoring Division, issued a determination letter denying the protests on February 19, 2025, and Agenda Title: HH-1016, San Joaquin Pipeline Valve and Safe Entry Improvements Phases 2B and 2C Commission Meeting Date: March 11, 2025
determined Ranger Pipelines Incorporated to be the responsible bidder that submitted the lowest responsive bid.
Environmental
Review:
On October 30, 2008, the San Francisco Planning Commission certified the Final Program Environmental Impact Report (Program EIR) (Case Number 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 Number 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) F
indings, including the
Statement of Overriding Considerations , and a Mitigation Monitoring and Reporting Program required by the 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 Contract No. HH-1016 , San Joaquin Pipeline Valve and Safe Entry Improvements Phases 2B and 2C is within the scope of the project authorized under the Final EIR and Minor Project Modification.
The 2008 Program EIR can be found here: link.
The Final EIR, Minor Project Modification to the Final EIR, Resolution No. 09-0119, CEQA Findings, and the Mitigation Monitoring and Reporting Program can be found here: link.
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division (CMD) established a 10% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to a 14.06% LBE subcontractor participation with its bid submittal.
Attachment(s): 1. CMD Memorandum
Agenda Title: HH-1016, San Joaquin Pipeline Valve and Safe Entry Improvements Phases 2B and 2C Commission Meeting Date: March 11, 2025
SITE LOCATION MAP
HH-1016 SAN JOAQUIN PIPELINE VALVE AND SAFE ENTRY IMPROVEMENTS PHASES 2B and 2C
Work will occur at Emery, Roselle, and Pelican Crossover Vaults; and P4J Tie-In 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 ranging from 13 to 93 years. The SFPUC must enter the pipelines regularly to perform condition assessment, maintenance, and repair work. A recent hydraulic study shows that several of the existing valves in the Pipelines may be under -rated in design pressure tolerance for pote ntial water system surge pressures that could be triggered by 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 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. Staff has been implementing the project in phases, specifically Phases 1A, 1B, 2A, 2B and 2C, and 3. Construction Contract No.
HH-1016 is for the improvement work of Phase s 2B and 2C , focusing on replacing the inline valves, and installing removable spool pieces at the crossover vaults (Emery, Roselle, and Pelican) and at the tie-in location between San Joaquin Pipeline #3 and San Joaquin Pipeline #4; and
WHEREAS, On November 21, 2024, SFPUC advertised Contract No. HH-1016, San Joaquin Pipeline Valve and Safe Entry Improvements Phases 2B and 2C; and
WHEREAS, The Engineer’s Estimate is $57,000,000 for this construction work focusing on replacing inline valves , and install ing removable spool pieces at crossover vaults ( Emery, Roselle, and Pelican) and Pipeline No. 4 Tie-in; and
WHEREAS, The contract duration is 1,204 consecutive calendar days; and
WHEREAS, On January 16, 2024, SFPUC received and publicly opened five bids; and
WHEREAS, SFPUC staff and Contract Monitoring Division (CMD) reviewed the bids and determined that Ranger Pipelines Incorporated is the responsible bidder with the lowest responsive bid; and
WHEREAS, CMD established a 10% Local Business Enterprise (LBE) subcontracting requirement for this contract, and Sierra Mountain committed to 14.06 % LBE subcontractor participation in its bid submittal; and
WHEREAS, On October 30, 2008, the San Francisco Planning Commission certified the Final Program Environmental Impact Report (Program EIR) (Case Number 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 Number 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, including the Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program required by the 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 Phase s 1A, 1B and 2
determining that no supplemental environmental
review was needed beyond the Minor Project Modification; and
WHEREAS, The work under Contract No. HH-1016, San Joaquin Pipeline Valve and Safe Entry Improvements Phases 2B and 2C 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, The 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 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, This Commission has reviewed and considered the information contained in the Final EIR, the CEQA Findings, 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, That this Commission has reviewed and considered the Final EIR and the Minor Project Modification and the record as a whole , finds that the Final EIR is adequate for its use as the decision –making body for the Project and incorporates the CEQA F indings by this reference thereto as though set forth in this Resolution; and be it
FURTHER RESOLVED, That t his Commission further finds that since the F inal EIR as modified by the Minor Project Modification was 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 awards Contract No. HH- 1016, San Joaquin Pipeline Valve and Safe Entry Improvements Phases 2B and 2C , in an amount of $50,296,818, and a duration of 1,204 consecutive calendar days , to the responsible bidder that submitted the lowest responsive bid, Ranger Pipelines Incorporated.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of March 11, 2025.
Director of Commission Affairs
San Francisco Public Utilities Commission
City & County of San Francisco
Daniel L. Lurie, Mayor
Office of the City Administrator
Carmen Chu, City Administrator
Contract Monitoring Division
Stephanie Tang, Director
1455 Market Street, Suite 16A, San Francisco, CA 94103 Telephone (415) 554-0630
MEMORANDUM
Date: February 10, 2025
To: Jimmy Leong, SFPUC
Erica Liang, SFPUC
From: Jason Chow, CMD
Subject: REVISION #1—CMD Review of Bids Submitted on 1/16/2025 for HH-1016 San Joaquin Pipeline Valve and Safe Entry Improvements: Phases 2B and 2C
Ranger Pipelines is the apparent low bidder.
The LBE bid discount is not applicable to this contract as the estimated contract value exceeds $20M.
Bidder
LBE Status,
Type and
Size
Base Bid
Daily Rate for
Compensable
Delay
Total Bid
SIP Bid
Discount
Adjusted Total
Bid
Ranger Pipelines Inc. Non-LBE $50,296,818.00 $2,400.00 $50,347,218.00 N/A $50,347,218.00 Mountain Cascade Non-LBE $53,616,009.00 $1,000.00 $53,637,009.00 N/A $53,637,009.00 Sierra
Mountain/Obayashi
JV
Non-LBE $58,905,600.00 $1.00 $58,905,621.00 4.00% $56,549,396.00 Anvil Builders Non-LBE $60,591,550.00 $1,500.00 $60,623,050.00 3.11% $58,737,673.00 Steve P. Rados, Inc. Non-LBE $75,016,500.00 $13,000.00 $75,289,500.00 N/A $75,289,500.00
Ranger Pipelines, Inc (“Ranger Pipelines”) satisfactorily demonstrated how they will meet the LBE subcontractor participation requirement.
A combination of SF Micro/Small-LBE and SFPUC LBE participation will count toward LBE subcontractor participation compliance. Ranger Pipeline’s commitment for this contract:
Requirement % Commitment %
Micro/Small LBE 10% 14.06%
In their bid, Ranger Pipelines listed the following subcontractors on this contract.
Supplier Name Scope of Work
LBE
LBE
Size
LBE
Percent
Percent
Of
Work
Amount
Alta Group, Inc.
Rebar SF-LBE Small 100%
2.31%
$1,161,500.00
LeFevre Wedling, Inc.
.
Welding
SFPUC-LBE Micro 100% 1.22% $614,770.44
Exaro Technologies
Corporation
Cathodic Protection
SFPUC-LBE Micro 100% 0.13% $63,075.00
R&W Concrete
Contractors, Inc.
Cast-In-Place
Concrete; Concrete
Backfill
SFPUC-LBE Micro 100% 9.05% $4,551,612.75
Crana Trucking, Inc.
Trucking & Hauling
of Equipment,
Shoring, Misc. Pipe
SF-LBE Micro 100% 1.35% $680,687.28
Con J Franke Electric, Inc.
Electrical
1.16%
$581,700.00
Murphy Industrial
Coatings, Inc.
Coating
0.19% $97,718.00
SFPUC utilizes SOLIS system. For SOLIS, the LBE credited percentages are listed below:
LBE Subcontractor LBE Status Listed Amount LBE Credited Participation Amount
LBE Credited
Participation
Percentage
Alta Group, Inc.
SF LBE-WBE
(Small)
$1,161,500.00
$1,161,500.00
2.31%
LeFevre Wedling, Inc. SFPUC LBE-OBE
(Micro)
$614,770.44
$614,770.44
1.22%
Exaro Technologies
Corporation
SFPUC LBE-MBE
(Micro)
$63,075.00
$63,075.00
0.13%
R&W Concrete
Contractors, Inc.
SFPUC LBE-MBE
(Micro)
$4,551,612.75
$4,551,612.75
9.05%
Crana Trucking, Inc.
SF LBE-OBE
(Micro)
$680,687.28
$680,687.28
1.35%
TOTAL $7,071,645.47 $7,071,645.47 14.06%
Ranger Pipelines satisfied the “Good Faith Efforts” requirement.
Ranger Pipelines utilized Approach A and exceeded the LBE subcontractor participation requirement by 35%.
CMD finds Range Pipelines is responsive to pre-award requirements of Chapter 14B. Once awarded, the contract will be monitored for compliance with the LBE subcontractor participation commitment, as well as other 14B requirements.
Primary CMD contact for the contract: Jason Chow, [email protected]
CMD must be contacted immediately for:
- Subcontractor addition/substitution;
- Contract modification that cumulatively increases the original contract value by 20%; - Prompt payment issues;
- Any other issues pertaining to LBE subcontractor participation
Noncompliance may result in penalties, including monetary fines. Please communicate with CMD early.
[JC]