DEPARTMENT
Infrastructure Division
AGENDA NO.
11 MEETING DATE
March 25, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Contract Manager: K. Khine Oo
Approve Amendment No. 1 to Contract No. PRO.0182, Electrical Engineering Services for the Hetch Hetchy Region
Summary of Proposed
Commission Action:
Approve Amendment No. 1 to Contract No. PRO.0182, Electrical Engineering Services for the Hetch Hetchy Region, with AECOM Technical Services , Inc., increasing the contract amount by $2,800,000, and extending the contract duration by one year, to continue providing engineering design and support services for electrical engineering planning, design, and engineering support during construction services for the San Francisco Public Utilities Commission Hetch Hetchy Capital Improvement Programs for switchyards, substations, powerhouses, and other related facilities associated with the Hetch Hetchy system, for a total not -to-exceed contract amount of $8,800,000 and a total contract duration of nine years.
Background: The San Francisco Public Utilities Commission (SFPUC) operates multiple electrical generation and transmission facilities within the Hetch Hetchy water and hydropower system. Eighty-five percent of the SFPUC water supply travels through large transmission pipelines to generate annually about 1,650 gigawatt hours of clean hydroelectric power , via four powerhouses, one switchyard, and three substations.
The SFPUC has identified the need to upgrade aging electrical generation and transmission facilities in the Hetch Hetchy Region.
The SFPUC’s approved 10- Year Capital Improvement Program includes projects to perform rehabilitation of these facilities, including the Moccasin Powerhouse Rehabilitation, Warnerville Substation Rehabilitation Phase 2, Moccasin Switchyard
Rehabilitation, and other related facilities improvement projects.
On September 28, 2021, by Resolution No. 21- 0146, this Commission awarded Contract No. PRO.0182, Electrical
Engineering Services for the Hetch Hetchy Region, to AECOM Technical Services, Inc. , in an amount not-to-exceed $ 6,000,000, and with a duration of eight years, to provide electrical engineering planning, design, and engineering support during construction services for the Water Enterprise and Hetch Hetchy Capital Agenda Title: PRO.0182, Electrical Engineering Services for the Hetch Hetchy Region Commission Meeting Date: March 25, 2025
Improvement Programs for switchyards, substations, powerhouses, and other related facilities associated with the Hetch Hetchy system.
The original contract value was based on preliminary project scopes and budgets that were approved in 2020. Since that time, the needs- assessment work performed under this contract helped better define project scopes , and the SFPUC has subsequently and significantly increased the project budgets to reflect the more detailed needs. This has resulted in the need to increase this design support contract.
The requested increase in the contract amount is also to provide engineering planning, design, and engineering support services during construction and technology transfer and training support for Hetch Hetchy staff to successfully
operate the upgraded facilities.
An additional one year of contract support is proposed to assure the support services extend through the end of the construction duration.
Table 1 summarizes the proposed contract increases.
Scope of Contract: The work under this contract consists of:
• High voltage (≥115 kV) and medium voltage (≥600 V and < 115kV) electrical engineering planning, detailed design, and engineering support during construction services;
• Protective relay studies, such as demand load studies, short circuit studies, and arc flash studies;
• Condition and corrosion assessments;
• Electrical, m echanical, structural, civil, fire protection, and architectural design for new equipment installation or
upgrades/rehabilitation to existing equipment and facilities; • Utility location and potholing;
• Geotechnical investigations, testing, laboratory work, and borings; and,
• Surveying and mapping.
Amendments to the
Contract:
Recommended Amendment No. 1: Staff recommends Commission approval of Amendment No. 1 to increase the contract amount by $2,800,000, and extend the contract duration by one year, in order to continue providing electrical engineering planning, design, and engineering support during construction services for the Water Enterprise and Hetch Hetchy Capital Improvement Programs for switchyards, substations, powerhouses, and other related facilities associated with the Hetch Hetchy system, for a total not-to-exceed agreement amount of $8,800,000, and a total agreement duration of nine years.
Budget & Costs: Funding Source: Funds will be available at the time of individual task order awards from the funds of individual projects within the Agenda Title: PRO.0182, Electrical Engineering Services for the Hetch Hetchy Region Commission Meeting Date: March 25, 2025
Hetch Hetchy Capital Improvement Program.
Original Not-To-Exceed Amount: $6,000,000
Proposed Amendment No. 1 Amount: $2,800,000
Total Not-To-Exceed Amount: $8,800,000
Schedule: Original Duration: Eight years
Proposed Amendment No. 1 Duration: One year
Total Not-to-Exceed Duration: Nine years
Environmental
Review:
Amendment of this professional services agreement does not fall within the definition of a “project” under the California Environmental Quality Act ( CEQA) Guidelines section 15378 because work under the agreement will consist of engineering design and support services only, and no e ngineering support during construction and c loseout services will be initiated under this contract until CEQA review is complete and until this Commission has reviewed and considered the CEQA determination and has approved any proposed project. Staff will not approve any work involving ground disturbance or any other physical changes to the environment under this contract until the proposed work is reviewed and any appropriate environmental review under the CEQA, if required, has been completed.
Amendment of this professional services agreement is not an approval of any proposed project and SFPUC retains discretion to, among other things, modify proposed projects to mitigate significant environmental impacts, require the i
mplementation of specific
measures to mitigate any significant environmental impacts of the projects, or reject the project, following completion of environmental review.
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division (CMD) established a 4% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor originally committed to a 5.4% LBE subcontractor participation with its bid submittal. Because all the proposed amendment work is related to specialized work for which there are a lack of sufficient LBE firms to perform, CMD has agreed to a revised 4.03% LBE subcontractor participation.
Attachment: CMD Memorandum
Agenda Title: PRO.0182, Electrical Engineering Services for the Hetch Hetchy Region Commission Meeting Date: March 25, 2025
Project Name Current Budget Proposed Budget
Design 300,000$
ESDC* 50,000$
Warnerville Substation Rehabilitation Phase 2 1,780,000$ 1,780,000$ Planning 400,000$
Design 1,500,000$
ESDC* 500,000$
Technology Transfer -$ Planning 50,000$ 50,000$ TOTAL 6,000,000$ 2,800,000$ 8,800,000$ *ESDC - Engineering Services During Construction
Proposed Amendment 1
Modifications
n/a
3,230,000$
Moccasin Powerhouse Rehabilitation 3,390,000$
Moccasin Switchyard Rehabilitation 830,000$
3,740,000$
Table 1: PRO.0182 Amendment No. 1 Summary
Figure 1: Hetch Hetchy System Map
Warnerville Substation
Rehabilitation – Phase 2
Moccasin Powerhouse Rehabilitation and
Moccasin Swichyard Rehabilitation
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) requires planning, design, and engineering support services for electrical engineering projects in the Hetch Hetchy Region, to provide electrical engineering planning, design, and engineering support during construction for the Hetch Hetchy Capital Improvement Programs for switchyards, substations, powerhouses, and other related facilities within the Hetch Hetchy system; and
WHEREAS, On September 28, 2021, by Resolution No. 21- 0146, this Commission awarded Contract No. PRO.0182, Electrical Engineering Services for the Hetch Hetchy Region, to AECOM Technical Services , Inc., for an amount not-to-exceed $ 6,000,000, and with a duration of eight years; and
WHEREAS, Staff recommends that this Commission approve Amendment No. 1 to Contract No. PRO.0182, Electrical Engineering Services for the Hetch Hetchy Region, to increase the contract amount by $2,800,000, and extend the contract duration by one year, to continue providing electrical engineering planning, design, and engineering support during construction services for the Water Enterprise and Hetch Hetchy Capital Improvement Programs, for switchyards, substations, powerhouses, and other related facilities associated with the Hetch Hetchy system, for a total not- to-exceed contract amount of $8,800,000 and a total contract duration not-to-exceed nine years; and
WHEREAS, The Contract Monitoring Division (CMD) established a 4% Local Business Enterprise (LBE) subcontracting requirement for this contract, and although AECOM Technical Services, Inc., originally committed to an LBE subcontractor participation of 5.4% with its bid submittal, because all proposed amendment work is related to specialized work for which there are a lack of sufficient LBE firms to perform, CMD has agreed to a revised 4.03% LBE subcontractor participation; and
WHEREAS, Amendment of this professional services agreement does not fall within the definition of a “project” under the California Environmental Quality Act (CEQA) Guidelines section 15378 because work under the agreement will consist of engineering design and support services only, and no engineering support during construction and closeout services will be initiated under this contract until CEQA review is complete and until this Commission has reviewed and considered the CEQA determination and has approved any proposed project, and Staff will not approve any work involving ground disturbance or any other physical changes to the environment under this contract until the proposed work is reviewed and any appropriate environmental review under the CEQA, if required, has been completed; and
WHEREAS, Amendment of this professional services agreement is not an approval of any proposed project and SFPUC retains discretion to, among other things, modify proposed projects to mitigate significant environmental impacts, require the implementation of specific
measures to mitigate any significant environmental impacts of the projects, or reject the project, following completion of environmental review; and
WHEREAS, Funds for Amendment No. 1 are available at the time of individual task order awards from the funds of individual projects within the Hetch Hetchy Capital Improvement Program; and now, therefore, be it
RESOLVED, That this Commission hereby approves Amendment No. 1 to Contract No.
PRO.0182, Electrical Engineering Services for the Hetch Hetchy Region, with AECOM Technical Services , Inc., increasing the contract amount by $2,800,000, and extending the contract duration by one year, for a total not-to-exceed contract amount of $8,800,000 and a total contract duration of nine years.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of March 25, 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, 16A Suite, San Francisco, CA 94103
Telephone (415) (415) 554-0630 General Email [email protected]
Date: February 27, 2025
To: Khine Oo, SFPUC
From: Jason Chow, CMD
Subject: CMD Amendment #1 Review for PRO.0182 Electrical Engineering Services for the Hetch Hetchy Region
SFPUC has requested to modify the above referenced contract by $2,800,000.00 for a total contract agreement amount of not -to-exceed $8,800,000.0 and increase the contract duration by one year for a new total contract duration of nine years. This request is to continue to provide engineering design and support services for electrical engineering planning, design, and engineering support during construction services for the Water Enterprise and Hetch Hetchy Capital Improvement Programs for switchyards, substations, powerhouses, and other related facilities associated with Hetch Hetchy.
The LBE subcontracting participation requirement established for this contract is 4%. The LBE subcontracting participation requirement applies to the entire contract including any modifications, change orders and amendments.
The LBE participation reflected on the Prime subconsultant, AECOM Technical Services, Inc. (“AECOM”), CMD’s Form 2A at the time of proposal is as follows:
Subcontractor Scope of Work LBE Status, Type
and Size Credited Participation
AAES, Inc. Electrical Engineering SF LBE-MBE (Micro)
2.40%
Construction
Management West, Inc. Cost Estimating SF LBE-MBE (Micro)
1.00%
EXARO Technologies
Corporation Underground Utility Location
PUC LBE-MBE
(Micro)
1.00%
Meridian Surveying
Engineering Surveying SF LBE-OBE (Small)
1.00%
TOTAL 5.40%
As of February 25, 2025, the LBE participation achieved by AECOM is as follows:
Subconsultant Scope of Work LBE Status,
Type and Size
Credited
Participation
LBE Participation To-Date—NOT
including Modification No. 1
($3,223,998.66 invoiced)
AAES, Inc. Electrical Engineering
SF LBE-MBE
(Micro)
2.40%
$0.00
0.00%
Construction
Management
West, Inc. Cost Estimating
SF LBE-MBE
(Micro)
1.00%
$0.00
0.00%
EXARO
Technologies
Corporation
Underground Utility
Location
PUC LBE-MBE
(Micro)
1.00%
$0.00
0.00%
Meridian
Surveying
Engineering Surveying
SF LBE-OBE
(Small)
1.00%
$0.00
0.00%
TOTAL 5.40% $0.00 0.00%
As referenced in the table above, there has been no LBE participation to -date. Upon CMD’s review of the information AECOM had provided, CMD, then followed -up with AECOM to better understand its current situation. Upon clarification, AECOM provided the following information/plan for each of the listed affected LBE firms.
AAES:
• LV field work required for construction sequencing is no longer needed, but there are other upcoming items like equipment testing that will allow utilization. A lot of the electrical work has been high voltage which is not their expertise.
Construction Management West:
• AECOM had discussed with CMW several times to find estimators with the type of electrical T&D work but either individual did not show for the interview, or they didn’t meet the qualifications.
That said, AECOM will continue to engage CMW for its listed portion of work, shall this firm’s listed scope surface again.
EXARO:
• U/G utility locating was only slated for the MSY project that is now just commencing, and the scope was reduced by SFPUC.
Meridian:
• Surveying was only slated for the MSY project that is now just commencing, and the scope was reduced by SFPUC.
AECOM is required to make good faith efforts to utilize LBEs for any scope of work, or portions thereof, which can reasonably be subcontracted out throughout the life of the contract. In light of this requirement,
1. CMD reminded AECOM to utilize its listed LBE firms to the full extent possible. To this end, if other opportunities arise during the remainder of this contract, and the work fit the LBE firms’ expertise, AECOM shall prioritize by offer the potential work to its listed LBE firms. Or, add LBE firm(s) if none of its listed LBE firms have the expertise to perform. 2. AECOM added an LBE firm, AGS onto its team (referenced in table below) to increase the overall LBE participation on this contract.
Further, the SFPUC confirmed with CMD that it determined all the proposed amendment work (this current request of $2,880,000.00) is related to specialized high voltage electrical work (230KV/115KV high voltage switchyard) as it predominately pertains to scope associated with Moccasin Switchyard Upgrades. In which case, there are lack of sufficient LBE firms to perform. Due to the nature of the work to be added onto this contract, it will directly impact AECOM to maintain its original overall LBE participation commitment percentage for the entire contract.
Based on the foregoing and taking into consideration the proposed increase and the original contract amount, AECOM doesn’t believe it will meet its original overall LBE subconsulting participation commitment of 5.40%. That said (after collecting all the facts), CMD did determine that it is reasonable
to reduce AECOM’s overall LBE participation commitment percentage for the entire contract. As such, AECOM foresees that it will attain an overall LBE participation commitment of 4.03% with the following:
Subconsultant Scope of Work LBE Status,
Type and Size
Credited
Participation
Projected LBE Participation—
Including Modification No. 1
(Based on $8,800,000.00 not to
exceed amount)
AAES, Inc. Electrical Engineering
SF LBE-MBE
(Micro)
2.40%
$180,000.00
2.05%
Construction
Management West, Inc. Cost Estimating
SF LBE-MBE
(Micro)
1.00%
$25,000.00
0.28%
EXARO Technologies
Corporation
Underground Utility
Location
PUC LBE-MBE
(Micro)
1.00%
$30,000.00
0.34%
Meridian Surveying
Engineering Surveying
SF LBE-OBE
(Small)
1.00%
$40,000.00
0.45%
AGS1 Geotechnical Services
SF LBE-MBE
(Micro)
--
$80,000.00
0.91%
TOTAL 5.40% $355,000.00 4.03%
The SFPUC staff and AECOM shall continue to notify CMD of any changes that may impact LBE participation. Additionally, SFPUC staff and/or AECOM must continue to notify CMD of any proposed subconsultant additions and/or substitutions throughout the term of this contract. Contingent upon the conditions set forth above, CMD concurs with this amendment.
Should you have any questions, please contact Jason Chow at 415-554-3103 or [email protected].
1 AGS, an LBE firm was added onto AECOM’s team after contract award.