DEPARTMENT
Infrastructure Division
AGENDA NO. 6c
MEETING DATE
September 9, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Javad Mirsaidi
Award Contract No. HH-1017, Warnerville Substation Rehabilitation – Phase 2
Summary of
Proposed
Commission Action:
Award Contract No. HH-1017, Warnerville Substation Rehabilitation – Phase 2, to the responsible bidder that submitted the lowest responsive bid, Big Valley Electric , in the amount $6,695,000 and with a duration of 551 consecutive calendar days (approximately one year and six months), to replace four high voltage 230 kilovolts oil circuit breakers, associated switches, current voltage transformers, relays, surge arrestors, an overhead conductor, and a disconnect switch in the south yard of Warnerville Substation located in Oakdale, Stanislaus County.
Background: The equipment at the San Francisco Public Utilities Commission (SFPUC) Hetch Hetchy Power Warnerville Substation has reached the end of its service life. The original substation was constructed in 1959, with an addition built in 1969. The facility needs to be upgraded to meet current regulatory and safety requirements along with improving the yard rating.
On May 23, 2017, by Resolution No. 17- 0120, the Commission awarded Contract No. DB -127R, Warnerville Substation Rehabilitation Project. The contract scope was to completely rehabilitate the facility including replacing the three existing three -phase autotransformers , circuit breakers , and disconnect switches ; and installing new voltage transformers, capacitive voltage transformers, transformer protection and control, yard grounding, security fencing, and site grading. During construction, the scope was reduced resulting in a balance of work still needing to be completed.
Contract No. HH-1017, Warnerville Substation Rehabilitation – Phase 2, will complete the balance of the unfinished work including replacing oil circuit breakers and associated switches ; and installing new current voltage transformers, relay upgrades, a new disconnect switch , and overhead conductors in the south end of the yard feeding the Pacific Gas and Electric (PG&E) grid.
Scope of Contract: The contract work location is at Warnerville Substation in Oakdale, Stanislaus County.
The contract work consists of:
Agenda Title: HH-1017, Warnerville Substation Rehabilitation – Phase 2 Commission Meeting Date: September 9, 2025
• Replacing four 230 (kilovolt) kV oil circuit breakers with new 230kV City-furnished circuit breakers;
• Replacing 230kV main and auxiliary bus sections;
• Replacing 230kV disconnect switches with new 230 kV City- furnished disconnect switches;
• Installing new 230kV City-furnished surge arrestors;
• Interconnecting new 230 kV circuit breakers with the existing protective relaying system;
• Upgrading the south yard including replacement of a disconnect switch and associated conductors and current/voltage transformers; and,
• Commissioning and start-up including the South Yard tie-in to PG&E Warnerville - Bellota transmission line.
Funding and Costs: Funding Source: Hetch Hetchy Capital Improvement Program, Project No: CUH101-15, Warnerville Substation Rehabilitation
Engineer’s Estimate: $8,000,000
Award Amount: $6,695,000
Schedule: Estimated Notice-to-Proceed Date: November 2025 Estimated End Date: March 2027
Duration: 551 consecutive calendar days ( 491 consecutive calendar days to Substantial Completion and an additional 60 days to Final Completion)
Bid History:
Advertised: April 24, 2025
Bids Received: On June 5, 2025, San Francisco Public Utilities Commission (SFPUC) received and publicly opened two bids, as follows:
Bid Rank Bid Amount
Daily Rate for
Compensable
Delay
(10-day
duration)
Local
Business
Enterprise
(LBE) Bid
Discount
Adjusted
Bid
Final
Rank
1. Big Valley
Electric $6,695,000 $500 10% $6,030,000 1
2. Sierra
Mountain
Construction,
Inc.
$7,509,000 $1 N/A $7,509,010 2
Because the SFPUC anticipates that potential unforeseen conditions or other factors outside 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 10-days to calculate the compensable delay bid adjustment amount. Staff used the daily rate in each bid to determine the total Agenda Title: HH-1017, Warnerville Substation Rehabilitation – Phase 2 Commission Meeting Date: September 9, 2025
Compensable D elay value shown in the table above by multiplying the bidder’s daily rate times 10. The Adjusted Bid value in the table above is the sum of the Base Bid Amount and Compensable Delay less any applicable bid discount. 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.
Application of bid preferences in accordance with Chapter 14B of the San Francisco
Administrative Code did not change the final ranking of the low bidder.
Environmental
Review:
On March 31, 2016, the San Francisco Planning Department determined the Warnerville Substation Rehabilitation Project (Project) to be categorically exempt from environmental review under the California Environmental Quality Act ( CEQA) Guidelines section 15301, Class 1 (Existing Facilities) under Case No. 2016-004225ENV.
The currently proposed Contract HH-1017, Warnerville Substation Rehabilitation – Phase 2 would complete the scope of work authorized in the exemption with the addition of expan ding the work area to include the Southside Yard portion within the Warnerville Substation. On November 12, 2024, under Case No. 2016-004225ENV, and pursuant to San Francisco Administrative Code subsection 31.08(i), the Planning Department determined that this modification is not substantial, and the modified Project remains categorically exempt under the CEQA and does not require further environmental review.
The work under Contract HH-1017, Warnerville Substation Rehabilitation – Phase 2 is within the scope of the Project authorized under the exemption and the Determination of No Substantial Modification.
This determination and the exemption can be found here:
https://sfpuc.sharefile.com/public/share/web-
sd92259e68fb946dea60002c0d1b2389f
Local Business
Enterprise
Utilization and Non-
Discrimination in
Contracting:
The Contract Monitoring Division (CMD) established a 5% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to a 7.92% LBE subcontractor participation with its bid submittal.
Attachment: 1. Contract Monitoring Division Memorandum
Agenda Title: HH-1017, Warnerville Substation Rehabilitation – Phase 2 Commission Meeting Date: September 9, 2025
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) owns and operates all aspects of the Hetch Hetchy Power system including 385 megawatts of greenhouse gas -free hydroelectric generation capacity, 160 miles of transmission lines, and six substations/switchyards. For over 100 years, Hetch Hetchy Power has generated clean, 100% greenhouse gas-free electricity for the City and County of San Francisco, providing nearly 20% of the City's electricity. The SFPUC initiated a capital project to rehabilitate the powerhouses, switchyards, substations, and transmission lines providing safe reliable energy for aging equipment; and
WHEREAS, On April 24, 2025, SFPUC advertised Contract No. HH-1017, Warnerville Substation Rehabilitation – Phase 2 to replace four high voltage 230 kilovolts oil circuit breakers, associated switches, current voltage transformers, relays, surge arrestors, an overhead conductor, and disconnect switch in the South Yard; and
WHEREAS, The Engineer’s Estimate is $8,000,000 for this construction work; and
WHEREAS, The contract duration is 551 consecutive calendar days; and
WHEREAS, On June 5, 2025, SFPUC received and publicly opened two bids; and
WHEREAS, SFPUC staff and Contract Monitoring Division (CMD) reviewed the bids and the application of bid preferences and have determined that Big Valley Electric is the responsible bidder with the lowest responsive bid; and
WHEREAS, CMD established a 5% Local Business Enterprise (LBE) subcontracting requirement for this contract, and Big Valley Electric committed to 7.92% LBE subcontractor participation in its bid submittal; and
WHEREAS, On March 31, 2016, the San Francisco Planning Department determined the Warnerville Substation Rehabilitation Project (Project) to be categorically exempt from environmental review under the California Environmental Quality Act (CEQA) Guidelines section 15301, Class 1 (Existing Facilities) under Case No. 2016-004225ENV; and
WHEREAS, On November 12, 2024, under Case No. 2016- 004225ENV, and pursuant to San Francisco Administrative Code subsection 31.08(i), the Planning Department determined that the modification to the Project to expand the work area for the scope proposed under this action is not substantial, and the modified Project remains categorically exempt under the CEQA and does not require further environmental review; and
WHEREAS, The work under Contract HH-1017, Warnerville Substation Rehabilitation – Phase 2 is within the scope of the P roject authorized under the exemption and Determination of No Substantial Modification; now, therefore, be it
WHEREAS, Funds are available from Project No: CUH101- 15, Warnerville Substation Rehabilitation; now, therefore, be it
RESOLVED, That this Commission hereby awards Contract No. HH -1017, Warnerville Substation Rehabilitation – Phase 2, in an amount of $6,695,000, and a duration of 551 consecutive calendar days, to the responsible bidder that submitted the lowest responsive bid, Big Valley Electric.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of September 9, 2025.
Director of Commission Affairs
San Francisco Public Utilities Commission
City & County of San Francisco
Daniel Lurie, Mayor
Office of the City Administrator
Carmen Chu, City Administrator
Contract Monitoring Division
Regina Chan, Director
1455 Market Street, Suite 16A, San Francisco, CA 94103
Telephone (415) 554 0630
MEMORANDUM
Date: July 10, 2025
To: Tim Parkan, SFPUC
Frank Gennaccaro, SFPUC
From: Jason Chow for Adriana Duran, CMD
Subject: REV. #1—CMD Review of Bids Submitted on 6/5/2025 for HH-1017 Warnerville Substation Rehabilitation—Phase 2
Big Valley Electric (“BVE”) is the lowest responsive bidder on this contract
The bid discount was applied to bidders who are certified by the Contract Monitoring Division, (“CMD”) as an LBE in the type of work that is specified for the bidder by the Contract Awarding Authority. [Sec. 14B.7(D)]
Bidder LBE Status,
Type and
Size
Base Bid Daily Rate
for
Compensable
Delay
Total Bid
Bid Discount
Adjusted
Bid with
Bid Discount
Big
Valley
Electric
SFPUC
LBE- OBE
(Micro)
$6,695,000.00 $500.00 $6,700,000.00 10% $6,030,000.00
Sierra Mountain
Construction
Non-LBE $7,509,000.00 1.00 $7,509,010.00 n/a $7,509,010.00
BVE satisfactorily demonstrated how they will meet the LBE subcontractor participation requirement.
A combination of Micro-LBE and Small-LBE participation will count toward LBE subcontractor participation compliance. BVE’s commitment for this contract:
Requirement % Commitment %
Micro/Small LBE 5.00% 7.92%
In their bid, BVE listed the following subcontractors on this contract.
Supplier Name
Scope of Work
LBE
LBE Size
LBE
Percent
Percent
Of
Work
Amount
1455 Market Street, Suite 16A, San Francisco, CA 94103
Telephone (415) 554 0630
Njirich & Sons Inc. General Engineering
(Partial)
SFPU
C-
LBE
Micro
100%
7.92%
$530,000.00
TW Power Line
Construction
Electrical (Partial)
16.43%
$1,100,000.00
Crystal Basin
Construction
General Engineering
(Partial)
1.49%
$100,000.00
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
Njirich & Sons Inc. SFPUC LBE-WBE
(Micro)
$530,000.00
$530,000.00
7.92%
TOTAL $530,000.00 $530,000.00 7.92%
BVE satisfied the “Good Faith Efforts” requirement.
BVE utilized Approach A and exceeded the LBE subcontractor participation requirement by 35%.
CMD finds BVE 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]