DEPARTMENT
Infrastructure Division
AGENDA NO.
6k
MEETING DATE
September 8, 2026
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Javad Mirsaidi
Approve Increase to Cost and Duration Contingencies for Contract No. HH-1017, Warnerville Substation Rehabilitation – Phase 2
Summary of Proposed
Commission Action:
Approve an increase of $1,021,000 to the cost contingency and 90 calendar days to the duration contingency for Contract No.
HH- 1017, Warnerville Substation Rehabilitation – Phase 2, with Big Valley Electric, for a revised contract cost limit of $8,385, 500 and a revised contract duration limit of 696 consecutive calendar days (approximately one year and eleven months). This additional contingency is needed to address owner-requested changes, compliance with updated safety and regulatory requirements , hazardous materials abatement, and compatibility with Pacific Gas & Electric Company standards.
Background: The equipment at the San Francisco Public Utilities Commission (SFPUC) Hetch Hetchy Power Warnerville Substation has reached the end of its useful service life. The original substation was constructed in 1959, with an expansion completed in 1969.
Rehabilitation of the facility is necessary to replace aging equipment, comply with current regulatory and safety
requirements, and increase the subs tation's capacity and operational reliability.
On September 9, 2025, by Resolution No. 25-0127, the
Commission awarded Contract No. HH-1017, Warnerville
Substation Rehabilitation Phase 2 , to Big Valley Electric . The original contract amount was $6,695,000, and the original duration was 551 consecutive calendar days.
Scope of Contract: The project location is at Warnerville Substation in Oakdale, Stanislaus County. The scope of the original contract work consists of:
• Replacing four 230 kilovolt (kV) oil circuit breakers with new 230 kV City-furnished circuit breakers;
• Replacing 230 kV main and auxiliary bus sections;
• Replacing 230 kV disconnect switches with new 230 kV
City-furnished disconnect switches;
• Installing new 230 kV City-furnished surge arrestors; Agenda Title: HH-1017 Warnerville Substation Rehabilitation – Phase 2 Commission Meeting Date: September 8, 2026
• 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 Pacific Gas & Electric Company ( PG&E) Warnerville - Bellota transmission line.
Modifications to the
Contract:
Modification Nos. 1-4: Staff issued Modification Nos. 1 -4, within the original contract cost contingency , increasing the contract amount by $ 167,157, for costs associated with making relays compatible to PG&E standards, upgrading fiber cable to meet PG&E redundancy standards, adding control wiring and labeling in relay panel, investigating existing conditions in Main Control Board for entire demolition which also includes demolishing existing fire suppression equipment, for a revised contract amount of $6,862,157, with no change to the contract duration.
Proposed Increase to Cost and Duration Contingencies: Staff recommends that the Commission approve an increase of
$1,021,000 to the cost contingency and 90 calendar days to the duration contingency, for a revised total cost limit of $8,385,500 and a revised duration limit of 696 consecutive calendar days. The additional contingency is requested to address project
stakeholder-requested scope enhancements, including the complete removal of the Main Control Board, relocation of PG&E meters, alternating current/direct current (AC/DC) panels, replacement of miss ing Owner-Furnished Contractor -Installed equipment, procurement of new communication cables, hazardous materials survey and abatement, and an extended warranty for the circuit breakers.
Funding and Costs: Funding Source: Hetch Hetchy Capital Improvement Program, Project No: 10014087, Warnerville Substation Rehabilitation
Original Contract Amount: $6,695,000
Original 10% Cost Contingency: $669,500
Approved Increase to Cost Contingency: $0
Modified Increases to Contract Amount: $167,157
Total Current Contract Amount: $6,862,157
Current Cost Contingency: $502,343
[Proposed] Additional Cost Contingency: $1,021,000
Total [Proposed] Cost Limit: $8,385,500
Schedule: Notice-to-Proceed Date: November 17, 2025
Original Contract Duration: 551 consecutive calendar days Agenda Title: HH-1017 Warnerville Substation Rehabilitation – Phase 2 Commission Meeting Date: September 8, 2026
Original 10% Duration Contingency: 55 consecutive calendar days
Approved Increase to Duration Contingency: 0 calendar days Modified Increases to Contract Duration: 0 calendar days Total Current Contract Duration: 551 consecutive calendar days Current Duration Contingency: 55 calendar days
[Proposed] Additional Duration Contingency: 90 calendar days Total [Proposed] Duration Limit: 696 consecutive calendar days
Environmental Review: On March 31, 2016, the Planning Department determined the Project to be categorically exempt from environmental review under the California Environmental Quality Act (CEQA) Guidelines Section 15301, Class 1 (Existing Facilities) ( Case No. 2016- 004225ENV).
On November 12, 2024, the Planning Department determined that the Phase 2 modifications are
not substantial, are categorically
exempt under the CEQA, and no additional environmental review is required.
The proposed modifications described above are within the scope of the Project evaluated in the exemption and Planning Department determination.
View the CEQA exemption and Planning Department
determination.
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, and this remains unchanged.
Agenda Title: HH-1017 Warnerville Substation Rehabilitation – Phase 2 Commission Meeting Date: September 8, 2026
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, T he San Francisco Public Utilities Commission (SFPUC) Hetch Hetchy Power Division has initiated a capital project at its Warnerville Substation to replace aging equipment, comply with current regulatory and safety requirements, and increase the substation's capacity and operational reliability; and
WHEREAS, On September 9, 2025, by Resolution No. 25-0127, this Commission awarded Contract No. HH-1017 Warnerville Substation Rehabilitation – Phase 2 to Big Valley Electric; and
WHEREAS, The original contract amount was for $6,695,000 and the original contract duration was 551 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was November 17, 2025; and
WHEREAS, Staff issued Modification Nos. 1- 4, within the original contract cost contingency, increasing the contract amount by $167,157, for a revised contract amount of $6,862,157, with no change to the contract duration, and
WHEREAS, 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 , and this amount remains unchanged; and
WHEREAS, Staff recommends an increase of $1,021,000 to the existing cost contingency and 90 calendar days to the existing duration contingency , to allow for contract modifications necessary to address project stakeholder scope enhancement requests, additional requirements for P acific Gas & Electric Company connectivity, and differing site conditions; and
WHEREAS, On March 31, 2016, the Planning Department determined the Project to be categorically exempt from environmental review under the California Environmental Quality Act (CEQA) Guidelines Section 15301, Class 1 (Existing Facilities) (Case No. 2016-004225ENV); and
WHEREAS, On November 12, 2024, the Planning Department determined that the Phase 2 modifications are not substantial, are categorically exempt under the CEQA, and no additional environmental review is required; and
WHEREAS, The proposed modifications described above are within the scope of the Project evaluated in the exemption and Planning Department determination; and
WHEREAS, Funds are available under Hetch Hetchy Capital Improvement Program, Project No: 10014087, Warnerville Substation Rehabilitation; and, be it
RESOLVED, That this Commission hereby approves an increase of $1,021,000 to the existing cost contingency and an increase of 90 calendar days to the existing duration contingency, for Contract No. HH-1017 Warnerville Substation Rehabilitation – Phase 2, with Big Valley Electric , for a total cost contingency amount of $ 1,690,500 and a total duration contingency of 145 calendar days; and, be it
FURTHER RESOLVED, T hat this Commission hereby authorizes the General Manager, or the General Manager’s designee, to consider, and, if appropriate, to approve any future modifications to the contract, up to a total cost limit of $ 8,385,500 and a total duration limit 696 consecutive calendar days.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of September 8, 2026.
Director of Commission Affairs
San Francisco Public Utilities Commission