The City of San Francisco s Use of DRBs
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1 The City of San Francisco s Use of DRBs Harvey Elwin Deputy Director, Water System Improvement Program San Francisco Public Utilities Commission
2 Agenda San Francisco s Contracting Environment Decision to Adopt DRBs San Francisco s Contracting Initiatives The San Francisco Public Utilities Commission s (SFPUC) Water System Improvement Program (WSIP)
3 Contracting Background 2005: Reports documented obstacles encountered by Construction Contractors bidding and working on City construction projects. 2006: City Attorney s Office approached by Contractors/Contractor Associations (AGC, EUCA) regarding need for contracting reforms -- too many contractual items finally resolved through lengthy, expensive litigation. SFPUC recognized need to make changes to attract and increase pool of experienced, qualified prime and subcontractors to complete the Water System Improvement Program (WSIP).
4 Contracting Environment Lengthy contracting process; Slow payment process; Slow decision-making in the field; Inconsistent contract documents, unclear requirements; Non-efficient change order practices; Excessive change orders due to incomplete design packages, inaccurate bid estimates, errors and omissions in drawings and specifications; Substantial liquated damages, bonding requirements, unusual warranty requirements; Lack of coordination and communication between City Departments; Local bid preferences and compliance requirements.
5 Contracting Actions 2006: City Attorney s Office formed 4 task forces comprised of City agencies and Contractor Associations to review problems/issues and make recommendations. SFPUC formed internal working groups to address management, quality of documents and legislative issues. Recommendations specific to the SFPUC are underway. 2007: Mayor Gavin Newsom convened 9 Construction Contracting Improvement Working Groups, membership as above, to implement recommendations.
6 Decision to Adopt DRBs Decision: Based on number and type of contracting issues identified, the timely resolution of potential disputes in the field was clearly one of the top priorities. Research: With guidance from the DRB Foundation and the CAL TRANS specification, the well-represented Subcommittee (City Attorney s Office, contractor associations, city agencies) over 6 month period drafted a Dispute Review Board specification applicable to San Francisco. Subcommittee Recommendation: Establish Dispute Review Boards (DRBs) for timely resolution of potential disputes.
7 Additional Recommendations Build Partnerships between the Contractor and Contracting Agency (adopt Partnering Guidelines); Provide comprehensive training to Resident Engineers (REs), Project Managers (PMs) and Construction Managers (CMs) particularly in the area of dispute resolution; Give more decision-making authority to REs, PMs and CMs, and encourage dispute resolution at the lowest possible level.
8 DRB Specification Development Initial Draft completed Summer 2006 with multiple City agency involvement. Specification included in WSIP contract documents of $5 million or greater. Committee continues to refine specification as WSIP projects pilot DRBs. DRBF guidelines serve as reference during pilot stage.
9 Pilot Implementation Projects Identified: - DRB implemented on two SFPUC projects with others pending; - Formal partnering sessions underway, including Dispute Review Process for project teams. Training Sessions Held: - 8-hour DRB Workshop by DRB Foundation to 60 staff (REs, PMs, CMs, PEs, others); - 8-hour session on Project Partnering & Non-Adversarial Negotiation to 20 REs and Construction Inspectors.
10 Specification Comparison Description Selection of members Timeline for DRB member selection Convene DRB meeting SFDRB City selects 1; Contractor selects 1; together select 3 rd member Within 15-days of NTP each selects & informs other party of their member. Within 30-days of NTP jointly select 3 rd member (45-days). Convene meetings at periodic intervals and as requested, but no less than two times a Project year. DRBF City & Contractor jointly select all 3 members Within 7-days after award City & Contractor meet, establish criteria, select nominees; 5-weeks thereafter jointly select 3 members (6-weeks) Convene regular meetings at periodic intervals and as requested.
11 Specification Comparison Description DRB member s experience DRB to assist in the resolution of claims submitted by the Contractor Revisions to DRBF s DRB Standard Specification SFDRB At least 15 years in construction matters and/or disputes relevant to scope of project. The Contractor may initiate dispute review only as to items presented to and rejected by the Resident Engineer and the department head. City-drafted DRB incorporated other public agencies DRB conditions. DRBF Relevant experience in this type of construction work to be performed. all disputes that are actionable under the provisions of the prime contract between the Owner and Contractor may be referred. Revisions to specification may reduce effectiveness of the DRB (and) the DRB process.
12 Project Implementation Project Bay Division Pipelines 3 & 4 Crossovers / Isolation Hayward Fault Crossing (Construction Award: $15 million) Sunset Reservoir Seismic Retrofit, North Basin (Construction Award: $41 million) East West Transmission Main (Construction Award: $19 million) Stanford Heights Reservoir Seismic Retrofit & Improvements (Construction Award: $17.9 million) Status DRB underway Fall 2006; Three meetings held; no issues brought before Board DRB underway Spring 2007; Two meetings held; no issues brought before Board. Project entered construction February 2007; Upon request of either Contractor or City, DRB will be established. Project initiated August 2007; Upon request of either Contractor or City, DRB will be established.
13 Spring Present: DRB Pilot Review DRB Specification further refined to meet all City agencies requirements. Implementation Recommendations before Subcommittee: Determination to establish Partnering, DRM and / or DRB on Construction Projects should follow these guidelines: - Contracts $0 under $2 million: Introduce Informal Partnering during progress meetings; - Contracts $2 million under $10 million: Include Partnering and DRM in contract documents; - Contracts $10 million under $20 million: Require Mandatory Partnering and DRM contract documents; - Contracts $20 million+: Require Mandatory Partnering and DRB in contract documents.
14 Contracting Initiatives* Prompt Payment: Mayor Newsom s Executive Order requires payment within 15 days of receipt of invoice for all undisputed work; and requires minimum contract retention to the maximum extent possible. Advanced Payment: For long lead items and other special circumstances, City to assist in the payment of materials not yet purchased, stored in bonded facilities, but not yet installed. Electronic Payments: Direct deposit system available through Controller s Office. Bidder Pre-qualification (SFPUC Projects) Quality Management: SFPUC formed QA Team to thoroughly review engineering and bid documents. Standardized Bids and Specification Documents: Streamlining, eliminating and correcting redundancies that will apply to all City agencies. *In addition to DRB & Partnering, Training, Field Staff Authority.
15 WSIP Overview Major Projects
16 Water System Delivers water to 2.4 million people in the Bay Area Serves an average of 260 million gallons of water daily Consists of 11 reservoirs, 280 miles of pipelines, 60+ miles of tunnels, 5 pump stations, 2 water treatment plants Includes many components built more than 70 years ago Crosses 3 major earthquake faults
17 SFPUC Service Area San Francisco Daly City Half Moon Bay P ac ific O c ea n San A ndreas Reservoir Pilarcitos Reservoir SFO San Crystal Springs Reservoir F r ancisco Bay San Mateo 10 5 San Mateo County Palo Alto Hayward San Jose Alameda County 17 Santa Clara County Lawrence Livermore National Laboratory San A ntonio Reservoir Calaveras Reservoir 20
18 Water System Improvement Program (WSIP) Approved by San Francisco voters - November 2002 $4.3 billion Capital Improvement Program to be completed in mid-2014 Over 70 projects in 7 counties Goal: To ensure a reliable source of high quality drinking water to the Bay Area for the future
19 WSIP Projects
20 Program Status Regional program transitioning from planning to design phase Approximately half of local projects currently in construction Project Phase* Planning Environmental Design Bid & Award Construction Close Out Regional Sub-Project Local Project Major Regional Sub-Projects in Design Phase: SJPL System Irvington Tunnel Alameda Siphon #4 Calaveras Dam BDPL No. 5 Bay Tunnel CS Bypass Tunnel Completed Total** Status as of June 30, 2007 * Projects may be active and counted in more than one phase ** Excludes Program Management and BDPL #1 & 2
21 Major WSIP Projects Project San Joaquin Pipeline System Calaveras Dam Replacement New Irvington Tunnel Alameda Siphons No. 4 Bay Division Pipeline Reliability Upgrade Seismic Upgrade of BDPLs No. 3 & 4 Crystal Springs/San Andreas Trans. Upgrade New Crystal Springs Bypass Tunnel Lower Crystal Springs Dam Improvements HTWTP Long Term Improvements Crystal Springs Pipeline No. 2 Replacement Cost $353M $291M $215M $79M $572M $94M $149M $83M $28M $168M $94M
22 San Joaquin Pipeline System Restore and upgrade the hydraulic capacity of the pipeline to 313 mgd Replacement of 6.4 miles of vulnerable PCCP New construction of 11 miles of a 4 th 86 pipeline Addition of two crossover facilities Construction Cost $282 Environmental/Design Bids Start 09/10 11 miles of 86 WSP Roselle Crossover Expansion 6.4 miles of 86 WSP or RCCP PCCP Tie-In Vault Valve House No. 4 Crossover No. 1 Crossover No. 3
23 Calaveras Dam Replacement Replace existing dam with seismically designed dam of equal height and reservoir capacity New outlet tower and spillway to handle Probable Maximum Flood Allow system s largest reservoir to be operated at full capacity (31 billion gallons of water) Construction Cost $224 Environmental/Design Bids Start 08/08
24 New Irvington Tunnel New 3.4 miles long, 10-ft diameter tunnel parallel to existing tunnel New portals and connections to the Bay Division Pipelines and Alameda Siphons Will allow for maintenance of the existing tunnel (existing tunnel cannot be taken out of service) Construction Cost $173 Environmental/Design Bids Start 07/09 New Irvington Tunnel Alameda Siphons No.4 San Antonio Backup Pipeline
25 Bay Division Pipeline Reliability Build a 21-mile water pipeline (BDPL 5) from Fremont to Redwood City, including a 5-mile tunnel beneath SF Bay Seismically engineered fault crossings (Hayward Fault) Provide redundancy for maintenance and repair, and reservoir replenishment capabilities for peak demand and drought Construction Cost $451 Environmental/Design Bids Start 01/09
26 New Crystal Springs Bypass Tunnel Construction of a new 4,200 feet long, 9-ft diameter tunnel to provide redundancy to Crystal Springs Pipeline South Shaft, approximately 30 inside diameter North Shaft, approximately 15 inside diameter South and North connection pipes and valve vaults Construction Cost $66 Environmental/Design Bids Start 05/08
27 CS/SA Transmission Upgrade Hydraulic and seismic improvements to multiple facilities Repair Upper Crystal Springs Dam discharge culverts Repair Crystal Springs Outlet Structures and tunnels Rehabilitation of the Crystal Springs Pump Station Seismic and hydraulic upgrades & repair of San Andreas Outlet Structure Construction Cost $116 Environmental Bids Start 01/11
28 Crystal Springs Pipeline #2 Replacement Repair or replacement of sections of the 19-mile 54/60- inch pipeline as needed Installation of line valves, vaults and manholes Installation of cathodic protection and monitoring stations Construction Cost $75 Environmental/Design Bids Start 03/09
29 HTWTP Long Term Improvements Seismic retrofit and rehabilitation of 1972 treatment plant Upgrade of the ozone system, process piping & other equipment At completion, plant will have operating sustainable capacity of 140 MGD to ensure delivery reliability if Hetch Hetchy and Sunol water is unavailable Construction Cost $118 Planning Bids Start 10/10
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