HomeMy WebLinkAboutItem 14_COUNCIL READING FILE_b_PGE Work Order
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CITY OF SAN LUIS OBISPO WATER TREATMENT PLANT SUSTAINABLE SERVICES TURNKEY
IMPLEMENTATION PROJECT
WORK ORDER
This WORK ORDER (“Work Order”), effective as of the date of the latest signature executing this
agreement (“Work Order Effective Date”) is made and entered into by and between City of San Luis Obispo
(“Customer”) and Pacific Gas and Electric Company (“PG&E”). This Work Order is subject to the terms and
conditions of the PG&E Master Services Agreement, Contract # 21007 between Customer and PG&E dated
09/18/2018 (“Services Agreement”). Customer and PG&E are referred to collectively as the “Parties.”
In accordance with the provisions of the Services Agreement, the Customer wishes to engage PG&E to
provide the Implementation Work on the following Project:
PROJECT NAME: San Luis Obispo SST Water Treatment Plant Upgrades
CONTRACT No.: 21007
WORK ORDER AMOUNT $13,999,644
1. SCOPE OF WORK
1.1 PG&E will procure equipment for, construct, implement and deliver to Customer those
measures described in the Scope of Work (“SOW”) at Customer’s Water Treatment Plant, located at 1900
Stenner Creek Road, San Luis Obispo, CA 93405 facility described in the SOW (each facility a “Site” and
collectively the “Sites”). The SOW is attached hereto as Exhibit A and incorporated by reference herein.
The services to be performed under this Work Order shall be referred to hereinafter as the
“Implementation Work”.
PG&E shall have no obligations to perform any Implementation Work under this Work Order
unless and until PG&E and Customer have signed this Work Order. The issuance of this Work Order does
not commit PG&E to perform any future work for Customer.
1.2 Subcontractors. PG&E reserves the right to engage third party subcontractors
(“Subcontractors”) to perform some or a portion of the Implementation Work. PG&E agrees that, as
between PG&E and Customer, PG&E shall be solely responsible for the Subcontractors performance of
the Implementation Work under this Work Order. In addition, unless otherwise set forth in this Work
Order, the fees and costs billed to Customer shall be inclusive of any, and all, fees and compensation due
to any Subcontractors. PG&E shall be responsible for the payment of any compensation, monies, wages
or other payment due or allegedly due Subcontractors, including prevailing wages. For purposes of this
Agreement, PG&E and its Subcontractors shall be collectively referred to as “PG&E”.
1.3 Term of Work Order. This Work Order shall commence upon the Work Order Effective
Date and shall continue until all the Implementation Work is complete; unless sooner terminated or
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extended as permitted under the Services Agreement (the “Work Order Term”). PG&E shall complete the
Implementation Work in accordance with the milestone dates described in the project schedule attached
hereto as Exhibit B and incorporated by reference herein.
2. PERFORMANCE OF THE IMPLEMENTATION WORK
2.1 Project Construction
2.1.1 PG&E’s Responsibilities.
2.1.1.1. Upon execution of this Work Order by Customer and approval of project
financing, PG&E shall commence and complete construction and implementation of the Project in
accordance with the Services Agreement, this Work Order, the attached SOW and any applicable Work
Order modifications. PG&E will provide all professional and other services, labor, materials, equipment,
tools, transportation and other services necessary for the proper performance and completion of the
Implementation Work per the City stamped plans and specifications approved for construction, and in
accordance with Customer applicable codes, regulations, and the 2018 Standard Specifications and
Engineering Standards. PG&E will be responsible for the means, methods, techniques, sequences and
procedures to implement the Project, and shall oversee Project construction including construction
management, and inspection testing per the plans and specifications approved for construction.
2.1.1.2. PG&E will use commercially reasonable efforts to minimize disruption to
Customer’s use and operations at the Site. PG&E will provide at least ten (10) calendar days written notice
to Customer of any planned power or other utilities outages that will be necessary for the Implementation
Work. Customer will cooperate with PG&E in scheduling such outages, and Customer agrees to provide
its reasonable approval of any scheduled outage.
2.1.1.3. Customer has first rights to all equipment being removed during demolition.
PG&E will coordinate with Customer to identify all items to be turned over to Customer prior to start of
demolition. At least five (5) days prior to commencement of demolition, Customer shall provide to PG&E
a written list of all equipment to be returned to Customer prior to completion of demolition. PG&E will
provide legal offsite disposal for all items not returned to the Customer. Customer is responsible for all
labor, equipment, rigging and transportation necessary to remove demolished items from the jobsite and
transport them to their final location.
2.1.2 Customer's Responsibilities.
2.1.2.1. Customer will take reasonable measures to provide PG&E, its personnel and
Subcontractors with site access, suitable office space and other reasonable accommodations and facilities
necessary to permit PG&E personnel and its Subcontractors to perform the Implementation Work on this
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Project. While working on the Site, if requested by Customer, the PG&E Project team personnel will be in
an area adjacent to Customer's subject matter experts and technical personnel, and all necessary security
badges and clearance will be provided for access to this area, all in accordance with Customer’s vendor
policies. Additionally, upon request Customer will provide to PG&E and its Subcontractors relevant site
information or documents necessary to perform the Implementation Work, including but not limited to a
copy of this Work Order, all Work Order modifications, the Services Agreement, a copy of relevant
drawings, specifications, operation and maintenance manuals for equipment at the Site, and other
pertinent documents.
2.1.2.2. Customer will arrange for a temporary staging area for the storage and assembly
of equipment for completion of the Implementation Work, if needed.
2.1.2.3. Customer will coordinate the Implementation Work to be performed by PG&E
with the Customer’s operations and other activities and with any other construction project that is
ongoing at or around the Site.
2.2 Training and Commissioning Services. PG&E shall provide training to Customer on
equipment that PG&E installs in accordance with the terms of this Work Order, and as described in the
SOW. PG&E shall perform start up, testing, and commissioning services in accordance with the equipment
manufacturers’ startup and commissioning recommendations and the Project Schedule. Customer
reserves the right to contract a third-party inspection company to spot-check the work performed by
PG&E under this agreement at any time during the construction phase.
2.3 Certificate of Substantial Completion. Promptly upon substantial completion of each
Project measure, PG&E will submit a Certificate of Substantial Completion to Customer for such measure.
Upon receipt of such certificate, Customer may inspect the Implementation Work and meet with PG&E’s
Project Manager to determine if the Project measure has achieved substantial completion. Customer
shall, within ten (10) business days of receipt of the Certificate of Substantial Completion, inform PG&E if
Customer agrees that the Project measure has achieved substantial completion. If Customer disagrees
that the Project measure has achieved substantial completion, Customer will specify in detail and in
writing the deficiencies requiring correction in order to achieve substantial completion. When substantial
completion has been achieved, Customer will file a Notice of Completion (NOC) with the County
Recorder’s Office, and return the NOC with a Certificate of Substantial Completion to PG&E stating that:
(i) the Project measure has achieved substantial completion and the date on which it did so, and (ii) that
on and after that date Customer will assume responsibility for the Project measure’s operation,
maintenance and repair, for damage to or destruction of the Project measure, and for the Project
measure’s security and insurance coverage. Title to the Project measure materials and equipment
installed pursuant to this Work Order shall pass to Customer on the date of substantial completion
together with equipment warranties.
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2.4 Close-Out Documentation. Within thirty (30) days after each Certificate of Substantial
Completion has been executed by Customer and received by PG&E, PG&E shall provide Customer with
(a) any applicable governmental approvals, permits, and sign-offs, (b) all equipment specifications and
ratings, (c) any applicable test data and reports, (d) CAD drawings and PDFs of final as-built and shop
drawings, (e) operating instructions, operations and maintenance manuals and schedules, recommended
spare parts lists, and all other written information relating to the Project measure, and (f) equipment
warranties.
2.5 Final Completion. Promptly after PG&E reasonably believes that Final Completion has
occurred, PG&E shall issue to Customer a Notice of Final Completion (defined below in Section 2.5.1).
Thereafter, Customer shall, within fourteen (14) business days, deliver its acknowledgment that Final
Completion has been achieved. The date of Final Completion shall be the date of Customer’s written
acceptance of PG&E’s Notice of Final Completion. Customer’s failure to respond within the thirty (30) day
notice period shall be deemed acceptance that Final Completion has occurred.
2.5.1 For purposes of this Work Order, the term “Final Completion” means the date
when all of the following have been accomplished: (a) each Project measure has achieved Substantial
Completion, (b) all “punch list” items have been completed, (c) all Close-out documentation has been
delivered to Customer, (d) PG&E has delivered to Customer: (i) a release of all lien rights, (ii) certification
that all claims for payment for labor and equipment for which PG&E is responsible have been paid or
satisfied, (iii) copies of waivers/releases of lien rights by Subcontractors that have furnished more than
twenty-five thousand dollars ($25,000) of goods, services or both for the Project, (iv) notice of all
outstanding claims of PG&E, any Subcontractor or equipment or materials supplier or distributor that may
affect Customer, PG&E or the Project, (v) a letter of indemnification regarding claims not addressed by
waivers/releases, and (vi) removal of all of PG&E and Subcontractors’ personnel, supplies, equipment,
waste materials, rubbish, and temporary facilities from the Site.
2.6 PG&E shall not be liable for any claims, liabilities, or losses arising out of, resulting from,
or in any way connected with, Customer’s: (a) neglect, misuse or abuse of the equipment; (b) use of
unauthorized parts, or removal of any parts; (c) repair, modification or alteration of equipment by anyone
other than authorized representatives as described in the warranties covering the equipment;
(d) relocation of the equipment.
3. MODIFICATIONS
If a modification to this Work Order is necessary, the Parties agree to follow the modification
process set forth in Section 4.2. of the Services Agreement.
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4. PAYMENT
4.1 PG&E will submit invoices, certified payrolls (redacted and unredacted), and daily
inspection reports on a monthly basis to Customer based upon the agreed-upon Bid Schedule, which is
attached hereto as Exhibit C and incorporated by reference herein. Prior to the first application for
payment a baseline schedule, and schedule of values detailing labor, equipment, and materials shall be
approved by the City. A 5% retention will be applied to the monthly progress payment in accordance with
Public Contract Code Section 22300 and Customer’s 2018 Engineering Standards and Specifications. Final
release of the payment retention shall be conducted in accordance with the City requirements as specified
in the 2018 Engineering Standards and Specifications. Proof of insurance, performance bonds, and
payment bonds shall be executed and submitted to Customer within 10 working days after Notice of
Award (NOA). A Notice to Proceed (NTP) will be issued after all bonds and insurance documents have been
approved by Customer.
4.2 Each PG&E invoice will reference this Work Order and be submitted to Customer’s billing
address. Customer shall instruct its financial institution or Project financier to render all payments to
PG&E within thirty (30) days from the invoice date and when Customer has received a complete
application for payment per Section 4.1. Each payment made by Customer or its third-party designee
must reference this Work Order and invoice number and be mailed to:
PACIFIC GAS AND ELECTRIC COMPANY
Attn: Sales and Service Manager, Business Development
P.O. Box 770000, Mail code: N10D
San Francisco, CA 94177
5. ORDER OF PRECEDENCE
In the event of a conflict between the provisions of the Work Order, any modification to the Work
Order, and the Services Agreement, the following order of precedence shall apply (in descending order):
(a) the modification to this Work Order, (b) the Work Order, and (c) the Services Agreement.
6. NOTIFICATIONS AND INTERFACE
Both Parties shall contact and/or deliver written notices (email is allowed) to the business contacts below
in the normal course of business, and in the event of any problems which may significantly affect the
performance of the Implementation Work under this Work Order.
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BUSINESS CONTACTS
CUSTOMER REPRESENTATIVE PG&E REPRESENTATIVE
Name Name Brent Patera
Title Title Business Development Manager
Address Address 245 Market Street, Mail Code N10D
San Francisco, CA 94105
Telephone Telephone 415-973-5335
Email Email Brent.Patera@PGE.com
7. AUTHORITY
Each Party represents and warrants that the individual signing below, as well as any Work Order
Modifications and approvals hereunder, has and shall have all requisite power and legal authority to bind
the Party on whose behalf he/she is signing to that Party’s obligations hereunder.
IN WITNESS THEREOF, the parties agree to be bound by this Work Order as of the date first set forth
above.
CITY OF SAN LUIS OBISPO PACIFIC GAS AND ELECTRIC COMPANY
Signature: Signature:
Print Name: Print
Name:
Title: Title:
Date: Date:
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EXHIBIT A
SCOPE OF WORK
Scope of Work Overview
PG&E will implement energy conservation measures (“ECMs”) at the Customer’s Water Treatment Plant
(“WTP”). The ECMs are described generally below, and more specifically in the Investment Grade Audit
Report, dated 10/18/19 (“IGA Report”). The IGA Report is attached hereto as Attachment 1 and is
incorporated herein. The Scope of Work (“SOW”) to be included in the Work order as outlined in the IGA
includes:
ECM # ECM Name
2 Ozone System Upgrade
4 Transfer Pump Station Upgrades
9 Plant Service Water System Upgrades
11 SCADA /Controls Upgrades
ECM # 2 –Ozone System Upgrade
The focus of this measure is the removal and replacement of the existing ozone water treatment system
with a new system that offers improved reliability, functionality and uses less energy to operate when
compared to the existing system.
The SOW includes the removal and proper disposal of the existing ozone system in its entirety with a new
turnkey system which will include all components necessary for a complete functioning system. The new
ozone generators will be a modular design system by Primozone, a Pureflow Ozone Division. The new
generators will be fed by new LOx storage and delivery systems. As this is a replacement of a critical
system in an operating plant, careful consideration was given to the planned approach. It is understood
that the WTP must always remain in operation during construction. The construction shall be
accomplished in four phases: Phase 1 Demolition; Phase 2 Construction, Phase 3 Demolition; and Phase 4
Construction. Ozone generators #1 and #2 and destruct Unit #2 shall remain fully operable during Phase
1 until the new system is online and accepted by the owner.
For the construction phase, a written schedule outlining the proposed phasing and sequence of the work
will be developed by PG&E and the Customer to ensure that the WTP remains in operation during the
duration of the construction.
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ECM # 4 – Transfer Pump Station Upgrades
This measure includes the addition of Variable Frequency Drives (“VFDs”) to each of the four existing
transfer pumps. The VFDs will improve overall system efficiency and controllability by providing Customer
with the ability to slowly ramp up each pump when the transfer pumps are brought online. Consequently,
Customer will more easily be able to eliminate pressure spikes, and will have the ability to continually
modulate the pump speed to meet varied demands of the high-pressure system.
This ECM will include the following SOW:
• Install a wall-mounted Allen Bradley VFDs for each of the four existing transfer pumps and
integrate the VFDs into the Supervisory Control and Data Acquisition (“SCADA”) system. Each VFD
will be configured with a bypass, disconnect switch, line reactor and communication interface
compatible with Allen Bradley CompactLogix controllers.
• Modify the existing hardwired controls for the transfer pumps and their discharge valves to
function with the new VFDs.
• Integrate the existing tank level sensor at the Bishop Storage tank to monitor the high-pressure
system.
• Add sequence of operation in the SCADA system to allow for automatic operation of the Transfer
pumps to directly serve the high-pressure system when Reservoir-2 is out-of-service or
disconnected from the system.
• Add programming to the Throttle Position Sensor (“TPS”) control system with logic to optimize
the operation of the pumps when serving Reservoir-2 based on Clearwell Levels, Reservoir-2 levels
and Time-of-Use (“TOU”) electric rates.
ECM # 9 – Plant Service Water System Upgrades
This ECM will include the following SOW:
This measure includes the replacement of the existing booster pump system (“BPS”) with a new packaged
system that is sized for the flow rates that will occur after PG&E completes ECM 2 by replacing the ozone
system. The new BPS will utilize variable speed pumps to efficiently maintain the required system
discharge pressure. The BPS system will include a pressurized diaphragm tank that discharges water to
the plant service water system when the pumps shut off during low-demand conditions. The proposed
BPS is manufactured by Grundfos. The factory-assembled system includes three variable speed,
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multistage vertical inline pumps with integrated motor/VFD rated for 80 GPM each, suction and discharge
piping, and a control panel.
The SOW includes:
• Removal and disposal of the existing BPS and control panel.
• Furnishing, installing, start-up and commissioning the new BPS and diaphragm tank.
• Provision of temporary BPS for the PSWS during demolition of the existing system and
installation of the new system.
ECM # 11 – SCADA/Controls Upgrades
The objective of this measure is to improve the existing WTP SCADA system by upgrading the existing
controllers to a platform that is compatible with the recently-installed system on the water distribution
system.
This measure includes the replacement of the existing Bristol Babcock controllers with CompactLogix
and/or ControlLogix Programmable Logic Controllers (“PLCs”) by Allen-Bradley. Compact Logix and
Control Logix represent small and large PLCs from the same family of controllers. Compact Logix and
Control Logix PLCs are fully compatible with each other and use the same programming software. The
system replacements/upgrades are described below.
• At the Ozone building CSP-1 and CSP-7:
o PG&E will remove the existing controllers and infrastructure. One new integrated Ozone
controller will be provided and installed in conjunction with the Ozone system upgrade
described in ECM 2. This new controller will be provided with the following:
▪ Provide a new cabinet and custom back panel
▪ The new integrated Ozone controller will be an Allen Bradley PLC
▪ Add a new power supply and uninterruptable power supply
▪ Provide new Ethernet switch
▪ Provide new terminal blocks, Relays, Fuses as required
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• At the Ozone contact basin CSP-2:
o PG&E will remove this existing controller and associated wiring as it will no longer be
needed for the new Ozone system upgrade installed as part of ECM 2
• At the Filter Building CSP–3 and CSP-4:
o Provide a new custom back panel for installation in the existing PLC cabinet
o Replace existing controllers with a new Allen Bradley PLC
o Add a new power supply and uninterruptable power supply
o Provide new Ethernet switch
o Provide new terminal blocks, Relays, Fuses as required
• At the Chemical Building CSP-5:
o Replace with new PLC in the existing cabinet and location
o Provide a new custom back panel for installation in the existing PLC cabinet
o Replace existing controllers with a new Allen Bradley PLC
o Add a new power supply and uninterruptable power supply
o Provide new Ethernet switch
o Provide new terminal blocks, Relays, Fuses as required
• At the Plant Water Service Pump Station CSP-6:
o Provide a new custom back panel for installation in the existing PLC cabinet
o Replace existing controllers with a new Allen Bradley PLC
o Add a new power supply and uninterruptable power supply
o Provide new Ethernet switch
o Provide new terminal blocks, Relays, Fuses as required
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• At the TPS CSP-8:
o Provide a new custom back panel for installation in the existing PLC cabinet
o Replace existing controllers with a new Allen Bradley PLC
o Add a new power supply and uninterruptable power supply
o Provide new Ethernet switch
o Provide new terminal blocks, relays, and fuses as required
• Reprogramming Services. PG&E will reprogram the upgraded PLCs listed above with existing
sequences, alarms and trending
• Portable computer tablets. PG&E will provide two (2) portable computer tablets (Apple iPad or
equal) with Graphic interface software to optimize operator interface
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EXHIBIT B
ESTIMATED PROJECT SCHEDULE
Below is the estimated project schedule. PG&E will submit a detailed schedule following the kick-off
meeting.
Duration Assumed Start Assumed Finish
Preconstruction 241 days 12/02/19 11/02/20
Receive NTP 1 day 12/02/19 12/02/19
Bond and Insurance 5 days 12/01/19 12/16/19
Write Subcontracts 5 days 12/17/19 12/23/19
Cushman Precon 190 days 12/24/19 09/14/20
Design Drawings 4 months 12/24/19 04/13/20
Submittal Review Process Ozone
Equipment
8 weeks 12/24/19 02/17/20
Submittal Review Process Concrete
Rebar Pip
8 weeks 12/24/19 02/17/20
Submittal Review Process Electrical and
Pumps
8 weeks 04/14/20 06/08/20
Release electrical 1 day 06/09/20 06/09/20
Release ozone equipment 1 day 02/18/20 02/18/20
Ozone equipment lead time 14 weeks 02/18/20 05/25/20
Procure miscellaneous material 4 weeks 02/19/20 03/17/20
Procure electrical and pumps 14 weeks 06/09/20 09/14/20
SCADA Precon 225 days 12/24/19 11/02/20
Engineering and Submittals 180 days 12/24/19 08/31/20
Materials Procurement 45 days 09/01/20 11/02/20
Hazmat layout and testing 6 days 04/14/20 04/21/20
Permits 5 days 04/14/20 04/20/20
Construction 305 days 03/18/20 05/18/21
Ozone 275 days 03/18/20 04/06/21
Mobilize CCC 5 days Wed 3/18/20 Tue 3/24/20
LOX Excavate for Tank pad and LOX
receiving 4 weeks Wed 3/25/20 Tue 4/21/20
LOX Form pour Strip LOX tank pad
and LOX receiving 6 weeks Wed 4/22/20 Tue 6/2/20
LOX excavate Lay Backfill LOX Yard
Pipe 4 weeks Wed 6/3/20 Tue 6/30/20
LOX set and connect LOX tank and
Evaporators 1 weeks. Wed 7/1/20 Tue 7/7/20
Phase 1 Ozone Demo 7 weeks Wed 4/22/20 Tue 6/9/20
Phase 1 Concrete 3 weeks Wed 6/10/20 Tue 6/30/20
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Phase 1 Equipment 4 weeks Wed 7/1/20 Tue 7/28/20
Phase 1 Mechanical 6 weeks Wed 7/29/20 Tue 9/8/20
Phase 1 Electrical 8 weeks Wed 8/26/20 Tue 10/20/20
Ozone Phase 1 Training 5 days Wed 10/21/20 Tue 10/27/20
Phase 1 Startup and Test 5 weeks Wed 10/21/20 Tue 11/24/20
Phase 2 Demo 4 weeks Wed 11/25/20 Tue 12/22/20
Phase 2 Concrete/Tile 2 weeks Wed 12/23/20 Tue 1/5/21
Phase 2 Mechanical 4 weeks Wed 1/6/21 Tue 2/2/21
Phase 2 Electrical 6 weeks Wed 1/20/21 Tue 3/2/21
Ozone Phase 2 Training 5 days Wed 3/3/21 Tue 3/9/21
Phase 2 Startup and Test 5 weeks Wed 3/3/21 Tue 4/6/21
Plant Service Water Upgrade 41 days Tue 9/15/20 Tue 11/10/20
Mobilize CCC 1 day Tue 9/15/20 Tue 9/15/20
Demo and set up bypass 2 weeks Wed 9/16/20 Tue 9/29/20
Install new pumps and mechanical 3 weeks Wed 9/30/20 Tue 10/20/20
Install new Electrical 1 week Wed 10/21/20 Tue 10/27/20
Training 5 days Wed 10/28/20 Tue 11/3/20
Startup and Test 1 week Wed 11/4/20 Tue 11/10/20
Transfer Pump Station Upgrades 26 days Wed 11/11/20 Wed 12/16/20
Mobilize CCC 1 day Wed 11/11/20 Wed 11/11/20
Install TPS VFD's 3 weeks Thu 11/12/20 Wed 12/2/20
Training 5 days Thu 12/3/20 Wed 12/9/20
Startup and Test 1 week Thu 12/10/20 Wed 12/16/20
SCADA Upgrades 218 days Mon 7/6/20 Wed 5/5/21
Mobilize TESCO 2 days Mon 7/6/20 Tue 7/7/20
Site Installation Work 150 days Wed 7/8/20 Tue 2/2/21
Training 5 days Wed 2/3/21 Tue 2/9/21
System Implementation and startup 61 days Wed 2/10/21 Wed 5/5/21
Closeout 30 days Wed 4/7/21 Tue 5/18/21
TOTALS 382 days 12/2/19 05/18/21
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EXHIBIT C
BID SCHEDULE
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ATTACHMENT 1
INVESTMENT GRADE AUDIT REPORT