1 San Francisco Public Utilities Commission Meeting
February 11, 2025
Request to Approve PRO.0140.A Amendment No. 1
Construction Management Services for the East Bay Region
SFPUC Regional Water System – East Bay Region
2 PRO.0140.A Contract Scope Overview
Professional Services Contract PRO.0140.A – Construction Management Services for the East Bay Region
• Resolution No. 20-0237 (December 8, 2020)
• Contractor: CPM / CM Pros JV
• Contract Amount: $9,000,000
• Contract Duration: Seven (7) years – NTP June 2021, expires June 2028 The primary role of the Consultant is to provide construction management services for the East Bay Region, specifically for the following projects:
• WD-2528R Alameda Creek Recapture
• WD-2897 Sunol Valley Water Treatment Plant Ozonation
• WD-2909 Sunol Valley Water Treatment Plant Short Term Improvements This request is to amend the contract by $25M and two (2) years for a total contract amount of $34M and a total contract duration of nine (9) years. 3 PRO.0140.A Amendment No. 1 Summary
Task / Description
Current
Contract
Amount
Proposed
Amendment No.
1 Modification
Proposed
Contract Amount
Alameda Creek Recapture $2,193,000 $2,193,000
SVWTP Ozonation Pre-NTP
Services $486,000 $486,000
SVWTP Ozonation 95%
Design Review $101,000 $101,000
SVWTP Constructability
Analysis $49,000 $49,000
SVWTP Constructability
Analysis Update $39,000 $39,000
SVWTP Ozonation $4,000,000 $18,597,000 $22,597,000
SVWTP Short T erm
Improvements $2,132,000 $6,403,000 $8,535,000
Total $9,000,000 $25,000,000 $34,000,000
4 Why Contract Amendment is Required
Since advertisement of the PRO.0140.A RFP (December 2019), significant increases in scope, cost, and duration of all three projects have occurred.
• WD-2897 SVWTP Ozonation
• Increased from $85M estimated construction cost and 2.5 year estimated construction duration with an estimated start date of November 2022 to a bid amount of $235M and construction duration of 4 years, 2 months.
• NTP was issued on September 30, 2024 and Final Completion is scheduled for December 2028.
• An additional two years of contract time is being requested to complete construction, allow time for closeout activities, and have a contract time contingency for unforeseen delays. 5 Why Contract Amendment is Required
• WD-2909 SVWTP Short Term Improvements
• Increased from $33M estimated construction cost and 1.5 year estimated construction duration with an estimated start date of January 2023 to a bid amount of $45M and a construction duration of 3.5 years. NTP is anticipated in July 2025. • WD-2825R Alameda Creek Recapture
• An additional $1.6M was required to complete the project due to additional staffing needs as well as an increased duration of the project from 1.5 years to 2 years.
• Additional tasks
• SVWTP Ozonation Pre-NTP Services, SVWTP Ozonation 95% Design Review, SVWTP Constructability Analyses - added to the scope of work totaling approximately $700K.
6 Next Steps
Seek Commission approval for contract amendment No. 1 to increase contract capacity by $25M and extend schedule by two years Seek subsequent approval by the Board of Supervisors
7 Questions
8 DEPARTMENT
Infrastructure Division
AGENDA NO.
17 MEETING DATE
February 11, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Contract Manager: James Sakai
Approve Amendment No. 1 to Contract No. PRO.0140.A, Construction Management Services for the East Bay Region
Summary of Proposed
Commission Action:
Approve Amendment No. 1 to Contract No. PRO.0140.A, Construction Management Services for the East Bay Region , with CPM/CM Pros Joint Venture, increasing the contract not- to-exceed amount by $25,000,000 and increasing the contract duration by two years , for a total contract not- to- exceed amount of $34,000,000 and a total contract duration of nine years, to provide continued and additional construction management, construction inspection, special inspection, materials testing, project controls, and safety oversight services for Contract No. WD-2897, Sunol Valley Water Treatment Plant Ozonation Project, and Contract No. WD -2909, Sunol Valley Water Treatment Plant Short Term Improvements Project, which are two major capital projects that have grown significantly in scope, cost, and complexity since this contract was awarded, subject to the Board of Supervisors approval pursuant to Charter Section 9.118.
Background: The San Francisco Public Utilities Commission (SFPUC) require s specialized services and short-term staff augmentation to adequately staff and ensure the successful completion of numerous overlapping construction projects planned under the 10- Year Water Enterprise Capital Improvement Program and the remainder of the Water System Improvement Program (WSIP). The services include construction management , specialized inspection, and special expertise in managing and inspecting the construction of improvements to water treatment plant, pump station s, pipelines , and related improvements for the Sunol Valley Water Treatment Plant Ozonation project, Sunol Valley Water Treatment Plant Short Term I mprovements project, and the Alameda Creek Recapture project.
On December 8, 2020, by Resolution No. 20-0237, this Commission awarded Contract No. PRO.0140.A, Construction Management Services for the East Bay Region, to CPM/CM Pros J oint V enture (JV) , for an amount not to exceed $9,000,000 and a contract duration of seven years.
Agenda Title: PRO.0140.A, Construction Management Services for the East Bay Region Commission Meeting Date: February 11, 2025
On May 14, 2024, by Resolution No. 24 -0111, this Commission awarded construction Contract No. WD-2897, Sunol Valley Water Treatment Plant Ozonation, to J.F. Shea Construction, Inc., in the amount of $234,782,000 with a construction duration of 1,612 consec utive calendar days . The construction Notice -to-Proceed was issued on September 30, 2024.
On October 31, 2024, the SFPUC advertised Contract No. WD -2909, Sunol Valley Water Treatment Plant Short Term Improvements, and on January 16, 2025, the SFPUC received five bids.
This proposed amendment to Contract PRO.0140.A will provide additional contract capacity for the following (costs provided in summary table below):
Continued construction management services for construction Contract No. WD -2897, Sunol Valley Water Treatment Plant Ozonation. When staff originally developed the scope and budget for Contract No. PRO.0140.A , the project was in the early planning stages.
The original project budget and schedule were based on
planning Technical Memoranda and an Alternative Analysis Report.
At that time, the estimate for construction was $85 million with a two- and-a-half-year duration with a start date of November 2022. During the planning and design phases, scope additions and revisions were made to help meet project goals and aid in future operation and maintenance of the facility . The revisions implemented during the planning and design phases increased the project construction estimate to $183 million and a duration to four years and three
months.
The resources needed to successful ly manage the construction of the project has increased significantly since the PRO.0140.A award. The additional construction management services to fully support the contract include s taffing for two additional years, additional discipline-specific inspections due to expanded construction scope , safety compliance oversight, and an Assistant Resident Engineer position. The two-year shift in the construction start date also resulted in increased costs due to escalation.
Additional construction management and closeout services support are required for Contract No. WD -2909,
Sunol Valley Water
Treatment Plant Short Term Improvement p roject. This project was also in the early planning stages when PRO.0140.A was awarded and experienced scope changes and additions due to a reprioritization of needs at the treatment plant . When Contract PRO.0140.A was awarded, the estimated construction cost was $33 million with a contract duration of 18 months and an estimated construction start date in January 2023 . During the design phase , the construction Agenda Title: PRO.0140.A, Construction Management Services for the East Bay Region Commission Meeting Date: February 11, 2025
estimate increased to a range between $45 million to $50 million with a contract duration of 42 months . The contract was advertised on November 31, 2024, with bids due on January 16, 2025, and the estimated construction start date in June 2025. The resources needed to successful ly manage the project increased since the time of PRO.0140.A award. The additional construction management services to fully support the contract include staffing for additional two years over the original duration and discipline specific inspections. The two-and-a-half- year shift in construction start date also contributed to increased costs due to escalation.
This amendment will allow CPM/CM Pros JV to provide the ongoing construction management services needed to successfully complete the projects.
Scope of Contract: The contract work location is in Sunol, California.
The work under this contract consists of construction management, construction inspection, special inspection, materials testing, project controls, and safety oversight.
Modifications to the
Contract:
Recommended Amendment No. 1: Staff recommends Commission approval of Amendment No. 1 to increase the contract not-to-exceed amount by $25,000,000 and extend the contract duration by two years , for a total contract not-to-exceed amount of $34,000,000 and a total contract duration of nine years , to provide continued construction management, construction inspection, special inspection, materials testing, project controls, and safety oversight services for Contract No. WD-2897, Sunol Valley Water Treatment Plant Ozonation Project , and Contract No. WD -2909, Sunol Valley Water Treatment Plant Short Term Improvements Project .
Funding and Costs: Funding Source: Funds are available from the Water Enterprise Capital Improvements Program; Project No. 10033123, S unol Valley Water Treatment Plant Ozonation Project ; Project N o. 10015064, S unol Valley Water Treatment Plant Short Term Improvements Project; and Project No. 10015281, Alameda Creek Recapture Project.
Original Contract Not-to-Exceed Amount: $9,000,000
Proposed Modification No. 1 Increase Amount: $25,000,000 Total Contract Not-To-Exceed Amount: $34,000,000
Schedule: Original Contract Duration: seven years
Proposed Amendment No. 1 Increase Duration: two years
Agenda Title: PRO.0140.A, Construction Management Services for the East Bay Region Commission Meeting Date: February 11, 2025
Total Contract Duration: nine years
Environmental
Review:
On October 30, 2008, by Motion No. 17734, the Planning Commission certified a Final Program Environmental Impact Report (Program EIR) prepared for the Water System Improvement Program (WSIP). On October 30, 2008, by Resolution No. 08- 0200, this Commission approved the WSIP and adopted findi ngs and a Mitigation Monitoring and Reporting Program, as required by the California Environmental Quality Act (CEQA).
On December 3, 2009, the Planning Commission, by Motion No. 17992, certified the Final Environmental Impact Report (Final EIR) for the Sunol Valley Water Treatment Plant Expansion and Treated Water Reservoir Project (Case Number 2006.0137E), which is tiere d from the 2008 Program EIR.
On December 08, 2009, by Resolution No. 09- 0203, this Commission approved the Sunol Valley Water Treatment Plant Expansion and Treated Water Reservoir Project and adopted findings (CEQA Findings) and a Mitigation Monitoring and Reporting Program required by the CEQA.
On July 13, 2023, the San Francisco Planning Department issued an Addendum to the Final EIR to construct a new ozonation facility and a new polymer feed facility at the plant, and to conduct repairs and improveme nts to existing treatment facilities at the plant. No public comments on the addendum were received. The work under Contract No. PRO.0140.A, Construction Management Services for the East Bay Region is within the scope of the project authorized under the F inal EIR and Addendum. On March 13, 2024, the Addendum was circulated to the State Clearinghouse (SCH Number 2007082014) for public review and no comments were received.
The Program EIR, CEQA findings, and Mitigation Monitoring and Reporting Program can be found here:
https://sfpuc.sharefile.com/public/share/web-
sc700700e116449f881c511c8079aaa3e
The Final Sunol Valley Water Treatment Plant Expansion and Treated Water Reservoir Project EIR and Addendum, Resolution No. 09-0203, CEQA Findings, and Mitigation Monitoring and Reporting Program can be found here:
https://sfpuc.sharefile.com/public/share/web -
s819430c6f134493fa0aff4976e9a4080
Agenda Title: PRO.0140.A, Construction Management Services for the East Bay Region Commission Meeting Date: February 11, 2025
Local Business
Enterprise Utilization
and Non-
Discrimination i n
Contracting:
The Contract Monitoring Division (CMD) established a 15% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to a 17% LBE subcontractor participation with its bid submittal , and this amount remains unchanged.
Attachment(s): 1. CMD Memorandum
Agenda Title: PRO.0140.A, Construction Management Services for the East Bay Region Commission Meeting Date: February 11, 2025
Table 1: PRO.0140.A Amendment No. 1 Summary
Task
Order Task Summary Current Budget
Proposed
Amendment No. 1
Modifications Proposed Budget
1 Alameda Creek Recapture
Project $2,193,000 $0 $2,193,000
2 SVWTP Ozonation Pre -NTP
Services
$486,000 $0 $486,000
3 SVWTP Ozonation 95%
Design Review $101,000 $0 $101,000
4 SVWTP Constructability
Analysis $49,000 $0 $49,000
5 SVWTP Constructability
Analysis Update $39,000 $0 $39,000
6 Construction Management for
WD-2897 SVWTP Ozonation $4,000,000 $18,597,000 $22,597,000 7 Construction Management for
WD-2909 SVWTP Short
Term Improvements
$2,132,000 $6,403,000 $8,535,000
Total $9,000,000 $25,000,000 $34,000,000
Agenda Title: PRO.0140.A, Construction Management Services for the East Bay Region Commission Meeting Date: February 11, 2025
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) requires specialized and short -term staff augmentation to City staff to manage multiple overlapping construction projects planned over the next five years under the 10-Year Water Enterprise Capital Improvement Program and Regional Water System Improvement Progra m; and
WHEREAS, On December 8, 2020, by Resolution No. 20-0237, the Commission awarded Contract No. PRO.0140.A, Construction Management Services for the East Bay Region, to CPM/CM Pros Joint Venture (JV), for an amount not to exceed $9,000,000 and with a duration of seven years; and
WHEREAS, On May 14, 2024, by Resolution No. 24- 0111, this Commission awarded construction Contract No. WD-2897, Sunol Valley Water Treatment Plant Ozonation, to J.F. Shea Construction, Inc., in the amount of $234,782,000 with a construction duration of 1,612 consecutive calendar days, and the c onstruction Notice-to-Proceed was issued on September 30, 2024; and
WHEREAS, On October 31, 2024, the SFPUC advertised Contract No. WD -2909, Sunol Valley Water Treatment Plan t Short Term Improvements, and on January 16, 2025, the SFPUC received five bids ; and
WHEREAS, Staff recommends that the Commission approve proposed Amendment No. 1 to Contract No. PRO.0140.A to increase the contract not-to-exceed amount by $25,000,000 and extend the contract duration by two years, for a total contract not-to-exceed amount of $34,000,000 and a total contract duration of nine years, to provide continued and additional construction management, construction inspection, special inspection, materials testing, project controls, and safety oversight services for Contract No. WD -2897, Sunol Valley Water Treatment Plant Ozonation Project, and Contract No. WD -2909 and Sunol Valley Water Treatment Plant Short Term Improvements Project ; and
WHEREAS, The Contract Monitoring Division established a 15% Local Business Enterprise (LBE) subconsultant participation requirement for this c ontract, CPM/CM Pros JV committed to a LBE subconsultant participation of 17% with its bid submittal, and this remains unchanged; and
WHEREAS, On October 30, 2008, by Motion No. 17734, the Planning Commission certified a Final Program Environmental Impact Report (Program EIR) prepared for the Water System Improvement Program (WSIP), and on October 30, 2008, by Resolution No. 08-0200, this Commission approved the WSIP and adopted findings and a Mitigation Monitoring and Reporting Program, as required by the California Environmental Quality Act (CEQA); and
WHEREAS, On December 3, 2009, the Planning Commission, by Motion No. 17992, certified the Final Environmental Impact Report (Final EIR) for the Sunol Valley Water Treatment Plant Expansion and Treated Water Reservoir Project (Case Number 2006.0137E), which is tiered from the 2008 Program EIR and on December 08, 2009, by Resolution No. 09- 0203, this Commission approved the Sunol Valley Water Treatment Plant Expansion and Treated Water
Reservoir Project and adopted CEQA findings and a Mitigation Monitoring and Reporting Program required by the CEQA; and
WHEREAS, On July 13, 2023, the San Francisco Planning Department issued an Addendum to the Final EIR to construct a new ozonation facility and a new polymer feed facility at the plant, and to conduct repairs a nd improvements to existing treatment facilities at the plant , and no public comments on the addendum were received; and the work under Contract No.
PRO.0140.A, Construction Management Services for the East Bay Region, is within the scope of the project authorized under the Final EIR and Addendum; and
WHEREAS, On March 13, 2024, the Addendum was circulated to the State Clearinghouse (SCH Number 2007082014) for public review, and no comments were received; and
WHEREAS, The San Francisco Planning Department is the custodian of records, located in File No. 2006.0137E, at 49 South Van Ness Avenue, Suite 1400, San Francisco, California, 94103, which have been made available for review by this Commission and the public, and those files are part of the record before this Commission; and
WHEREAS, Staff has made the Project files available, including the Program EIR, Final EIR, Addendum to the Final EIR, Resolution No. 09- 0203, CEQA Findings and the Mitigation Monitoring and Reporting Program for review by this Commission and the public, and those files are part of the record before this Commission; and
WHEREAS, This Commission has reviewed and considered the information contained in the Program EIR, Final EIR, the findings, SFPUC Resolution No. 09-0203, the Addendum to the Final EIR and all written and oral information provided by the Planning Department, the public, relevant public agencies, SFPUC and other experts and the administrative files for the Project; and
WHEREAS, Funds for this contract are available from Project No. 10033123, Sunol Valley Water Treatment Plant Ozonation, Project No. 10015064, Sunol Valley Water Treatment Plant Short Term Improvements, and Project No. 10015281, Alameda Creek Recapture; now, therefore, be it
RESOLVED, This Commission has reviewed and considered the Program EIR, Final EIR and the Addendum and the record as a whole, and finds that the Final EIR and Addendum are adequate for its use as the decision –making body for the Project and incorporates the CEQA findings and Resolution No. 09- 0203 by this reference thereto as though set forth in this Resolution; and be it
FURTHER RESOLVED, This Commission further finds that since the Program EIR and Final EIR as modified by the Addendum were finalized, ther e have been no substantial project changes and no substantial changes in project circumstances that would require major revisions to them due to the involvement of new significant environmental effects or an increase in the severity of previously identifie d significant impacts, and there is no new information of substantial importance that would change the conclusions set forth in them; and be it
FURTHER RESOLVED, That this Commission hereby approves Amendment No. 1 to Contract No. PRO.0140.A, Constructi on Management Services for the East Bay Region, with CPM/CM Pros JV, increasing the contract not-to-exceed amount by $25,000,000 and extending the contract duration by two years, for a total not-to-exceed contract amount of $34,000,000, and a total contract duration of nine years, subject to the Board of Supervisors approval pursuant to Charter Section 9.118.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of February 11, 2025.
Director of Commission Affairs
San Francisco Public Utilities Commission