1 Request to Approve PRO.0092 Amendment No. 3
and WW-714 Increase in Contingencies
Engineering and Construction Services for
Ocean Beach Climate Change Adaptation Project
Oceanside
San Francisco Public Utilities Commission Meeting
March 11, 2025
Ft. Funston
Sloat Boulevard
2 Climate Change Focused Planning
for San Francisco’s Ocean Beach
Project Meets Major City Priorities
1. Coastal Act Compliance
2. Maintain Water Quality via Infrastructure Protection
3. Adapt to Climate Change
3 1994
2010
4 San Francisco’s Historic Approaches to
Coastal Erosion
5 PRO.0092: Ocean Beach Long-term
Improvements
6 WW-714: Ocean Beach Short-term
Improvements
7 PRO.0092 Contract Scope Overview
Professional Services Contract PRO.0092 – Engineering Services for South Ocean Beach Coastal Erosion and
Wastewater Infrastructure Protection
• Resolution No. 18-0128
• Contractor: Moffat and Nichol - AGS Joint Venture
• Contract Amount: $3,750,000
• Contract Duration: Five (5) years
The primary role of the Consultant is to provide planning, design and engineering support during construction
(ESDC) services for the Long-term Improvements phase
of the Ocean Beach Climate Change Adaptation Project
PRO.0092 Amendment No. 3 Summary
8 Phase Original
Budget
Amendment
Nos. 1+2
Current
Budget
Realigned
Budget
Amendment
No. 3
(This
Request)
Proposed
Budget
Planning $1,255,000 $125,000 $1,380,000 $1,380,000 $0 $1,380,000 Environmental
Support $250,000 $125,000 $375,000 $575,000 $900,000 $1,475,000 Design $1,817,500 $900,000 $2,717,500 $3,795,000 $2,600,000 $6,395,000 ESDC $427,500 $850,000 $1,277,500 $0 $3,500,000 $3,500,000 Total $3,750,000 $2,000,000 $5,750,000 $5,750,000 $7,000,000 $12,750,000 9 PRO.0092 Contract Amendment Request
Why Contract Amendment is Required:
• Total project scope, complexity, cost and schedule increased significantly during planning and design
• Extensive coordination among multiple stakeholders, navigation of inherent technical complexities to effectively integrate diverse agency perspectives and priorities
• Coastal Commission Mandated Design Changes requiring
additional analysis and design efforts among the multiple stakeholders
• Increased duration of construction to address traffic flow in coordination with other San Francisco priority projects 10 Project Evolution Since June 2024
Original Design
Revised Design
11 WW-714 Contract Scope Overview
Construction Contract WW-714 – Ocean Beach Climate
Change Adaptation, Short-term Erosion Mitigation
• Resolution No. 21-0115
• Contractor: Minerva Construction Inc.
• Contract Amount: $3,134,000
• Contract Duration: 1,095 consecutive calendar days
The primary role of the Consultant is to provide Short- term Improvements in the form of soft shoreline
protection measures when monitoring requires it while
the Long-term Improvements phase is developed
WW-714 Increases in Cost and
Duration Contingencies Summary
12 WW-714 ORIGINAL
ORIGINAL
CONTINGENCY
PROPOSED
INCREASE IN
CONTINGENCY TOTAL
Duration in
Consecutive
Calendar
Days
1095 109 1095 2299
Total
Contract
Amount
$3,134,000 $313,400 $2,000,000 $5,477,400
13 WW-714 Approve Increases in
Contingencies
Why Increases in Cost and Duration Contingencies are Required:
• While design continues for the Long-term phase, protection of the area, which includes critical wastewater infrastructure, is necessary. • Work depends on annual monitoring which is required by the landowner, the National Park Service, and the California Coastal Commission.
• Monitoring reports determine if coastal erosion has degraded the area enough to warrant action.
• If action is required, WW-714 provides the contracting vehicle needed to meet the protection requirements.
14 Next Steps
Seek Commission approval for PRO.0092 Contract Amendment No. 3 to increase budget and extend schedule
Seek subsequent approval by the Board of Supervisors
Seek Commission approval for WW-714 Increases in Cost and Duration Contingencies
Complete California Coastal Commission Mandated Design Changes 15 Questions and Answers
DEPARTMENT
Infrastructure Division
AGENDA NO. 12
MEETING DATE
March 11, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Project Manager: Anna M. Roche
Approve Increases in Cost and Duration Contingencies for Contract No. WW-714, Ocean Beach Climate Change Adaptation, Short-term Erosion Mitigation
Summary of Proposed
Commission Action:
Approve an increase of $2,000,000 to the cost contingency and an increase of 1,095 calendar days to the duration contingency for Contract No. WW- 714, Ocean Beach Climate Change Adaptation, Short -term Erosion Mitigation, with Minerva Construction Inc., for a revised cost limit of $5,447,400 and a revised duration limit of 2,299 consecutive calendar days, to provide soft shoreline protection measures when monitoring requires it while the Long-term Improvements project phase continues to be developed.
Background: The San Francisco Public Utilities Commission (SFPUC) is leading efforts to implement one of the City’s first climate change adaptation initiatives, the Ocean Beach Climate Change Adaptation Project (Project) located at Ocean Beach, south of Sloat Boulevard in San Francisco . The SFPUC partner agencies include San Francisco Recreation and Park Department, San Francisco Municipal Transportation Agency, and San Francisco Public Works. This is one of the first large, cross -agency infrastructure projects being built in the City to address the long- term physical changes needed to combat climate -induced sea level rise in the City, specifically at Ocean Beach.
The Project is necessary to protect the integrity of the SFPUC’s wastewater assets built to protect public health and the environment, including the Lake Merced Tunnel, the Westside Pump Station, and the Oceanside Wastewater Treatment Plant. The Lake Merced Tunnel has a storage capacity of up to 10 million gallons for combined sewage and stormwater flows and is located closest to the section of South Ocean Beach most severely impacted from, and most vulnerable to, continued bluff erosion. The tunnel could b ecome structurally compromised if sudden bluff retreat is experienced, resulting in significant environmental and public health impacts. This project will implement a comprehensive shoreline management and protection plan in partnership with relevant stakeholders and regulatory agencies to provide a long-term solution to the climate -related shoreline erosion along South Agenda Title: WW-714, Ocean Beach Climate Change Adaptation, Short-term Erosion Mitigation Commission Meeting Date: March 11, 2025
Ocean Beach, and to mitigate potential impacts to the Lake Merced Tunnel and other critical wastewater assets at this location.
On July 27, 2021, by Resolution No. 21- 0115, this Commission awarded Contract No. WW -714, Ocean Beach Climate Change Adaptation, Short - term Erosion Mitigation (Contract WW-714), to Minerva Construction Inc.
The original contract amount was $3,134,000 and the original contract duration was 1,095 consecutive calendar days.
On June 10, 2024, the SFPUC submitted a letter request to California Coastal Commission staff requesting postponement of the Coastal Development Permit hearing. The Project design had reached 95% design for the Long-term Improvements phase and was the product of more than a decade of collaboration, planning, technical study, design, and environmental review. These initiatives, in which the SFPUC had invested millions of dollars and countless hours of staff time, required extensive consultation, collaboratio n, and negotiation among several departments within the City and across multiple levels of government. In addition, the SFPUC met with Coastal Commission staff on a regular basis to discuss the technical work that supported the Project design. These extensive coordination efforts led the SFPUC to believe that Coastal Commission staff substantially agreed with most of the Project elements. However, the Coastal Commission staff’s special conditions that were provided in advance of the June hearing, recommende d substantial project modification. Because the proposed Project design resulted from extensive collaboration between a wide array of interested parties and stakeholders, implementing even one of the changes identified would take additional time and coordi nation. After six
months of negotiations, the SFPUC and Coastal Commission staff reached substantial agreement on what design changes would be reasonably feasible. With that substantial agreement, the SFPUC attended the November 2024 Coastal Commission hea ring and secured unanimous approval of the Coastal Development Permit application. The SFPUC is estimating that re -design of these elements , which require the approval of the Coastal Commission Executive Director, will take at least 18 additional months of design once contract modifications are secured.
While design continues, protection of this area is necessary. Implementation of work under Contract W W-714 depends on annual monitoring of South Ocean Beach required by the National Park Service (the landowner) and the California Coastal Commission. Monitoring reports determine if coastal erosion has degraded the area enough to warrant action. Since the inception of the Contract, monitoring has required action in 2023 and is developing action for 2025, but no action was required in 2024. Annual contract work was estimated to be upwards of $1,000,000 per year.
Agenda Title: WW-714, Ocean Beach Climate Change Adaptation, Short-term Erosion Mitigation Commission Meeting Date: March 11, 2025
Scope of Contract: The contract work location is south of Sloat Boulevard along South Ocean Beach.
The contract work consists of providing coastal erosion mitigation and protecting critical wastewater infrastructure, facilities, and assets at South Ocean Beach in San Francisco. To accomplish this, the contract or will selectively relocate sand from North Ocean Beach, transport along the Great Highway and strategically place sand and erosion mitigation measures at South Ocean Beach. In addition, the contract or will move large sandbags currently stored at the SF Zoo and strategically place them at South Ocean Beach.
Modifications to the
Contract:
Recommended Increase s to Cost and Duration Contingenc ies: Staff recommends that the Commission approve an increase of $2,000,000 to the existing cost contingency and an increase of 1 ,095 consecutive calendar days to the existing duration contingency , for a revised cost limit of $5,447,400 and a revised duration limit of 2,299 consecutive calendar days, to allow the contractor to continue to be able to provide soft shoreline protection measures when monitoring requires it while the long-term project phase continues to be developed.
Extending these services is needed to address on -going extensive coordination efforts among multiple stakeholders, technical complexities, additional analysis, and design efforts needed to address challenging negotiations between affected stakeholders, and significant delays to design of the Long-
term Improvements phase associated with the California
Coastal Commission permitting requirements. While that work continues, this contract extension is needed to allow for continued implementation of Short-term Im
provements (soft shoreline protection measures), which
include moving sand from North Ocean Beach to South Ocean Beach (see Figure 1) and placing large sandbags to temporarily protect the Great Highway Extension and SFPUC Wastewater Infrastructure while the Long- term Improvements phase continues to be developed.
Funding and Costs: Funding Source: Wastewater Enterprise Facilities & Infrastructure Program-funded Project No. 10015554, Ocean Beach Climate Change Adaptation Project.
Original Contract Amount: $3,134,000
Original 10% Cost Contingency: $313,400
Approved Increases to Cost Contingency: $0
Remaining Cost Contingency: $313,400
Requested Additional Cost Contingency: $2,000,000
Total Proposed Contract Cost Limit: $5,447,400
Schedule: Notice-to-Proceed Date: April 4, 2022
Agenda Title: WW-714, Ocean Beach Climate Change Adaptation, Short-term Erosion Mitigation Commission Meeting Date: March 11, 2025
Original Contract Duration: 1,095 consecutive calendar days Original 10% Duration Contingency: 109 calendar days
Approved Increase to Duration Contingency: 0 calendar days Remaining Duration Contingency: 109 calendar days
Requested Additional Duration Contingency: 1,095 calendar days Total Proposed Contract Duration Limit : 2,299 consecutive calendar days
Environmental
Review:
On October 30, 2015, the San Francisco Planning Department determined the Ocean Beach Short -term Improvements Project (also known as the South Ocean Beach Short -term Erosion Protection Project) to be categorically exempt from environmental review under the CEQA Guidelines section 15304, Class 4 (Minor Alterations to Land) under Case Number 2015.013754ENV. The exemption determination is available here:
link.
On June 28, 2021, the Planning Department issued a determination of no substantial modification to the exemption for the continuation of the soft shoreline protection measures through 2023. This first determination is available here: link
.
On November 19, 2024, the Planning Department issued a determination of no substantial modification to the exemption for the continuation of the soft shoreline protection measures through 2028. This second determination is available here: link
.
The work under this Amendment is within the scope of the project authorized under the exemption and determinations of no substantial modification.
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division established a 20% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to a 20.74% LBE subcontractor participation with its bid submittal and this amount remains unchanged.
Attachment(s): Background Memorandum
Agenda Title: WW-714, Ocean Beach Climate Change Adaptation, Short-term Erosion Mitigation Commission Meeting Date: March 11, 2025
WW-714 Ocean Beach Climate Change Adaptation Project, Short-term Erosion Mitigation
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, On behalf of the City and County of San Francisco (City), the San Francisco Public Utilities Commission (SFPUC) is leading efforts to implement one of the City’s first climate change adaptation initiatives, the Ocean Beach Climate Change Adaptation Project (Project) located at Ocean Beach, south of Sloat Boulevard in San Francisco; and
WHEREAS, The Project is being implemented in three sequential phases: (1) Short -term Improvements; (2) Army Corps of Engineers’ Beneficial Use of Dredged Sand; and (3) Long-term Improvements; and
WHEREAS, On December 8, 2015, by Resolution No. 15- 0258, this Commission approved the Ocean Beach Short-term Improvements Project; and
WHEREAS, On July 27, 2021, by Resolution No. 21- 0115, the Commission awarded Contract No. WW-714, Ocean Beach Climate Change Adaptation, Short-term Erosion Mitigation, to Minerva Construction Inc.; and
WHEREAS, The original contract amount was for $3,134,000 and the original contract duration was 1,095 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was April 2, 2022; and
WHEREAS, The Project has been delayed due to on-going extensive coordination efforts among multiple stakeholders, technical complexities, additional analysis, and design efforts needed to address challenging negotiations between affected stakeholders, and significant delays to design of the l ong-term improvements associated with the California Coastal Commission permitting requirements, which will require the short -term protections under Contract No. WW - 714, Ocean Beach Climate Change Adaptation, Short-term Erosion Mitigation, to continue, and
WHEREAS, Staff recommends approval of an increase of $2,000,000 to the existing cost contingency and an increase of 1,095 calendar days to the existing duration contingency, for a revised cost limit of $5,447,400 and a revised duration limit of 2,299 consecutive calendar days, to allow the contractor to continue to provide required short -term soft shoreline protection measures while the Long-term project continues to be developed; and
WHEREAS, The Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 20% for this contract, the contractor committed to a n LBE subcontractor participation of 20.74% with its bid submittal, and this amount remains unchanged; and
WHEREAS, On October 30, 2015, the San Francisco Planning Department determined the Ocean Beach Short-term Improvements Project (also known as the South Ocean Beach Short-term
Erosion Protection Project) to be categorically exempt from environmental review under California Environmental Quality Act s ection 15304, Class 4 (Minor Alterations to Land) under Case Number 2015.013754ENV; and
WHEREAS, On June 28, 2021, the Planning Department issued a determination of no substantial modification to the exemption for the continuation of the soft shoreline protection measures through 2023; and
WHEREAS, On November 19, 2024, the Planning Department issued a determination of no substantial modification to the exemption for the continuation of the soft shoreline protection measures through 2028 and the work under this amendment is within the scope of the project authorized under the exemption and determinations of no substantial modifications; and
WHEREAS, Funds are available from Wastewater Enterprise Facilities & Infrastructure Program-funded Project No. 10015554, Ocean Beach Climate Change Adaptation Project ; now, therefore, be it
RESOLVED, That this Commission hereby approves an increase of $2, 000,000 to the existing cost contingency and an increase of 1 ,095 calendar days to the existing duration contingency, for Contract No. WW-714, Ocean Beach Climate Change Adaptation Project, Short- term Erosion Mitigation, with Minerva Construction Inc., for a total remaining cost contingency of $2,313,400 and a total remaining duration contingency of 1,204 calendar days, and for a revised cost limit of $5,447,400 and a revised duration limit of 2,299 consecutive calendar days.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of March 11, 2025.
Director of Commission Affairs
San Francisco Public Utilities Commission
OUR MISSION: To provide our customers with high-quality, efficient, and reliable water, power and sewer services in a manner that values environmental and community interests and sustains the resources entrusted to our care.
525 Golden Gate Avenue
San Francisco, CA 94102
T 415.554.3155
F 415.554.3161
TTY 415.554.3488
ATTACHMENT 1
BACKGROUND MEMORANDUM
DATE: February 18, 2025
SUBJECT: Ocean Beach Climate Change Adaptation Project – Project Background Information in support of the March 11, 2025, Commission Items - Approve Amendment No. 3 to Contract No.
PRO.0092, Engineering Services for South Ocean Beach Coastal Erosion and Wastewater Infrastructure Protection and Approve Increases in Cost and Duration Contingencies for Contract No.
WW-714, Ocean Beach Climate Change Adaptation, Short-term Erosion Mitigation
The memorandum provides background information on timeline of project development, level o f required coordination among multiple stakeholders, and current status of regulatory approvals with the California Coastal Commission which has led to the proposed Amendment No. 3 to Contract NO. PRO.0092, Engineering Services for South Ocean Beach Coastal Erosion and Wastewater Infrastructure Protection and the need for Approving Increases in Cost and Duration Contingencies for Contract No. WW -714, Ocean Beach Climate Change Adaptation, Short-term Erosion Mitigation.
This project will implement a comprehensive shoreline management and protection plan in partnership with relevant stakeholders and regulatory agencies to provide a long-term solution to the climate-related shoreline erosion along South Ocean Beach, and to mitigate potential impacts to the Lake Merced Tunnel and other critical wastewater assets at this location . On behalf of the City and County of San Francisco (City), the SFPUC is leading the effort to plan, design, and construct the Ocean Beach Climate Change Adaptation Project (Project) at South Ocean Beach, which is being implemented in three sequential phases: (1) Short -term Improvements via WW-714 [soft shoreline protection measures, which include moving sand from North Ocean Beach to South Ocean Beach and placing large sand bags to temporarily protect the Great Highway Extension and SFPUC Wastewater infrastructure while the Long -term Improvements are developed via PRO.0092]; (2) Army Corps of Engineers’ Beneficial Use of Dredged Sand [in 2021, the Army Corps placed 380,000 cubic yards of sand dredged from the Main Shipping Channel at South Ocean Beach in partnership with SFPUC and the National Park Service, which is needed for the long- term management of the area]; and (3) Long -term
Improvements [long- term components to address climate -induced erosion described as the Project].
The Project is one of the City’s first climate adaptation initiatives. Partnering with the San Francisco Recreation and Park s Department, the San Francisco Municipal Transportation Agency, and San Francisco Public Works, this project addresses the long-term physical changes needed to combat climate-induced sea level rise at Ocean Beach, south of Sloat Boulevard. As a pioneering effort in climate adaptation, the project requires extensive coordination among multiple stakeholders, navigation of inherent technical complexities , analysis and design to effectively integrate diverse agency perspectives and priorities. This integration has resulted in complex, but ultimately productive, negotiations with affected stakeholders. This type of integrated, multi -agency approach is relatively new, and while it is requiring a significant investment of time and resources to align processes and priorities, it has also provided invaluable learning opportunities. These lessons will help streamline and improve future climate adaptation projects, ensuring the City is well- prepared for the challenges of a changing climate.
Treatment Plant. The Lake Merced Tunnel has a storage capacity of up to 10 million gallons for combined sewage and stormwater flows and is located closest to the section of South Ocean Beach most severely impacted from, and most vulnerable to, continued bluff erosion. The tunnel could become structurally compromised if sudden bluff retreat is experienced, resulting in significant environmental and public health impacts.
Ocean Beach comprises a 3.5 -mile stretch of sandy beach that forms the western boundary of San Francisco. It is influenced by complex coastal processes, including an intense wave climate, strong tidal currents, and irregular offshore underwater features. Chronic erosion of the beach and bluffs by climate-related sea level rise and episodic coastal storms occurs at South Ocean Beach. This erosion has undermined and damaged beach parking lots, stormwater drainage facilities, and the Great Highway Extension (portion of the Great Highway between Sloat and Skyline Boulevards), threatens existing underground wastewater system infrastructure, and has constrained public shoreline access and recreational opportunities.
Since the 1990s, the City has responded to the erosion – mainly to protect the Great Highway Extension, an SF Rec and Park asset – through both hard shoreline armoring (e.g., construction of rock and rubble revetments) and soft shoreline protection measures (e.g., beach nourishment and sandbag revetments). In the intervening period, the City has also undertaken planning initiatives aimed at developing a long- term strategy for managing South Ocean Beach. Notably, the city partially funded and participated in the preparation of the 2012 Ocean Beach Master Plan (Plan). Led by the San Francisco Bay Area Planning and Urban Research Association (SPUR), the master planning process The Project is necessary to protect the integrity of the SFPUC’s wastewater assets built to protect public health and the environment, including the Lake Merced Tunnel, the Westside Pump Station, and the Oceanside Wastewater
brought together community members, elected officials, agency representatives, and other stakeholders to develop a sustainable, long-term vision for Ocean Beach, addressing public access, recreational use, environmental protection, and infrastructure needs in the context of erosion and climate-related sea level rise.
The Plan presented 6 key moves that are organized by geographical reaches and are designed to be implemented incrementally by the responsible agencies over a period of decades. This Project is focused on implementing 2 of the 6 key moves at South Ocean Beach (Ocean Beach between Sloat Boulevard and Fort Funston) and includes (1) closure of the Great Highway Extension and (2) the introduction of a multipurpose coastal protection/ restoration/access system.
The terms of a 2014 legal settlement agreement and a 2015 California Coastal Commission permit, which had received subsequent time extensions of a total of 2.5 years with a previous expiration date of June 30, 2024, both establish timelines for developing and implementing a long- term strategy for shoreline management at South Ocean Beach.
On June 10, 2024, the SFPUC submitted a letter request to California Coastal Commission staff requesting postponement of the June 2024 Coastal Development Permit hearing. The Project design had reached 95% design for the Long-term Improvements phase and was the product of more than a decade of collaboration, planning, technical study, design, and environmental review.
These initiatives, in which the SFPUC had invested millions of dollars and countless hours of staff time, required extensive consultation, collaboration, and negotiation among several departments within the City and across multiple levels of government. In addition, the SFPUC met with Commission staff on a regular basis to discuss the technical work that supported the Project design.
These extensive coordination efforts led the SFPUC to believe that Commission staff substantially agreed with most of the Project elements. However, the Commission staff’s special conditions that were provided in advance of the June hearing, recommended substantial project modification. Because the proposed Project design resulted from extensive collaboration between a wide array of interested parties and stakeholders, implementing even one of the changes identified would take additional time and coordination. After 6 months of negotiations, the SFPUC and Coastal Commission staff reached substantial agreement on what design changes would be reasonably feasible. With that substantial agreement, the SFPUC attended the November 14, 2024, Coastal Commission hearing and secured unanimous approval of the C oastal Development Permit.
In 2018, the city amended its local coastal plan, the Western Shoreline Area Plan, to adopt policies that advance the Plan’s general vision for South Ocean Beach. The local coastal program policies concerning managed retreat, beach nourishment, and shoreline armoring strategies aim to preserve and enhance public access, coastal recreation, and scenic resources at South Ocean Beach, while protecting critical wastewater system infrastructure from damage due to coastal hazards. The Project represents the City’s long-term strategy to shoreline management at South Ocean Beach.
The SFPUC is estimating that re -design of these elements, which require the approval of the Coastal Commission Executive Director and continued coordination among multiple stakeholders, navigation of inherent technical complexities, and additional analysis and design to effectively integrate diverse agency perspectives and priorities , will take at least 18 additional months of design once the contract modification for PRO.0092 is secured.
While design continues, protection of this area is necessary. Extending services under WW-714 are needed to allow for continued implementation of Short-term Improvements (soft shoreline protection measures), which include moving sand from North Ocean Beach to South Ocean Beach and placing large sandbags to temporarily protect the Great Highway Extension and SFPUC Wastewater Infrastructure, while the Long- term Improvements phase, which is being designed under PRO.009, continues to be developed.