DEPARTMENT
Infrastructure Division
AGENDA NO. 7a
MEETING DATE
March 25, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Ming Yee
Approve Increase to Construction Cost Contingency for Contract No. WW-753, Hayes Valley Sewer Improvements
Summary of Proposed
Commission Action:
Approve an increase of $1, 100,000 to the cost contingency for Contract No. WW -753, Hayes Valley Sewer Improvements, with Precision Engineering, Inc., for a revised cost limit amount of $13,026,557, to use an alternate resin for cured-in-place liners along the final segments of large diameter sewers to minimize community impacts and to replenish cost contingencies, with no change to the contract duration.
Background: The purpose of this project is to rehabilitate and replace the existing San Francisco Public Utilities Commission (SFPUC) sewers that are approximately 100 years old and identified to be at a high risk of failure based on data from the SFPUC Condition System Assessment Management Program. The need for structural rehabilitation was further confirmed by the project team when missing mortar and fallen bricks were observed in televised videos of these sewers.
On May 28, 2024, by Resolution No. 24-0128, this Commission awarded Contract No. WW- 753, Hayes Valley Sewer Improvements , to Precision Engineering, Inc. The original contract amount was $ 10,842,325, and the original contract duration was 420 consecutive calendar days.
Scope of Contract: The contract work locations are on Franklin, Grove, Hayes, Laguna, McAllister, Oak, Page, Polk, Scott, and Sutter S treets in the City and County of San Francisco.
The contract work consists of:
• Replace and rehabilitate approximately 5,100 linear feet of existing sewers using cured -in-place-liners, slip-lining, or spray mortaring construction methods;
• Rehabilitate existing sewer manholes and install new sewer manholes;
• Replace and rehabilitate laterals and associated appurtenance; and, • Restore roadway and other restoration-in-kind work associated with the sewer.
Agenda Title: Contract No. WW-753, Hayes Valley Sewer Improvements Commission Meeting Date: March 25, 2025
Modifications to the
Contract:
Modification No. 1: On March 13, 2025, staff issued Modification No. 1, increasing the contract amount by $900,064 , within the original 10% contingency, for a total contract amount of $11,742,389, with no change to the contract duration, to use an alternate resin in cured-in-place liners along the first segments of the large diameter sewers to minimize community impacts. There is $184,168 remaining from the original cost contingency.
Recommended Increase to Cost Contingency: Staff recommends that the Commission approve an increase of $1,100,000 to the existing cost contingency for a total revised cost limit of $13,026,557, to use an alternate resin for the cured-in-place liners along the final segments of large diameter sewers to minimize community impacts and to replenish cost contingencies for the remainder of the contract work , with no change to the contract duration.
Funding and Costs: Funding Source: Project No. 10041074, Hayes Valley Sewer Improvements
Original Contract Amount: $10,842,325
Original 10% Cost Contingency: $1,084,232
Approved Increases to Cost Contingency: $0
Modified Increases to Contract Amount: $900,064
Remaining Cost Contingency: $184,168
Requested Additional Cost Contingency: $1,100,000
Total Proposed Revised Cost Limit: $13,026,557
Schedule: Notice-to-Proceed Date: September 9, 2024
Original Contract Duration: 420 consecutive calendar days Original 10% Duration Contingency: 42 calendar days
Approved Increase to Duration Contingency: 0 calendar days Modified Increases to Contract Duration: 0 calendar days Remaining Duration Contingency: 42 calendar days
Requested Additional Duration Contingency: 0 calendar days Current Duration Limit: 462 consecutive calendar days
Environmental
Review:
On December 5, 2023, the San Francisco Planning Department determined the Project to be categorically exempt from environmental review under the California Environmental Quality Act Guidelines section 15302, Class 2 (Replacement or Reconstruction) under Case N o. 2023-006572ENV. The work under this Modification is within the scope of the P roject authorized under the exemption. The exemption determination can be found here:
Agenda Title: Contract No. WW-753, Hayes Valley Sewer Improvements Commission Meeting Date: March 25, 2025
https://sfpuc.sharefile.com/public/share/web-
s90c5f09e19f84bf195672df9497ecb42
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting :
The Contract Monitoring Division established a 6% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to a 7.62% LBE subcontractor participation with its bid submittal, and this remains unchanged.
Agenda Title: Contract No. WW-753, Hayes Valley Sewer Improvements Commission Meeting Date: March 25, 2025
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) Wastewater Enterprise Collection System Assessment Management Program identifies San Francisco sewers that are over 100 years old and at high-risk of failure; and
WHEREAS, On May 28, 2024, by Resolution No. 24- 0128, the Commission awarded Contract No. WW-753, Hayes Valley Sewer Improvements to Precision Engineering, Inc.; and
WHEREAS, The original contract amount was for $10,842,325 and the original contract duration was 420 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was September 9, 2024; and
WHEREAS, On March 13, 2025, Staff issued Modification No. 1, increasing the contract amount by $900,064, within the original 10% contingency, to use an alternate resin for cured-in- place liners along the first segments of the large diameter sewers to minimize community impacts, for a total contract amount of $11,742,389, with no change to the contract duration; and
WHEREAS, Staff recommends an
increase of $1,100,000 to the cost contingency, for a
revised cost limit of $13,026,557, to use an alternate resin for cured-in-place liners along the final segments of large diameter sewers to minimize community impacts , and to replenish cost contingencies for the remainder of the Contract, with no change to the contract duration; and
WHEREAS, The Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 6% for this contract, the contractor committed to 7.62% LBE subcontractor participation with its bid submittal, and this remains unchanged; and
WHEREAS, On December 5, 2023, the San Francisco Planning Department determined the Project to be categorically exempt from environmental review under the California Environmental Quality Act Guidelines section 15302, Class 2 (Replacement or Reconstruction) under Case No. 2023-006572ENV and the work under this Modification is within the scope of the Project authorized under the exemption; and
WHEREAS, Funds are available from Project No. 10041074, Hayes Valley Sewer Improvements; now, therefore, be it
RESOLVED, That this Commission hereby authorizes an increase of $1, 100,000 to the existing cost contingency to Contract No. WW-753, Hayes Valley Sewer Improvements, for a total remaining cost contingency of $1,284,168, with a revised cost limit of $13,026,557, with no change to the contract duration.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of March 25, 2025.
Director of Commission Affairs
San Francisco Public Utilities Commission