Biosolids Digester Facilities Project – PRO.0068 Contract Amendment Carolyn Chiu, Project Manager
May 13, 2025
1 2
Approved Budget: $ 2,673M
Forecasted Budget: $2,837M
• Fully replace solids handling facilities at SEP
• Construction at over 65% completion
• Process equipment and piping, mechanical,
electrical, plumbing, heating, venting and air
conditions systems are being installed.
• Interior and exterior architectural finishes are
underway.
• Functional testing to begin in Fall 2025
• Facility start-up and commissioning to begin
Summer 2026
Southeast Plant Biosolids Digester Project (BDFP)
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Planning through Bid & Award Construction Close Out
3 Agenda Item
Amend PRO.0068 Contract - Biosolids Project Construction Management Staff Augmentation Services with Arcadis, Inc.
• Requesting Commission Approval:
• Increase contract value by $26.5 million for a revised contract cost limit of $68.5 million,
• Add 3 years, 9 months to contract duration for total revised contract duration of 10 years, 9 months.
• Contract Amendment:
• Reflects the current cost and construction schedule
• Ensures continued construction management support through the completion of the Biosolids Digester Facilities Project • Within the project budget and schedule in the current 10-Year CIP and Financial Plan
PRO.0068 Amendment No. 1 increase in context
4 SEWER SYSTEM IMPROVEMENT PROGRAM | Grey. Green. Clean.
THANK YOU sfpuc.org/ssip
sepbiosolids.com
DEPARTMENT
Infrastructure Division
AGENDA NO. 11
MEETING DATE
May 13, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Contract Manager: Algynon Collymore
Approve Amendment No. 1 to Contract No . PRO.0068, Biosolids Digester Facilities Construction Management Staff Augmentation Services
Summary of Proposed
Commission Action
Approve Amendment No. 1 to Contract No. PRO.0068, Biosolids Digester Facilities Construction Management Staff Augmentation Services , with Arcadis U.S., Inc., increasing the contract amount by $26 ,500,000 and extending the contract duration by three years and nine months, to reflect the current schedule and budget for the Biosolids Digester Facilities Project and to ensure continued construction management support through the completion of the biosolids digester facilities, for a total not- to-exceed contract amount of $68,500,000 and a contract duration of 10 years and nine months, subject to Board of Supervisors approval under Charter Section
9.118.
Background: The San Francisco Public Utilities Commission (SFPUC) Biosolids Digester Facilities Project (BDFP) is the largest project in the Sewer System Improvement Program (SSIP ). The existing digesters and solids -handling facilities at the Southeast Water Pollution Control Plant (SEP) use outdated technology and are currently operating at the end of their useful li ves. The BDFP will be r eplacing this aging infrastructure to maintain long- term regulatory compliance and system reliability. The new biosolids digester facilities include solids thickening, digestion pretreatment, anaerobic digestion, biogas utilization, dewatering, odor control, automated control systems, and related ancillary processes. The new facilities will promote sustainability and beneficial use of biosolids and biogas and reduce odor and noise impacts to the neighborhood while improving aesthetics, in line with the Commission-approved SSIP levels of service.
Given the extensive scope and the complexity of the BDFP, it was necessary to procure the services of a qualified Construction Management (CM) firm to provide specialized CM services to augment SFPUC staff.
On May 28, 2013, by Resolution No. 13-0086, this Commission awarded Contract No. CS -235, Planning and Engineering Services, Southeast Plant Biosolids Digester Facilities, for an amount not -to-exceed $80,000,000 and with a duration of ten years, to Brown and Caldwell, to provide planning, design, and engineering support during construction for the BDFP facilities.
Agenda Title: PRO.0068, Biosolids Digester Facilities Construction Management Staff Augmentation Services Commission Meeting Date: May 13, 2025
On July 16, 2013, by Resolution No. 243 -13, the Board of Supervisors approved the award of this contract.
On May 9, 2017, by Resolution No. 17-0110, this Commission awarded Wastewater Enterprise Construction Manager/ General Contractor (CM/GC) Contract No. WW-647R, Southeast Water Pollution Control Plant Biosolids Digester Facilities to MWH Constructors/Webcor Builders Joint Venture and authorized the commencement of pre-construction services for the project.
On March 13, 2018, by Resolution No. 18- 0042, this Commission adopted the CEQA Findings, including the Statement of Overriding Considerations, and the Mitigation Monitoring and Reporting Program, approved the Biosolids Project and authorized the General Manager to proceed with construction of the project under Contract No. WW-647R.
On May 8, 2018, by Resolution No. 18-0078, this Commission awarded this Contract No. PRO.0068, Biosolids Digester Facilities Construction Management Staff Augmentation Services , to Arcadis U.S., Inc., for an amount not-to-exceed $42,000,000 and with a duration of seven years. On June 26, 2018, by Resolution No. 205-18, the Board of Supervisors approved the award of this contract.
Due to the overall size and complexity of the BDFP, the current project schedule is longer than what was anticipated when the Request for Proposals for PRO.0068 contract was advertised in 2018. Key project factors that led to the longer construction schedule include:
• In October 2019, during the 95% design phase, when construction cost estimates were higher than expected, the project team conducted an extensive cost reduction effort that resulted in a redesign of certain elements of the project, extending the time of the design phase.
• From March through June 2021, when received bids for electrical and mechanical installation work were much higher than expected, SFPUC suspended the CM/GC’s bid procurement activities to allow SFPUC staff to re-assess the current BDFP’s bidding approach and project delivery method. The construction cost increase was due to market conditions and on-going supply chain challenges that were happening at that time.
• The overall complexity of the construction (deep excavations and significant above- and below-ground facilities) and constrained site conditions.
Project construction began in 2019 and is now at nearly 65% completion.
Final construction completion is anticipated in summer 2028 with project closeout anticipated by 2029.
Agenda Title: PRO.0068, Biosolids Digester Facilities Construction Management Staff Augmentation Services Commission Meeting Date: May 13, 2025
Scope of Contract: The contract work is located within and adjacent to the Southeast Treatment Plant in San Francisco (see Figure 1 for a location map).
The contract work consists of Construction Management staff augmentation services including, but not limited to, the following:
1) Pre-Construction Services
2) Construction Administration
3) Construction Inspection
4) Construction Contracts Management
5) Project Controls
6) Building Information Modeling (BIM)
Amendments to the
Contract:
Recommended Amendment No. 1: Staff recommends Commission approval of Amendment No. 1 to increase the contract amount by $26,500,000 and extend the contract duration by three years and nine months, to ensure continued construction management support through the remaining BDFP construction work, and through the upcoming facility functional testing, start-up and commissioning, for a total not-to-exceed contract amount of $68,500,000 for a total contract duration of 10 years and nine months.
This increase in contract amount and duration are included and are consistent with the current budget, scope and schedule in the Commission-adopted Fiscal Year (FY) 2025-2034, 10-Year Capital and Financial Plans.
Funding and Costs: Funding Source:
Wastewater Capital Improvement Funds
Project No. 10015796, Biosolids Digester Facilities Project
The Biosolids Digester Facilities Project has received low-cost funding from (1) Water Infrastructure Finance and Innovation Act loans executed with the United States Environmental Protection Agency, and (2) a Clean Water State Revolving Fund loan, execute d with the California State Water Resources Control Board.
Original Not-to-Exceed Amount: $42,000,000
Proposed Amendment No. 1: $26,500,000
Total Not-to-Exceed Contract Amount: $68,500,000
Schedule: Original Duration: Seven Years
Proposed Amendment No. 1 Duration: Three years and nine months
Total Duration: 10 years and nine months
Agenda Title: PRO.0068, Biosolids Digester Facilities Construction Management Staff Augmentation Services Commission Meeting Date: May 13, 2025
Environmental
Review:
On March 8, 2018, in Motion No. M -20129, the Planning Commission certified the Biosolids Digester Facilities Project Final Environmental Impact Report (EIR) (Case No. 2015- 000644ENV), prepared pursuant to the California Environmental Quality Act (CEQA).
On March 13, 2018, by Resolution No. 18- 0042, this Commission adopted the CEQA Findings, including the Statement of Overriding Considerations, and the Mitigation Monitoring and Reporting Program, and approved the project.
On July 12, 2024, the San Francisco Planning Department issued Addendum 1 to the Final EIR (Modified Case No. 2015-000644ENV- 03) to include a biogas utilization system. On December 20, 2024, the San Francisco Planning Department issued Addendum 2 ( under Case No. 2015-000644ENV) to the Final EIR to include various modifications, including new Operations, Engineering and Maintenance Buildings.
The Final EIR, Addendums to the Final EIR, CEQA Findings, Mitigation Monitoring and Reporting Program and Resolution No. 18-0042 can be found here: https://sfpuc.sharefile.com/d-s2b0788c13f1a47039900cf40901ab698
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division (CMD) established a 20% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to a 20.33% LBE subcontractor participation with its proposal, and this remains unchanged.
Attachment(s): CMD Memorandum
Agenda Title: PRO.0068, Biosolids Digester Facilities Construction Management Staff Augmentation Services Commission Meeting Date: May 13, 2025
Figure 1 – Location of Southeast Water Pollution Control Plant
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) has undertaken the Biosolids Digester Facilities Project (BDFP) to address aging infrastructure at the Southeast Water Pollution Control Plant and to replace existing digesters and biosolids handling facilities that use outdated technology and are at the end of their useful life span. By this project, the SFPUC seeks to maintain long-term regulatory compliance and system reliability; and
WHEREAS, In light of the large scope and the complexity of the BDFP, it is necessary to maintain the services of a qualified Construction Management (CM) firm to provide specialized CM services to augment San Francisco Public Utilities Commission (SFPUC) staff through Contract No. PRO.0068, Biosolids Digester Facilities Construction Management (CM) Staff Augmentation Services; and
WHEREAS, On March 28, 2013, by Resolution No. 13- 0086, this Commission awarded Contract No. CS -235, P lanning and Engineering Services, Southeast Plant Biosolids Digester Facilities, to Brown & Caldwell , to provide planning and engineering services for the Biosolids Digester Facilities Project, and on July 16, 2013, by Resolution No. 243- 13, the Board of Supervisors approved the award of that contract; and
WHEREAS, On May 9, 2017, by Resolution No. 17-0110, this Commission awarded Wastewater Enterprise Construction Manager/General Contractor (CM/GC) Contract No. WW - 647R, Southeast Water Pollution Control Plant Biosolids Digester Facilities Project to MWH Constructors/Webcor Builders Joint Venture , and authorized the commencement of pre- construction services under the contract; and
WHEREAS, On March 8, 2018, by Motion No. M -20129, the San Francisco Planning Commission certified the Final Environmental Impact Report (Final EIR) for the Biosolids Digester Facilities Project (Case No. 2015- 000644ENV), as required by the California Environmental Quality Act (CEQA); and
WHEREAS, On March 13, 2018, by Resolution No. 18- 0042, this Commission approved the Biosolids Digester Facilities Project and adopted the CEQA Findings, including the Statement of Overriding Considerations and the Mitigation Monitoring and Reporting Program, as required by the CEQA; and
WHEREAS, On July 12, 2024, the San Francisco Planning Department issued Addendum 1 to the Final EIR (Modified Case No. 2015-000644ENV-03) and on December 20, 2024, the San Francisco Planning Department issued Addendum 2 to the Final EIR ( under Case No. 2015- 000644ENV); and
WHEREAS, The San Francisco Planning Department is the custodian of records, located in File No. 2015-000644ENV and Modified Case No. 2015-000644ENV-03, 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, including the Final EIR, Resolution No. 18- 0042, the CEQA Findings , including the Statement of Overriding Considerations and the Mitigation Monitoring and Reporting Program, and the Addendums to the Final EIR available 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 Final EIR, Resolution No. 18-0042, the CEQA Findings, including the Statement of Overriding Considerations and the Mitigation Monitoring and Reporting Program, and the Addendums to the Final EIR, and all written and oral information provided by the San Francisco Planning Department, the public, relevant public agencies, SFPUC and other experts and the administrative files for the Project; and
WHEREAS, On May 8, 2018, by Resolution No. 18- 0078, the Commission awarded this Contract No. PRO.0068, Biosolids Digester Facilities Construction Management Staff Augmentation Services, with an amount not -to-exceed $42,000,000 and with a contract duration of seven years, with Arcadis U.S., Inc., subject to Board of Supervisors approval; and
WHEREAS, On June 26, 2018, by Resolution No. 205- 18, the Board of Supervisors approved the award of this contract; and
WHEREAS, Staff recommends that this Commission approve Amendment No. 1 to Contract No. PRO.0068 to reflect the current schedule and budget for the Biosolids Digester Facilities Project and to ensure continued construction management support through the completion and start-up and commissioning of the new biosolids digester facilities; and
WHEREAS, The Contract Monitoring Division established a 20% Local Business Enterprise (LBE) subcontracting participation requirement (of the total value of services to be provided) for this contract , and Arcadis U.S., Inc., committed to 20.33 % LBE subcontractor participation with its proposal, and this remains unchanged; and
WHEREAS, Funds for these contracts are available from Project No. 10015796, Biosolids Digester Facilities Project; now, therefore, be it
RESOLVED, This Commission has reviewed and considered the Final EIR and the Addendums to the Final EIR and the record as a whole, and finds that the Final EIR and Addendums are adequate for its use as the decision–making body for the Project and incorporates the CEQA Findings , including the Statement of Overriding Considerations and Mitigation Monitoring and Reporting Program, Resolution No. 18- 0042 by this reference thereto as though set forth in this Resolution; and, be it
FURTHER RESOLVED, This Commission finds that since the Final EIR and the
Addendums to the Final EIR were finalized, there 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 identified 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.0068, Biosolids Digester Facilities Construction Management Staff Augmentation Services, with Arcadis, U.S., Inc., increasing the contract amount by $26,500,000 and increasing the contract duration by three years and nine months, for a total not -to-exceed contract amount of $68,500,000 and a total contract duration of 10 years and nine months, subject to Board of Supervisors approval under Charter Section 9.118.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of May 13, 2025.
Director of Commission Affairs
San Francisco Public Utilities Commission
City & County of San Francisco
Daniel Lurie, Mayor
Office of the City Administrator
Carmen Chu, City Administrator
Contract Monitoring Division
Stephanie Tang, Director
1455 Market Street, Suite 16A, San Francisco, CA 94103
Telephone (415) 554 0630
MEMORANDUM
Date: May 6, 2025
To: Ryan Cayabyab, Project Construction Manager, SFPUC Carolyn Chiu, Project Manager, SFPUC
From: Jovi Cuntapay-Vitin, Contract Compliance Officer, CMD
Subject: Rev. 2 of CMD Modification No. 1 for PRO.0068 Biosolids Digester Facilities Construction Management (CM) Staff Augmentation Services (PeopleSoft Contract ID: 1000011734)
The San Francisco Public Utilities Commission (“SFPUC”) has requested to modify the above referenced contract by $26,500,000 for a total agreement amount of $68,500,000, and with a time extension of three (3) years and nine (9) months, for a total contract duration of ten (10) years and nine (9) months. Pursuant to communications with the SFPUC, the scope of work for Modification No.1 consists of construction management staff augmentation services.
The LBE subconsulting participation requirement established for this contract is 20%. Arcadis U.S. Inc. (“Arcadis”) is the prime contractor and committed to 20.33% of LBE participation goal for this contract. The LBE subconsulting participation commitment applies to the entire contract including any modifications, change orders and amendments.
The LBE participation reflected on the Arcadis’ CMD Form 2A at the time of proposal is as follows:
Subcontractor Scope of Work
LBE Status,
Type and
Size
Listed &
Credited
Participation
CM Pros Estimator LBE-MBE 5.63%
Hollins Consulting Assistant Administrative
Document Control
Specialist
LBE-OBE 3.31%
DCMS, Inc. Construction Inspector LBE-OBE 5.69%
Environmental &
Construction Solutions
Construction Scheduler LBE-OBE 5.70%
TOTAL 20.33%
As of May 6, 2025, according to Arcadis, the total invoiced amount to-date is $30,339,095.15.
The LBE participation achieved by Arcadis is as follows:
Arcadis is required to make good faith efforts to utilize LBEs for any scope of work, or portions thereof, which can reasonably be subcontracted out throughout the life of the contract. In light of this requirement, Arcadis has performed good faith outreach to LBE firms. As part of its good faith efforts and as noted in the table above, Arcadis added SCA Environmental Inc., a LBE subconsultant, to its team.
Based on the foregoing and taking into consideration the proposed increase and the original contract amount, Arcadis confirmed that it will remain committed to assigning work that may arise from future task orders to its original listed LBE subconsultants. Arcadis also informed CMD that it anticipates meeting its 20.33% LBE commitment, as follows:
Subcontractor Scope of Work
Status,
Type
and Size
Credited LBE
Participation
LBE Participation To-
Date
(NOT including
Modification No. 1)
Invoiced
CM Pros Estimator LBE-MBE 5.63% $629,378.31 2.07%
Hollins
Consulting
Assistant
Administrative
Document Control
Specialist
LBE-OBE 3.31% $1,489,133.90 4.91%
DCMS, Inc. Construction
Inspector LBE-OBE 5.69% $915,896.11 3.02%
Environmental &
Construction
Solutions
Construction
Scheduler LBE-OBE 5.70% $2,760,550.39 9.10%
SCA
Environmental
Inc.
Abatement, HazMat
testing services
SF LBE-
WBE
(Micro)
- $59,593.32 0.20%
TOTAL 20.33% $5,854,552.03 19.30%
Subcontractor Scope of Work
Status,
Type and
Size
Amount
Invoiced To-
Date
Projected LBE Participation
for entire contract
including this Modification
No. 1
CM Pros Estimator LBE-MBE $629,378.31 $3,856,550.00 5.63% Hollins
Consulting
Assistant
Administrative
Document
Control Specialist
LBE-OBE $1,489,133.90 $2,267,350.00 3.31%
DCMS, Inc. Construction
Inspector LBE-OBE $915,896.11 $3,897,650.00 5.69%
Environmental
& Construction
Solutions
Construction
Scheduler LBE-OBE $2,760,550.39 $3,904,500.00 5.70%
SCA
Environmental
Inc.
Abatement,
HazMat testing
services
SF LBE-
WBE
(Micro)
$59,593.32 $59,593.32 0.09%
TOTAL $5,854,552.03 $13,985,643.32 20.42%
Going forward, SFPUC and Arcadis will obtain CMD approval for each subconsultant addition and LBE substitution according to established procedures. Additionally, in order to ensure compliance with the LBE ordinance and requirements, the SFPUC and Arcadis must notify CMD of any changes to the scope of work as well as any changes to information provided to CMD.
Contingent on the conditions set forth above, CMD approves the subject modification.
Should you have any questions, please contact Jovi Cuntapay-Vitin at jovineth.cuntapay- [email protected].