1 WD-2889
SFPUC As-Needed Water Service
Line Replacement Contract
May 13, 2025
Steve Ritchie AGM, Water Enterprise
Services of the San Francisco Public Utilities Commission 2 Background: Contract Information
Existing Contract:
WD-2889 As-Needed Water Service Line Replacement
• Award Date: January 24, 2023
• Contractor: JMB Construction Inc.
• Contract Duration: 1,096 days
• Scope: Pavement Restoration for 2” and Smaller
Galvanized Service Line Replacement
Proposed Modification No.2:
• Will increase the contract by $4.3 million dollars.
• Will provide restoration work upon completion of critical street repair services and new water service installations greater than 2-inches. 3 301 Eugenia 2332 Vicente
Water Service Excavation & Pavement Restoration at 2331 Vicente St WD-2889 Scope of Work
4 Water Main Replacement & Pavement Restoration at 7026 Fulton St Contract Modification No. 2
WD-2889 Funding
Original Contract Amount:
$26.7 Million
Modification No.1
Within Allowable
10% Contingency:
$2.2 Million
Contract Currently at Capacity:
$28.9 Million
Additional 16%:
$4.3 Million
Requested Modification No.2:
$4.3 Million
Final Contract Amount With Modification No.2
$33,174,191
6 Summary
Staff Recommends the Commission Approve
Modification No. 2
• Increase WD-2889 contract amount by $4,263,992, for a revised contract amount of $33,174,191.
• The total contract duration remains unchanged at 1,096 days.
DEPARTMENT Water Enterprise
AGENDA NO.
13 MEETING DATE May 13, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Project Manager: Lynn Fong
Approve Modification No. 2 Increasing the Amount for Contract No. Contract No. WD- 2889, As Needed Water Service Line Replacement
Summary of Proposed
Commission Action:
Approve Modification No. 2, increasing the contract amount by $4,263,992 for Contract No. WD -2889, As Needed Water Service Line Replacement with JMB Construction, Inc., for a revised contract amount of $33,171,191 with no change to the contract duration, to add work scope to provide pavement restoration work upon completion of critical street repair services and new water service installations greater than 2-inches.
Background: The San Francisco Public Utilities Commission (SFPUC) requires contract work to perform as -needed excavation and pavement renovation work necessary for SFPUC Water Enterprise crews to replace 2 -inch and smaller galvanized service lines throughout the City and County of San Francisco, to be determined by SFPUC Water Enterprise staff. The locations of work to be performed and the replacement work itself is determined on an as -needed basis during the contract duration.
On January 24, 2023, by Resolution No. 23-0018, this Commission awarded Contract No. WD -2889, As-Needed Service Line Replacement Contract to JMB Construction, Inc. The original not- to-exceed
contract amount was
$26,663,580 and the original contract duration was 1,096 calendar days (three years).
Under San Francisco Administrative Code section 6.64, an as -needed construction contract may be modified up to a five-year total duration and up to 150% of the original contract amount; no contract service orders may be issued after four years from the dat
e of Controller certification; and no
individual contract service order may exceed the Threshold Amount as set by the Controller.
For Contract No. WD-2889, the recommended increase to the contract amount would allow for the contractor to perform pavement renovation work to include pavement renovation work for water service repairs, new water service installations greater than 2 -inch, and custom new services including water main extension work. The recommended increase is within the 150% limit in conformance with Administrative Code section 6.64.
Agenda Title: Contract No. WD-2889, As Needed Water Service Line Replacement Commission Meeting Date: May 13, 2025
Scope of Contract: Contract work is located within the City and County of San Francisco, and consists of excavation, pavement and sidewalk restoration for galvanized 2- inch and smaller water service lines.
Adding scope for pavement restoration work upon completion of critical street repair services and new installations of water lines greater than 2 inches is necessary because an unrelated as -needed contract for the same scope of work that
also includes pavement renovation work for new water service installations greater than 2-inches and water main and service line repairs is expiring and is currently in the procurement process. To ensure continuity of service while procuring a new as -needed paving contract for larger services and pipes, staff is seeking a modification to Contract No. WD - 2889 to
increase the scope and contract amount. Staff anticipates a new as -needed paving contract will be available by January 2026 ; its procurement was delayed due to unforeseen administrative circumstances . This modification to add this work is contemplated only out of necessity and is only to provide this service until the new general as-needed paving contract is available.
Modifications to the
Contract:
Modification No. 1:
On November 20, 2023, Staff issued Modification No. 1, increasing the contract amount by $2,246,349 (within the original contingency) to support the emergency repair work on Fillmore Street for a total c ontract amount of $28,910,199.
Proposed Modification No. 2:
The work scope for Contract No. WD-2889 is an as-needed various locations contract that provides pavement and sidewalk restoration work for 2-inch and smaller galvanized services. The contract modification is necessary to add scope to the contract and include pavement restoration work for water service repairs, new water service installations greater than 2-inches, and custom new services including water main extension work. The work scope will be added to support the SFPUC Water Department crews’ excavation, new services installation and repair work until the Contract No. WD -2927 As -needed Pavement Renovation Contract is awarded. In the meantime, the Water
Enterprise proposes to use Contract No. WD -2889 to provide paveme nt restoration work for Water Department crews.
Staff recommends the Commission approve Modification No. 2, increasing the scope and contract amount by $4,263,992, for a revised contract amount of $33,171,191. The total contract duration remains unchanged as 1,096 days.
Funding and Costs: Funding Source:
Water Enterprise Local Conveyance/Distribution System Program- Project No. 10036916, As-Needed Water Service Line Replacement
Original Contract Amount: $26,663,850
Modified Increases to Contract Amount: $2,246,349
Recommended Increase to Contract Amount: $4,263,992
Agenda Title: Contract No. WD-2889, As Needed Water Service Line Replacement Commission Meeting Date: May 13, 2025
Total Recommended Contract Amount: $33,174,191
Schedule: Notice-to-Proceed Date: March 27, 2023
Contract Duration: 1,096 consecutive calendar days
Environmental
Review:
Modification of this as-needed contract does not constitute a “project” under the California Environmental Quality Act (CEQA) Guidelines section 15378 because it does not involve commitment to any specific project that may result in a physical change in the environment. Staff will not authorize the contractor to commence any work under this contract until the proposed work is reviewed and any appropriate environmental review under the CEQA, if required, has been completed.
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division established a 5% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to a n 8.07% LBE subcontractor participation with its bid submittal.
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) requires contract work to perform as-needed excavation and pavement renovation work necessary for SFPUC Water Enterprise crews to replace 2 -inch and smaller galvanized service lines throughout the City and County of San Francisco, to be determined by SFPUC Water Enterprise staff. The locations of work to be performed and the replacement work itself is determined on an as-needed basis during the contract duration; and
WHEREAS, On January 24, 2023, by Resolution No. 23-0018, the Commission awarded Contract No. WD-2889, As-Needed Water Service Line Replacement to JMB Construction, Inc.; and
WHEREAS, The original contract amount was f or $26,663,850 and the original contract duration was 1,096 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was March 27, 2023; and
WHEREAS, The contract is essential for this construction contract work to provide as - needed traffic control, permitting, pavement excavation and restoration on streets within the City and County of San Francisco. Contractor currently supports 2- inch and smaller as -needed galvanized service lines renewals for the Lead Service Line Replacement Program; and
WHEREAS, On November 20, 2023, Staff issued Modification No. 1, increasing the contract amount by $2,246,349 (within the original contingency) to support the emergency repair work on Fillmore Street for a total contract amount of $28,910,199; and
WHEREAS, Staff recommends approval of Modification No. 2 to add scope for pavement restoration work upon completion of critical street repair services and new installations of water lines greater than 2 inches and an increase of $4,263,992 to the contract amount to allow the general as-needed paving work for to continue for the SFPUC Water Enterprise until a new as - needed paving contract can be procured; and
WHEREAS, The Contract Monitoring D ivision established a Local Business Enterprise (LBE) subcontracting participation of 5% for this contract, and the contractor committed to a n LBE subcontractor participation of 8.07% with its bid submittal; and
WHEREAS, Modification of this as-needed contract does not constitute a “project” under the California Environmental Quality Act (CEQA) Guidelines section 15378 because it does not involve commitment to any specific project that may result in a physical change in the environment and the SFPUC will not authorize the contractor to commence any work under this contract until
the proposed work is reviewed and any appropriate environmental review under the CEQA, if required, has been completed; and
WHEREAS, Funds are available from Project No. 10036916, As-Needed Water Service Line Replacement; now, therefore, be it
RESOLVED, That this Commission hereby approves Modification No. 2 to Contract No.
WD-2889, As-Needed Water Service Line Replacement, with JMB Construction, Inc., increasing the contract scope to allow for general as-needed paving work and increasing the contract amount by $4,263,992, for a total contract amount not to exceed $33,174,191.
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