Shelby Campbell, Senior Project Manager
June 10, 2025
NEW CDD CAMPUS AT 2000 MARIN STREET:
MODIFICATION TO CM/GC CONTRACT WD-2879R
1 Who is CDD?
San Francisco Water Division
2 Existing site mixes pedestrian and vehicular paths across the sprawling campus.
Large vehicles do not fit inside
Auto Shop due to door and
ceiling heights. Repairs are made
outside.
Fabrication Shop workers cut pipe
at exterior of shop. Hazardous
debris is not contained.
Old B-Blasters in most shops in
confined space with inadaquate
ventilation. No containment of
debris.
Overcrowded work areas are
non-compliant for accessibility
and are unsafe.
3 WHY NEW FACILITIES?
4 SFWD CAMPUS @ 2000 MARIN
COMPLETED
• Demolition
COMMENCED
• Utilities
• Foundations/Piles
LOOK AHEAD
• Steel Erection
Collaboration = On Schedule
5 CONSTRUCTION STATUS
LBE/LOCAL WORKFORCE STATUS
LBE
18 LBE Outreach Events
9 LBE Matchmaking Events
Contracts Worth $43.8M
Committed to LBEs to Date
Local Hire
36.8% of hours worked, have
been worked by SF residents
89% of apprentice worked, have
been worked by SF apprentice
workers
6 SR0
PB1
Slide 6
SR0 Please work with Ben to verify when we received from Clark Robinson, Stephen D, 2025-05-21T19:24:00.147
PB1 I cannot confirm this number because not all of the trade packages are reflected in SOLIS yet.
The records I have are for $14.3M in awards to LBEs.
And by contract spend, Clark is currently at 18.1% utilize of LBEs against its 16% requirement Poole, Benjamin, 2025-05-23T23:40:31.726
CM/GC TRADE PACKAGE
PROCUREMENT PROCESS
1. Outreach during pre-construction
2. Commence procurement with early
trade packages
3. Complete procurement to achieve cost
certainty
4. Return to Commission if modification
required
7 8
• 30% Remaining Trade Packages
• Market Volatility Risks
• Options
• Buy & Store Materials
• Shift risk from contractor to City
• Wait – greater certainty or bid
closer to when work is
scheduled
Recommendation
• Defer Trade Packages
• Hold Current Budget for
Remaining Packages
• Pursue Cost Cutting Options
to Maintain Current Budget
TRADE PROCUREMENT STATUS
AMOUNTWD-2879R CONTRACT
$260,450,682Original Construction Contract
$45,384,136Proposed Modification No. 1
$305,834,818Total Revised Construction Contract
$23,378,314Remaining Contingency
$329,213,132Total Construction Contract Not-to-Exceed
9 CONTRACT MODIFICATION
10 • Bring contract current to
today’s dollars
• Sufficient budget to
complete procurement
• Mitigate risk by deferring
remaining trade packages
TODAY’S REQUEST
11 QUESTIONS?
DEPARTMENT
Infrastructure Division
AGENDA NO.
8 MEETING DATE
June 10, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Project Manager: Shelby Campbell
Approve Modification No. 1 to Contract No. WD-2879R, City Distribution Division Campus at 2000 Marin Street Project
Summary of Proposed
Commission Action:
Approve Modification No. 1 to Contract No. WD-2879R, City Distribution Division Campus at 2000 Marin Street Project , with Clark Construction Group (Construction Manager/General Contractor) , increasing the contract amount by $45,384,136, for a total contract amount of $305,834,818, with no change to the contract duration, and with a total cost limit of $329,213,132, to add the recently bid-out subcontractor trade packages, with an increased amount to address escalation of construction cost between the original issuance of the Request For Proposal in June 2021 and the issuance of Notice- To-Proceed for construction in August 2024, as well as impacts related to current market conditions.
Background: The San Francisco Public Utiliti es Commission (SFPUC) City Distribution Division, now San Francisco Water Division (SFWD), oversees water distribution within the City and County of San Francisco. SFWD is responsible for the City’s water infrastructure system, operating and maintaining its reservoirs, pump stations , and approximately 1,250 miles of water pipes; managing the City’s meter program ; and maintaining SFWD facilities, equipment, and fleet of vehicles. The current SFWD campus, located at 1990 Newcomb Avenue, has served as SFWD’s main facility for almost six decades.
Due to significant growth in service demands and challenges with maintaining operations at a facility that has exceeded its useful life, the SFPUC is developing a new SFWD headquarters facilities to alleviate overcrowding, address building code and safety issues, eliminate inefficiencies, and accommodate SFWD ’s current and future operational needs.
On June 28, 2022, by Resolution No. 22-0125, this Commission awarded Contract No. WD-2879R, City Distribution Division Campus at 2000 Marin, for Construction Management/General Contractor (CM/GC) services to Clark Construction Group with an original contract amount of $260,450,682 and an original contract duration was 2,464 consecutive calendar days , and authorized the contractor to proceed only with pre -construction services, in the contract amount of $1,250,000 with a contract duration of 913 Agenda Title: WD-2879R, City Distribution Division Campus at 2000 Marin Street Project Commission Meeting Date: June 10, 2025
consecutive calendar days. The Notice -to-Proceed (NTP) for pre - construction was issued on March 1, 2023. The delay to March 1, 2023 (following the June 2022 award), was due to a delay in the award of the design contract.
On August 13, 2024, by Resolution No. 24-0176, this Commission approved the project, and authorized staff to proceed with issuance of NTP for construction, with a contract duration of 1,551 consecutive calendar days.
NTP for construction was issued August 26, 2024. Demolition, rough grading and utilities are completed, and foundations are underway.
Under a CM/GC contract, after the Commission’s award of the prime contract, the contractor bids out multiple trade packages to subcontractors.
Before bidding the work, the contractor provides an estimated construction budget for all subcontractor trade packages. For the 2000 Marin contract, the contractor will award more than 60 trade packages. Each trade package increases the value of the Contract. As the procurement proceeds, the contract is modified to incorporate the trade work and will ultimately reflect the final contract value. The Commission’s award of the c ontract was based on the estimated contract value, but the actual and final contract value is not determined until all the trade packages have been bid out to subcontractors.
There are two underlying conditions unique to this project:
1. The delay of the design contract resulted in an extended period of escalation between the original issuance of the CM/GC Request for Proposal (RFP) in June 2021 and the issuance of NTP for construction in August 2024. The anticipated escalation was planned for in the 2023 Capital Improvement Program budget cycle. There are sufficient funds available in the project budget to account for the increase in the contract value, but there is insufficient contingency to issue a modification without Commission approval.
2. Two of the larger scopes, foundations and electrical, exceeded the engineer’s estimate; however, the larger impact on the procurement of trade packages has been the volatility of the current market, which has changed substantially in the last two months, creating uncertainty for the remaining subcontractor bids.
Due to extreme market
uncertainty, subcontractors are un willing to hold their pricing for work scheduled much later along the project’s timeline. To mitigate this uncertainty and the upfront pricing of unknown risks , SFPUC staff will schedule the procurement of these trade packages to a period closer to the implementation of the physical work, at which time there will be more certainty about market conditions and pricing stability.
Staff will maintain the current budget for these packages . The modified total contract cost includes the budgeted amounts for these packages.
Scope of Contract: The contract work location is 2000 Marin Street, San Francisco.
Agenda Title: WD-2879R, City Distribution Division Campus at 2000 Marin Street Project Commission Meeting Date: June 10, 2025
The contract work consists of the following:
• The project replaces the existing SFWD campus located on Newcomb, in its entirety, with the construction of five structures, including an administrative office building, warehouse, industrial shops, and parking, totaling approximately 370,000 gross square feet of new construction.
• The work includes demolition of an existing building and extensive site work over the approximately nine-acre site.
• Power for the project will be provided by the SFPUC, and the project includes over ninety charging stations for electrical vehicles. • Substantial completion is scheduled for February 2028. Relocation of SFWD to the new campus will be completed in 2028.
Modifications to the
Contract:
Proposed Modification No. 1: Staff is seeking Commission approval of Modification No. 1 to increase the contract amount by $45,384,136, for a total contract amount of $305,834,818, with no change to the contract duration.
If the Commission approves Modification No. 1, with the current cost contingency in place, the total cost limit will be $329,213,132 . Staff anticipates the contingency amount to cover the addition of, recently bid-out trade packages, with an increased amount to address escalation of construction cost between the original issuance of the CM/GC RFP in December 2021 and the issuance of NTP for construction in August 2024.
Funding and Costs: Funding Source s: Water Capital Improvement Program, Project No. 100337249, New City Distribution Division (CDD) Campus at 2000 Marin; Project No. 10042258, 2000 Marin Solar Project; Project No. 10039265, 2000 Marin CDD Facility; and 10038358, WD 2891 Marin/Evans.
Original Contract Amount: $260,450,682
Approved Increases to Contract Amount: $0
Proposed Modification No. 1 Amount: $45,384,136
Total Revised Contract Amount: $305,834,818
Original 10% Cost Contingency: $26,045,068
Cost Contingency used for Proposed Modification No. 1: $2,666,754 Proposed Remaining Cost Contingency: $23,378,314
Total Proposed Cost Limit: $329,213,132
Schedule: Original Contract Duration: 2,464 consecutive calendar days Original 10% Duration Contingency: 246 calendar days
Pre-Construction Phase:
Notice-to-Proceed Date: March 1, 2023
Original Contract Duration: 913 consecutive calendar days Agenda Title: WD-2879R, City Distribution Division Campus at 2000 Marin Street Project Commission Meeting Date: June 10, 2025
(Estimated Completion: August 29, 2025)
Construction Phase:
Notice-to-Proceed Date: August 26, 2024
Original Contract Duration: 1,551 consecutive calendar days Recommended Modification No. 1 Duration: 0 calendar days Recommended Increase to Duration Contingency: 0 calendar days Total Contract Duration: 1,551 consecutive calendar days (Estimated Final Completion: November 23, 2028)
Environmental
Review:
On July 29, 2024, the Planning Department issued a Final Mitigated Negative Declaration for the City Water Distribution Division Campus Project at 2000 Marin Street Project (Case Number 2022-000702ENV), prepared pursuant to the California Environmental Quality Act (CEQA).
On August 13, 2024, by Resolution No. 24-0176, this Commission adopted the Final Mitigated Negative Declaration, made CEQA Findings, and adopted a Mitigation Monitoring and Reporting Program as required by the CEQA, and approved the City Distribution Division Campus at 2000 Marin Project.
The work under this modification is within the scope of the project authorized under the Final Mitigated Negative Declaration.
The Final Mitigated Negative Declaration, Mitigation Monitoring and Reporting Program, and CEQA Findings in Resolution 24-0176 can be found here:
https://sfpuc.sharefile.com/public/share/web-
s9796d3ec4e7748b4b685f60db30f2849.
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division established a 16% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to a 16% LBE subcontractor participation with its bid submittal, and this remains unchanged.
Agenda Title: WD-2879R, City Distribution Division Campus at 2000 Marin Street Project Commission Meeting Date: June 10, 2025
WD-2879R, City Distribution Division Campus at 2000 Marin
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) is constructing new facilities at 2000 Marin to relocate the Water Enterprise San Francisco Water Division (SFWD) from their current location at 1990 Newcomb to alleviate overcrowding, address building code and safety issues, eliminate inefficiencies, and accommodate SFWD ’s current and future operational needs; and
WHEREAS, On June 28, 2022, by Resolution No. 22- 0125, the Commission awarded Contract No. WD-2879R, City Distribution Division Campus at 2000 Marin Street Project to Clark Construction Group (Construction Manager/General Contractor or CM/GC); and
WHEREAS, The original contract amount was for $260,450,682 and the original contract duration was 2,464 consecutive calendar days, 913 consecutive calendar days for preconstruction services and 1,551 consecutive calendar days for construction services; and
WHEREAS, On August 13, 2024, by Resolution No. 24- 0176, the Commission approved the City Distribution Division ( CDD) Campus at 2000 Marin project, and authorized staff to proceed to the Construction Phase; and
WHEREAS, The Notice-to-Proceed date for pre-construction was March 1, 2023, and the Notice-to-Proceed date for construction was August 26, 2024; and
WHEREAS, Staff recommends approval of Modification No. 1, increasing the contract amount by $45,384,136, for a revised contract amount of $305,834,818, with no change to the contract duration, and with a total cost limit of $329,213,132, to address escalation of construction cost between the original issuance of the CM/GC RFP in December 2021 and the issuance of NTP for construction in August 2024; and
WHEREAS, Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 16% for this contract, and the contractor committed to a n LBE subcontractor participation of 16% with its bid submittal and this remains unchanged; and
WHEREAS, On July 29, 2024, the Planning Department issued a Final Mitigated Negative Declaration for the City Water Distribution Division Campus Project at 2000 Marin Street Project (Case Number 2022-000702ENV), prepared pursuant to the California Environmental Quality Act (CEQA); and
WHEREAS, On August 13, 2024, by Resolution No. 24- 0176, this Commission adopted the Final Mitigated Negative Declaration, made CEQA Findings, and adopted a Mitigation Monitoring and Reporting Program, as required by the CEQA, and approved the City Distribution Division Campus at 2000 Marin Project; and
WHEREAS, The work under this modification is within the scope of the project authorized under the Final Mitigated Negative Declaration; and
WHEREAS, The San Francisco Planning Department is the custodian of records, located in the files for Case No. 2022-000702ENV , at 49 South Van Ness Avenue, Suite 1400, San Francisco, California; 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 Mitigated Negative Declaration, Mitigation Monitoring and Reporting Program, and CEQA Findings in Resolution 24-0176 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 Mitigated Negative Declaration, Mitigation Monitoring and Reporting Program, and CEQA Findings in Resolution 24-0176, 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 are available from Water Capital Improvement Program, Project No. 100337249, New CDD Campus at 2000 Marin; Project No. 10042258, 2000 Marin Solar Project; Project No. 10039265, 2000 Marin CDD Facility; and 10038358, WD 2891 Marin/Evans ; now, therefore, be it
RESOLVED, This Commission has reviewed and considered the Final Mitigated Negative Declaration and record as a whole, finds that the Final Mitigated Negative Declaration is adequate for its use as the decision–making body for the Project and incorporates the CEQA Findings contained in Resolution No. 24-0176 by this reference thereto as though set forth in this Resolution; and be it
FURTHER RESOLVED, This Commission further finds that since the Final Mitigated Negative Declaration was issued, there have been no substantial Project changes and no substantial changes in Project circumstances that would require major revisions to the Final Mitigated Negative Declaration 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 Modification No. 1 to Contract No. WD-2879R, City Distribution Division Campus at 2000 Marin Street Project , with Clark Construction Group, increasing the contract amount by $45,384,136, for a revised contract amount of $305,834,818, with no change to the contract duration, and with a new total cost limit of $329,213,132; and be it
FURTHER RESOLVED, That this Commission hereby authorizes the General Manager, or the General Manager’s designee, to consider, and, if appropriate, to approve any future modifications to the contract amount within the cost limit of up to $329,213,132, and with no change to the duration limit.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of June 10, 2025.
Director of Commission Affairs
San Francisco Public Utilities Commission