1 Approve Increase of Cost Contingency for
Contract WD-2776 San Francisco Westside Recycled
Water Treatment Facility at Oceanside Plant
September 9, 2025
Infrastructure Division
• New Recycled Water Treatment Facility (A)
• Recycled Water Pump Station and
Reservoir (B)
• Recycled Water Pipeline (C)
• Recycled Water Customers:
1. Golden Gate Park
2. Lincoln Park
3. SF Zoo
4. Sunset Boulevard
Westside Enhanced Water Recycling Project
A
B 1
2 3
4 C
• WD-2776 Recycled Water Treatment Facility
• Construction is complete
• Administrative closeout work is in progress
• WD-2797 Recycled Water Pump Station– completed in 2024 • WD-2852R Recycled Water Irrigation System Retrofits – completed in 2024 • WD-2798 Recycled Water Pipeline – completed in 2018.
• Permitting: Notice of Applicability for Enrollment in the State Water Resources Control Board Water Reclamation Requirements for Recycled Water Use, Order WQ 2016-0068-DDW received June 30, 2023
Overall Project Contract Status
4 Treatment Facility Equipment Failure
• Reverse osmosis (RO) is one of the major unit
processes of the treatment system
• RO pumps and their associated variable
frequency drives (VFDs) control the flow and
pressure of water through the system
• VFDs failed prematurely due to corrosion
5 Treatment Facility Equipment Failure (continued)
• Equipment failure was determined to be due to
the ventilation design
• Both the VFD equipment and the ventilation
system have been re-designed
• Decision to not request SJ Amoroso conduct
this new scope as most major contract work
was complete and lead time for equipment was
long
• Replacing the equipment and modifying the
ventilation system using Job Order Contracting
• Plan to resume the commissioning process in
2026
6 Contract WD-2776 Status
• Project incurred significant delays over the course of construction • COVID-related, persistent supply chain issues
• Miscellaneous changes to the electrical and mechanical systems • Changes to the process control and instrumentation system • Contractor-caused delays
• SFPUC and Contractor negotiated and reached agreement on concurrent delays, the final net project delay and the extended overhead cost • Substantial completion was established as February 4, 2025 as the date that marked the completion of physical work
• SFPUC and Contractor continue to work on administrative closeout items including final as-built documentation, O&M manuals, and spare parts 7 Request to Increase Cost Contingency
• Request: Increase of $5M to the cost contingency for Contract WD- 2776 San Francisco Westside Recycled Water Treatment Facility at Oceanside Plant to allow for payment of:
• Extended overhead costs related to construction delays • Miscellaneous changes to the electrical and mechanical systems
Questions?
DEPARTMENT
Infrastructure Division
AGENDA NO.
12 MEETING DATE
September 9, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Project Manager: Barbara Palacios
Approve Increase of the Cost Contingency for Contract No. WD-2776, San Francisco Westside Recycled Water Treatment Facility at Oceanside Plant
Summary of Proposed
Commission Action:
Approve an increase of $5,000,000 to the cost contingency for Contract No.
WD-2776, San Francisco Westside Recycled Water Treatment Facility at Oceanside Plant , with S.J. Amoroso Construction Co., Inc., to reconcile extended overhead costs related to project delays, and miscellaneous changes to the electrical and mechanical systems; and authorize the General Manager to approve future contract modifications for a total cost limit of up to $101,356,700, with no change to the contract duration.
Background: The Westside Recycled Water Project is a key water supply project for the San Francisco Public Utilities Commission (SFPUC). The primary objectives of the project are to: ( 1) create a new recycled water supply of up to two million gallons per day; ( 2) expand and diversify the SFPUC water supply portfolio; and (3) reduce the use of potable water for irrigation by supplying those demands with recycled water.
The Recycled Water Treatment Facility is one of the four major construction contracts of the Westside Recycled Water Project, which also includes the construction of approximately 7.7 miles of new recycled water pipeline (Contract No. WD-2798), a new recycled water pump station and reservoir in Golden Gate Park (Contract No. WD-2797), and retrofits of the irrigation systems in Golden Gate Park and Lincoln Park Golf Course (Contract No.
WD-2852R).
On May 9, 2017, by Resolution No. 17-0108, this Commission award ed Contract No. WD-2776, San Francisco Westside Recycled Water Treatment Facility at Oceanside Plant to S.J. Amoroso Construction Co., Inc., in the amount of $87,597,000 and for a duration of 1,230 consecutive calendar days.
On June 8, 2021, by Resolution No. 21-0090, this Commission approved an increase to the construction duration contingency of 457 calendar days,
increasing the total construction duration contingency to 580 calendar days for a total revised duration limit of up to 1,810 calendar days, with no change in the contract amount.
Agenda Title: WD-2776, San Francisco Westside Recycled Water Treatment Facility at Oceanside Plant Commission Meeting Date: September 9, 2025
On September 27, 2022, by Resolution No. 22-0169, this Commission approved an increase to the construction duration contingency of 370 calendar days, increasing the total construction duration contingency to 950 calendar days for a total revised duration limit of up to 2,180 calendar days, with no change in the contract amount.
On October 10, 2023, by Resolution No. 23-0188, this Commission approved an increase to the construction duration contingency of 800 calendar days, increasing the total construction duration contingency to 1,750 calendar days for a total revised duration limit of up to 2,980 calendar days, with no change to the contract amount.
Scope of Contract: The contract work is located in the City of San Francisco at the Oceanside Plant between Ocean Beach and Lake Merced in the far-southwest corner of the City and consists of the following:
• Construction of a new two- story reinforced concrete recycled water treatment facility, with underground equalization storage. • Construction of a secondary effluent pump station and piping. • Installation of treatment process equipment including membrane filtration, reverse osmosis treatment, and ultraviolet light disinfection, and related systems such as clean -in-place chemical systems, mechanical piping, electrical , and instrumentation and controls.
• Demolition and reconfiguration of existing chemical storage room, including construction of new chemical containment systems, tanks, and metering pumps, piping, chemical off -loading facilities, and related appurtenances.
• Construction of a transmission pump station.
• Yard piping for treatment facility overflow and reverse osmosis concentrate, and recycled water conveyance.
• Utilities relocation, staging area preparation, and other miscellaneous work to provide a fully functional treatment facility and pumping system.
Modifications to the
Contract:
Modification Nos. 1 to 54 The SFPUC modified the contract within the approved contingencies for cost and duration, increasing the contract amount by $8,532,441 and increasing the contract duration by 285 consecutive calendar days , in accordance with Resolution No. 21-0090, to address changes to pipeline and valve materials and support systems, addition of valves, and modifications to pipeline alignment; revisions to chemical pipe routing; additional costs for field assembly of microfiltration system , miscellaneous modifications to the membrane filtration clean -in-place systems, and additional field service for the membrane system and air compressors; changes to architectural features such as doors, stairs, guardrails; changes to equipment seismic anchorage; programming modifications to the control system to historize data and integrate control Agenda Title: WD-2776, San Francisco Westside Recycled Water Treatment Facility at Oceanside Plant Commission Meeting Date: September 9, 2025
with project WD -2797; reimbursement of the Contractor for the Builder’s Risk Insurance premium; procure ment of an Automatic Device Configuration (ADC) for the Motor Control Centers (MCC); restoration of concrete curbs and sidewalks, paving and ramps; direct costs related to COVID; changes to the security system and elevator; and other mechanical, electrical, instrumentation and control, plumbing, fire system, and heating, ventilation and air conditioning
work, for a revised contract amount of
$96,129,441 and a revised contract duration of 1,515 consecutive calendar days.
Recommended Increase to Cost Contingency: Staff recommends the Commission increase the cost contingency by $5,000,000 to reconcile extended overhead costs related to construction delays, and for miscellaneous changes to the electrical and mechanical systems , increasing the total cost contingency to $13,759,700, for a total cos t limit of $101,356,700, with no change to the contract duration. The project experienced significant delays over the course of construction, including COVID-related delays in materials delivery, unforeseen conditions, delays related to changes to the development of the treatment facility ’s process control and instrumentation systems, and most recently the failure of critical equipment just as the commissioning process was about to begin. While the direct costs related to some of these changes were addressed at the time they occurred, the negotiation of costs related to extended overhead were deferred until consensus could be reached on the establishment of a substantial completion milestone date, and the full impact of the delays could be analyzed.
Substantial completion was
established as February 4, 2025. The project team continues to work with the contractor on administrative closeout documentation (as - built drawings,
operations and maintenance manuals, etc.) and anticipate s reaching final completion towards the end of 2025.
Funding and Costs: Funding Source: Project No. 10015242, Westside Recycled Water Project
Original Contract Amount: $87,597,000
Original 10% Cost Contingency: $8,759,700
Approved Increases to Cost Contingency: $0
Modified Increases to Contract Amount: $8,532,441
Total Current Contract Amount: $96,129,441
Requested Additional Cost Contingency: $5,000,0000
[Proposed] Total Revised Cost Limit: $101,356,700
Schedule: Notice-to-Proceed Date: October 18, 2017
Original Contract Duration: 1,230 consecutive calendar days Original 10% Duration Contingency: 123 calendar days
Approved Increases to Duration Contingency: 1,627 calendar days Modified Increases to Contract Duration: 285 consecutive calendar days Total Current Contract Duration: 1,515 consecutive calendar days Requested Additional Duration Contingency: 0 calendar days Agenda Title: WD-2776, San Francisco Westside Recycled Water Treatment Facility at Oceanside Plant Commission Meeting Date: September 9, 2025
Total Duration Limit: 2,980 consecutive calendar days
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 17.64% LBE subcontractor participation with its bid submittal.
Agenda Title: WD-2776, San Francisco Westside Recycled Water Treatment Facility at Oceanside Plant Commission Meeting Date: September 9, 2025
Figure – Westside Recycled Water Project
WD-2776 Westside
Recycled Water Treatment
Facility at Oceanside Plant
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) Westside Recycled Water Treatment Facility at the Oceanside Wastewater Treatment Plant is one of the four major construction contracts of the Westside Recycled Water Project, which also includes the construction of approximately 7.7 miles of new recycled water pipeline (Contract No. WD-2798), the construction of a new recycled water pump station and reservoir in Golden Gate Park (Contract No. WD-2797), and the construction of irrigation retrofits in Golden Gate Park and Lincoln Park Golf Course (Contract No. WD -2852R). The purpose of the Westside Recycled Water Project is to: (1) create a new recycled water supply of up to two million gallons per day; (2) expand and diversify the SFPUC water supply portfolio; and (3) reduce the use of potable water for irrigation by supplying those demands with recycled water; and
WHEREAS, On May 9, 2017, by Resolution No. 17- 0108, the Commission awarded Contract No. WD-2776, San Francisco Westside Recycled Water Treatment Facility at Oceanside Plant to S.J. Amoroso Construction Co., Inc.; and
WHEREAS, The original contract amount was for $87,597,000 and the original contract duration was 1,230 consecutive calendar days; and
WHEREAS, The construction contract Notice-to-Proceed date was October 18, 2017; and
WHEREAS, On June 8, 2021, by Resolution No. 21-0090, this Commission approved an increase of 457 calendar days to the contract duration contingency for a total cont ract duration limit of up to 1,810 consecutive calendar days, with no change in the contract amount; and
WHEREAS, On September 22, 2022, by Resolution No. 22-0169, this Commission approved an increase of 370 calendar days to the contract duration contingency for a total contract duration limit of up to 2,180 consecutive calendar days, with no change in the contract amount ; and
WHEREAS, On October 10, 2023, by Resolution No. 23-0188, this Commission approved an increase of 800 calendar days to the contract duration contingency for a total contract duration limit of up to 2,980 consecutive calendar days, with no change in the contract amount; and
WHEREAS, Modification No s. 1 through 54 increased the contract amount within the original cost contingency by $8,532,441 and increased the contract duration within the approved duration contingency by 285 calendar days; and
WHEREAS, Staff recommends an increase of $5,000,000 to the cost contingency to reconcile extended overhead costs related to construction delays, and for miscellaneous changes to the electrical and mechanical systems; and
WHEREAS, Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 16% for this contract, and the contractor committed to an LBE subcontractor participation of 17.64% with its bid submittal; and
WHEREAS, Funds are available from Project No. 10015242, Westside Recycled Water Project; now, therefore be it
RESOLVED, That this Commission hereby approves an increase of $5,000,000 to the existing cost contingency for Contract No. WD-2776, San Francisco Westside Recycled Water Treatment Facility at Oceanside Plant, for a total cost contingency amount of up to $13,759,700; and be it
FURTHER RESOLVED, That this Commission here by authorizes the General Manager, or the General Manager’s designee, to consider, and if appropriate, to approve any future modifications to the contract, for a total cost limit u p to $101,356,700, with no change to the contract duration limit.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of September 9, 2025.
Director of Commission Affairs
San Francisco Public Utilities Commission