DEPARTMENT Infrastructure Division AGENDA NO. 11
MEETING DATE September 9, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Project Manager: Mary Tienken
Accept Closeout, Approve Modification, and Authorize Final Payment for Contract No.
No. WW-736, Castro and Mission Districts Sewer Improvements Summary of Proposed
Commission Action:
Accept work performed by Precision Engineering, Inc., under Contract No.
WW-736, Castro and Mission Districts Sewer Improvements, with Precision Engineering, Inc.; approve Modification No. 3 (Final) decreasing the contract amount by $691,784, and increasing the contract duration by 187 calendar days for a total contract amount of $9,118,766 and a total contract duration of 712 consecutive calendar days (approximately two years), to adjust the final contract amount to the value of actual contract quantities completed and adjust the final contract duration to complete as-built documentation; and authorize final payment to the contractor.
Background: The San Francisco Public Utilities Commission (SFPUC) Wastewater Enterprise undertook this project to rehabilitate 100- year-old sewers identified to be at a high- risk of failure based on SFPUC Condition Assessment Management Program.
On May 9, 2023, by Resolution No. 23-0097 , the Commission awarded Contract No. WW -736, Castro and Mission Districts Sewer Improvements (Contract) to Precision Engineering, Inc. The original contract amount was $7,272,320 and original contract duration was 425 consecutive calendar days.
On May 14, 2024, by Resolution No. 24-0107, the Commission approved an increase of $2,500,000 to the cost contingency and an increase of 100 calendar days to the duration contingency, to rehabilitate an additional 1,440 linear feet of brick sewers on 18th Street between Eureka Street and Danvers Street, directly west of the Contract limits, for a total cost limit of $10,499,552 and a total duration limit of 567 calendar days (approximately one year and seven months) . Implementation of all of the 18 th Street sewer rehabilitation under a single construction contract reduced disruption to the Castro District residents and businesses.
Scope of Contract: The contract work location was within the City and County of San Francisco at various Castro and Mission District locations including 18 th Street, 17 th Street, Guerrero Street, South Van Ness Avenue between 20 th and 23 rd Streets, and Folsom Street.
Agenda Title: No. WW-736, Castro and Mission Districts Sewer Improvements Commission Meeting Date: September 9, 2025
The contract work consisted of:
• Rehabilitation of approximately 5,300 linear feet (LF) of existing sewers using cured-in-place-liners, slip-lining or spray mortaring construction methods;
• Rehabilitation of 18 existing sewer manholes and installation of 12 new sewer manholes; and
• Replacement of approximately 1,150 LF of side sewers and rehabilitation of approximately 1,200 LF side sewers and associated appurtenances; and
• Street paving restoration.
Modifications to the
Contract:
Modification N os. 1 and 2 : Staff issued Modification Nos. 1 and 2 increasing the contract amount by $2,538,230 and increas ing the contract duration by 100 consecutive calendar days, within the original and approved cost and duration contingencies authorized under Resolution No. 24- 0107, for the rehabilitation of approximately 1400 LF of sewer and the installation of curb ramps, culverts, catch basins, street restoration modifications at Hattie Street , for a revised contract amount of $9,810,550 and revised contract duration of 525 consecutive calendar days.
Proposed Modification No. 3 (Final): Staff recommends Commission approval to decrease the c ontract amount by $691,784, and increase the contract duration by 187 consecutive calendar days , for a total c ontract amount of $9,118,766 and a total contract duration of 712 consecutive calendar days , to adjust the final contract amount to the value of actual contract quantities completed and adjust the final contract duration to complete as-built documentation.
Funding and Costs: Funding Source: Project No. 10034718, Castro and Mission Districts Sewer Improvements
Original Contract Amount: $7,272,320
Original 10% Cost Contingency: $727,232
Approved Increase to Cost Contingency: $2,500,000
Modified Increases to Contract Amount: $2,538,230
Total Current Contract Amount: $9,810,550
Recommended Modification No. 3 (Final) Amount: ($691,784) Total Revised Contract Amount: $9,118,766
Schedule: Notice-to-Proceed Date: August 28, 2023
Original Contract Duration: 425 consecutive calendar days Original 10% Duration Contingency: 42 calendar days
Approved Increases to Duration Contingency: 100 calendar days Modified Increases to Contract Duration: 100 consecutive calendar days Total Current Contract Duration: 525 consecutive calendar days Recommended Modification No. 3 (Final) Duration : 187 consecutive Agenda Title: No. WW-736, Castro and Mission Districts Sewer Improvements Commission Meeting Date: September 9, 2025
calendar days
Total Revised Contract Duration: 712 consecutive calendar days
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division established a 6.0% Local Business Enterprise (LBE) subcontracting requirement for this C ontract. The Contractor committed to a 6.18% LBE subcontractor participation with its bid submittal. The Contract Monitoring Division determined the Contractor complied with its Local Business Enterprise subcontracting goal achieving a final subcontractor participation of 6.22%.
Attachment(s): 1. Contract Monitoring Division Memorandum Agenda Title: No. WW-736, Castro and Mission Districts Sewer Improvements Commission Meeting Date: September 9, 2025
LOCATION MAP
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, On May 9, 2023, by Resolution No. 23-0097, the Commission awarded Contract No. WW -736, Castro and Mission Districts Sewer Improvements to Precision Engineering, Inc.; and
WHEREAS, The original contract amount was $7,272,320 and original contract duration was 425 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was August 28, 2023; and
WHEREAS, On May 14, 2024, by Resolution No. 24-0107, the Commission approved an increase of $2,500,000 to the cost contingency and an increase of 100 calendar days to the duration contingency to rehabilitate an additional 1,440 linear feet of brick sewers for a total cost limit of $10,499,552 and a total duration limit of 567 calendar days; and
WHEREAS, Modification Nos. 1 and 2 cumulatively increased the c ontract amount by $2,538,230 and increas ed the contract duration by 100 consecutive calendar days for the rehabilitation of approximately 1400 LF of sewer and the installation of curb ramps, culverts, catch basins, street restoration modifications at Hattie Street, for a revised c ontract amount of $9,810,550 and revised contract duration of 525 consecutive calendar days; and
WHEREAS, Staff recommends the Commission approve Modification No. 3 (Final) to decrease the contract amount by $691,784, and to increase the contract duration by 187 consecutive calendar days, for a total contract amount of $9,118,766 and a total contract duration of 712 consecutive calendar days, to adjust the final contract amount to the value of actual contract quantities completed and adjust the final contract duration to complete as -built documentation; and
WHEREAS, Precision Engineering, Inc., has completed the work scope under Contract No. WW-736, Castro and Mission Districts Sewer Improvements; and
WHEREAS, The Contract Monitoring Division determined that the contractor complied with the established Local Business Enterprise subcontracting participation of 6% for this contract by achieving a final Local Business Enterprise subcontractor participation of 6.22%; and
WHEREAS, Funds are available from Project No. 10034718, Castro and Mission Districts Sewer Improvements; now, therefore, be it
RESOLVED, That this Commission hereby accepts the work performed by Precision Engineering, Inc., under Contract No. WW-736, Castro and Mission Districts Sewer Improvements; approves Modification No. 3 (Final) decreasing the contract amount by $691,784 and increasing the contract duration by 187 consecutive calendar days , for a total contract amount of $9,118,766 and a total contract duration of 712 consecutive calendar days ; and authorizes final payment to the contractor.
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
MEMORANDUM
Date: August 12, 2025
To: Mary Tienken, SFPUC
From: Jovi Cuntapay-Vitin on behalf of Adriana Duran, CMD
Subject: Closeout for WW-736 Castro and Mission Districts Sewer Improvements (PeopleSoft Contract ID: 1000030065)
The Contract Monitoring Division (“CMD”) has determined that Precision Engineering Inc. (“Precision”), the LBE prime contractor, has made a good faith effort to comply with the LBE subcontracting requirements associated with this project.
At the time the project was advertised, a Micro/Small LBE subcontracting participation requirement of 6% was established. Precision Section 00 43 36 reflected a Micro/Small LBE subcontracting participation commitment of 6.18%. Precision was awarded the contract in the amount of $7,272,320.00. At closeout, the final contract amount is $9,118,765.43. Precision Micro/Small LBE subcontracting participation is as follows:
Firm
LBE
Status,
Type and
Size
Scope of
Work
Original
Credited
Contract
Participatio
n
Final Credited
Contract Participation
Ronald R. Nelson
Contractor, Inc.
SF LBE-
OBE (Micro)
Concrete
Manholes 2.54% $239,939.24 2.63%
Camajani
Trucking
SF LBE-
MBE (Micro) Trucking 1.38% $200,533.50 2.20%
Roadway
Construction SF LBE-
MBE (Micro)
Excavation,
Street Base,
and Temporary
Asphalt
0.89% $0.00 0.00%
Hernandez
Engineering
SF LBE-
MBE
(Small)
Traffic Control 1.38% $59,027.52 0.65%
DR Traffic
Control
SF LBE-
MBE (Micro) Traffic Control --- $68,142.50 0.75%
TOTAL 6.18% $567,642.76 6.22%
City & County of San Francisco
Daniel L. Lurie, Mayor
Office of the City Administrator
Carmen Chu, City Administrator
Contract Monitoring Division
Regina Chan, Director
Precision is required to make good faith efforts to utilize LBE’s participation for any scopes of work, or portions thereof, which can reasonably be subcontracted throughout the life of the project. Considering this requirement, Precision performed good faith efforts/outreach to LBE subcontractors to avoid falling short of its overall LBE commitment, as follows:
1. Hernandez Engineering (“Hernandez”) was substituted with another LBE subcontractor, DR Traffic Control, to perform the traffic control work after no agreement was reached by Precision and Hernandez regarding invoices and Hernandez did not want to complete the remaining work.
2. Roadway Construction (“Roadway”) was unavailable when their work became available.
Precision offered the work multiple times.
Nevertheless, Precision exceeded its LBE participation commitment at closeout by achieving
6.22%.
Based on the foregoing, CMD concurs with the closeout of this contract. Should you have any questions, please do not hesitate to contact [email protected].