DEPARTMENT
Infrastructure Division
AGENDA NO.
6e
MEETING DATE
November 10, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Jon Cantu
Accept Closeout, Approve Modification No. 3 (Final) , and Authorize Final Payment for Contract No. WD-2896, 12-Inch Ductile Iron Water Main Installation on Webster Street from Grove Street to Eddy Street
Summary of Proposed
Commission Action:
Accept work performed by M. Squared Construction, Inc. , under Contract No. WD-2896, 12- Inch Ductile Iron Water Main Installation on Webster Street from Grove Street to Eddy Street; approve Modification No. 3 (Final) decreasing the contract amount by $21,960 and increasing the contract duration by 24 calendar days, for a total contract amount of $1,698,480, and a total contract duration of 338 consecutive calendar days (approximately ten months), to adjust the final contract amount to the value of actual contract quantities and adjust the final contract duration to renew an additional water service and perform final pavement restoration; and authorize final payment to the contractor.
Background: The water main replacement work under Contract No. WD-2896 is part of the San Francisco Public Utilities Commission (SFPUC) Water Enterprise Local Conveyance/Distribution System Program. The program includes the replacement of pipes that have either been damaged or are at the end of their useful service life to ensure reliable water delivery within the City.
This contract replaced existing 12-inch diameter cast iron water pipes, located within the Buchanan Street Mall, with 12-inch diameter ductile iron pipes on Webster Street from Grove to Eddy Streets and on Eddy Street from Webster to Buchanan Streets. The City installed the existing cast iron pipes in 1936; due to their material age of 87 years, and history of repeated main breaks in the neighborhood, they need to be replaced. Replacement of these pipelines at a new location allows for the same operational redundancy in the system while also eliminating potential conflicts with the City’s upcoming Buchanan Street Mall Renovation Project.
On January 9, 2024, by Resolution No. 24- 0009, this Commission awarded Contract No. WD -2896, 12- Inch Ductile Iron Water Main Installation on Webster Street from Grove Street to Eddy Street , to M. Squared Construction, Inc. The original contract amount was $1,468,962 and the original contract duration was 286 consecutive calendar days.
Agenda Title: WD-2896, 12-Inch Ductile Iron Water Main Installation on Webster Street from Grove Street to Eddy Street Commission Meeting Date: November 10, 2025
On October 22, 2024, by Resolution No. 24-0212, this Commission approved an increase of $117,517 to the cost contingency, for a revised cost limit $1,733,375, and with no change to the contract duration.
Scope of Contract: The contract work location is in the Fillmore district within the City and County of San Francisco.
The contract work includes installation of:
• 200 feet of 4-inch to 8-inch diameter ductile iron water conveyance pipe;
• 2,200 feet of 12-inch diameter ductile iron water conveyance pipe; and,
• Curb ramps, and pavement restoration.
Modifications to the
Contract
Modification Nos. 1-3: Staff issued Modification No s. 1-3, increasing the contract by $251,478, in accordance with Resolution No. 24-0212, and increasing the contract duration by 28 consecutive calendar days, within the original duration contingency, for a total contract amount of $1,720,440, and a total contract duration of 314 consecutive calendar days , to procure additional ductile iron pipe necessary to realign the pipe after encountering an unforeseen underground storage tank at the intersection of Webster and Fulton Streets, and for additional traffic controls and support needed to implement single-lane reversible traffic on a Muni bus route along Eddy Street from Webster to Buchanan Streets. Where realigned, the pipe remains within the project limits.
Recommended Modification No. 4 (Final): Staff r ecommends the Commission approve Modification No. 4 (Final) to decrease the contract amount by $21,960 and increase the contract duration by 24 consecutive calendar days, for a total contract amount of $1,698,480, and a total contract duration of 338 consecutive calendar days, to adjust the final contract amount to the value of actual contract quantities and adjust the final contract duration to renew an additional water service and perform final pavement restoration.
Funding and Costs: Funding Source: Project Number 10039033, WD-2896 Webster Street Original Contract Amount: $1,468,962
Original 10% Cost Contingency: $146,896
Approved Increase to Cost Contingency : $117,517
Modified Increases to Contract Amount: $251,478
Total Current Contract Amount: $1,720,440
[Proposed] Modification No. 4 (Final) Amount: ($21,960) Total [Proposed] Revised Contract Amount: $1,698,480
Schedule: Notice-to-Proceed Date: May 28, 2024
Original Contract Duration: 286 consecutive calendar days Original Contract Duration Contingency: 28 calendar days Approved Increase to Duration Contingency : 0 calendar days Agenda Title: WD-2896, 12-Inch Ductile Iron Water Main Installation on Webster Street from Grove Street to Eddy Street Commission Meeting Date: November 10, 2025
Modified Increases to Contract Duration: 28 calendar days Total Current Contract Amount: 314 consecutive calendar days [Proposed] Modification No. 4 (Final) Duration: 24 calendar days Total Proposed] Revised Contract Duration: 338 consecutive calendar days
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division (CMD) established a 12% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to 11.81% LBE subcontractor participation with its bid submittal.
Despite the 11.81% LBE subcontractor commitment, CMD still required the contractor to meet the 12% LBE subcontracting requirement. CMD determined the c ontractor complied with its Local Business Enterpri se subcontracting goal achieving a final subcontractor participation of 15.23%.
Attachments: 1. Location Map
2. Contract Monitoring Division Memorandum
Agenda Title: WD-2896, 12-Inch Ductile Iron Water Main Installation on Webster Street from Grove Street to Eddy Street Commission Meeting Date: November 10, 2025
WD-2896, LOCATION MAP
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, On January 9, 2024, by Resolution No. 24- 0009, this Commission awarded Contract No. WD-2896, 12- Inch Ductile Iron Water Main Installation on Webster Street from Grove Street to Eddy Street, to M. Squared Construction, Inc.; and
WHEREAS, The original c ontract amount was $1,468,962 and the original c ontract duration was 286 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was May 28, 2024; and
WHEREAS, On October 22, 2024, by Resolution No. 24-0212, the Commission approved an increase of $117,517 to the cost contingency, for a revised cost limit of $1,733,375, and with no change to the contract duration; and
WHEREAS, Modification Nos. 1- 3 cumulatively increased the contract amount by $251,478, in accordance with Resolution No. 24- 0212, and increased the contract duration by 28 consecutive calendar days, within the original duration contingency, for a total contract amount of $1,720,440, and a total contract duration of 314 consecutive calendar days, to procure ductile iron pipe necessary to realign the pipe after encountering an unforeseen underground storage tank at the intersection of Webster and Fulton Streets, and for additional traffic controls and support needed to implement single -lane reversible traffic on a Muni bus route along E ddy Street from Webster to Buchanan Streets; and
WHEREAS, Staff recommends the Commission approve Modification No. 4 (Final) to decrease the contract amount by $21,960, and increase the contract duration by 24 consecutive calendar days, for a total contract amount of $1,698,480 and a total contract duration of 338 consecutive calendar days , to adjust the final contract amount to the value of actual contract quantities and adjust the final contract duration to renew an additional water service and perform final pavement restoration; and
WHEREAS, M. Squared Construction, Inc., has completed the work scope under Contract No. WD-2896, 12-Inch Ductile Iron Water Main Installation on Webster Street from Grove Street to Eddy Street; and
WHEREAS, The Contract Monitoring Division (CMD) determined that the contractor complied with the established Local Business Enterprise subcontracting requirement of 12% for this contract by achieving a final Local Business Enterprise subcontractor participation of 15.23%; and
WHEREAS, Funds are available from Project No. 10039033, WD-2896 Webster Street ; now, therefore, be it
RESOLVED, That this Commission hereby accepts the work performed by M. Squared Construction, Inc., under Contract No. WD-2896, 12-Inch Ductile Iron Water Main Installation on Webster Street from Grove Street to Eddy Street; approves Modification No. 4 (Final), decreasing the contract amount by $21,960 and increasing the contract duration by 24 calendar days, for a total contract amount of $1,698,480 and a total contract duration of 338 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 November 10, 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
Regina Chan, Director
MEMORANDUM
Date: October 6, 2025
To: Jon Cantu, SFPUC
Curtis Hartdegen, SFPUC
From: Jason Chow, CMD
Subject: WD-2896 12- Inch Ductile Iron Water Main Installation on Webster Street from Grove Street to Eddy Street
CMD’s Closeout Review
The Contract Monitoring Division (“CMD”) has determined that M Squared Construction, Inc. (“M Squared”), the LBE prime contractor, has made a good faith effort to substantially comply with the LBE subcontracting requirements associated with this project.
At the time the project was advertised, an LBE subcontracting participation requirement of 12 .00% was established. M Squared Section 00 43 36 reflected an LBE subcontracting participation of 11.81%. M Squared was awarded the contract in the amount of $1,468,961.20. At closeout, the final contract amount is $1,698,479.98. M Squared LBE subcontracting participation is as follows:
Firm LBE Status,
Type and Size Scope of Work Original Credited
Participation
Final Credited
Participation
Ronan
Construction,
Inc.
AC Paving and
Sawcutting
SF LBE- OBE
(Micro) $173,500.001 11.81% $258,684.602 15.23%
TOTAL $173,500.00 11.81%3 $258,684.60 15.23%
Based on the foregoing, CMD concurs with the closeout of this contract. Should you have any concerns or questions, please feel free to reach out at [email protected] .
1 Ronan’s original subcontract amount was $180,000.00. At time of bid, said firm confirmed, that it will further subcontract out work to a non-LBE firm. As such, the credited LBE participation was applied appropriately. 2 Ronan’s final subcontract amount is $264,878.35. Said firm indicated on its CMD Form 8 that it further subcontracted out work to Delta Grinding (non-LBE) for an amount of $6,193.75. As, such the final LBE credit amount is reduced accordingly. 3 Per CMD’s bid review, despite the said LBE credited participation, M Squared is still required to meet the said established LBE subcontracting participation requirement.