Request to Approve Increase to Cost and Duration Contingencies Construction Contract No. WW-639 Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrade
Brian Carlomagno, P.E. San Francisco Public Utilities Commission Senior Project Manager November 10, 2025 Meeting 2 OSP Digester Gas Utilization Upgrade
Commission Action Request
Approve an increase of $8,000,000 to the cost
contingency and an increase of 638 calendar days to the duration contingency for Contract No. WW-639,
Oceanside Water Pollution Control Digester Gas
Utilization Upgrades.
Scope of Contract Includes:
• Replace Cogeneration Engine Generators and associated controls
• Replace gas storage vessel and gas conditioning
equipment
• Provide exhaust gas conditioning equipment and heat
exchangers
• Ventilation Upgrades
• Replace Electrical Substation No. 5
• Provide stand-by diesel generator
• Upgrade the site electrical service to comply with
PG&E Wholesale Distribution Tariff Requirements
3 OSP Digester Gas Utilization Upgrade
Project Improvements
4 OSP Digester Gas Utilization Upgrade
Current Status and Remaining Work
• Construction 90% complete awaiting PG&E Wholesale Distribution Tariff compliance infrastructure installation along Skyline Boulevard.
• Boiler equipment relocation and construction of new gas storage vessel complete. • Final mechanical and electrical installation of cogeneration engine systems & • Final site work underway.
APPROXIMATE
LOCATION FOR NEW
ELECTRICAL
INFRASTRUCTURE
• Construction 90% complete awaiting PG&E Wholesale Distribution Tariff compliance infrastructure installation along Skyline Boulevard.
• Boiler equipment relocation and construction of new gas storage vessel complete. • Final mechanical and electrical installation of cogeneration engine systems underway. • Final site work underway.
OCEANSIDE
EAST VEHICLE
GATE
5 Requested Cost and Duration
Contingency Increases
Why Increases in Cost and Duration Contingencies are necessary? • Request $8M in cost contingency and 638 calendar days contract duration associated with PG&E services, engineering, and installation of additional electrical infrastructure. • Improvement work needs to occur sequentially while the Treatment Plant remains in operation.
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
WW-639 Previously Authorized Contract Days
Requested
638 Calendar Days
DEPARTMENT
Wastewater Enterprise
AGENDA NO.
8 MEETING DATE
November 10, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Project Manager: Brian Carlomagno
Approve Increase to the Cost and Duration Contingenc ies for Contract No. WW-639, Oceanside Water Pollution Control Digester Gas Utilization Upgrades
Summary of Proposed
Commission Action:
Approve an increase of $8,000,000 to the cost contingency and an increase of 638 calendar days (approximately one year and nine months) to the duration contingency for Contract No. WW-639, Oceanside Water Pollution Control Digester Gas Utilization Upgrades, with Monterey Mechanical Co. for a revised cost limit of $62,293,900 and a revised duration limit of up to 3,231 calendar days (approximately nine years and three months), to upgrade site electrical service to meet Pacific Gas and Electric Company Wholesale Distribution Tariff requirements.
Background: The San Francisco Public Utilities Commission (SFPUC) Wastewater Enterprise is replacing the existing co-generation engine generators at the Oceanside Water Pollution Control Plant (OSP), which are over 20 years old and at the end of their useful life. The existing engine generators have experienced extensive downtime, resulting in lost power, high maintenance cost s, and additional demands on maintenance personnel. When completed, this project is designed to provide better reliability, full biogas utilization, and more sustainable services.
On August 8, 2017, by Resolution No. 17-0184, this Commission approved this project to proceed with the loan agreement to receive Clean Water State Revolving Fund loan financing.
On August 28, 2018, by Resolution No. 18-0143, this Commission award ed Contract No. WW -639, Oceanside Water Pollution Control Digester Gas Utilization Upgrades to Monterey Mechanical Co. in the amount of $38,449,000 and with a contract duration of 820 consecutive calendar days (approximately two years and three months).
On March 23, 2021, by Resolution No. 21-0046, this Commission approved an increase of 306 calendar days to the duration contingency, for a total duration limit of up to 1,208 calendar days, with no change in the contract amount.
On March 8, 2022, by Resolution No. 22- 0050, this Commission approved an increase of 561 calendar days to the duration contingency, for a total duration limit of up to 1,769 calendar days, with no change in the contract amount.
Agenda Title: WW-639, Oceanside Water Pollution Control Digester Gas Utilization Upgrades Commission Meeting Date: November 10, 2025
On June 13, 2023, by Resolution No. 23 -0117, this Commission approved an increase of $5,000,000 to the existing cost contingency and an increase of 228 calendar days to the duration contingency, for a total cost limit of up to $47,293,900 and a total duration limit of 1,997 calendar days.
On May 14, 2024, by Resolution No. 24- 0106, this Commission approved an increase of $7,000,000 to the existing contract cost contingency and an increase of 596 calendar days to the duration contingency, for a total cost limit of up to $54,293,900 and a total duration limit of 2,593 calendar days.
Scope of Contract: The original contract work location is at the OSP located at 3500 Great Highway San Francisco, CA.
The contract work consists of:
• Replacement of the gas storage vessel and digester gas condition ing equipment;
• Replacement of the existing cogeneration Internal-Combustion units and associated controls;
• Provide ancillary exhaust gas conditioning system and heat exchanger systems to comply with regulatory air board requirements, maximize process efficiency and hot water production;
• Upgrade ventilation within the energy recovery building; • Replace electrical gear at Sub -Station No. 5; provide paralleling electrical gear and power system reliability improvements; • Provide stand-by diesel generator and diesel fuel storage system; and, • Upgrade the site electrical service to comply with Pacific Gas and Electric Company (PG&E) Wholesale Distribution Tariff requirements.
Modifications to the
Contract:
Modification Nos. 1 -12: Staff issued Modification Nos. 1-12, in accordance with Resolution Nos. 21-0046, 22-0050, 23-0117, and 24-0106, increasing the contract amount by $15,600,275 and increasing the contract duration by 1,543 calendar days, for a total c ontract amount of $54,049,275, and a total contract duration of 2,363 consecutive calendar days , for additional costs for the cogeneration system, associated mechanical and electrical system modifications, and related PG&E electrical interconnection equipment compliance, and to allow additional time for the contractor to procure long- lead mechanical and electrical equipment to comply with PG&E electrical interconnection requirements.
Recommended Increase to Cost and Duration Contingenc ies: Staff recommends the Commission approve an increas e to the cost contingency by $8,000,000, and the duration contingency by 638 calendar days, to upgrade site electrical service to meet PG&E Wholesale Distribution Tariff requirements, for a total cost limit of $62,293,900 and duration limit to 3,231 calendar days.
Agenda Title: WW-639, Oceanside Water Pollution Control Digester Gas Utilization Upgrades Commission Meeting Date: November 10, 2025
Funding and Costs: Funding Source: Wastewater Enterprise Capital Improvement Program Project No. 10029737, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrades
Original Contract Amount: $38,449,000
Original 10% Cost Contingency: $3,844,900
Approved Increase in Cost Contingency: $12,000,000
Modified Increases to Contract Amount: $15,600,275
Total Current Contract Amount: $54,049,275
[Proposed] Additional Cost Contingency: $8,000,000
Total [Proposed] Revised Cost Limit: $62,293,900
Schedule: Notice-to-Proceed Date: November 26, 2018
Original Contract Duration: 820 consecutive calendar days Original 10% Duration Contingency: 82 calendar days
Approved Increase to Duration Contingency: 1,691 calendar days Modified Increases to Contract Duration: 1,543 consecutive calendar days Total Current Contract Duration: 2,363 consecutive calendar days [Proposed] Additional Duration Contingency: 638 calendar days Total [Proposed] Revised Duration Limit: 3,231 calendar days
Environmental
Review:
On June 2, 2017, the San Francisco Planning Department determined the Project to be categorically exempt from environmental review under the California Environmental Quality Act
Guidelines section 15301, Class 1 (Existing
Facilities) under Case No. 2017-006119ENV. The work under this modification is within the scope of the Project authorized under the exemption.
The exemption determination can be found here:
https://sfpuc.sharefile.com/public/share/web-
s5e2c124c42714ca285f1e767f920e1ad
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division established a 10% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to a 19.88% LBE subcontractor participation with its bid submittal, and this amount remains unchanged.
Agenda Title: WW-639, Oceanside Water Pollution Control Digester Gas Utilization Upgrades Commission Meeting Date: November 10, 2025
Location map:
Location map:
Oceanside Water Pollution Control Plant
3500 Great Highway
San Francisco, CA 94132
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, On August 28, 2018, by Resolution No. 18-0143, the Commission awarded Contract No. WW-639, Oceanside Water Pollution Control Digester Gas Utilization Upgrades to Monterey Mechanical Co.; and
WHEREAS, The contract Notice-to-Proceed date was November 26, 2018; and
WHEREAS, The original contract amount was for $38,449,000 and the original contract duration was 3,231 consecutive calendar days; and
WHEREAS, On March 23, 2021, by Resolution No. 21- 0046, the Commission approved an increase of 306 calendar days to the duration contingency, for a total duration limit of up to 1,208 calendar days, with no change in the contract amount; and
WHEREAS, On March 8, 2022, by Resolution No. 22-0050, the Commission approved an increase of 561 calendar days to the duration contingency, for a total duration limit of up to 1,769 calendar days, with no change in the contract amount; and
WHEREAS, On June 13, 2023, by Resolution No. 23-0117, this Commission approved an increase of $5,000,000 to the existing cost contingency and an increase of 228 calendar days to the duration contingency, for a total cost limit of up to $47,293,900 and a total duration limit of 1,997 calendar days; and
WHEREAS, On May 14, 2024, by Resolution No. 24-0106, this Commission approved an increase of $7,000,000 to the existing cost contingency and an increase of 596 calendar days to the duration contingency, for a total cost limit of up to $54,293,900 and a total duration limit of 2,593 calendar days; and
WHEREAS, Staff issued Modification Nos. 1 to 12, increas ing the contract amount by $15,600,275 and increasing the contract duration by 1,543 calendar days, in accordance with Resolution Nos. 21- 0046, 22- 0050, 23- 0117 and 24- 0106, for a total c ontract amount of $54,049,275 and a total contract duration of 2,363 consecutive calendar days, for additional costs
for the cogeneration system, associated mechanical and electrical system modifications, and related PG&E electrical interconnection equipment compliance, and to allow additional time for the contractor to procure long- lead mechanical a nd electrical equipment to comply with Pacific Gas and Electric Company (PG&E) electrical interconnection requirements; and
WHEREAS, Staff recommends an increase of $8,000,000 to the cost contingency and an increase of 638 calendar days to the duration contingency, for a revised cost limit of $62,293,900 and duration limit of 3,231 calendar days , to upgrade site electrical service to meet PG&E Wholesale Distribution Tariff requirements; and
WHEREAS, The Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting requirement of 10% for this contract, the contractor committed to a n LBE subcontractor participation of 19.88% with its bid submittal, and this amount remains unchanged; and
WHEREAS, On June 2, 2017, the San Francisco Planning Department determined the Project to be categorically exempt from environmental review under the California Environmental Quality Act Guidelines section 15301, Class 1 (Existing Facilities) under Case No. 2017 - 006119ENV, and the work under this modification is within the scope of the Project authorized under the exemption; and
WHEREAS, Funds are available from Project No. 10029737, Oceanside Water Pollution Control Plant Digester Gas Utilization Upgrades; now, therefore, be it
RESOLVED, That this Commission hereby approves an increase of $8,000,000 to the existing cost contingency and an increase of 638 calendar days to the existing duration contingency for Contract No. WW-639, Oceanside Water Pollution Control Digester Gas Utilization Upgrades, with Monterey Mechanical Co. f or a total cost contingency of $23,844,900 and a total duration contingency of 2,411 calendar days; and be it
FURTHER RESOLVED, That this Commission hereby authorizes the General Manager, or the General Manager’s designee, to approve future modifications to Contract No. WW-639, for a total cost limit of $62,293,900 and for a total duration limit of 3,231 calendar days.
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