DEPARTMENT
Infrastructure Division
AGENDA NO. 7a
MEETING DATE
December 9, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Ming Yee
Award Contract No. WW-795, Sansome Street Outfall Improvements
Summary of Proposed
Commission Action:
Award Contract No. WW-795, Sansome Street Outfall Improvements, to the responsible bidder that submitted the lowest responsive bid, R&S Construction Management , Inc., in the amount of $3,322,700 and with a duration of 300 consecutive calendar days (approximately 10 months) , to rehabilitate the Sansome Street Outfall, located in the City and County of San Francisco. This action constitutes the Approval Action for the Project for the purposes of the California Environmental Quality Act (CEQA ), pursuant to San Francisco Administrative Code section 31.04(h). The Planning Department has determined that the Project is exempt from the CEQA. The Commission will rely on that determination to make its decision on this action.
Background: The San Francisco Public Utilities Commission (SFPUC) Wastewater Enterprise operates wet-weather control facilities in conformance with permits issued by the U.S. Environmental Protection Agency (EPA) and the San Francisco Bay Area Regional Water Quality Control Board. The system handles most rainstorms by sending the combined wastewater and stormwater to the treatment plants for tre atment and disinfection before releasing it into the bay or ocean through deep-water outfalls. Some extreme storms with prolonged or i ntense rainfall can exceed the capacity of the system, requiring partially treated discharges through permitted nearshore outfalls along the bay or ocean. These discharges are known as combined sewer discharges. These discharges are authorized by our EPA and Regional Water Board permits. SFPUC's extensive system of underground storage, transport, and treatment boxes minimizes the frequency and volume of these discharges. When discharges do occur, they consist overwhelmingly of stormwater.
The Sansome Street Outfall is one of the permitted nearshore outfalls on the combined sewer system, and this project to improve and rehabilitate the Sansome Street Outfall is consistent with the SFPUC’s Operational Reliability Level-of-Service goals.
Scope of Contract: The contract work location is on the Embarcadero near the Sansome Street intersection in the City and County of San Francisco , as identified on the accompanying location map.
Agenda Title: WW-795 Sansome Street Outfalls Improvements Commission Meeting Date: December 9, 2025
The contract work consists of:
• Removing the existing butterfly valve, actuator, hydraulic power unit (HPU), and all associated equipment including the HPU cabinet; • Installing new bending weirs;
• Installing new electrical and monitoring equipment including associated conduits;
• Constructing a new concrete wall inside the outfall; and, • Pavement restoration.
Funding and Costs: Funding Source: Project No. 10037245, Brannan CSD Discharge and Baffle Engineer’s Estimate: $3,600,000
Award: $3,322,700
Schedule: Estimated Notice-to-Proceed Date: March 2026
Estimated Completion Date: January 2027
Contract Duration : 300 consecutive calendar days (240 consecutive calendar days to Substantial Completion and an additional 60 consecutive calendar days to Final Completion)
Bid History:
Advertised: September 8, 2025
Bids Received: On October 1 6, 2025, the SFPUC received and publicly opened three sealed bids, as follows:
Bid Rank Base Bid
Amount
Compensable
Delay
(30 days
duration)
LBE Bid
Discount
Adjusted
Bid
Final
Rank
1. R&S
Construction
Management,
Inc.
$3,322,700 $15,000 10% $3,003,930 1
2. Power
Engineering
Construction
Company
$3,380,935 $24,000 Not
Eligible
$3,404,935 2
3. Azul Works, Inc. $4,676,200 $36,000 Not
Eligible
$4,712,200 3
Because the SFPUC anticipates that potential unforeseen conditions or other factors outside the contractor’s control may impact the schedule, Staff included a requirement in the Invitation for Bids for bidders to provide a daily compensable time extension rate. At the bid opening, Staff announced that SFPUC would use the value of 30- days to calculate the compensable delay bid adjustment amount. Staff used the daily rate in each bid to determine the total Compensable Delay value shown in the table above by m ultiplying the bidder’s daily rate times 30. The Adjusted Bid value in the table above is the sum of the Base Bid Amount and Compensable Delay less any applicable bid discount. Staff used the Adjusted Bid value to compare and rank the bids to Agenda Title: WW-795 Sansome Street Outfalls Improvements Commission Meeting Date: December 9, 2025
determine the lowest bidder. However, the contract award amount is the Base Bid value (not the Adjusted Bid value) and, if the Commission awards the contract, the bidder’s daily compensable delay rate will become a term of the contract.
Application of bid preferences in accordance with Chapter 14B of the San Francisco Administrative Code did not change the final ranking of the low bidder.
Environmental
Review:
On May 8, 2025 , the San Francisco Planning Department determined the Project to be categorically exempt from environmental review under the CEQA Guidelines section 15301, Class 1 (Existing Facilities) under Case No. 2025-004051ENV. The exemption determination can be found here:
https://sfpuc.sharefile.com/public/share/web-
sb5d87d767fed465f9f6528be6401e238
This action constitutes the Approval Action for the Project for the purposes of the CEQA, pursuant to San Francisco Administrative Code section
31.04(h).
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division established a 14% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to a 22.56% LBE subcontractor participation with its bid submittal.
Attachment(s): 1. Contract Monitoring Division Memorandum Agenda Title: WW-795 Sansome Street Outfalls Improvements Commission Meeting Date: December 9, 2025
Location Map
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) Wastewater Enterprise initiated the Sansome Street Outfall Improvements project to improve and rehabilitate the Sansome Street Outfall consistent with the SFPUC’s Operational Reliability Level-of-Services (LOS) goals; and
WHEREAS, On September 8, 2025, the SFPUC advertised Contract No. WW-795, Sansome Street Outfall Improvements; and
WHEREAS, The Engineer’s Estimate is $ 3,600,000 for this construction work to rehabilitate the Sansome Street Outfall; and
WHEREAS, The contract duration is 300 consecutive calendar days; and
WHEREAS, On October 16, 2025, SFPUC received and publicly opened three bids; and
WHEREAS, SFPUC staff and the Contract Monitoring Division (CMD) reviewed the bids and the application of bid preferences and have determined that R&S Construction Management , Inc., is the responsible bidder with the lowest responsive bid; and
WHEREAS, CMD established a 14% Local Business Enterprise (LBE) subcontracting requirement for this contract, and R &S Construction Management , Inc., committed to 22.56% LBE subcontractor participation in its bid submittal; and
WHEREAS, On May 8, 2025, 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. 2025 - 004051ENV; and
WHEREAS, Funds are available from Project No. 10037245, Brannan CSD Discharge and Baffle; now, therefore, be it
RESOLVED, That this Commission hereby awards Contract No. WW-795, Sansome Street Outfall Improvements, in the amount of $3,322,700, and with a duration of 300 consecutive calendar days , to the responsible bidder that submitted the lowest responsive bid, R&S Construction Management, Inc.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of December 9, 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
1455 Market Street, Suite 16A, San Francisco, CA 94103
Telephone (415) 554 0630
MEMORANDUM
Date: October 28, 2025
To: Ming Yee, SFPUC
Frank Gennaccaro, SFPUC
From: Jovi Cuntapay-Vitin, Contract Monitoring Division
Subject:
CMD Review of Bids Submitted on October 16, 2025 for WW-795 Sansome Street Outfall Improvements
R&S Construction Management, Inc. is the apparent low bidder after the bid discount.
The bid discount was applied to bidders who are certified by the Contract Monitoring Division, (“CMD”) as an LBE in the type of work that is specified for the bidder by the Contract Awarding Authority. [Sec. 14B.7(D)].
Bidder
LBE
Status,
Type and
Size
Base Bid
Bid
Discount
Compensable
Delay
(30 days)
Adjusted Bid
with
Bid Discount
&
Compensable
Delay
R&S Construction
Management, Inc.
SF LBE-
MBE
(Micro)
$3,322,700.00 10% $15,000.00 $3,003,930.00
Power Engineering
Construction
Company
Non-LBE $3,380,935.00 N/A $24,000.00 $3,404,935.00
Azul Works, Inc. SF LBE-
WBE
(SBA)
$4,676,200.00 N/A1 $36,000.00 $4,712,200.00
R&S Construction Management, Inc. satisfactorily demonstrated how they will meet the LBE subcontractor participation requirement.
A combination of Micro-LBE and Small-LBE participation will count toward LBE subcontractor participation compliance. R&S Construction Management, Inc.’s commitment for this contract:
Requirement % Commitment %
Micro/Small LBE 14% 22.56%
1 Per CMD Attachment 1, for contracts with an estimated cost in excess of $400,000 and less than or equal to $10,000,000. A 10% bid discount will apply to any bids submitted by CMD certified Small or Micro-LBEs. If, after the application of the 10% bid discount to bids submitted by Small or Micro-LBEs, the apparent low bidder is not a Small or Micro-LBE, a 5% bid discount will be applied to any bid from an SBA-LBE in accordance with the procedures and limitations set forth in Section 14B.7(E) of the Ordinance.
In their bid, R&S Construction Management, Inc. listed the following subcontractors on this contract:
Supplier Name Scope of Work LBE LBE
Size
LBE
Percent
Percent of
Work Amount
Baytech Engineering,
Inc. Electric (Full) SF LBE-
MBE Micro 100% 22.56% $749,750.00
SFPUC utilizes the SOLIS system. For ease of entry, included here are the figures captured by SOLIS:
LBE Subcontractor LBE Category, Type
and Economic
Threshold
Listed Original
Participation
Amount
Participation
Amount
Subject to LBE
Goal
CMD
Awarded LBE
Goal %
Baytech Engineering,
Inc.
SF LBE-MBE (Micro) $749,750.00 $749,750.00 22.56%
TOTAL $749,750.00 $749,750.00 22.56%
R&S Construction Management, Inc. satisfied the “Good Faith Efforts” requirement.
R&S Construction Management, Inc. utilized Approach A and exceeded the LBE subcontractor participation requirement by 35% through counting its own self-performed work.
CMD finds R&S Construction Management, Inc. is responsive to pre-award requirements of Chapter 14B. Once awarded, the contract will be monitored for compliance with the LBE subcontractor participation commitment, as well as other 14B requirements.
Primary CMD contact for the contract: Jovi Cuntapay-Vitin, [email protected]
CMD must be contacted immediately for:
- Subcontractor addition/substitution;
- Contract modification that cumulatively increases the original contract value by 20%; - Prompt payment issues;
- Any other issues pertaining to LBE subcontractor participation
Noncompliance may result in penalties, including monetary fines. Please communicate with CMD early.
[cco/JCV]