DEPARTMENT
Infrastructure Division
AGENDA NO.
7e
MEETING DATE
January 27, 2026
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Jon Cantu
Accept Closeout, Approve Modification No. 6 (Final) , and Authorize Final Payment for Contract No. WD-2848, 8-Inch Ductile Iron Water Main Replacement on Gold Mine Drive from Topaz Way to Diamond Heights Boulevard and Various Side Streets
Summary of Proposed
Commission Action:
Accept work performed by A. Ruiz Construction Co. & Assoc. Inc. , under Contract No. WD -2848, 8- Inch Ductile Iron Water Main Replacement on Gold Mine Drive from Topaz Way to Diamond Heights Boulevard and Various Side Streets ; approve Modification No. 6 (Final) decreasing the contract amount by $1,302,996, with no change to the contract duration, for a total contract amount of $6,609,144, and a total contract duration of 608 consecutive calendar days (approximately one year and eight months), to adjust the final contract amount to the value of actual contract quantities completed; and authorize final payment to the contractor.
Background: The water main replacement work under Contract No. WD-2848 is part of the San Francisco Public Utilities Commission (SFPUC) Water Enterprise Local Conveyance/Distribution System Program (Program). Th e 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 4- to 8- inch cast iron water pipes , located within the Diamond Heights neighborhood, with 8-inch ductile iron pipes on Gold Mine Drive from Topaz Way to Diamond Heights Boulevard and Various Side Streets. The City installed the existing cast iron pipes in 1961; due to their material, age of 62 years, and history of repeated main breaks in the neighborhood, they needed to be replaced.
On September 20, 2023, by Resolution No. 23- 0158, this Commission awarded Contract No. WD -2848, 8 -Inch Ductile Iron Water Main Replacement on Gold Mine Drive from Topaz Way to Diamond Heights Boulevard and Various Side Streets , to A. Ruiz Construction Co. & Assoc.
Inc. The original contract amount was $7,750,985 and the original contract duration was 608 consecutive calendar days.
Scope of Contract: The contract work location is in San Francisco's Diamond Heights residential district. The contract work includes installation of:
Agenda Title: 8-Inch Ductile Iron Water Main Replacement on Gold Mine Drive from Topaz Way to Diamond Heights Boulevard and Various Side Streets
Commission Meeting Date: January 27, 2026
• 9,400 linear feet of 4 -inch to 8- inch diameter ductile iron water conveyance pipe;
• 300 linear feet of 16 -inch diameter ductile iron water conveyance pipe;
• Ancillary water service pipe; and,
• Curb ramps, and pavement restoration.
Modifications to the
Contract
Modification Nos. 1-5: Staff issued Modification Nos. 1 to 5 increasing the contract amount by $161,155, within the original contingency, with no change to the contract duration, for a total contract amount of $7,912,140 , for the contractor to provide an additional layer of polyethylene encasement, revision to bid- items quantities, tree trimming, S an Francisco Water Department support, and 4-inch service materials.
Recommended Modification No. 6 (Final): Staff recommends the Commission approve Modification No. 6 (Final) to decrease the contract amount by $1,302,996, with no change to the contract duration, for a total contract amount of $6,6 09,144, and a total contract duration of 608 consecutive calendar days, to adjust the final contract amount to the value of actual contract quantities completed.
Funding and Costs: Funding Source: Project Number 10035293, WD-2848 Gold Mine Drive Original Contract Amount: $7,750,985
Original 10% Cost Contingency: $775,098
Approved Increase to Cost Contingency: $0
Modified Increases to Contract Amount: $161,155
Total Current Contract Amount: $7,912,140
Current Cost Contingency: $613,943
[Proposed] Modification 6 (Final) Amount: ($1,302,996)
Total [Proposed] Final Contract Amount: $6,609,144
Schedule: Notice-to-Proceed Date: January 2, 2024
Original Contract Duration: 608 consecutive calendar days Original 10% Duration Contingency: 60 calendar days
Approved Increase to Duration Contingency: 0 calendar days Modified Increases to Contract Duration: 0 calendar days Total Current Contract Duration: 608 consecutive calendar days Current Duration Contingency: 60 calendar days
Modification 6 (Final) Duration: no change to contract duration Total Final Contract Duration: 608 consecutive calendar days
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 15.98% LBE subcontractor participation with its bid submittal.
CMD has determined that the Contractor complied with its LBE Agenda Title: 8-Inch Ductile Iron Water Main Replacement on Gold Mine Drive from Topaz Way to Diamond Heights Boulevard and Various Side Streets
Commission Meeting Date: January 27, 2026
WD-2848, LOCATION MAP
subcontracting obligation by achieving a final LBE subcontractor participation of 16.12%.
Attachment: 1. Location Map
2. Contract Monitoring Division Memorandum
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) Water Enterprise Local Conveyance/Distribution Program provides for the replacement of water pipelines that have either been damaged or are at the end of their useful service life to ensure reliable water delivery within the City; and
WHEREAS, On September 20, 2023, by Resolution No. 23- 0158, this Commission awarded Contract N o. WD-2848, 8-Inch Ductile Iron Water Main Replacement on Gold Mine Drive from Topaz Way to Diamond Heights Boulevard and Various Side Streets, to A. Ruiz Construction Co. & Assoc. Inc.; and
WHEREAS, The original contract amount was $7,750,985 and the original contract duration was 608 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was January 2, 2024; and
WHEREAS, Staff issued Modification Nos. 1 – through 5, cumulatively increasing the contract amount by $161,155 (within the original contingency) , with no change to the contract duration, for a total contract amount of $7,912,140, and a total contract duration of 608 consecutive calendar days to provide additional layer of polyethylene encasement, revisions to bid- items quantities, tree trimming, SFWD support, and 4-inch service materials; and
WHEREAS, Staff recommends the Commission approve Modification No. 6 (Final) to decrease the contract amount by $1,302,996, with no change to the contract duration, for a total contract amount of $6,609,144, and a total contract duration of 608 consecutive calendar days, to adjust the final contract amount to the value of actual contract quantities completed; and
WHEREAS, A. Ruiz Construction Co. & Assoc. Inc., has completed the work scope under Contract No. WD-2848, 8-Inch Ductile Iron Water Main Replacement on Gold Mine Drive from Topaz Way to Diamond Heights Boulevard and Various Side Streets; and
WHEREAS, The Contract Monitoring Division (CMD) determined that the contractor complied with the estab lished Local Business Enterprise subcontracting requirement of 14% for this contract, by achieving a final Local Business Enterprise subcontractor participation of 16.12%; and
WHEREAS, Funds are available from Project No. 10035293, WD-2848 Gold Mine Drive; now, therefore, be it,
RESOLVED, That this Commission hereby accepts the work performed by A. Ruiz Construction Co. & Assoc. Inc., under Contract No. WD-2848, 8-Inch Ductile Iron Water Main Replacement on Gold Mine Drive from Topaz Way to Diamond Heights Boulevard and Various Side Streets; approves Modification No. 6 (Final), decreasing the contract amount by $1,302,996, with no change to the contract duration, for a total contract amount of $6,609,144, and a total contract duration of 608 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 January 27, 2026.
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: September 8, 2025
To: Portia Davis, SFPUC
From: Jason Chow, CMD
Subject: WD-2848 8-Inch Ductile Iron Water Main Replacement on Gold Mine Drive CMD’s Closeout Review
The Contract Monitoring Division (“CMD”) has determined that A. Ruiz Construction & Associates, Inc. (“A Ruiz”), 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 14% was established. A Ruiz’s Section 00 43 36 reflected an LBE subcontracting participation of 15.98%. A Ruiz was awarded the contract in the amount of $7,750,985.00. At closeout, the final contract amount is $6,609,143.50. A Ruiz’s LBE subcontracting participation is as follows:
Firm LBE Status,
Type and Size Scope of Work Original Credited
Participation
Final Credited
Participation
Ronan
Construction,
Inc.
Saw Cutting
AND Asphalt
/ Mill
SF LBE- OBE
(Micro) $963,460.001 12.43% $852,317.252 12.89%
DR Traffic
Control
Traffic
Support
SF LBE- MBE
(Micro) $150,000.00 1.94% $122,695.00 1.86%
Cobra Trucking Trucking
Services
SF LBE- MBE
(Micro) $125,000.00 1.61% $90,502.00 1.37%
TOTAL $1,238,460.00 15.98% $1,065,514.25 16.12%
In sum, the overall contract amount was reduced by $1,141,841.50. Despite this circumstance, A. Ruiz still exceeded its original overall LBE subcontracting participation commitment percentage (see table
1 Ronan’s original subcontract amount was $1,083,460.00. 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 LBE subcontract amount was $880,567.25. At closeout, said firm confirmed the actual amount that it further subcontracted out to Delta Grinding, a non- LBE firm. As such, the final credited LBE participation was applied appropriately.
above). The two (2) trucking firms received less than its percentage from time of bid, this is due to the overall contract reduction—which led to the actual work that was issued being less than originally anticipated—the Trucking firms were offered work to the extent possible.
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].