DEPARTMENT
Infrastructure Division
AGENDA NO.
6c
MEETING DATE
February 24, 2026
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Contract/Project Manager: Ryan Freeborn
Award Contract No. WD-2923, 24-Inch Water Main Rehabilitation from University Mound Reservoir South to 3rd Street
Summary of Proposed
Commission Action:
Award Contract No. WD-2923, 24-Inch Water Main Rehabilitation from University Mound Reservoir South to 3rd St reet, to the responsible bidder that submitted the lowest responsive bid, Cratus, Inc., in the amount of $10,186,831 and with a duration of 501 consecutive calendar days (approximately one year and five months), to rehabilitate a 90 year old water transmission line in the Portola and Bay View Districts 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 the determination to make its decision on this action.
Background: The water main installation work under this contract 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 and County of San Francisco. The City installed the existing 24- inch diameter riveted steel water transmission main in 1936. Due to the advanced age of the pipes ( approximately 90 years), material,
and the importance of the adjacent University Mound
Reservoir for SFPUC Level of Service Goals, SFPUC has prioritized renewing this important asset by rehabilitating this pipeline.
Scope of Contract: The contract work location is in the Bayview and Portola Districts of the City and County of San Francisco.
The contract work includes:
• Rehabilitation and relining of 6,300 feet of 24- inch steel pipe with Cured-in-Place Pipe and related pit excavation for installation of assemblies, bypasses, and fittings;
• Construction of 39 curb ramps; and,
• Pavement restoration.
Agenda Title: WD-2923, 24-Inch Water Main Rehabilitation from University Mound Reservoir South to 3rd St reet Commission Meeting Date: February 24, 2026
Funding and Costs: Funding Source: Project No. 10041306, SFPUC Local Conveyance /Distribution System Program
Engineer’s Estimate: $10,900,000
Award: $10,186,831
Schedule: Estimated Notice-to-Proceed Date: May to July 2026 Estimated End Date: September to November 2027
Duration: 501 consecutive calendar days ( 456 consecutive calendar days to Substantial Completion and an additional 45 consecutive calendar days to Final Completion)
Bid History:
Advertised: November 13, 2025
Bids Received: On December 18 , 2025, the SFPUC received and publicly opened five sealed bids.
Bid Rank Bid Amount
LBE
Discount Adjusted Bid
F
R
1. Cratus, Inc. $10,186,831 0% $10,186,831.00
2. Koios
Engineering $11,125,804 2% $10,903,287.92
3. A Ruiz
Construction
Company &
Associates
$11,385,525 2% $11,157,814.50
4. Mitchell
Engineering $11,218,969.50 0% $11,218,969.50
5. M Squared
Construction $12,328,078.00 2% $12,081,516.44
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 September 17, 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) and Section 15302, Class 2
(Replacement or
Reconstruction) (Case No. 2025-006962ENV).
The exemption determination is at:
https://sfpuc.sharefile.com/public/share/web -
scda058ec72844908a8a4679751a964dc
Agenda Title: WD-2923, 24-Inch Water Main Rehabilitation from University Mound Reservoir South to 3rd St reet Commission Meeting Date: February 24, 2026
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 i n
Contracting:
The Contract Monitoring Division established a 20% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to a 20.44% LBE subcontractor participation with its bid submittal.
Attachment(s): 1. Contract Monitoring Division Memorandum Agenda Title: WD-2923, 24-Inch Water Main Rehabilitation from University Mound Reservoir South to 3rd St reet Commission Meeting Date: February 24, 2026
WD-2923 Vicinity Map
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 November 13, 2025, SFPUC advertised Contract No. WD-2923, 24-Inch Water Main Rehabilitation from University Mound Reservoir South to 3rd St reet; and
WHEREAS, The Engineer’s Estimate is $10,900,000 for this construction work to rehabilitate approximately 6,300 feet of 24-inch steel water transmission pipe with Cured-in-Place Pipe, install curb ramps , and perform pavement restoration along University Mound Reservoir South to Third St. within the City and County of San Francisco; and
WHEREAS, The contract duration is 501 consecutive calendar days; and
WHEREAS, On December 18, 2025, SFPUC received and publicly opened five bids; and
WHEREAS, SFPUC staff and the Contract Monitoring Division (CMD) reviewed the bids and the application of bid preferences and have determined that Cratus, Inc., is the responsible bidder with the lowest responsive bid; and
WHEREAS, The CMD established a 20% Local Business Enterprise (LBE) subcontracting requirement for this contract, and Cratus, Inc., committed to 20.44% LBE subcontractor participation in its bid submittal; and
WHEREAS, On September 17, 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) and Sec tion 15302, Class 2 (Replacement or Reconstruction) (Case No. 2025- 006962ENV); and
WHEREAS, F unds are available from Project No. 10041306, SFPUC Local Conveyance/Distribution System Program ; now, therefore, be it,
RESOLVED, That this Commission hereby awards Contract No. WD-2923, 24-Inch Water Main Rehabilitation from University Mound Reservoir South to 3rd Street., in the amount of $10,186,831, and a duration of 501 consecutive calendar days , to the responsible bidder that submitted the lowest responsive bid, Cratus, Inc.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of February 24, 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
1455 Market Street, Suite 16A, San Francisco, CA 94103 Telephone (415) 554-0630
MEMORANDUM
Date: January 8, 2026
To: Ryan Freeborn, SFPUC
From: Jason Chow, CMD
Subject: CMD Review of Bids Submitted on 12/18/2025 for WD -2923 24-Inch Water Main Rehabilitation from University Mound Reservoir South to 3 rd Street
Cratus, Inc. is the apparent low bidder.
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)]
Cratus, Inc. (“Cratus”) satisfactorily demonstrated how they will meet the LBE subcontractor participation requirement.
A combination of SF Micro/Small -LBE participation will count toward LBE subcontractor participation compliance. Cratus commitment for this contract:
Requirement % Commitment %
Micro/Small LBE 20.00% 20.44%
In their bid, Cratus listed the following subcontractors on this contract.
Bidder
LBE Status,
Type and
Size
Base Bid
LBE Bid
Discount
Adjusted Total Bid
with Bid Discount
Cratus, Inc.
Non-LBE
$10,186,831.00
n/a $10,186,831.00
Koios Engineering
SF LBE-MBE
(Micro) $11,125,804.00 2% $10,903,287.92
A Ruiz Construction Company &
Associates
SF LBE-MBE
(Micro) $11,385,525.00 2% $11,157,814.50
Mitchell Engineering Non-LBE $11,218,969.50 n/a $11,218,969.50 M Squared Construction SF LBE-OBE
(Small) $12,328,078.00 2% $12,081,516.44
Supplier Name Scope of Work
LBE
LBE
Size
LBE
Percent
Percent
Of
Work
Amount
Mike O’Dell Surveys (Full) Survey SF-LBE Small 100% 0.71% $72,000.00 Liffey Electric (Full) Electrical Work-
Bid Items – T1-E18 SF-LBE Micro 100% 0.49% $50,000.00
Terocons Inc.
(Full) Partial
Excavation and
Shoring
SF-LBE Micro 100% 2.94% $300,000.00
DR Traffic Control (Full) Traffic Control SF-LBE Micro 100% 4.42% $450,000.00 Crana Trucking (Full) Trucking SF-LBE Micro 100% 0.74% $75,000.00 Esquivel Grading &
Paving
(Full) Concrete &
Paving
SF-LBE
Small
100%
11.14%
$1,135,000.00
Fer-Pal Construction (Full) CIPP 37.80% $3,850,800.00
SFPUC utilizes SOLIS system. For SOLIS, the LBE credited percentages are listed below:
LBE Subcontractor LBE Status Listed Amount LBE Credited Participation
Amount
LBE Credited
Participation
Percentage
Mike O’Dell Surveys SF LBE-OBE
(Small) $72,000.00 $72,000.00 0.71%
Liffey Electric SF LBE-OBE
(Micro) $50,000.00 $50,000.00 0.49%
Terocons Inc. SF LBE-MBE
(Micro) $300,000.00 $300,000.00 2.94%
DR Traffic Control SF LBE-MBE
(Micro) $450,000.00 $450,000.00 4.42%
Crana Trucking SF LBE-OBE
(Micro) $75,000.00 $75,000.00 0.74%
Esquivel Grading & Paving SF LBE-MBE
(Small) $1,135,000.00 $1,135,000.00 11.14%
TOTAL $2,082,000.00 $2,082,000.00 20.44%
Cratus satisfied the “Good Faith Efforts” requirement.
Cratus utilized Approach B—Inclusion of Micro -LBE; by listing Terocons Inc.
CMD finds Cratus 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: Jason Chow, [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.
[JC]