DEPARTMENT
Infrastructure Division
AGENDA NO. 6c
MEETING DATE
March 24, 2026
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Ryan Freeborn
Accept Closeout, Approve Modification No. 7 (Final), and Authorize Final Payment for Contract No. WD-2874, 8- and 16-Inch Ductile Iron Water Main Replacement on Joost Avenue from Ridgewood Avenue to Congo Street and Various Side Streets
Summary of Proposed
Commission Action:
Accept work performed by M Squared Construction, Inc. , under Contract No. WD-2874, 8- and 16- Inch Ductile Iron Water Main Replacement on Joost Avenue from Ridgewood Avenue to Congo Street and Various Side Streets; approve Modification No. 7 (Final) decreasing the contract amount by $1,030,562, with no change to the contract duration, for a total contract amount of $6,276,367 and a total contract duration of 745
consecutive calendar days
(approximately two years and one month), to adjust the final contract amount to the value of actual contract quantities completed; and authorize final payment to the contractor.
Background: The San Francisco Public Utilities Commission (SFPUC) Water Enterprise, Local Conveyance/Distribution System Program provides for the replacement of old water pipes that have either been damaged or are at the end of their useful service life to ensure reliable water delivery within the City. Contract No. WD -2874 provides for replacement of 4- to 16-inch diameter cast iron water mains installed by the City, which now require replacement due to their material and age of 88 and 99 years.
On November 14, 2023, by Resolution No. 23- 0201, this
Commission awarded Contract No. WD -2874, 8- and 16- Inch Ductile Iron Water Main Replacement on Joost Avenue from Ridgewood Avenue to Congo Street and Various Side Streets, to M Squared Construction, Inc. The original contract amount was $7,077,800 and the original contract duration was 745 consecutive calendar days.
Scope of Contract: The contract work locatio n is in San Francisco's Sunnyside residential district. The contract work includes installation of:
• 4,900 feet of 4- to 8-inch diameter ductile iron water conveyance pipe;
• 3,800 feet of 16-inch diameter ductile iron water
conveyance pipe; and,
Agenda Title: WD-2874, 8- and 16-Inch Ductile Iron Water Main Replacement on Joost Avenue from Ridgewood Avenue to Congo Street and Various Side Streets
Commission Meeting Date: March 24, 2026
• Ancillary water service pipe, curb ramps, and pavement restoration.
Modifications to the
Contract:
Modification Nos. 1 -6: Staff issued Modification Nos. 1 to 6 increasing the contract amount by $229,129, within the original contingency, with no change to the contract duration, for a total contract amount of $7,306,929, for the contractor to provide an additional layer of polyethylene encasement, procurement of additional pipe fittings, and for differing site conditions.
Recommended Modification No. 7 (Final): Staff recommends the Commission approve Modification No.7 (Final) to decrease the contract amount by $1, 030,562, for a total contract amount of $6,276,367, with no change to the total contract duration of 745 consecutive calendar days, to adjust bid item quantities to reflect installed work. The large decrease in contract amount is attributed to the following: the contractor installed 8-inch and 16-inch pipelines in adjacent trenches, per approval by San Francisco Water Division, resulting in a reduction in paving restoration from the entire street to one half of the street ; significantly lower quantities of rocky soil were encountered during pipeline trenching than anticipated; slightly lower pipeline trenching and installation quantities were required; and contract allowances were not fully utilized for unforeseen conditions, permits, and working outside of normal work hours.
Funding and Costs: Funding Source: Water Enterprise Local Conveyance/Distribution Program,
Project No.10037406, 8- and 16- Inch Ductile Iron Water Main Replacement on Joost Avenue from Ridgewood Avenue to Congo Street and Various Side Streets.
Original Contract Amount: $7,077,800
Original 10% Cost Contingency: $707,780
Approved Increase to Cost Contingency: $0
Modified Increases to Contract Amount: $229,129
Total Current Contract Amount: $7,306,929
Current Cost Contingency: $478,651
[Proposed] Modification 7 (Final) Amount: ($1,030,562)
Total [Proposed] Final Contract Amount: $6,276,367
Schedule: Notice-to-Proceed Date: January 22, 2024
Original Contract Duration: 745 consecutive calendar days Original 10% Duration Contingency: 74 calendar days
Approved Increase to Duration Contingency: 0 calendar days Modified Increases to Contract Duration: 0 calendar days Total Current Contract Duration: 745 consecutive calendar days Current Duration Contingency: 74 calendar days
Agenda Title: WD-2874, 8- and 16-Inch Ductile Iron Water Main Replacement on Joost Avenue from Ridgewood Avenue to Congo Street and Various Side Streets
Commission Meeting Date: March 24, 2026
Modification 7 (Final) Duration: 0 calendar days
Total Final Contract Duration: 745 consecutive calendar days
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division (CMD) established a 17% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to a 17.10% LBE subcontractor participation with its bid submittal.
M Squared Construction, Inc. , achieved a final LBE subcontractor participation of 14. 42% for this contract, which was less than the original committed 17.10 % due to actual work quantities being slightly less than contract bid quantities. The CMD determined M Squared Construction, Inc. , made a good faith effort in providing work to meet LBE subcontracting requirements and concurs with closeout of this contract.
Attachment: 1. CMD Memorandum
Agenda Title: WD-2874, 8- and 16-Inch Ductile Iron Water Main Replacement on Joost Avenue from Ridgewood Avenue to Congo Street and Various Side Streets
Commission Meeting Date: March 24, 2026
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 14, 2023, by Resolution No. 23-0201, the Commission awarded Contract No. WD -2874, 8- and 16-Inch Ductile Iron Water Main Replacement on Joost Avenue from Ridgewood Avenue to Congo Street and Various Side Streets, to M Squared Construction, Inc.; and
WHEREAS, The original contract amount was for $7,077,800 and the original contract duration was 745 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was January 22, 2024; and
WHEREAS, Staff issued Modification Nos. 1 through 6, cumulatively increasing the contract amount by $229,129 (within the original contingency), with no change to the contract duration, for a total contract amount of $7,306,929, and a total contract duration of 745 consecutive calendar days , to provide an additional layer of polyethylene encasement, procurement of additional pipe fittings, and for differing site conditions; and
WHEREAS, Staff recommends the Commission approve Modification No. 7 (Final) to decrease the contract amount by $1,030,562, with no change to the contract duration, for a total contract amount of $ 6,276,367, and a total contract duration of 745 consecutive calendar days, to adjust the final contract amount to the value of actual contract quantities completed; and
WHEREAS, Contractor M Squared Construction, Inc. , has completed its work under Contract No. WD-2874, 8- and 16-Inch Ductile Iron Water Main Replacement on Joost Avenue from Ridgewood Avenue to Congo Street and Various Side Streets; and
WHEREAS, The Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 17% for this contract, and the contractor committed to LBE subcontractor participation of 17.10% with its bid submittal , and contract achieved 14. 42% final LBE participation due to actual work quantities being slightly less than contract bid quantities; and
WHEREAS, Funds are available from Project No.10037406, 8- and 16-Inch Ductile Iron Water Main Replacement on Joost Avenue from Ridgewood Avenue to Congo Street and Various Side Streets; now, therefore, be it,
RESOLVED, That this Commission hereby accepts work performed by M Squared Construction, Inc., under Contract No. WD-2874, 8- and 16-Inch Ductile Iron Water Main Replacement on Joost Avenue from Ridgewood Avenue to Congo Street and Various Side Streets ; approves Modification No. 7 (Final), decreasing the contract amount by $1,030,562, with no change to the contract duration, for a total contract amount of $6,276,367, and a total contract duration of 745 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 March 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: October 21, 2025
To: Ryan Freeborn, SFPUC
Edmund Hom, SFPUC
From: Jovi Cuntapay-Vitin, CMD
Subject: Closeout for WD-2874 - 8 & 16 Inch Ductile Iron Water Main Replacement on Joost Ave from Ridgewood Ave to Congo St and Various Side Streets (PeopleSoft Contract ID: 1000032008)
The Contract Monitoring Division (“CMD”) has determined that M Squared Construction, Inc. (“M Squared”), the LBE prime contractor, has complied with the LBE subcontracting requirements associated with this project.
At the time the project was advertised, a LBE subcontracting participation requirement of 17% was established. M Squared’s Section 00 43 36 reflected an LBE subcontracting participation of
17.10%. M Squared was awarded the contract in the amount of $7,077,800.00. At closeout, the final contract amount is $6,276,367.14. M Squared’s LBE subcontracting participation is as follows:
Firm
LBE
Status,
Type and
Size
Scope of Work
Original Credited
Contract
Participation
Final Credited
Contract
Participation
Ronan
Construction, Inc.
SF LBE-
OBE
(Micro)
Saw Cutting, AC
Paving, Concrete
Flatwork
13.85% $732,505.30 11.67%1
Crana Trucking
SF LBE-
OBE
(Micro)
Trucking 3.25% $120,734.00 1.92%
Geometrix
Surveying
SF LBE-
OBE
(Micro)
Monument
Referencing --- $52,115.00 0.83%
TOTAL 17.10% $905,354.30 14.42%
1 Ronan Construction, Inc. (“Ronan”) indicated on their CMD Form 8 that they subcontracted out to Delta Grinding (a non -LBE) $11,300.00. Delta’s participation will not receive LBE credit. Hence, Ronan’s final contract amount with LBE credit will be $732,505.30 instead of $743,805.30.
As confirmed by SFPUC, the project had changes by the SFPUC in the scope of work that were due to the design changes of the pipe alignment and reduction on the paving scope which, ultimately, affected the individual and overall LBE participation of this contract. These changes resulted in about 25% of reduction in paving work and less excavation than anticipated which also impacted the trucking scope in the process.
M Squared was required to make good faith efforts to utilize LBE’s participation for any scopes of work, or portions thereof, which can reasonably be subcontracted throughout the life of the project. Considering this requirement, M Squared performed good faith efforts/outreach to LBE subcontractors to minimize the aforementioned scope of work deletions/changes that impacted its overall LBE commitment by adding Geometrix Surveying, an LBE sub, to perform monument referencing work that resulted in additional 0.83% of LBE participation to M Squared.
Based on the foregoing, CMD concurs with the closeout of this contract. Should you have any questions, please contact me at [email protected].