Request to Approve Amendment No. 1 to Contract Number PRO.0163(R) - Engineering Services for the Emergency Firefighting Water System and City’s Water Distribution System San Francisco Public Utilities Commission Meeting
April 14, 2026
Overall Water System
2 Project Region
Potable Emergency Firefighting Water
System (PEFWS)
• Network of reservoirs,
tanks, pipelines, cisterns,
pump stations, fireboats,
and other facilities within
San Francisco
• System designed to fight
large fires and fires
following large seismic
events when domestic
water system may be
impacted
3 Linear Assets Management Program
(LAMP)
• Annual goal to replace
approximately 10-15 miles
of pipeline per year to
extend or renew useful life
• Work may include
replacement,
rehabilitation, relining,
seismic resiliency and
cathodic protection
4 Contract Scope Overview
• PRO.0163(R): Engineering Services for the Emergency
Firefighting Water System and City’s Water Distribution System
• Resolution No. 24-0025 (February 13, 2024)
• Contractor: LEE+RO and AGS Joint Venture
• Contract Amount: $8,000,000
• Contract Duration: Eight (8) years
Scope of work is to provide engineering support for specific projects identified in the contract
5 Contract PRO.0163(R)
Proposed Amendment 1 Modifications
Project Name Current
Phase
Current
Contract
Budget
Proposed Amendment 1
Modifications
Proposed
Budget
EFWS Pipelines
Contracts A through C
Planning /
Design $4,169,441
Planning,
Design, and
ESDC*
$4,590,000 $8,759,441
EFWS Pump Station(s)
Central Pump Station Planning $417,319 Planning $300,000 $717,319 City’s Distribution System
Active LAMP Projects Design $802,345 Design and
ESDC* $400,000 $1,202,345
City’s Distribution System
LAMP Projects starting
2026
Not Started $0
Planning,
Design, and
ESDC*
$2,300,000 $2,300,000
Training Sessions Not Started $0 N/A $20,895 $20,895
Unassigned N/A $2,610,895 N/A ($2,610,895) $0
TOTAL $8,000,000 $5,000,000 $13,000,000
6 *ESDC – Engineering Support During Construction
7 • Design criteria modified for
higher seismic level of service,
alignment changes to improve
system robustness, and
unforeseen geotechnical
complexities
• Contracts A through C
• Current Phase: Planning and
Design
PEFWS Pipelines
8 • Design criteria modified for
higher seismic level of
service resulted in system
re-evaluation
EFWS Pump Stations
• Central Pump Station
• Current Phase: Planning
LAMP Projects
• Support needed for
geotechnical engineering
and curb ramp design
• Current Phase: Design
• Existing projects continuing
and starting construction in
2026
• New projects starting
design in 2026
9 Contract PRO.0163(R)
Proposed Amendment 1 Modifications
Project Name Current
Phase
Current
Contract
Budget
Proposed Amendment 1
Modifications
Proposed
Budget
EFWS Pipelines
Contracts A through C
Planning /
Design $4,169,441
Planning,
Design, and
ESDC*
$4,590,000 $8,759,441
EFWS Pump Station(s)
Central Pump Station Planning $417,319 Planning $300,000 $717,319 City’s Distribution System
Active LAMP Projects Design $802,345 Design and
ESDC* $400,000 $1,202,345
City’s Distribution System
LAMP Projects starting
2026
Not Started $0
Planning,
Design, and
ESDC*
$2,300,000 $2,300,000
Training Sessions Not Started $0 N/A $20,895 $20,895
Unassigned N/A $2,610,895 N/A ($2,610,895) $0
TOTAL $8,000,000 $5,000,000 $13,000,000
10 *ESDC – Engineering Support During Construction
QUESTIONS
11 AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT: Infrastructure Division
AGENDA NUMBER: 12
MEETING DATE: April 14, 2026
Calendar: Regular Calendar
Contract Manager: Tedman Lee
Approve Amendment No. 1 to Contract No. PRO.0163(R), Engineering Services for the Emergency Firefighting Water System and City’s Water Distribution System
Summary of Proposed
Commission Action:
Approve Amendment No. 1 to Contract No. PRO.0163(R),
Engineering Services for the Emergency Firefighting Water System and City’s Water Distribution System , with Lee+Ro and AGS Joint Venture, increasing the contract amount by $5,000,000, for a total
not-to-exceed contract amount of $13,000,000 , with no change to the contract duration, to provide additional engineering design and support for pipeline improvement projects , subject to Board of Supervisors approval under Charter Section 9.118.
Background: The San Francisco Public Utilities Commission (SFPUC) Water Enterprise Local Water System Capital Improvement Program (Local Water CIP) is a 10- year plan of scheduled projects to improve system assets and maintain level of service goals. The SFPUC updates the Local Water CIP each year for integration with the SFPUC’s Financial Plan and rate-setting. The Local Water CIP funds improvements to San Francisco’s drinking water pipelines under the Local Water Conveyance/Distribution System program, also known as Linear Asset Management Program (LAMP). The Local Water CIP also funds, along with San Francisco General Obligation bonds (Earthquake Safety and Emergency Response bond series), improvements to the City ’s Emergency Firefighting Water System.
LAMP replaces and renews feeder and distribution mains for the 1,230 miles of pipe in San Francisco’s drinking water distribution system. The SFPUC’s goal is to replace approximately 10 to 15 miles of pipe per year depending on funding availability .
Improvements include replacement, rehabilitation, relining, seismic resiliency, and cathodic protection of all pipe size categories to extend or renew pipeline useful life.
The City’s Emergency Firefighting Water System (EFWS) is a complex network of reservoirs, tanks, pipelines, cisterns, pump stations, fireboats and their related manifolds to provide the San Francisco Fire Department with water availability to fight large fires and fires following large seismic events when the domestic water system may be impacted.
Agenda Title: PRO.0163(R), Engineering Services for the Emergency Firefighting Water System and City’s Water Distribution System Commission Meeting Date: April 14, 2026
On February 13, 2024, by Resolution No. 24-0025, this Commission awarded Contract No. PRO.0163(R), Engineering Services for the Emergency Firefighting Water System and City’s Water Distribution System, to Lee+Ro and AGS Joint Venture, for an amount not -to- exceed $8,000,000 and with a contract duration of eight years.
The original amount of this contract was based on the project budgets included in the 10- Year Water Enterprise Capital Plan for fiscal years 2019-2028 that was approved in February 2018.
Since its initiation, this contract has primarily supported five main efforts (see Figures 1 and 2): (1) system performance evaluation of EFWS; (2) planning for Central Pump Station; (3, 4) planning and design for EFWS Pipeline Contracts A and B ; and (5) support for various LAMP Projects.
During the planning and design phases of these projects, several factors necessitated the budget increase, including a higher seismic level of service, alignment changes to improve system robustness, unforeseen geotechnical complexities, and evaluations for potential cost reductions due to market conditions. The updated forecasted pre-construction
and construction costs are reflected in the most
recently adopted 10-Year Capital Improvement Plan for fiscal years 2027-2036.
Proposed Amendment No. 1 will provide additional contracting capacity for engineering support services to complete planning and final design for EFWS Pipeline contracts A through C and to support ongoing LAMP projects (see Table 1). If these projects, or other projects that were originally intended to receive engineering support from this contract, require additional capacity in the future after the scopes are further developed or reprioritized, th
en additional
capacity may be requested either through this contract by a future amendment or by using another contracting vehicle.
Scope of Contract: The contract work locations are within the City and County of San Francisco.
The contract work consists of:
• Preparation of contract documents including technical specifications in Construction Specifications Institute format, and drawings showing pipeline alignment, pipeline profile, and pipeline connections for : (a) 8-inch to 60 -inch diameter water distribution and transmission pipelines – ductile iron pipelines with restrained and push- on joints, earthquake resistant ductile iron pipe, and welded steel pipe, as well as their ancillary facilities; and (b) the new and retrofitted pump stations associated with the Emergency Firefighting Water System, in compliance with SFPUC design standards;
Agenda Title: PRO.0163(R), Engineering Services for the Emergency Firefighting Water System and City’s Water Distribution System Commission Meeting Date: April 14, 2026
• Preparation of Technical Memoranda, Design Criteria
Reports, design and construction schedules, and cost
estimates supporting the projects covered in this contract; • Preparation of existing utility drawings based on as -built information received by utility agencies;
• Preparation of curb ramp design drawings, specifications, and construction cost estimates;
• Coordination with City agencies for traffic engineering; • Condition assessment support services to determine
condition of pipe and other existing facilities;
• Land Surveying services;
• Geotechnical services and subsurface soil investigation including fieldwork (e.g., potholing and soil borings) to collect data on existing soil type, soil contaminates, and existing utility information, as well as interpretive analysis of ground conditions for structural and corrosion evaluation purposes; and,
• Engineering support services during the Environmental Phase(s), the Bid & Award Phase(s), the Construction
Phase(s) and the Close-Out Phase(s) of the projects covered in this contract.
The contract work listed above is provided by the consultant as part of planning and engineering services under the direction of the SFPUC Engineering Management Bureau.
Amendments to the
Contract:
Recommended Amendment No. 1: Staff recommends
Commission approval of Amendment No. 1, to increase the contract by $5,000,000, to provide additional engineering design and support for pipeline improvement projects for a total not -to-exceed contract amount of $13,000,000, with no change to the contact duration.
Funding and Costs: Funding Source: Funds will come from individual projects, either within the Water Enterprise Local Water Capital Improvement Program and/or Earthquake Safety and Emergency Response bonds, for Emergency Firefighting Water System projects.
Original Not-to-Exceed Amount: $8,000,000
Proposed Amendment No. 1: $5,000,000
Total Not-To-Exceed Contract Amount: $13,000,000
Schedule: Original Duration: eight years.
Proposed Amendment No. 1 Duration: no change
Total Duration: eight years
Agenda Title: PRO.0163(R), Engineering Services for the Emergency Firefighting Water System and City’s Water Distribution System Commission Meeting Date: April 14, 2026
Environmental
Review:
This action does not constitute a project under the California Environmental Quality Act (CEQA) Guidelines Section 15378 because work will consist of engineering design and support services only, and no support services during construction and closeout will be initiated until any necessary environmental review has been completed as required by the CEQA and this Commission has reviewed and considered the CEQA determination and
approved the projects.
Staff will not authorize design support services involving ground disturbance (such as geotechnical investigations) or any other physical changes in the environment until any necessary environmental review has been completed as required by the CEQA.
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division (CMD) established a 10% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to a 10% LBE subcontractor participation in its proposal, and this remains unchanged.
Attachment(s): Contract Monitoring Division Memorandum
Agenda Title: PRO.0163(R), Engineering Services for the Emergency Firefighting Water System and City’s Water Distribution System Commission Meeting Date: April 14, 2026
Figure 1.Potable Emergency Firefighting Water System Pipeline Map
Figure 2. Linear Assets Management Program Pipeline Map
Agenda Title: PRO.0163(R), Engineering Services for the Emergency Firefighting Water System and City’s Water Distribution System Commission Meeting Date: April 14, 2026
Project Name Current
Phase
Current
Planned
Budget1
Phases covered via
Proposed
Amendment No. 1
Modification
Proposed
Amendment No.
1 Modification
Proposed
Budget
EFWS Pipelines
Contracts A through C
Planning
Design $4,169,441 Planning, Design, and
ESDC $4,590,000 $8,759,441
EFWS Pump Station(s)
Central Pump Station Planning $417,319 Planning $300,000 $717,319 City’s Distribution
System
Active LAMP Projects
(WD-2923, WD-2921,
WD-2918, WD-2885)
Design $802,345 Design and ESDC $400,000 $1,202,345
City’s Distribution
System
Starting Calendar Year
2026 LAMP Projects
(TBD)
Not Started $0 Planning, Design, and
ESDC $2,300,000 $2,300,000
Training Sessions Not Started $0 $20,895 $20,895
Unassigned N/A $2,610,895 ($2,610,895) $0
TOTAL $8,000,000 $5,000,000 $13,000,000
Table 1. PRO.0163(R) Amendment No. 1 Summary
1 Current Planned Budget based on SOLIS records as of March 2026
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO. __________________
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) requires the services of qualified firms to provide specialized engineering design services to support projects in the Water Enterprise Local Water System Capital Improvement Program (Local Water CIP) related to the Local Water Conveyance/Distribution System Progra m, also known as the Linear Asset Management Program, and the Emergency Firefighting Water System, to supplement SFPUC staff; and
WHEREAS, On February 13, 2024, by Resolution No. 24-0025, this Commission awarded Contract No. PRO.0163(R), Engineering Services for the Emergency Firefighting Water System and City’s Water Distribution System , for an amount not -to- exceed $8,000,000 and with a duration of eight years, to Lee+Ro and AGS Joint Venture; and
WHEREAS, Staff recommends that this Commission approve Amendment No. 1 to Contract No. PRO.0163(R), Engineering Services for the Emergency Firefighting Water System and City’s Water Distribution System, to increase the contract amount by $5,000,000, to provide additional engineering design and support for pipeline improvement projects funded by the Water Enterprise Capital Improvement Program, for a total not -to-exceed contract amount of $13,000,000, with no change to the contract duration; and
WHEREAS, the Contract Monitoring Division (CMD) established a 10% Local Business Enterprise (LBE) subconsultant participation requirement for this contract.
Lee+Ro and AGS Joint Venture committed to an LBE subconsultant participation of 10% in their proposal, and this amount remains unchanged; and
WHEREAS, Funds will be available at the time of individual task order awards from individual projects within the Water Enterprise Local Water Conveyance/Distribution System Program and/or the Earthquake Safety and Emergency Response General Obligation bonds; and
WHEREAS, This action does not constitute a project under the California Environmental Quality Act (CEQA) Guidelines Section 15378 because work will consist of engineering design and support services only, and no support services during construction and closeout will be initiated until any necessary environmental review has been completed as required by the CEQA and this Commission has reviewed and considered the CEQA determination and approved the projects; and
WHEREAS, Staff will not authorize design support services involving ground disturbance (such as geotechnical investigations) or any other physical changes in the
environment until any necessary environmental review has been completed as required by the CEQA; now, therefore, be it,
RESOLVED, That this Commission hereby approves Amendment No. 1 to Contract No. PRO.0163(R), Engineering Services for the Emergency Firefighting Water System and City’s Water Distribution System (Rebid), with Lee+Ro and AGS J oint Venture, increasing the contract amount by $5,000,000, for a total not-to-exceed contract amount of $13,000,000, with no change to the contract duration of eight years, subject to the Board of Supervisors approval pursuant to Charter Section 9.118.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of April 14, 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: March 18, 2026
To: Nathan Gronlund, SFPUC
From: Jovi Cuntapay-Vitin, CMD
Subject: CMD Modification No. 1 for PRO.0163R Engineering Services for the Emergency Firefighting Water System and City's Water Distribution System
The San Francisco Public Utilities Commission (“SFPUC”) has requested a modification for the above referenced contract by increasing the contract amount by $5,000,000.00 for a total agreement amount of $13,000,000.00. Per the SFPUC, the scope of work for Modification No.1 consists of additional planning, design, and engineering support during construction (ESDC) for the Geotechnical, Pipeline, Mechanical, and Electrical components associated with Contracts A, B, and C. The modification also includes planning activities for the new PEFWS pump station. In addition, for the City’s Distribution System Lamp Projects (currently active and those beginning in CY 2026), the consultant will provide supplemental planning, design, and ESDC services.
This modification further incorporates Technology Transfer to the SFPUC.
LBE Subcontracting Participation
The LBE subcontracting participation requirement established for this contract is 10%. Lee + RO, Inc. and AGS, Inc. Joint Venture (“Lee+RO/AGS JV”), the prime consultant for this contract, committed to a 10% LBE subcontracting participation for this contract. The LBE subcontracting participation commitment applies to the entire contract including any amendments, change orders and modifications. The LBE participation reflected in the Proposer’s, Lee+RO/AGS JV’s, CMD Form 2A at the time of proposal is as follows:
Subcontractor Scope of Work Status, Type
and Size
LBE Credited
Participation
M Lee Corporation Cost Estimating SF LBE-MBE
(Small) 4.00%
Meridian Surveying Engineering
Inc
Survey SF LBE-OBE
(Micro) 2.00%
RES Engineers, Inc. Materials Testing SF LBE-MBE
(Small) 2.00%
Joe Hill Consulting &
Engineering Corporation
Standard Operating
Procedures
SF LBE-OBE
(Micro) 2.00%
TOTAL 10.00%
Per SOLIS reported data, as of March 18, 2026, Lee+RO/AGS JV invoiced $3,033,048.62 and expended $2,593,201.45. The LBE participation achieved by Lee+RO/AGS JV is as follows:
Pursuant to submissions and communications with Lee+RO/AGS JV, RES Engineers, Inc.’s (“RES’”) LBE participation to-date is at 0.00% because its listed scopes of work have not surfaced. However, Lee+RO/AGS JV confirmed that it is committed to utilizing the above-listed LBE subconsultants on their respective listed scopes of work in the next stage of this project.
Additionally, based on information provided by Lee+RO/AGS JV and confirmed by the SFPUC, Meridian Surveying Engineering Inc. (“Meridian”) performed work on the project. However, Meridian has not invoiced Lee+RO/AGS JV thus far, which resulted in a 0.00% LBE participation to-date. As shown in the table above, this had an impact on Lee+RO/AGS JV’s overall LBE participation to-date.
Moreover, based on information provided by Lee+RO/AGS JV, there will be no LBE participation from M Lee Corporation (“M Lee”) for the entire contract term, as M Lee declined to perform the cost estimating work due to pricing concerns. Consequently, Saylor Consulting Group (“Saylor”) was substituted to assume M Lee’s cost estimating work. However, Lee+RO/AGS JV, as confirmed by SFPUC, anticipates a reduction in cost estimating work; therefore, Saylor’s participation is expected to decrease to 2.00% for the remainder of the contract, including this modification. To offset this reduction, Lee+RO/AGS JV has increased Joe Hill Consulting & Engineering Corporation’s (“Joe Hill’s”) participation to 4.00% based on the projected increase in Joe Hill’s assigned scope for the remainder of the contract.
Lee+RO/AGS JV is required to make good faith efforts to utilize LBEs for any scope of work, or portions thereof, which can reasonably be subcontracted out throughout the life of the contract.
In light of this requirement, Lee+RO/AGS JV has performed good faith outreach to LBE firms.
As part of its good‑faith efforts to ensure the LBE commitment is fully met, Lee+RO/AGS JV added Saylor, an LBE subconsultant, to its team to perform cost‑estimating work on this contract. Lee+RO/AGS JV also increased Joe Hill’s participation.
Subcontractor Scope of Work
Status,
Type and
Size
Credited
LBE
Participation
LBE Participation To-
Date
(Not including Modification
No. 1)
Invoiced
M Lee
Corporation
Cost Estimating SF LBE-
MBE
(Small)
4.00% $0.00 0.00%
Meridian
Surveying
Engineering Inc
Survey SF LBE-
OBE
(Micro)
2.00% $0.00 0.00%
RES Engineers,
Inc.
Materials Testing SF LBE-
MBE
(Small)
2.00% $0.00 0.00%
Joe Hill
Consulting &
Engineering
Corporation
Standard Operating
Procedures SF LBE-
OBE
(Micro)
2.00% $67,716.30 2.23%
ADDED LBE FIRMS
Saylor Consulting
Group
Cost Estimating SF LBE-
WBE
(Micro)
- $60,569.93 2.04%
TOTAL 10.00% $126,535.35 4.23%
Based on the foregoing and taking into consideration the proposed increase and the original contract amount, Lee+RO/AGS JV confirmed that it will remain committed to assigning work that may arise from future task orders to its original listed LBE subconsultants. Lee+RO/AGS JV informed the CMD that it anticipates meeting its 10.00% LBE commitment, as follows:
LBE Joint Venture Participation
Additionally, as a recipient of the 7.5% Joint Venture/LBE Rating Bonus, AGS, Inc., as the LBE JV Partner is to perform 40% of the total joint venture work. As of March 2026, Lee+RO/AGS JV invoiced to SFPUC, $2,973,663.16; and the LBE joint venture participation to date is as follows:
Firm Status, Type
and Size Scope of Work
Original
Credited
Participation
Participation To-
Date
(not including
Modification No. 1)
Lee + RO,
Inc. Non-LBE
Contract Management, Civil,
Mechanical, Electrical,
Structural, Pipeline, Technical
Advisory, QA/QC
60% 76.00%
AGS, Inc. SF-LBE MBE
(Micro)
Civil, Structural, Pipeline,
Geotechnical, Tunneling,
Construction Management,
Project Management
40% 24.00%
TOTAL 100% 100%
Going forward, SFPUC staff and Lee+RO/AGS JV will obtain CMD approval for each subconsultant addition and LBE substitution according to established procedures. Additionally, in order to ensure compliance with the LBE ordinance and requirements, the SFPUC and Lee+RO/AGS JV must notify CMD of any changes to the scope of work as well as any changes to information provided to CMD. Contingent on the conditions set forth above, CMD approves the subject modification.
Should you have any questions, please contact me at [email protected].
Subcontractor Scope of
Work
Status, Type
and Size
Amount
Invoiced
To-Date
Projected LBE
Participation for entire
contract including this
Modification No. 1
M Lee Corporation Cost
Estimating
SF LBE-MBE
(Small)
$0.00 $0.00 0.00%
Meridian Surveying
Engineering Inc
Survey SF LBE-OBE
(Micro)
$0.00 $260,000.00 2.00%
RES Engineers, Inc. Materials
Testing
SF LBE-MBE
(Small)
$0.00 $260,000.00 2.00%
Joe Hill Consulting &
Engineering
Corporation
Standard
Operating
Procedures
SF LBE-OBE
(Micro)
$67,716.30 $520,000.00 4.00%
Saylor Consulting
Group
Cost
Estimating
SF LBE-WBE
(Micro)
$60,569.93 $260,000.00 2.00%
TOTAL $128,286.23 $1,300,000.00 10.00%