AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT: Infrastructure Division
AGENDA NUMBER: 12
MEETING DATE: April 28, 2026
Calendar: Regular Calendar
Project Manager: Alisha Reinhardt
Approve Increase to Cost and Duration Contingencies for Contract No. WD-2893, Sunol Valley Chloramination Facility Improvements
Summary of Proposed
Commission Action:
Approve an increase of $2,000,000 to the cost contingency and 700 calendar days to the duration contingency for Contract No. WD- 2893, Sunol Valley Chloramination Facility Improvements , with Anvil Builders, Inc. , for a revised cost limit of $12,283,350 and a revised duration limit of 1, 426 consecutive calendar days (approximately 3 years and 10 months), to address design changes for control systems, and cost and schedule impacts due to changes by the SFPUC to the planned facility shutdown schedule to accommodate operational needs during the 2025-26 Hetch Hetchy System shutdown.
Background: The San Francisco Public Utilities Commission (SFPUC) Water Enterprise Sunol Valley Chloramination Facility is a chemical feed facility that provides chloramine disinfection, pH control, and fluoride addition for the unfiltered Hetch Hetchy water supply. In addition, the chemical systems at the adjacent Sunol Dechlorination Facility remove chlorine and adjust the pH of waters entering into Alameda Siphons 1, 2, and 3. The primary objective of the project is to increase reliability at the Sunol Valley Chloramination Facility and Sunol Dechlorination Facility by addressing various deficiencies of the chemical feed systems, controls, main programmable logic controller, and various related equipment, which will lower the cu rrent maintenance costs for the existing equipment.
On February 13, 2024, by Resolution No. 24-0026, the Commission awarded Contract No. WD -2893, Sunol Valley Chemical Facility Improvements to Anvil Builders, Inc. The original contract amount was for $9,348,500 and the original contract duration was 660 consecutive calendar days.
Scope of Contract: The scope of work under this contract consists of improvements to the Sunol Valley Chloramination Facility , as shown in the attached location map and arial view, including:
• Rehabilitation of the fluoride feed facility;
• System integration with the Sunol Dechlorination Facility; • Upgrades to the main programmable logic controller; and, • Replacement of chemical metering pumps.
Agenda Title: WD-2893, Sunol Valley Chemical Facility Improvements Commission Meeting Date: April 28, 2026
Modifications to the
Contract:
Modifications No. 1 -4: Staff issued Modification Nos. 1 -4, increasing the contract amount by $425,895, with in the original contingency, for a total contract amount of $9,774,395, with no change to the contract duration, due to electrical routing conflicts, structural designs, and an additional control panel.
Proposed Increase to Cost and Duration Contingencies:
Staff recommends the Commission approve an increase of
$2,000,000 to the existing cost contingency and an increase of 700 calendar days to the existing duration contingency, for a revised cost limit of $1 2,283,350, and a revised duration limit of 1, 426 calendar days, to address design changes for control systems, and cost and schedule impacts due to changes by the SFPUC to the planned facility shutdown schedule to accommodate operational needs during the 2025-26 Hetch Hetchy System shutdown. During the Hetc h Hetchy System shutdown, a n operational event prevented critical work to be completed within the project’s planned shutdown window. This event was triggered by
problems with
equipment that suppl ies water to Harry Tracy Water Treatment Plant (HTWTP), resulting in the HTWTP remaining offline during the Hetch Hetchy System shutdown and creating a regional risk of having only a single treatment facility available. This r equired the Sunol Valley Chloramination Facility , a critical downstream component of the Hetch Hetchy System, to be brought online early to reduce that vulnerability. The project team continues to work with Water Enterprise to establish another shutdown window once issues are resolved elsewhere in the Regional Water System.
Funding and Costs: Funding Source: Project No 10037277, Sunol Valley Chloramination Facility Master Upgrades
Original Contract Amount: $9,348,500
Original 10% Cost Contingency: $934,850
Modified Increases to Contract Amount: $425,895
Total Current Contract Amount: $9,774,395
Current Cost Contingency: $508,955
Requested Additional Cost Contingency: $2,000,000
[Proposed] Total Revised Contract Cost Limit: $12,283,350 Schedule: Notice-to-Proceed Date: August 26, 2024
Original Contract Duration: 660 consecutive calendar days Original 10% Duration Contingency: 66 calendar day
Modified Increases to Contract Duration: 0 calendar days Total Current Contract Duration: 660 consecutive calendar day Current Duration Contingency: 66 calendar day
Requested Additional Duration Contingency: 700 calendar days [Proposed] Total Revised Contract Duration Limit: 1,426 consecutive calendar days
Local Business
Enterprise Utilization
and Non-Discrimination
in Contracting:
The Contract Monitoring Division (CMD) established an 8% LBE subcontracting requirement for this Contract. The contractor committed to 8.08% LBE subcontractor participation with its bid submittal, and this remains unchanged.
Agenda Title: WD-2893, Sunol Valley Chemical Facility Improvements Commission Meeting Date: April 28, 2026
Figure 1: WD-2893 Location Map of Sunol Valley Chloramination Facility
Figure 2: WD-2893 Aerial View of Sunol Valley Chloramination Facility
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO. __________________
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) Water Enterprise operates the Sunol Valley Chloramination Facility to treat unfiltered Hetch Hetchy drinking water; and
WHEREAS, On February 13, 2024 , by Resolution No. 24 -0026, the Commission awarded Contract No. WD-2893, Sunol Valley Chloramination Facility Improvements, to Anvil Builders, Inc.; and
WHEREAS, The original contract amount was for $9,348,500 and the original contract duration was 660 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was August 26, 2024; and
WHEREAS, Staff issued Modification Nos. 1-4, increasing the contract amount by $425,895, within the original contingency, for a total contract amount of $9,774,395, with no change to the contract duration, due to electrical routing conflicts, structural designs, and an additional control panel; and
WHEREAS, Staff recommends the Commission approve an increase of $2,000,000 to the existing cost contingency, and an increase of 700 consecutive calendar days to the existing duration contingency, for a revised cost limit of $12 ,283,350 and duration limit of 1, 426 days, to provide additional time and funding to address design changes for control systems, and cost and schedule impacts due to changes by the SFPUC to the planned facility shutdown schedule to accommodate operational needs during the 2025- 26 Hetch Hetchy System shutdown that prevented critical work to be completed within the project’s planned shutdown window; and
WHEREAS, The Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 8 % for this contract, and the contractor committed to an LBE subcontractor participation of 8.08% with its bid submittal; and
WHEREAS, Funds are available from Project No. 10037277, Sunol Valley Chloramination Facility Master Upgrades; now, therefore, be it,
RESOLVED, That this Commission hereby approves an increase of $2,000,000 to the existing cost contingency and increase of 7 00 consecutive calendar days to the existing duration contingency, for Contract No. WD-2893, Sunol Valley Chemical Facility Improvements, with Anvil Builders, Inc., for a total cost contingency of $2,934,850, and a total duration contingency of 766 calendar days; and, be it,
FURTHER RESOLVED, That this Commission hereby authorizes the General Manager, or the General Manager’s designee, to consider, and, if appropriate, to approve modifications to the Contract, up to a total cost limit of $1 2,283,350 and duration limit of 1,426 calendar days.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of April 28, 2026.
____________________________________
Director of Commission Affairs
San Francisco Public Utilities Commission