AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT: Infrastructure Division
AGENDA NUMBER: 7c
MEETING DATE: April 28, 2026
Calendar: Consent Calendar
Project Manager: Ryan Freeborn
Award Contract No. WD-2920, Water Main and Sewer Replacement on Moraga, Noriega, and Ortega Streets from 8th to 11th Ave. and Various Side Streets
Summary of Proposed
Commission Action:
Award Contract No. WD-2920, Water Main and Sewer
Replacement on Moraga, Noriega, and Ortega Streets from 8th to 11th Avenue and Various Side Streets , to the responsible bidder that submitted the lowest responsive bid, Cratus Inc., in the amount of $14,490,752 and with a duration of 775
consecutive calendar
days (approximately two years and two months), to rehabilitate water pipelines that are over 100 years old in the Sunset District 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 exemp t 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 4- , 6-, 8-, and 12-inch diameter cast iron water mains from 1898 to 1936. Due to the advanced age of the pipes (over 100 years), material, and the importance of improving distribution and firefighting
flow capacity within the
project area, SFPUC has prioritized renewing th ese important assets by rehabilitating these pipelines.
Scope of Contract: The contract work location is in the Sunset District of the City and County of San Francisco.
The contract work consists of:
• 13,000 linear feet of 8– inch diameter ductile iron water conveyance pipe;
• 1,275 linear feet of 12-inch diameter ductile iron conveyance pipe;
• 930 feet of sewer pipe;
• Ancillary water service pipe;
• Construction of approximately 40 curb ramps; and,
• Pavement restoration.
Agenda Title: WD-2920, Water Main and Sewer Replacement on Moraga, Noriega, and Ortega Streets from 8th to 11th Ave. and Various Side Streets
Commission Meeting Date: April 28, 2026
DEPARTMENT FUNDING SOURCE AMOUNT
SFPUC: Water Enterprise Local Conveyance/Distribution
System Program $12,126,975
SFPUC: Wastewater Enterprise Renewal and Replacement $1,366,768 San Francisco Public Works:
Roadway Street Resurfacing Program $997,009
CONTRACT TOTAL: $14,490,752
Bid Rank Bid Amount Bid
Preference
Adjusted Bid Final Rank
1. Cratus, Inc. $14,490,752 N/A $14,490,752 1
2. M Squared Construction,
Inc.
$15,000,000 2% $14,700,000 2
3. Basset Engineering $16,237,267 2% $15,912,522 3
4. Mitchell Engineering $16,956,268 2% $16,617,143 4
5. NTK Construction, Inc. $17,302,801 2% $16,956,745 5
6. A Ruiz Construction
Company & Associates,
Inc.
$18,073,502 2% $17,712,032 6
7. JMB Construction, Inc. $18,421,036 N/A $18,421,036 7
8. K. J. Woods Construction,
Inc.
$19,888,500 N/A $19,888,500 8
Funding and Costs: Funding Source: Project No. 10041307, SFPUC Local Conveyance/Distribution System Program, SFPUC Renewal and Replacement Program, and San Francisco Public Works Street Resurfacing Program
Engineer’s Estimate: $19,200,000
Award: $14,490,752
Schedule: Advertised: January 9, 2026
Estimated Notice-to-Proceed Date: June 2026
Estimated End Date: August 2028
Duration: 775 consecutive calendar days (730 consecutive calendar days to Substantial Completion and an additional 45 consecutive calendar days to Final Completion)
Bid History:
Advertised: January 9, 2026
Bids Received: On February 12, 2026, the SFPUC received eight sealed bids, as follows:
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.
Agenda Title: WD-2920, Water Main and Sewer Replacement on Moraga, Noriega, and Ortega Streets from 8th to 11th Ave. and Various Side Streets
Commission Meeting Date: April 28, 2026
Environmental
Review:
On December 11, 2025, the Planning Department determined the Project to be categorically exempt from environmental review under the California Environmental Quality Act (CEQA) Guidelines Sections 15301 and 15302, Class 1 (Existing Facilities) and Class 2 (Replacement or Reconstruction) (Case No. 2025-004747ENV). The exemption determination is at: View the CEQA exemption determination.
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
in Contracting:
The Contract Monitoring Division established a 20% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to a 20.15% LBE subcontractor participation with its bid submittal.
Attachment(s): 1. Contract Monitoring Division Memorandum Agenda Title: WD-2920, Water Main and Sewer Replacement on Moraga, Noriega, and Ortega Streets from 8th to 11th Ave. and Various Side Streets
Commission Meeting Date: April 28, 2026
Map of San Francisco, California with a circled area of the Project Area. The Project Area is located on Moraga, Noriega, and Ortega Streets from 8th to 11th including the side streets.
WD-2920, Location 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 repairs and/or replaces 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 County of San Francisco; and
WHEREAS, On January 9, 2026, SFPUC advertised Contract No. WD-2920, Water Main and Sewer Replacement on Moraga, Noriega, and Ortega Streets from 8th to 11th Avenue and Various Side Streets; and
WHEREAS, The Engineer’s Estimate is $19,200,000 for this construction work to install approximately 12,100 linear feet of ductile iron water conveyance pipe; 930 feet of sewer pipe; ancillary water service pipe; curb ramps, pavement restoration along Moraga, Noriega, and Ortega Streets within the City and County of San Francisco; and
WHEREAS, The contract duration is 775 consecutive calendar days; and
WHEREAS, On February 12, 2026 , SFPUC received and publicly opened eight bids; and
WHEREAS, SFPUC staff and the Contract Monitoring Division (CMD) review ed 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 20.15% LBE subcontractor participation in its bid submittal; and
WHEREAS, On December 11, 2025, the Planning Department determined the Project to be categorically exempt from environmental review under the California Environmental Quality Act Guidelines Sections 15301 and 15302, Class 1 (Existing Facilities) and Class 2 (Replacement or Reconstruction) (Case No. 2025- 004747ENV); and
WHEREAS, Funds are available from Project No. 10041307, SFPUC Local Conveyance/Distribution System Program, Wastewater Enterprise Renewal and Replacement Program, and San Francisco Public Works Street Resurfacing Program; now, therefore, be it,
RESOLVED, That this Commission hereby awards Contract No. WD-2920, Water Main and Sewer Replacement on Moraga, Noriega, and Ortega Streets from 8th to 11th Avenue and Various Side Streets, in the amount of $14,490,752, and with a duration of 775 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 April 28, 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 05, 2026
To: Ryan Freeborn, SFPUC
Erica Liang, SFPUC
From: Jovi Cuntapay-Vitin on behalf of Adriana Duran, CMD
Subject: CMD Review of Bids Submitted on February 12, 2026, for WD-2920 Water Main and Sewer Replacement on Moraga, Noriega, and Ortega Streets from 8th to 11th Ave and Various Side Streets
Cratus, Inc. is the apparent low bidder after the bid discount.
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)].
Bidder
LBE Status,
Type and
Size
Base Bid Bid Discount
Adjusted Bid
with
Bid Discount
Cratus, Inc. Non-LBE $ 14,490,752.40 Not eligible $ 14,490,752.40
M Squared Construc-
tion, Inc.
SF LBE-OBE
(Small)
$ 15,000,000.00
2%
$ 14,700,000.00
Basset Engineering SF LBE-OBE
(Micro)
$ 16,237,267.00 2% $ 15,912,521.66
Mitchell Engineering SF LBE-OBE
(Small)
$ 16,956,268.00 2% $ 16,617,142.64
NTK Construction, Inc. SF LBE-
MBE
(Small)
$ 17,302,801.05 2% $ 16,956,745.03
A.Ruiz Construction
Co., & Assoc., Inc.
SF LBE-
MBE
(Micro)
$ 18,073,501.95 2% $ 17,712,031.91
JMB Construction, Inc. Non-LBE $ 18,421,035.50 Not eligible $ 18,421,035.50 K.J. Woods Construc-
tion, Inc.
Non-LBE $ 19,888,500.00 Not eligible $ 19,888,500.00
Cratus, Inc. satisfactorily demonstrated how they will meet the LBE subcontractor participation re- quirement.
A combination of Micro-LBE and Small-LBE participation will count toward LBE subcontractor participa- tion compliance. Cratus, Inc. commitment for this contract:
Requirement % Commitment %
Micro/Small LBE 20.00% 20.15%
In their bid, Cratus, Inc. listed the following subcontractors on this contract:
Supplier Name Scope of Work LBE LBE Size
LBE Percent
Percent
of
Work
Amount
Dr Traffic Control, LLC Traffic Control (Full) SF LBE-
OBE Small 100% 0.34% $ 50,000
Mike O’Dell Surveys Survey (Full) SF LBE-
OBE Small 100% 1.66% $ 240,000
Ronan Construction,
Inc.
Paving, Concrete (Full) SF LBE-
OBE Micro 100% 12.63% $ 1,830,000
Basset Engineering Sewer (Full) SF LBE-
OBE Micro 100% 5.52% $ 800,000
SFPUC utilizes the SOLIS system. For ease of entry, included here are the figures captured by SOLIS:
LBE Subcontractor LBE Category, Type
and Size
Listed Original
Participation
Amount
Participation
Amount Subject
to LBE Goal
CMD Awarded
LBE Goal %
Dr Traffic Control, LLC SF LBE-OBE (Small) $ 50,000 $ 50,000 0.34% Mike O’Dell Surveys SF LBE-OBE (Small) $ 240,000 $ 240,000 1.66% Ronan Construction, Inc. SF LBE-OBE (Micro) $ 1,830,000 $ 1,830,000 12.63% Basset Engineering SF LBE-OBE (Micro) $ 800,000 $ 800,000 5.52% TOTAL $840,296 $840,296 20.15%
Cratus, Inc. satisfied the “Good Faith Efforts” requirement.
Cratus, Inc. utilized Approach C by achieving at least 50 points with their demonstration of outreach.
CMD find Cratus, Inc. 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: Adriana Duran, [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.
[cco/JCV for AD]