AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT: Infrastructure Division
AGENDA NUMBER: 8
MEETING DATE: May 26, 2026
Calendar: Regular Calendar
Project Manager: Jimmy Leong
Approve Increase to the Duration Contingenc y for Contract No. HH -1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A
Summary of Proposed
Commission Action:
Approve an increase of 418 calendar days to the existing duration contingency for Contract No. HH-1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A , with Sierra Mountain Construction, Inc., for a revised duration limit of 1,506 consecutive calendar days (approximately four years), with no change to the contract amount , to allow additional time for evaluation and coordination associated with the Phase 2 knife gate valves procured under this contract and closeout activities.
Background: The San Francisco Public Utilities Commission (SFPUC) San Joaquin Pipeline system delivers water from the SFPUC’s Hetch Hetchy System to the San Francisco Bay Area. San Joaquin Pipeline Nos. 1, 2, and 3 consist of three parallel transmission pipelines (completed in 1932, 1953, and 1968 respectively) that cross the San Joaquin Valley from the west of Foothill Tunnel at Oakdale Portal to the east of Coast Range Tunnel at Tesla Portal, a distance of approximately 48 miles. A fourth partial pipeline (completed in 2012) consists of a 6.4 -mile segment of pipe downstream of Oakdale Portal and another 11- mile segment upstream of Tesla Portal.
Given the critical function of the San Joaquin Pipelines, SFPUC staff and contractors must enter the pipelines regularly to perform condition assessment, maintenance, and repair work. A recent hydraulic study showed a number of the existing valves in the San Joaquin Pipelines are under-rated for the surge pressures that could be triggered from an unplanned closure of the valves at the downstream Tesla Ultraviolet Treatment Facility. For safety reasons, the SFPUC initiated this capital project, San Joaquin Pipeline Valve and Safe Entry Improvements, to replace the under - rated valves; provide pipeline isolations for safe personnel entry; and allow shutdown of any or all sections of the San Joaquin Pipelines without a complete system shutdown. The SFPUC will implement the project in five phases, specifically Phases 1A, 1B, 2A, 2B&C, and 3.
Agenda Title: HH-1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A Commission Meeting Date: May 26, 2026
Scope of Contract: The contract work locations are at Oakdale Portal and the Emery, Roselle, and Pelican Crossover Vaults in Stanislaus County, and at Tesla Portal in San Joaquin County.
The scope of work includes the following:
• Tesla and Oakdale Portals
o Site grading, excavation, and shoring;
o Furnish and install San Joaquin Pipeline No. 2
Removable Spool Piece (RSP) vault, thrust block, shear
keys, and drainage systems at each location; and
o Replace a 12.5- foot-long section of San Joaquin
Pipeline No. 2 with a RSP at each location.
• Tesla Valve House
o Replace existing 60 -inch diameter butterfly valve,
gearbox, and actuator with a new higher pressure- rated 60-inch diameter metal seated triple offset butterfly
valve, gearbox, and actuator;
o Replace existing 24-inch diameter gate valve with a new higher pressure- rated 24-inch diameter gate valve,
flanges, gear box, and actuator;
o Replace existing San Joaquin Pipeline No. 2 main
concrete pipe support saddle;
o Install new San Joaquin Pipeline No. 2 bypass steel pipe support;
On March 8, 2022, by Resolution No. 22 -0047, this Commission awarded Contract No. HH-1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A , to Sierra Mountain
Construction, Inc. , in the amount of $10,799,504 and with a contract duration of 852 consecutive calendar days (approximately two years and four months).
On September 20, 2023, by Resolution No. 23- 0155, this Commission approved an increase of $4,000,000 to the cost contingency for Contract No. HH -1005, to allow procurement of 15 large diameter valves for Phase 2 , for a revised cost limit of $15,879,454 (including contingency) , with no change to the contract duration.
On August 13, 2024, by Resolution No. 24-0171, this Commission approved an increase of $300,000 to the cost contingency and an increase of 151 calendar days to the duration contingency for Contract No. HH -1005, for a revised cost limit of $16,179,454 (including contingency) and a revised duration limit of 1, 088 calendar days (approximately three years), due to longer lead time to procure the additional 15 large diameter valves for Phase 2, to perform more robust quality assurance inspections of the new valves, and to complete the work during the upcoming 2024- 25 outage.
Agenda Title: HH-1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A Commission Meeting Date: May 26, 2026
o Perform associated electrical work; and
o Perform software programming for operation of the new butterfly and bypass valves.
• Emery, Roselle, and Pelican Crossover Vaults
o At each location, replace existing 36- inch diameter
butterfly valves on the crossover line between San
Joaquin Pipeline No. 2 and San Joaquin Pipeline No. 3
with two modified higher pressure-rated 36-inch diameter knife gate valves;
o At each location, replace existing 42- inch diameter
butterfly valves on the crossover line between San
Joaquin Pipeline No. 2 and San Joaquin Pipeline No. 3
with two modified higher pressure-rated 42-inch diameter knife gate valves;
o At each location, install new crossover steel pipe
supports, platform framing, grating, and railing;
o Perform associated electrical work; and
o Perform software programming for operation of the new knife gate valves.
Modifications to the
Contract:
Modification No s. 1 -11: Staff issued Modification Nos. 1 -11, increasing the contract amount by $4,758,668 and the contract duration by 141 calendar days , as authorized under Resolution Nos. 23-0155 and 24-0171, for a total contract amount of $15,558,172 and a total contract duration of 993 consecutive calendar days, to procure the additional 15 large diameter valves , including three butterfly valves and 12 knife gate valves for Phase 2, and to address site conditions involving pipe alignment, electrical conduits, spare parts, covers of the new vaults for the removable spool pieces, and other miscellaneous items.
Recommended Increase to Duration Contingency: Staff
recommends that the Commission approve an additional increase of 418 calendar days to the contract duration contingency, for a revised contract duration limit of 1,506 consecutive calendar days, with no change to the contract amount. Additional time is needed to address performance issues associated with the Phase 2 knife gate valves at the crossover vaults. Although the valves were procured and tested under approved modifications to this contract and revised technical requirements, subsequent field operation and commissioning following installation under a separate Phase 2A contract identified leakage and resilient -seat performance concerns that did not satisfy SFPUC Operations’ requirements for reliable pipeline isolation and safe personnel entry. The SFPUC therefore undertook additional engineering review, operational evaluation, construction management coordination, and
coordination with the contractor to determine an appropriate path forward. The requested time extension will allow the SFPUC to complete the remaining work and closeout activities in a controlled manner whi le maintaining reliable water supply, operational Agenda Title: HH-1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A Commission Meeting Date: May 26, 2026
flexibility, and safe access for inspection, maintenance, and repair of the San Joaquin Pipelines.
Funding and Costs: Funding Source: Hetchy Capital Improvement Program, Project No. 10035575, SJPL Valve and Safe Entry Improvements Original Contract Amount: $10,799,504
Original 10% Cost Contingency: $1,079,950
Approved Increase to Cost Contingency: $4,300,000
Modified Increases to Contract Amount: $4,758,668
Total Current Contract Amount: $15,558,172
Current Cost Contingency: $621,282
Additional Cost Contingency: $0
Total [Proposed] Contract Cost Limit: $16,179,454
Schedule: Notice-to-Proceed Date: May 16, 2022
Original Contract Duration: 852 consecutive calendar days Original 10% Duration Contingency: 85 calendar days
Approved Increase to Duration Contingency: 151
calendar days
Modified Increases to Contract Duration: 141 calendar days Total Current Contract Duration: 993 consecutive calendar days Current Duration Contingency: 95 calendar days
[Proposed] Additional Duration Contingency: 418 calendar days Total [Proposed] Contract Duration Limit: 1,506 consecutive calendar days
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division established an 8% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to 11.03% LBE subcontractor participation with its bid submittal , and this amount remains unchanged.
Agenda Title: HH-1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A Commission Meeting Date: May 26, 2026
SITE LOCATION MAP – HH-1005 SAN JOAQUIN PIPELINE VALVE AND SAFE ENTRY IMPROVEMENTS - PHASE 1A
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) owns and operates four San Joaquin Pipelines that have been in service ranging from 14 to 94 years, delivering water from the SFPUC’s Hetch Hetchy System to the San Francisco Bay Area; and
WHEREAS, The SFPUC must enter the San Joaquin Pipelines regularly to perform condition assessment, maintenance, and repair work, and a hydraulic study shows that a number of the existing valves in the San Joaquin Pipelines are underrated for the surge pressure that could be triggered from an unplanned closure of the valves at the downstream Tesla Ultraviolet Treatment Facility; and
WHEREAS, For safety reasons, the SFPUC initiated the capital project, San Joaquin Pipeline Valve and Safe Entry Improvements, to replace the underrated valves; provide pipeline isolations for a safe personnel entry; and allow shutdown of any or all sections of the San Joaquin Pipelines without a complete system shutdown; and
WHEREAS, The SFPUC will implement the project in phases, specifically Phases 1A, 1B, 2A, 2B&C, and 3; and
WHEREAS, On March 8, 2022, by Resolution No. 22- 0047, the Commission awarded Contract No. HH- 1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A, to Sierra Mountain Construction, Inc.; and
WHEREAS, The original contract amount was for $10,799,504 , and the original contract duration was 852 consecutive calendar days (approximately two years and four months); and
WHEREAS, The contract Notice-to-Proceed date was May 16, 2022; and
WHEREAS, On September 20, 2023, by Resolution No. 23-0155, the Commission approved an increase of $4,000,000 to the cost contingency for Contract No. HH- 1005, for a revised cost limit of $15,879,454 (including contingency) , with no change to the contract duration, to purchase 15 large diameter valves for Phase 2; and
WHEREAS, On August 13, 2024, by Resolution 24-0171, t he Commission approved an increase of $300,000 to the existing cost contingency and an increase of 151 calendar days to the existing duration contingency for Contract No. HH -1005, for a revised cost limit of $16,179,454 (including contingency) and a revised duration limit of 1,088 calendar days (approximately three years), due to longer lead time to procure the additional 15 large diameter valves for Phase 2, to perform more robust quality assurance inspections of the new valves, and to complete the work during the upcoming
2024-25 outage; and
WHEREAS, Staff issued M odification Nos. 1 -11, increasing the contract amount by $4,758,667.88 and increasing the contract duration by 141 calendar days, for a total contract amount of $15,558,171.88 and a total contract duration of 993 consecutive calendar days, for the procurement of the additional 15 large diameter valves for Phase 2, and for addressing site conditions involving pipe alignment, electrical conduits, spare parts, covers of the new vaults of the removable spool pieces, and other miscellaneous items; and
WHEREAS, Staff recommends this Commission approve an increase of 418 calendar days to the existing duration contingency, for a revised contract duration limit of 1,506 consecutive calendar days, with no change to the contract amount , to allow additional time for evaluation, coordination, and closeout activities associated with the Phase 2 knife gate valves procured under this contract; and
WHEREAS, The Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 8% for this contract, and the contractor committed to 11.03% LBE subcontractor participation with its bid submittal, and this amount remains unchanged; and
WHEREAS, Funds are available from Hetchy Capital Improvement Program, Project No. 10035575, SJPL Valve and Safe Entry Improvements; now, therefore, be it,
RESOLVED, The Commission hereby approves an increase of 418 calendar days to the existing duration contingency for Contract No. HH- 1005, San Joaquin Pipeline Valve and Safe Entry Improvements: Phase 1A , with Sierra Mountain Construction, Inc., for a total remaining duration contingency of 513 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 c ontract, up to a total duration limit of 1,506 consecutive calendar days, with no change to the contract amount.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of May 26, 2026.
__________________________________
Director of Commission Affairs
San Francisco Public Utilities Commission