AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT: Infrastructure Division
AGENDA NUMBER: 10
MEETING DATE: June 23, 2026
Calendar: Regular Calendar
Project Manager: Calvin Huey
Approve Increase to the Duration Contingenc y for Contract No. DB- 132, New Treasure Island Wastewater Treatment Plant
Summary of Proposed
Commission Action:
Approve an increase of 275 calendar days to the existing duration contingency for Contract No. DB-132, New Treasure Island Wastewater Treatment Plant , with PCL Construction, Inc ., for a revised duration limit of 1,479 consecutive calendar days (approximately four years), with no change to the contract amount, to allow for the delayed completion of the New Treasure Island Wastewater Treatment Plant , primarily due to increased equipment procurement durations, coordination issues with the distributed control system and program interface, re- sequencing required for tie- ins, ongoing coordination challenges with several external underground utility connections, and startup and commission work.
Background: The Naval Station Treasure Island is a former United States Navy (Navy) base located in San Francisco that consists of two islands, Treasure Island (TI) and Yerba Buena Island (YBI), connected by a causeway. Based on the Memorandum of Understanding between Treasure Island Development Authority and the San Francisco Public Utilities Commission (SFPUC), the SFPUC has been operating and maintaining the existing utility systems for TI and YBI.
The overall scope of this complex development program phased over 15 to 20 years includes: demolition of existing buildings and utilities, geotechnical improvements, construction of 8,000 new homes, and construction of new wastewater and stormwater infrastructure. The SFPUC is responsible for the planning, design, and construction of the new Treasure Island Wastewater
Treatment Plant.
The objective of the DB -132 project is to build a new wastewater treatment plant that will meet regulatory requirements , provide reliable service for the Treasure Island residents , and recycled water demands of the future redevelopment on the island. The existing plant was built by the Navy over 50 years ago and is past its useful life and no longer reliable. The existing plant is also not capable of providing recycled water and meeting the needs of the Agenda Title: DB-132, New Treasure Island Wastewater Treatment Plant Commission Meeting Date: June 23, 2026
residents on the redeveloped island. The new wastewater treatment plant is being constructed immediately adjacent and to the south of the existing plant.
The new plant will have the capacity to treat an estimated 1.3 Million Gallons a Day (MGD) average dry -weather flow and a peak wet-weather flow of 3.9 MGD. The preliminary treatment would use screens to r emove objects such as rags, paper, plastics, and metals to prevent damage and clogging of downstream equipment, piping, and appurtenances. The secondary treatment process would use a membrane bioreactor that allows for improved treatment performance in a smaller space than a conventional design, i.e., a pl ant using secondary clarifiers. The membrane bioreactor is a combination of suspended growth biological treatment system (activated sludge) in combination with membrane filtration equipment which is used to perform solid- liquid separation. The membrane bioreactor system provides better effluent quality by removing bacteria, biochemical oxygen demand (indication of dissolved oxygen requirement for biological degradation of organic constitutes) , and total suspended solids, consistent with National Pollutant Discharge Elimination System permit requirements.
Solids generated in the treatment processes would be thickened and hauled to the SFPUC’s Oceanside Water Pollution Control Plant for digestion. The resulting biosolids would be trucked to an off-site landfill or suitable location for land application. In addition, the new plant will provide Title 22 (State Water Resource Control Board Regulation related to recycled water) disinfected tertiary recycled water to serve the planned Treasure Island
redevelopment for re- use. About 0.43 to 0.98 MGD of the Title 22 effluent would be diverted from the treatment plant for landscape irrigation, urban farming, and toilet flushing. The remainder of the disinfected effluent from the treatment plant would be directed to the wetlands.
On October 24, 2022, by Resolution No. 22-0189, this Commission awarded Contract No. DB -132, New Treasure Island Wastewater Treatment Plant, in the amount of $165,032,269, and with a duration of 1,095 consecutive calendar days, to PCL Construction & Stantec Consulting Services Joint Venture.
On December 13 , 202 2, by Resolution No. 2 2-0201, the Commission issued a corre cted award of Contract No. DB -132, New Treasure Island Wastewater Treatment Plant , to PCL Construction, Inc. , in the amount of $ 165,032,269 and with a duration of 1,095 consecutive calendar days, to PCL Construction, Inc.
Agenda Title: DB-132, New Treasure Island Wastewater Treatment Plant Commission Meeting Date: June 23, 2026
Scope of
Contract:
The contract work location is at Treasure Island in the City and County of San Francisco. The contract work will:
• Provide the wastewater treatment and recycled water treatment requirements of the new redeveloped island in compliance with performance and design criteria as outlined in the Request for Proposal;
• Design, Construct, and Commission the new wastewater treatment plant for operation by 2026;
• Maximize control of odors to the fence line;
• Optimize life-cycle costs;
• Produce Title 22-compliant water for reuse; and
• Provide flexibility to comply with future regulations.
Modifications to the
Contract:
Modification No s. 1 to 80 : Staff issued Modification N os. 1 through 80, increasing the contract amount by $10,763,653 and the contract duration by 109 days, within the original 10% cost and duration contingencies, for a revised contract amount of $175,795,922 and a revised contract duration of 1,204 consecutive calendar days , due to additions in civil, mechanical, electrical, controls, security, and site infrastructure work, including new equipment procurement, redesigns, expanded geotechnical testing, facility modifications, and value engineering adjustments.
Proposed Increase to Duration Contingency: Staff recommends the Commission approve an increase of 275 calendar days to the existing duration contingency , for a new duration limit of 1,479 consecutive calendar days, with no change to the contract amount, to allow for the completion of the project, which is delayed primarily due to procurement and coordination issue s
with the distributed
control system, resequencing required for tie- ins, and coordination challenges related to external underground utility connections, and startup and commission work. The project had
impacts to the
schedule including the interconnects, software testing, functional testing, and commissioning of the process systems. Staff is currently negotiating with the contractor for the proposed contract time extension.
Funding and Costs: Funding Source: Wastewater Enterprise Capital Improvement Program, Project No. 10015546 (formerly known as CWP 11001), New Treasure Island Wastewater Project
Original Contract Amount: $165,032,269
Original 10% Cost Contingency: $16,503,226
Approved Increase in Cost Contingency: $0
Modified Increases to Contract Amount: $10,763,653
Total Current Contract Amount: $175,795,922
Agenda Title: DB-132, New Treasure Island Wastewater Treatment Plant Commission Meeting Date: June 23, 2026
Current Cost Contingency: $5,739,573
Additional Cost Contingency: $0
Total Contract Cost Limit: $181,535,495
Schedule: Notice-to-Proceed Date: January 26, 2023
Original Contract Duration: 1,095 consecutive calendar
days
Original 10% Duration Contingency: 109 calendar days
Approved Increase to Duration Contingency: 0
calendar days
Modified Increases to Contract Duration: 109 calendar days Total Current Contract Duration: 1,204 consecutive calendar days
Current Duration Contingency: 0 calendar days
[Proposed] Additional Duration Contingency: 275 Calendar Days Total [Proposed] Duration Limit: 1,479 calendar days
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 13% and 15% for the respective design and construction phases for this contract , and the contractor committed to a LBE subcontractor participation of 17.90% and 15.18% for the respective design and construction phases with its bid submittal , and these amounts remain unchanged.
Agenda Title: DB-132, New Treasure Island Wastewater Treatment Plant Commission Meeting Date: June 23, 2026
DB-132, New Treasure Island Wastewater Treatment Plant (Existing and New)
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) is responsible for the planning, design, and construction of the N ew Treasure Island Wastewater Treatment Plant; and
WHEREAS, On October 24, 2022, by Resolution No. 22- 0189, this Commission awarded Contract No. DB -132, New Treasure Island Wastewater Treatment Plant, in the amount of $165,032,269, and with a duration of 1,095 consecutive calendar days, to PCL Construction & Stantec Consulting Services Joint Venture; and
WHEREAS, On December 13, 2022, by Resolution No. 22 -0201, the Commission issued a corrected award of Contract No. DB -132, New Treasure Island Wastewater Treatment Plant, to PCL Construction, Inc; and
WHEREAS, The original contract amount was for $165,032,269, and the original contract duration was 1,095 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was January 26, 2023; and
WHEREAS, Staff issued Modification N os. 1 through 80, increasing the contract amount by $10,763,653, and the contract duration by 109 calendar days, within the original 10% cost and duration contingencies, for a revised contract amount of $175,795,922 and a revised contract duration of 1,204 consecutive calendar days, due to additions in civil, mechanical, electrical, controls, security, and site infrastructure work, including new equipment procurement, redesigns, expanded geotechnical testing, facility modifications, and value engineering adjustments; and
WHEREAS, Staff recommends this Commission approve an increase of 275 calendar days to the existing duration contingency, for a revised duration limit of 1, 479 calendar days, with no change to the contract amount, to allow for the completion of the project, which is delayed primarily due to procurement and coordination issues with the distributed control system, resequencing required for tie- ins, and coordination challenges related to external underground utility connections, and startup and commission work; and
WHEREAS, The Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 13% and 15% for the respective design and construction phases for this contract , the contractor committed to a LBE subcontractor participation of 17.90% and 15.18% for the respective design and construction phases with its bid submittal, and these amounts remain unchanged; and
WHEREAS, Funds are available from Wastewater Capital Improvement Program, Project No.10015546 (formerly known as CWP11001) , New Treasure Island Wastewater Project; now, therefore, be it
RESOLVED, The Commission hereby approves an increase of 275 calendar days to the existing duration contingency, for Contract No. DB -132, New Treasure Island Wastewater Treatment Plant , with PCL Construction, Inc ., for a total duration contingency of 384 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 duration limit of 1,479 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 June 23, 2026.
__________________________________
Director of Commission Affairs
San Francisco Public Utilities Commission