AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT: Infrastructure Division
AGENDA NUMBER: 7d
MEETING DATE: June 23, 2026
Calendar: Consent Calendar
Project Manager: Janet Ng
Approve Increases to Cost and Duration Contingencies for Contract No. WD-2878B, Regional Groundwater Storage and Recovery Phase 2B
Summary of Proposed
Commission Action:
Approve an increase of $2,800,000 to the existing cost contingency and an increase of 270 calendar days (approximately nine months) to the existing duration contingency for Contract No. WD -2878B, Regional Groundwater Storage and Recovery Phase 2B, with JMB Construction, Inc. , for a revised cost limit of $9, 926,625 and a revised duration limit of 1, 260 consecutive calendar days (approximately three years and five months), to address potential cost and schedule delays resulting from complications with procuring grid access from Pacific Gas and Electric Company (PG&E) for the site and to add scope for treatment facilities to remove ammonia that was recently detected in the groundwater at the separate South Spruce Avenue Well and Treatment Facility site in South San Francisco.
Background: The San Francisco Public Utilities Commission ’s (SFPUC) Regional Groundwater Storage and Recovery Project (Project) provides additional dry year water supply and storage to the Regional Water System by constructing up to 13 groundwater well stations. Four of these wells will be connected to wholesale customers on the Upper Peninsula (Daly City and California Water Service Company (Cal Water)) and the remaining will be connected to SFPUC’s regional transmission system. This Project is part of the Water System Improvement Program (WS IP)
. It will allow the
SFPUC to conjunctively manage the South Westside Groundwater Basis, increase dry-year and emergency pumping capacity, provide a new dry -
year groundwater supply, and increase water supply
reliability.
On August 12, 2014, by Resolution No. 14- 0127, this Commission approved implementation of the Project and approved a
cooperative Operating Agreement with the Cities of San Bruno and Daly City and Cal Water
. Under the Operating Agreement, all
partner agencies must operate the new Project wells installed by the SFPUC in their service areas for delivery of water to their respective customers. SFPUC has completed or is in the process of completing construction
and connection of the new wells for
connection to t he partner water systems as provided under the Operating Agreement.
Agenda Title: WD-2878B, Regional Groundwater Storage and Recovery Phase 2B Commission Meeting Date: June 23, 2026
The Project is being delivered in two major phases to allow construction to proceed while long lead ite ms, permits, and easements were procured. Phase 1 was completed and consisted of construction of 13 well stations and associated treatment facilities. Phase 2A consisted of various improvements to the constructed wells , including installation of cathodic protection, variable frequency drives and flowmeters, valve modifications, and well rehabilitation. Phase 2B , which is currently in construction, is being performed in coordination with Cal Water. SFPUC is building out the Antoinette Lane Well site in South San Francisco , which SFPUC will own and Cal Water will operate and maintain. SFPUC is also performing well site improvements, new PG&E power facilities, and construction of a new pipeline to convey the groundwater to Cal Water’s nearby treatment facility. SFPUC is also performing improvements to the South Spruce Avenue Well, which Cal Water will operate and maintain. Cal Water is constructing the tie-in to the SFPUC conveyance pipeline for its treatment facility as part of the Project.
On February 27, 2024, by Resolution No. 24-0042, this Commission awarded Contract No. WD-2878B, Regional Groundwater Storage and Recovery Phase 2B, to JMB Construction, Inc. The original contract amount was $6,478,750 and the original contract duration was 900 consecutive calendar days.
Scope of Contract: The contract work location is at and near the Antoinette Lane Well site located near El Camino Real and Antoinette Lane in South San Francisco.
The contract work consists of:
• Installation of 2,250 feet of 8-inch diameter ductile iron conveyance pipeline to Cal Water’s nearby treatment facility; • Installation of conduits, transformer and interrupter switch for PG&E electric service;
• Installation of a well pump, variable frequency drive and associated power, instrumentation and controls;
• Cathodic protection;
• Traffic control; and
• Site restoration work.
Modifications to the
Contract:
Modification No s. 1-7: Staff issued modification Nos. 1 -7, increasing the contract amount by $604,500 (within the original 10% contingency), for a total contract amount of $7,083,250 , with no change to the contract duration, to facilitate Cal Water’s Supervisory Control and Data Acquisition ( SCADA)
communications, to increase an allowance for special inspections and testing of well equipment, to modify work hours and traffic control to comply with new requirements from the City of South San Agenda Title: WD-2878B, Regional Groundwater Storage and Recovery Phase 2B Commission Meeting Date: June 23, 2026
Francisco, to provide additional filters for the variable frequency drives, to add additional conduits for Pacific Gas & Electric Company ( PG&E) service, and to realign a section of the 8- inch diameter ductile iron pipeline to increase clearance away from the parallel 60-inch diameter Sunset Supply Pipeline.
Proposed Increase to Cost and Duration Contingencies : Staff recommends the Commission approve an increase of $2,800,000 to the existing cost contingency, and an increase of 270 calendar days to the existing duration contingency, for a revised cost limit of $9,926,625, and a revised duration limit of 1,352 consecutive calendar days, to address potential cost and schedule delays with procuring grid access from PG&E for the site and to add scope to treat ammonia that was recently detected in the groundwater at the separate South Spruce Avenue Well in South San Francisc o.
Addition of the treatment facilities at South Spruce Avenue Well will allow both wells to be fully functional and turned over to Cal Water following construction for their operation and maintenance under the terms of the Project Operating Agreement.
Funding and Costs: Funding Source: Water System Improvement Program Project No. 10015241, Regional Groundwater Storage and
Recovery
Original Contract Amount: $6,478,750
Original 10% Cost Contingency: $647,875
Approved Increase in Cost Contingency: $0
Modified Increases to Contract Amount: $604,500
Total Current Contract Amount: $7,083,250
Current Cost Contingency: $43,375
[Proposed] Additional Cost Contingency: $2,800,000
Total [Proposed] Cost Limit: $9,926,625
Schedule: Notice-to-Proceed Date: June 24, 2024
Original Contract Duration: 900 consecutive calendar days Original 10% Duration Contingency: 90 calendar days
Approved Increase to Duration Contingency: 0
calendar days
Modified Increases to Contract Duration: 0 calendar days Total Current Contract Duration: 900 consecutive calendar days Current Duration Contingency: 90 calendar days
[Proposed] Additional Duration Contingency : 270 calendar days
Total [Proposed] Duration Limit : 1,260 consecutive calendar days
Environmental
Review:
On October 30, 2008, the Planning Commission certified the Final Program Environmental Impact Report (Program EIR) for the Water Agenda Title: WD-2878B, Regional Groundwater Storage and Recovery Phase 2B Commission Meeting Date: June 23, 2026
System Improvement Program (WSIP) (Case N o. 2005.0158E), prepared pursuant to the California Environmental Quality Act (CEQA).
On October 30, 2008, by Resolution No. 08-0200, this Commission adopted the CEQA Findings and the Mitigation Monitoring and Reporting Program (MMRP) pursuant to the CEQA and approved the WSIP.
On August 7, 2014, the Planning Commission certified the Final Environmental Impact Report (EIR) for the Regional Groundwater Storage and Recovery Project (Project) (Case No. 2008.1396E ), which was prepared pursuant to the CEQA and is tiered from the 2008 Program EIR.
On August 12, 2014, by Resolution No. 14- 0127, this Commission adopted the CEQA Findings and MMRP pursuant to the CEQA and approved the Project.
On May 7, 2026, the Planning Department determined that the modification to install a new treatment system at the South Spruce Avenue Well site in South San Francisco is not substantial, is within the scope of the project evaluated in the Final EIR, and no additional environmental review is required.
View the Program EIR, CEQA Findings, MMRP, and Resolution No. 08-0200.
View the Final EIR, MMRP, CEQA Findings, Resolution No. 14- 0127, and the Minor Project Modification.
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division established a n 11.0% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to a 19.19% LBE participation with its bid submittal, and this remains unchanged.
Agenda Title: WD-2878B, Regional Groundwater Storage and Recovery Phase 2B Commission Meeting Date: June 23, 2026
Location Map of Antoinette Lane Well and South Spruce Avenue Well
Map of Antoinette Lane Well, Cal Water Treatment Facility and South Spruce Avenue Well
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO. __________________
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) Regional Groundwater Storage and Recovery Project will provide additional dry year water supply and storage to the R egional Water System by constructing up to 13 groundwater well stations that will be connected to wholesale customers on the Upper Peninsula and to the SFPUC’s regional transmission system; and
WHEREAS, On February 27, 2024, by Resolution No. 24-0042, this Commission awarded Contract No. WD-2878B, Regional Groundwater Storage and Recovery Phase 2B to JMB Construction, Inc.; and
WHEREAS, The original contract amount was for $6,478,750 and the original contract duration was 900 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was June 24, 2024; and
WHEREAS, Staff issued modification nos. 1-7, increasing the contract amount by $604,500, within the original 10% contingency, for a total contract amount of $7,083,250, with no change to the contract duration, to facilitate Cal Water’s Supervisory Control and Data Acquisition (SCADA) communications, to increase an allowance for special inspections and testing of well equipment, to modify work hours and traffic control to comply with new requirements from the City of South San Francisco, to provide additional filters for the variable frequency drives , to add additional conduits for Pacific Gas and Electric ( PG&E) service, and to realign a section of the 8- inch diameter ductile iron pipeline to increase clearance away from the parallel 60- inch diameter Sunset Supply Pipeline; and
WHEREAS; Staff recommends this Commission approve an increase of $2,800,000 to the existing cost contingency and an increase of 270 calendar days to the existing duration contingency , to address potential cost and schedule delays resulting from complications with procuring grid access from PG&E for the site and to add scope for treatment facilities to remove ammonia that was recently detected in the groundwater at the separate South Spruce Avenue Well and Treatment Facility site in South San Francisco so the two wells can be fully operational following construction and turned over to Cal Water for their operation and maintenance, for a revised cost limit of $9, 926,625 and a revised duration limit of 1,260 consecutive calendar days; and
WHEREAS, The Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 11.0% for this contract, the contractor committed to a n LBE participation of 19.19% with its bid submittal, and this amount remains unchanged; and
WHEREAS, On October 30, 2008, the Planning Commission certified the Final Program Environmental Impact Report (Program EIR) for the Water System Improvement Program (WSIP) (Case No. 2005.0158E), prepared pursuant to the California Environmental Quality Act (CEQA); and
WHEREAS, On October 30, 2008, by Resolution No. 08- 0200, this Commission adopted the CEQA Findings and the Mitigation Monitoring and Reporting Program (MMRP) pursuant to the CEQA and approved the WSIP; and
WHEREAS, On August 7, 2014, the Planning Commission certified the Final Environmental Impact Report (EIR) for the Regional Groundwater Storage and Recovery Project (Project) (Case No. 2008.1396E), which was prepared pursuant to the CEQA and is tiered from the 2008 Program EIR; and
WHEREAS, On August 12, 2014, by Resolution No. 14- 0127, this Commission adopted the CEQA Findings and MMRP pursuant to the CEQA and approved the Project; and
WHEREAS, On May 7, 2026, the Planning Department determined that the modification to install a new treatment system at the South Spruce Avenue Well site in South San Francisco is not substantial, is within the scope of the project evaluated in the Final EIR, and no additional environmental review is required; and
WHEREAS, The Planning Department is the custodian of records for Case No. 2005.0159E and Case No. 2008.1396E, and those records are maintained at 49 South Van Ness Avenue, Suite 1400, San Francisco, California 94103; staff have made these materials available for review by both this Commission and the public, and they are incorporated into the record before this Commission; and
WHEREAS, This Commission has reviewed and considered the information in the Project files, including the Program EIR, Final EIR, CEQA Findings including the Statement of Overriding Considerations, MMRPs, and the Minor Project Modification, and all written and oral information provided by the Planning Department, the public, relevant public agencies, SFPUC, and other experts, and the administrative files for the Project; and
WHEREAS, Funds are available from, Regional Groundwater Storage and Recovery; now, therefore, be it
RESOLVED, This Commission has reviewed and considered the Program EIR, Final EIR, Minor Project Modification, and the record as a whole, and finds that the Final EIR and Minor Project Modifications are adequate for its use as the decision-making body for the Project, and that no subsequent or supplemental environmental review is required, and incorporates the CEQA Findings by this reference thereto as though set forth in this Resolution; and, be it
FURTHER RESOLVED, This Commission further finds that since the Program EIR and the Final EIR and Minor Project Modification were finalized, there have been no substantial changes in the Project or its circumstances that would require major revisions to the Final EIR and Minor Project Modification due to new significant environmental effects or an increase in the severity of previously identified significant impacts, and there is no new information of substantial importance that would change the conclusions set forth in those documents; and, be it
FURTHER RESOLVED, That this Commission hereby approves an increase of $2,800,000 to the existing contract cost contingency and an increase of 270 calendar days to the existing duration contingency , for Contract No. WD-2878B, Regional Groundwater Storage and Recovery Phase 2B , with JMB Construction, Inc. , for a total cost contingency of $3,447,875, and a total duration contingency of 360 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 any future modifications to the c ontract, up to a total cost limit of $9, 926,625, and total duration limit of 1,260 consecutive calendar days.
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