AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT: Infrastructure Division
AGENDA NUMBER: 6c
MEETING DATE: July 14, 2026
Calendar: Consent Calendar
Project Manager: Alisha Reinhardt
Approve Increase to Cost and Duration Contingenc ies for Contract No. WD-2906, Town of Sunol Pipeline Replacement at Arroyo de la Laguna Creek
Summary of Proposed
Commission Action:
Approve an increase of $1,250,000 to the existing cost contingency and an increase of 60 calendar days (approximately two months) to the existing duration contingency for Contract No. WD-2906, Town of Sunol Pipeline Replacement at Arroyo de la Laguna Creek, with Mitchell Engineering, for a revised cost limit of $6,518,323 and a revised duration limit of 72 5 consecutive calendar days (approximately two years), to address costs and schedule delays associated with : suspending a portion of the project for approximately seven months while waiting for the final
environmental permit required to enter the Arroyo de la Laguna Creek; adjusting the construction schedule to complete the pipeline replacement within the permit schedule and Sunol Glen Elementary School work windows; and coordinating with other nearby projects that have now started.
Background: The San Francisco Public Utilities Commission (SFPUC) Water Enterprise maintains the Town of Sunol Pipeline as a regional water system distribution pipeline that provides potable and firefighting water to the Town of Sunol . This 495-feet long section of pipeline was found deficient, and due to its critical function, is being replaced under Contract No. WD-2906.
On October 22, 2024, by Resolution No. 24-0213, the Commission awarded Contract No. WD -2906, Town of Sunol Pipeline
Replacement at Arroyo de la Laguna Creek , to Mitchell
Engineering. The original contract amount was $4,789,385 and the original contract duration was 605 consecutive calendar days.
Scope of Contract: The scope of work under this contract consists of improvements to the Town of Sunol Pipeline, as shown in the attached location map and arial view, including:
• Replacement of approximately 495 feet of pipeline with 12- inch diameter ductile iron water main and appurtenances; • Open cut trench across the Arroyo de la Laguna Creek; • Creek restoration and tree removal within the pipeline alignment; and
Agenda Title: WD-2906, Town of Sunol Pipeline Replacement at Arroyo de la Laguna Creek Commission Meeting Date: July 14, 2026
• Removal of existing pipeline within the creek from bank to bank.
Modifications to the
Contract:
Modifications No. 1 and 2: Staff issued modifications No. 1 and 2, increasing the contract amount by $282,687 (within the original 10% contingency), for a total contract amount of $5,072,072 , with no change to the contract duration, to address unforeseen subgrade conditions, install an additional interconnection on the existing pipeline, and install a temporary waterline bypass required to disinfect the newly installed portion of pipeline.
Proposed Increase to Cost and Duration Contingenc ies: Staff recommends the Commission approve an increase of $1, 250,000 to the existing cost contingency, and an increase of 60 calendar days to the existing duration contingency, for a revised cost limit of $6,518,323 and a revised duration limit of 725 consecutive calendar days, to address costs and schedule delays
associated with
suspending a portion of the project for approximately seven months while waiting for the final permits required to enter the Arroyo de la Laguna Creek to complete the pipeline replacement.
Specifically, the suspension was related to an unexpected extended negotiation between the SFPUC, State Historic
Preservation Office r, United States Army Corps of Engineers (USACE), and several Native American Tribes on the Project’s Memorandum of Agreement to address cultural resource impacts, which delayed USACE’s issuance of the Project’s Clean Water Act 404 Nationwide permit. Note that this delay only affected the portion of the pipe at the creek crossing and eastward; the pipeline replacement on the west side and outside of the creek area was completed in 2025.
Because the project experienced approximately seven months of partial suspension, the contractor is revising the original construction sequence, and accelerating activities when beneficial, to complete the remaining work as soon as practicable and to be within the environmental permit constraints for work in the creek and during Sunol Glen Elementary School’s summer break, as well to address other nearby projects that have now started.
Funding and Costs: Funding Source: Project No 10033818, Town of Sunol Pipeline Original Contract Amount: $ 4,789,385
Original 10% Cost Contingency: $478,938
Approved Increase to Cost Contingency: $0
Modified Increases to Contract Amount: $282,687
Total Current Contract Amount: $5,072,072
Current Cost Contingency: $196,251
[Proposed] Additional Cost Contingency: $1,250,000
Total [Proposed] Contract Cost Limit: $6,518,323
Agenda Title: WD-2906, Town of Sunol Pipeline Replacement at Arroyo de la Laguna Creek Commission Meeting Date: July 14, 2026
Schedule: Notice-to-Proceed Date: February 10, 2025
Original Contract Duration: 605 consecutive calendar days Original 10% Duration Contingency: 60 calendar day
Approved Increase to Duration Contingency: 0 calendar days Modified Increases to Contract Duration: 0 calendar days Total Current Contract Duration: 605 consecutive calendar days Current Duration Contingency: 60 calendar days
[Proposed] Additional Duration Contingency: 60 calendar days Total [Proposed] Contract Duration Limit: 725 consecutive calendar days
Environmental
Review:
On October 30, 2008, the Planning Commission certified the Final Program Environmental Impact Report (Program EIR) for the Water System Improvement Program (WSIP) (Case N o. 2005.0159E), prepared pursuant to the California Environmental Quality Act (CEQA).
On October 30, 2008, by Resolution No. 08-0200, this Commission adopted the C EQA F indings and Mitigation Monitoring and Reporting Program (MMRP) pursuant to the CEQA, and approved the WSIP.
On September 20, 2012, the Planning Commission certified the Final Environmental Impact Report (Final EIR) for the San Antonio Backup Pipeline Project (Case N o. 2007.0039E), which was prepared pursuant to the CEQA and is tiered from the Program EIR.
On September 25, 2012, by Resolution No. 12- 0174, this Commission adopted the CEQA F indings and MMRP pursuant to the CEQA, and approved the San Antonio Backup Pipeline Project.
On October 25, 2023, the Planning Department issued an
Addendum to the Final EIR (Case No. 2007.0039ENV-03), which evaluated the Town of Sunol Pipeline Project (Project) to replace an approximately 495- foot-long segment of the existing water pipeline where it crosses Arroyo de la Laguna and prepared a refined MMRP for the Project.
On September 10, 2024, by Resolution No. 24- 0192, this Commission reviewed and considered the Addendum to the Final EIR and adopted the refined MMRP, and approved the purchase of a pipeline easement for the Project.
On October 22, 2024, by Resolution No. 24-0213, this Commission reviewed and considered the Addendum to the Final EIR and the refined MMRP, and approved Contract No. WD -2906,
Town of
Sunol Pipeline Replacement at Arroyo de la Laguna Creek.
Agenda Title: WD-2906, Town of Sunol Pipeline Replacement at Arroyo de la Laguna Creek Commission Meeting Date: July 14, 2026
The work associated with this action is within the scope of the Project authorized under the Final EIR and Addendum to the Final EIR.
View the Program EIR, CEQA Findings, MMRP, and Resolution No. 08-0200.
View the Final San Antonio Backup Pipeline Project EIR, CEQA Findings, MMRP, and Resolution No. 12- 0174; Addendum to the Final EIR with refined MMRP and Resolution No. 24- 0192; and Resolution No. 24-0213.
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division (CMD) established a 10% LBE subcontracting requirement for this Contract. The contractor committed to 10.04% LBE subcontractor participation with its bid submittal, and this remains unchanged.
Agenda Title: WD-2906, Town of Sunol Pipeline Replacement at Arroyo de la Laguna Creek Commission Meeting Date: July 14, 2026
Figure 1: WD-2906 Location Map of Project Site
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO. __________________
WHEREAS, On October 22, 2024 , by Resolution No. 24 -0213, this Commission awarded Contract No. WD -2906, Town of Sunol Pipeline Replacement at Arroyo de la Laguna Creek to Mitchell Engineering; and
WHEREAS, The original contract amount was $4,789,385 and the original contract duration was 605 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was February 10, 2025; and
WHEREAS, Staff issued Modifications No. 1 and 2, increasing the contract amount by $282,687, for a total contract amount of $5,072,072, with no change to the contract duration, to address unforeseen subgrade conditions, install an additional interconnection on the existing pipeline, and install a temporary waterline bypass required to disinfect the newly installed portion of pipeline; and
WHEREAS, Staff recommends this Commission approve an increase of $1,250,000 to the existing cost contingency, and an increase of 60 calendar days to the existing duration contingency, for a revised cost limit of $6,518,323 and revised duration limit of 725 consecutive calendar days, to provide additional funding to address costs associated with suspending the project for approximately seven months while waiting for the final environmental and cultural permitting required to enter the Arroyo de la Laguna work zone and complete the pipeline replacement; and
WHEREAS, The Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 10 % for this contract, the contractor committed to an LBE subcontractor participation of 10.04% 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 N o. 2005.0159E), prepared pursuant to the California Environmental Quality Act (CEQA); and
WHEREAS, On October 30, 2008, by Resolution No. 08- 0200, this Commission adopted the CQA F indings and Mitigation Monitoring and Reporting Program (MMRP) pursuant to the CEQA, and approved the WSIP; and
WHEREAS, On September 20, 2012, the Planning Commission certified the Final Environmental Impact Report ( Final EIR) for the
San Antonio Backup Pipeline Project
(Case No. 2007.0039E), which was prepared pursuant to the CE QA and is tiered from the Program EIR; and
WHEREAS, On September 25, 2012, by Resolution No. 12-0174, this Commission adopted the CEQA Findings and MMRP pursuant to the CEQA, and approved the San Antonio Backup Pipeline Project; and
WHEREAS, On October 25, 2023, the Planning Department issued an Addendum to the Final EIR (Case No. 2007.0039ENV-03), which evaluated the Town of Sunol Pipeline Project (Project) to replace an approximately 495- foot-long segment of the existing water pipeline where it crosses Arroyo de la Laguna and prepared a refined MMRP for the Project; and
WHEREAS, On September 10, 2024, by Resolution No. 24-0192, this Commission reviewed and considered the Addendum to the Final EIR and adopted the refined MMRP, and approved the purchase of a pipeline easement for the Project; and
WHEREAS, On October 22, 2024, by Resolution No. 24- 0213, this Commission reviewed and considered the Addendum to the Final EIR and the refined MMRP, and approved Contract No. WD-2906, Town of Sunol Pipeline Replacement at Arroyo de la Laguna Creek; and
WHEREAS, The work associated with this action is within the scope of the Project authorized under the Final EIR and Addendum to the Final EIR; and
WHEREAS, The Planning Department is the custodian of records for Case No. 2005.0159E, Case No. 2007.0039E, and Case No. 2007.0039ENV-03, 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, CEQA Findings, MMRP, and Resolution No. 08- 0200; the Final EIR, CEQA Findings, MMRP, and Resolution No. 12-0174; the Addendum to the Final EIR with refined MMRP and CEQA Findings contained in Resolution No. 24- 0192; and the CEQA Findings contained in Resolution No. 24-0213, 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 Project No. 10033818, Town of Sunol Pipeline; now, therefore, be it
RESOLVED, This Commission has reviewed and considered the Program EIR, Final EIR, the Addendum to the Final EIR, and the record as a whole, and finds that the Program EIR, Final EIR, and Addendum to the Final EIR 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 in Resolution No. 08-0200, Resolution No. 12-0174, Resolution No. 24-0192, and Resolution No. 24-0213, 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, Final EIR, and Addendum to the Final EIR were finalized, there have been no substantial changes in the Project or its circumstances that would require major revisions to them 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 $1,250,000 to the existing cost contingency and an increase of 60 calendar days to the existing duration contingency , for Contract No. WD -2906, Town of Sunol Pipeline Replacement at Arroyo de la Laguna Creek , with Mitchell Engineering, for a total cost contingency of $1,728,938, and a total duration contingency of 120 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 $6,518,323 and a total duration limit of 725 consecutive calendar days.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of July 14, 2026.
__________________________________
Director of Commission Affairs
San Francisco Public Utilities Commission