AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT: Infrastructure Division
AGENDA NUMBER: 13
MEETING DATE: July 14, 2026
Calendar: Regular Calendar
Project Manager: Aileen Caylao
Approve Increase to the Duration Contingency for Contract No. WW-709R, Various Locations Sewer Replacement No. 13
Summary of Proposed
Commission Action:
Approve an increase of 545 calendar days to the existing duration contingency for Contract No. WW -709R, Various Locations Sewer Replacement No. 13, with M. Hernandez Construction, Inc. (dba) Hernandez Engineering, for a revised duration limit of 1,740 calendar days (approximately four years and nine months), due to additional time required to complete remaining work scopes in the Marina and North Beach neighborhoods , with no change to the contract amount.
Background: The San Francisco Public Utilities Commission (SFPUC) Wastewater Enterprise , as part of its regular asset management program, inspected the existing sewers on the San Francisco streets listed below and identified sewers needing replacement.
The main sewers t o be replaced, lined, and/or mortared were originally constructed between the years of 1890 and 1920. The sewer pipe sizes range from 12-inches to 22-inches in diameter.
On October 11, 2022, by Resolution No. 22-0175, the Commission awarded Contract No. WW-709R, Various Locations Sewer
Replacement No. 13 , to M. Hernandez Construction, Inc . (dba) Hernandez Engineering. The original contract amount was $9,872,303, and the original contract duration was 460 consecutive calendar days.
On June 25, 2024, by Resolution No. 24- 0147, the Commission approved an increase of 324 calendar days to the duration contingency, for a revised duration limit of 830 calendar days, with no change to the contract amount, to allow for possible modification(s) of the contract to address supply chain procurement delays of high-density polyethylene (HDPE) pipeline materials and differing site conditions encountered on Larkin Street, Jefferson Street, and Beach Street.
On June 10, 2025, by Resolution No. 25-0094, th e Commission approved an increase of 365 calendar days to the duration contingency, for a total duration contingency of 1,195 calendar days, with no change to the contract amount, due to additional time Agenda Title: WW-709R, Various Locations Sewer Replacement No. 13 Commission Meeting Date: July 14, 2026
needed to complete existing lateral service pipeline replacements and connections to the newly installed main sewer pipeline.
Scope of Contract: The contract work is within the City and County of San Francisco, and locations include:
• Yacht Road from Marina Boulevard to End
• Lyon Street from Girard Road to End
• Palace Drive from Lyon Street to End
• Marina Boulevard from Yacht Road to Baker Street
• Beach Street from Polk Street to End
• Jefferson Street from Larkin Street to Hyde Street
• Jefferson Street from Hyde Street to Leavenworth Street • Jefferson Street from Jones Street to Taylor Street
• Beach Street from Hyde Street to Columbus Avenue
• Columbus Avenue from Beach Street to Leavenworth Street • North Point Street from Hyde Street to Leavenworth Street • Jones Street from Beach Street to North Point Street
• Bay Street from Polk Street to Leavenworth Street
• Larkin Street from Francisco Street to Beach Street
• Bergen Alley from Hyde Street to End
The contract work consists of:
• Replacing existing sewers with approximately 85 linear feet of 12- inch diameter, 3,380 linear feet of 14-
inch diameter,
320 linear feet of 18-inch diameter, and 590 linear feet of 22- inch diameter high-density polyethylene pipe (HDPE); and • Cured-in-place lining of approximately 420 linear feet of existing 8- inch diameter, 35 linear feet of existing 10- inch diameter, 260 linear feet of existing 12- inch diameter, 35 linear feet of existing 16- inch diameter, 30 linear feet of 18- inch diameter, and 35 linear feet of existing 21-inch diameter sewers.
Modifications to the
Contract:
Modification Nos. 1-4: Staff issued Modification Nos.1 through 4, increasing the contract amount by $585,723, within the original 10% cost contingency, and increasing the contract duration by 735 calendar days, in accordance with Resolution Nos. 24-0147 and 25- 0094, due to supply chain procurement delays of HDPE pipeline materials, to address differing site conditions encountered on Larkin Street, Jefferson Street, and Beach Street, and to allow additional time to complete laterals service pipeline replacement and connections to newly installed main sewer pipeline, for a revised contract amount of $10,458,026 and contract duration of 1,195 consecutive calendar days.
Proposed Increase to Duration Contingency: Staff recommends the Commission approve an increase of 545 calendar days to the Agenda Title: WW-709R, Various Locations Sewer Replacement No. 13 Commission Meeting Date: July 14, 2026
duration contingency, for a revised duration limit of 1,740 consecutive calendar days, with no change to the contract amount, due to additional time required to complete remaining work scopes in the Marina and North Beach neighborhoods; and to account for the potential of encountering additional unforeseen site conditions, such as higher than expected groundwater levels or soil conditions, and conflicts with existing underground utilities.
Funding and Costs: Funding Source: SFPUC Wastewater Enterprise Renewal and Replacement Program and San Francisco Public Works Street Resurfacing Program, Project No. 10035615, Various Locations Sewer Replacement No. 13
Original Contract Amount: $9,872,303
Original 10% Cost Contingency: $987,230
Approved Increase to Cost Contingency: $0
Modified Increases to Contract Amount: $585,723
Total Current Contract Amount: $10,458,026
Current Cost Contingency: $401,507
Additional Cost Contingency: $0
Total Contract Cost Limit: $10,859,533
Schedule: Notice-to-Proceed Date: February 21, 2023
Original Contract Duration: 460 consecutive calendar days Original 10% Duration Contingency: 46 calendar days
Approved Increase to Duration Contingency: 689 calendar days Modified Increases to Contract Duration: 735 calendar days Total Current Contract Duration: 1,195 consecutive calendar days
Current Duration Contingency: 0 calendar days
[Proposed] Additional Duration Contingency : 545 calendar days
Total [Proposed] Contract Duration Limit : 1,740 consecutive calendar days
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 20.26 % LBE subcontractor participation with its bid submittal, and this remains unchanged.
Agenda Title: WW-709R, Various Locations Sewer Replacement No. 13 Commission Meeting Date: July 14, 2026
WW-709R Project Location Map
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO. __________________
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) Wastewater Enterprise, as part of its regular asset management program, inspected existing sewers in the City and County of San Francisco, identified sewers needing replacement, and issued a request for bids for Contract No. WW-709R, Various Locations Sewer Replacement No. 13; and
WHEREAS, On October 11, 2022 , by Resolution No. 22-0175, the Commission awarded Contract No. WW-709R, Various Locations Sewer Replacement No. 13, to M.
Hernandez Construction, Inc., (dba) Hernandez Engineering; and
WHEREAS, The original contract amount was for $9,872,303 and the original contract duration was 460 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was February 21, 2023; and
WHEREAS, On June 25, 2024 , by Resolution No. 24-0147, th e Commission approved an increase of 324 calendar days to the existing duration contingency, for a revised duration limit of 830 calendar days, with no change to the contract amount , to allow for possible modification(s) of the contract; and
WHEREAS, On June 10, 2025, by Resolution No. 25- 0094, this Commission approved an increase of 365 calendar days to the existing duration contingency, for a revised duration limit of 1,195 calendar days, with no change to the contract amount, due to additional time needed to complete existing lateral service pipeline replacements and connections to the newly installed main sewer pipeline; and
WHEREAS, Staff issued Modification Nos. 1 through 4, increasing the contract amount by $585,723 and increas ing the contract duration by 735 calendar days, in accordance with Resolution Nos. 24-0147 and 25-0094, for a revised contract amount of $10,458,026 and contract duration of 1,195 consecutive calendar days; and
WHEREAS, Staff recommends an increase of 545 calendar days to the existing duration contingency, for additional time required to complete remaining work scope in the Marina and North Beach neighborhoods and account for potential unforeseen site conditions, for a revised duration limit of 1,740 consecutive calendar days, with no change to the contract amount; and
WHEREAS, The Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 20 % for this contract, the contractor committed to an LBE subcontractor participation of 20.26% with its bid submittal, and this amount remains unchanged; and
WHEREAS, Funds are available from Project No. 10035615 , Various Locations Sewer Replacement No. 13; now, therefore, be it
RESOLVED, That this Commission hereby approves an increase of 545 calendar days to the existing duration contingency, for Contract No. WW-709R, Various Locations Sewer Replacement No. 13, for a total duration contingency of 1,280 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 contract duration, for a total duration limit of up to 1,740 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 July 14, 2026.
__________________________________
Director of Commission Affairs
San Francisco Public Utilities Commission