AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT: Infrastructure Division
AGENDA NUMBER: 6a
MEETING DATE: July 28, 2026
Calendar: Consent Calendar
Project Manager: Aileen Caylao
Award Contract No. WW-765, Various Locations Sewer Replacement No. 23
Summary of Proposed
Commission Action:
Award Contract No. WW-765, Various Locations Sewer
Replacement No. 23, to the responsible bidder that submitted the lowest responsive bid, Michael O’Shaughnessy Construction, Inc., in the amount of $2,499,776 and with a duration of 285 consecutive calendar days (approximately ten months), to replace or line existing sewers on specified streets in the City and County of San Francisco. The Planning Department has determined
that the
Project is exempt from the California Environmental Quality Act (CEQA), and t he Commission will rely on that determination to make its decision on this action. This action constitutes the Approval Action for the Project for the purposes of the CEQA pursuant to San Francisco Administrative Code Section 31.04(h).
Background: The San Francisco Public Utilities Commission (SFPUC) Wastewater Enterprise regularly inspects and assesses sewer system assets to identify areas in need to repair or replacement.
Staff identified the existing sewers on the subject streets listed below within the City and County of San Francisco (City) and determined they are at risk of failure and should be replaced or rehabilitated. The main sewers to be replaced/lined were originally constructed between the years of 1840 and 1952. The sewer pipe sizes range from 8-inches to 18-inches in diameter.
Scope of Contract: The contract work location(s) are as follows:
• South Van Ness Avenue from Erie Street to 14th Street; • Bryant Street from 10th Street to Dore Street;
• Lapidge Street from 18th Street to 19th Street;
• Illinois Street from 19th Street to 20th Street;
• South Van Ness Avenue from 25th Street to 26th Street; • Sanchez Street from 30th Street to Randall Street;
• San Bruno Avenue from Hilton Street to Bayshore
Boulevard;
• Wilde Avenue from Ervine Street to Delta Street;
• Peninsula Avenue from Blanken Avenue to Hester Avenue; • Portola Drive at Burnett Avenue/High Street; and
• Portola Drive from Teresita Boulevard to Woodside Avenue.
If awarded, the contract work will consist of:
Agenda Title: WW-765, Various Locations Sewer Replacement No. 23 Commission Meeting Date: July 28, 2026
Bid Rank Bid Amount Bid
Preference
Adjusted Bid Final Rank
1. Michael
O’Shaughnessy
Construction, Inc.
$2,499,776 10% $2,249,799 1
2. JDB and Sons
Construction, Inc.
$2,573,400 10% $2,316,060 2
3. Precision Engineering
Inc.
$2,700,000 10% $2,430,000 3
4. Basset Engineering $2,704,843 10% $2,434,359 4
5. NTK Construction Inc. $2,751,685 10% $2,476,517 5
• Replacement of approximately 1,085 linear feet of existing 12-inch and 15-inch sewers, and
• Lining of approximately 1,700 linear feet of existing 8-inch, 12-inch, 15-inch and 18-inch sewers.
Funding and Costs: Funding Source: SFPUC Wastewater Renewal and Replacement Program funded Project No. 10041288 , Various Locations Sewer Replacement No. 23
Engineer’s Estimate: $3,200,000
Award Amount: $2,499,776
Schedule: Estimated Notice-to-Proceed Date: October 2026 Estimated End Date: July 2027
Duration: 285 consecutive calendar days ( 225 consecutive calendar days to Substantial Completion and an additional 60 consecutive calendar days to Final Completion)
Bid History: Advertised: April 30, 2026
Bids Received: On May 28, 2026, the SFPUC received five sealed bids.
Application of bid preferences in accordance with Chapter 14B of the San Francisco Administrative Code did not change the final ranking of the low bidder.
Environmental Review: On August 6, 2025 , the Planning Department determined the Project to be statutorily exempt from environmental review under the California Environmental Quality Act (CEQA) Guidelines Section 15282(k) (Other Statutory Exemptions) ( Case No. 202 5- 006967ENV). View the exemption determination.
This action constitutes the Approval Action for the Project for the purposes of the CEQA pursuant to San Francisco Administrative Code Section 31.04(h).
Agenda Title: WW-765, Various Locations Sewer Replacement No. 23 Commission Meeting Date: July 28, 2026
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. Michael O’Shaughnessy Construction, Inc. , committed to a 20.07% LBE subcontractor participation with its bid submittal.
Attachment(s): 1. Contract Monitoring Division Memorandum Agenda Title: WW-765, Various Locations Sewer Replacement No. 23 Commission Meeting Date: July 28, 2026
WW-765 Project Location Map
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO. __________________
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) Wastewater Enterprise regularly inspects and assess sewer system assets to identify areas in need of repair or replacement. Staff identified the existing sewer on the subject streets within the City and County of San Francisco (City) and determined they are at risk of failure and should be replaced or rehabilitated. The main sewers to be replaced/lined were originally constructed between the years of 1840 and 1952; and
WHEREAS, On April 30, 2026, SFPUC advertised Contract No. WW-765, Various Locations Sewer Replacement No. 23; and
WHEREAS, The Engineer’s Estimate is $3,200,000 for this construction work to replace or line the existing sewers at various locations in the City; and
WHEREAS, The contract duration is 285 consecutive calendar days; and
WHEREAS, On May 28, 2026, SFPUC received and publicly opened five bids; and
WHEREAS, SFPUC staff and the Contract Monitoring Division (CMD) review ed the bids and the application of bid preferences and have determined that Michael O’Shaughnessy Construction, Inc., is the responsible bidder with the lowest responsive bid; and
WHEREAS, The CMD established a 20% Local Business Enterprise (LBE) subcontracting requirement for this contract, and Michael O’Shaughnessy Construction, Inc., committed to 20.07% LBE subcontractor participation in its bid submittal; and
WHEREAS, On August 6, 2025, the Planning Department determined the Project to be statutorily exempt from environmental review under the California Environmental Quality Act Guidelines Section 15282(k) (Other Statutory Exemptions) ( Case No. 2025- 006967ENV); and
WHEREAS, Funds are available from SFPUC Wastewater Renewal and Replacement Program funded Project No. 10041288, Various Locations Sewer Replacement No. 23; now, therefore, be it
RESOLVED, That this Commission hereby awards Contract No. WW-765, Various Locations Sewer Replacement No. 23, in the amount of $2,499,776, and with a duration of 285 consecutive calendar days, to the responsible bidder that submitted the lowest responsive bid, Michael O’Shaughnessy Construction, Inc.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of July 28, 2026.
__________________________________
Director of Commission Affairs
San Francisco Public Utilities Commission
City & County of San Francisco
Daniel Lurie, Mayor
Office of the City Administrator
Carmen Chu, City Administrator
Contract Monitoring Division
Regina Chan, Director
1455 Market Street, Suite 16A, San Francisco, CA 94103 Telephone (415) 554-0630
MEMORANDUM
Date: June 16, 2026
To: Aileen Caylao, SFPUC
Monique Johnson, SFPUC
From: Jason Chow, CMD
Subject: CMD Review of Bids Submitted on 5/28/2026 for WW-765 Various Locations Sewer Replacement No. 23
**Note to the SFPUC -- Please use the tables with the blue headers for your Peoplesoft project team entry.
Bids and Bid Discount
Michael O’Shaughnessy Construction Inc. (“Michael O’Shaughnessy”) is the apparent low bidder after the bid discount.
The bid discount was applied to bidders who are certified by the Contract Monitoring Division, (“CMD”) as an LBE in the type of work that is specified for the bidder by the Contract Awarding Authority.
Bidder LBE Status,
Type and Size Base Bid Bid Discount
Adjusted Bid
with
Bid Discount
Michael O'Shaughnessy
Construction Inc
SF LBE-WBE
(Micro) $2,499,776.00 10.00% 2,249,798.40
JDB & Sons Construction Inc SF LBE-OBE
(Micro) 2,573,400.00 10.00% $2,316,060.00
Precision Engineering Inc SF LBE-OBE
(Small) $2,700,000.00 10.00% $2,430,000.00
Basset Engineering SF LBE-OBE
(Micro) $2,704,843.00 10.00% $2,434,358.70
NTK Construction Inc SF LBE-MBE
(Small) $2,751,685.00 10.00% $2,476,516.50
LBE Subcontracting Participation Requirement
Michael O’Shaughnessy satisfactorily demonstrated how they will meet the LBE subcontractor participation requirement.
A combination of Micro-LBE and Small-LBE participation will count toward LBE subcontractor participation compliance. Michael O’Shaughnessy’s commitment for this contract:
Requirement % Commitment %
Micro/Small LBE 20.00% 20.07%
In their bid, Michael O’Shaughnessy listed the following subcontractors on this contract.
Supplier Name Scope of Work
LBE
LBE Size
LBE
Percent
Percent
Of
Work
Amount
Esquivel Grading &
Paving, Inc.
Mill and Fill and
Concrete LBE SML 100% 8.60% $214,898.00
Sullivan Concrete
Sawing Inc Saw Cutting LBE MICR 100% 0.60% $15,000.00
Crana Trucking Trucking LBE MICR 100% 4.00% $100,000.00 DR Traffic Control LLC Traffic Control Plans LBE MICR 100% 0.40% $10,000.00 Daly Pipelines Inc Partial Sewer LBE MICR 100% 10.40% $260,000.00 SAK Construction
Lining N/A N/A N/A 14.01% $350,330.00
Martin M. Ron
Associates, Inc Surveying N/A N/A N/A 6.16% $154,000.00
Esquivel Grading & Paving’s LBE credited amount is $116,798.00 or 4.67%. Said firm’s portion of work is credited for less than the listed amount because its bid quote included four (4) contingency bid items totaling $98,100.00. Since contingency bid items cannot be used to count towards the LBE requirement, CMD adjusted said firm’s LBE credited participation accordingly.
“Good Faith Efforts” Requirement
Michael O’Shaughnessy satisfied the “Good Faith Efforts” requirement.
Michael O’Shaughnessy, an LBE prime contractor, utilized Approach A and relied on self-performed contract work to meet the requirement.
CMD Determination
CMD finds Michael O’Shaughnessy is responsive to pre-award requirements of Chapter 14B. Once awarded, the contract will be monitored for compliance with the LBE subcontractor participation commitment, as well as other 14B requirements.
Primary CMD contact for the contract: Jason Chow, [email protected].
CMD must be contacted immediately for:
- Subcontractor addition/substitution;
- Contract modification that cumulatively increases the original contract value by 20%;
- Prompt payment issues;
- Any other issues pertaining to LBE subcontractor participation
Noncompliance may result in penalties, including monetary fines. Please communicate with CMD early.
[cco/JC]