Request to Approve Amendment No. 2 to Contract No. CS-249 Planning and Design Services, Mountain Tunnel Improvements San Francisco Public Utilities Commission Meeting
September 8, 2026
Mountain Tunnel
Improvements Project
2 3
• Professional Services Contract – Planning and Design
Services, Mountain Tunnel Improvements
• Resolution No. 15-0216 (October 27, 2015)
• Consultant: Delve Underground (formerly McMillen Jacobs Associates)
• Original Contract: $21,000,000 for 10 years
• Amendment 01: Increase capacity by $7.78 million and 3 years • Current Contract: $28,780,000 for 13 years
• The primary role of the consultant is to provide planning, design, and engineering support during construction
(ESDC) services for the Mountain Tunnel Improvements
Project (HH-1000R)
CS-249: Contract Overview
CS-249: Amendment No. 2
Summary
4 Phase Original
Budget
Approved
Amendment
No. 1
Proposed
Amendment
No. 2
Proposed
Contract
Amount
Planning $3,900,000 $0 $0 $6,000,000
Design $8,000,000 $0 $0 $12,000,000
ESDC* $9,100,000 $7,780,000 $2,000,000 $12,780,000
TOTAL $21,000,000 $7,780,000 $2,000,000 $30,780,000
Contract
Duration 10 years + 3 years + 0 years 13 years
Reasons for Amendment No. 2
• Change in new facility operational strategy due to descoped work • Additional design and ESDC needed to implement modified operational strategy
* ESDC = engineering support during construction
HH-1000R: Contract Overview
• Construction Contract – Mountain Tunnel Improvements Project • Resolution No. 20-0210 (October 13, 2020)
• Contractor: Mountain Tunnel Contractors Inc (formerly Michels Tunneling) • Original Contract: $138,973,189 for 2,160 days
• Modifications 1 through 27: Increase capacity by $22,424,133 • Current Contract: $161,397,322 for 2,160 days
• Notice-to-Proceed: January 29, 2021
• Substantial Completion: October 2026
• Final Completion: December 2026
• The scope of the project is to rehabilitate the Mountain Tunnel and make improvements for better water flow control and water quality; and safer maintenance access.
5 6
HH-1000R: Project Scope
Early Intake
Adit
Flow Control
Facility and
New Priest
Adit
Tunnel Repairs &
Contact Grouting
Roadway
Improvements Blue = Original Scope
Red = Descoped
Green = Added Scope
South Fork
Siphon
Instrumentation
& Controls
Improvements
7 HH-1000R: Instrumentation and
Controls Improvements
• Incomplete tunnel improvements result in need to monitor tunnel pressures during operations with new FCF
• Installation of monitoring instruments and
communications required at Second Garrotte and Big
Creek locations
CS-249: Amendment No. 2
Summary
8 Phase Original
Budget
Approved
Amendment
No. 1
Proposed
Amendment
No. 2
Proposed
Contract
Amount
Planning $3,900,000 $0 $0 $6,000,000
Design $8,000,000 $0 $0 $12,000,000
ESDC* $9,100,000 $7,780,000 $2,000,000 $12,780,000
TOTAL $21,000,000 $7,780,000 $2,000,000 $30,780,000
Contract
Duration 10 years + 3 years + 0 years 13 years
* ESDC = engineering support during construction
Questions
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT: Infrastructure Division
AGENDA NUMBER: 12
MEETING DATE: September 8, 2026
Calendar: Regular Calendar
Contract Manager: Garrett Low
Approve Amendment No. 2 to Contract No. CS -249, Planning and Design Services, Mountain Tunnel Improvements
Summary of Proposed
Commission Action:
Approve Amendment No. 2 to Contract No. CS-249, Planning and Design Services, Mountain Tunnel Improvements , with Jacobs Associates, Inc. , dba Delve Underground, formerly known as McMillen Jacobs Associates, Inc., increasing the contract amount by $ 2,000,000, for a total not -to-exceed c ontract amount of $30,780,000, with no change to the contract duration, to continue providing specialized engineering services for the Mountain Tunnel Improvements Project, subject to Board of Supervisors approval under Charter Section 9.118.
Background: Mountain Tunnel conveys the San Francisco Public Utilities Commission (SFPUC) water supply from where it exits the Kirkwood Powerhouse to Priest Reservoir. It is a critical, non- redundant link in the Hetch Hetchy water system. Having been in service since 1925, sections of the original lining deteriorated due to age, original construction deficiencies, and deferred maintenance, creating vulnerabilities to level of service objectives in water quality and delivery reliability.
The design and engineering required to restore Mountain Tunnel reliability cannot be accomplished with SFPUC staff exclusively.
Contract No. CS-249 provides the necessary specialized expertise in design and rehabilitation of deep tunnels through hard rock.
On October 27, 2015, by Resolution No. 15-0216, this Commission awarded Contract No. CS -249, Planning and Design Services, Mountain Tunnel Improvements , to Jacobs Associates, Inc. , dba Delve Underground, formerly known as McMillen Jacobs
Associates, Inc., for an amount not -to-exceed $21,000,000, and with a contract duration of 10 years.
Scope of Contract: The contract work location is Tuolumne County, CA.
The contract work consists of:
• 2017 Tunnel inspection and condition assessment;
• 2018 Interim repair;
Agenda Title: CS-249, Planning and Design Services, Mountain Tunnel Improvements Commission Meeting Date: September 8, 2026
• Management and Coordination of Services (planning
phase);
• Background information review;
• Conceptual engineering;
• Geotechnical investigation and site characterization; • Tunnel engineering and design;
• Engineering support during environmental review phase; • Engineering support during bid and award phase;
• Engineering support during construction and closeout
phase;
• Technology transfer;
• Design of tunnel improvements upstream of Adit 5/6
(optional);
• Land needs and property acquisition (optional); and
• Community benefits.
Amendments to the
Contract:
Amendment No. 1: On April 12, 2022, by Resolution No. 22-0067, this Commission approved Amendment No. 1 to Contract No.
CS- 249, increasing the contract amount by $7,780,000 and increasing the contract duration by three years, for a total not-to- exceed contract amount of $28,780,000 and a duration of 13 years.
Proposed Amendment No. 2: Staff recommends Commission
approval of Amendment No. 2 to increase the contract amount by $2,000,000, to continue providing specialized engineering services during construction for the Mountain Tunnel Improvements Project, increasing the total not -to-exceed contract amount to $30,780,000, with no change to the contract duration.
The additional budget is required to fund supplemental engineering work due to the descoping of the South Fork Siphon Improvements from construction Contract No. HH-1000R,
Mountain Tunnel
Improvements, which resulted in the need to develop and implement an interim operations plan of the new Flow Control Facility, which in turn required additional hydraulic modeling, development of construction documents for installing monitoring equipment, and additional on-site engineering support during start- up testing and commissioning. These additional professional engineering services do not involve ground disturbing activities or other physical changes to the environment. Installation of the monitoring equipment would occur through Job Order Contract No. 112, General Engineering (A -License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy.
Funding and Costs: Funding Source: Funds for this contract have been allocated from the Mountain Tunnel Improvements Project (Project Number 10014114, previously CUH 10221).
Agenda Title: CS-249, Planning and Design Services, Mountain Tunnel Improvements Commission Meeting Date: September 8, 2026
Original Not-to-Exceed Amount: $21,000,000
Amendment No. 1 Amount: $7,780,000
Proposed Amendment No. 2: $2,000,000
Total Not-To-Exceed Contract Amount: $30,780,000
Schedule: Original Contract Duration: 10 years
Amendment No. 1 Duration: Three years
Proposed Amendment No. 2 Duration: No change
Total Duration: 13 years
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division established a 10% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to a 13.84% LBE subcontractor participation with its proposal, and this amount remains unchanged.
Agenda Title: CS-249, Planning and Design Services, Mountain Tunnel Improvements Commission Meeting Date: September 8, 2026
Figure 1. Project Location Map within Hetch Hetchy Regional Water System
Figure 2. Extent of Mountain Tunnel Improvements
Project Site
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO. __________________
WHEREAS, On October 27, 2015, by Resolution No. 15-0216, the Commission awarded Contract No. CS-249, Planning and Design Services, Mountain Tunnel Improvements , for an amount not-to-exceed $21,000,000 and with a duration of 10 years, with Jacobs Associates, Inc., dba Delve Underground, formerly known as McMillen Jacobs Associates, Inc.; and
WHEREAS, On April 12, 2022, by Resolution No. 22- 0067, the Commission approved Amendment No. 1 to Contract No. CS-249, Planning and Design Services, Mountain Tunnel Improvements, increasing the contract amount by $7,780,000 and the contract duration by three years, to cover engineering support during construction phase and match the anticipated duration of construction Contract No. HH-1000R, Mountain Tunnel Improvements, increasing the total not-to-exceed contract amount to $28,780,000, and extending the contract duration to 13 years; and
WHEREAS, Staff recommends that this Commission approve Amendment No. 2 to Contract No. CS -249, Planning and Design Services, Mountain Tunnel Improvements , to increase the contract by $ 2,000,000, to continue providing specialized engineering services during construction for the Mountain Tunnel Improvements , increasing the total not -to-exceed contract amount to $30,780,000, with no change to the contract duration; and
WHEREAS, The Contract Monitoring Division established a 10% Local Business Enterprise (LBE) subcontracting requirement for this contract , Jacobs Associates, Inc., dba Delve Underground, formerly known as McMillen Jacobs Associates, Inc. , committed to a
13.84% LBE subcontractor participation with its proposal, and this amounts remains unchanged; and
WHEREAS, Funds for this contract are available from the Mountain Tunnel Improvements Project; now, therefore, be it
RESOLVED, That this Commission hereby approves Amendment No. 2 to Contract No.
CS-249, Planning and Design Services, Mountain Tunnel Improvements , with Jacobs Associates, Inc., dba Delve Underground, formerly known as McMillen Jacobs Associates, Inc., increasing the contract amount by $2,000,000, to continue providing specialized engineering services during construction for the Mountain Tunnel Improvements Project , for a total not -to- exceed contract amount of $30,780,000, subject to the Board of Supervisors approval pursuant to Charter Section 9.118.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of September 8, 2026.
__________________________________
Director of Commission Affairs
San Francisco Public Utilities Commission