Agenda Item
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
DEPARTMENT: Infrastructure Division
AGENDA NUMBER: 10
MEETING DATE: September 8, 2026
Calendar: Regular Calendar
Project Manager: Janet Ng
Adopt a Refined Mitigation Monitoring and Reporting Program and Award Contract No. WD-2915, Crystal Springs Pipeline No. 2 Reach 5 Lining Replacement
Summary of
Proposed
Commission
Action:
Adopt a refined Mitigation Monitoring and Reporting Program pursuant to the California Environmental Quality Act (CEQA) and award Contract No.
WD-2915, Crystal Springs Pipeline No. 2 Reach 5 Lining Replacement, to the responsible bidder that submitted the lowest responsive bid, Mitchell Engineering, in the amount of $63,102,346 and with a duration of 960 consecutive calendar days (approximately two years and eight months), to rehabilitate 3.8 miles of 60- inch diameter transmission pipeline by replacing its lining, upgrading appurtenances, renewing wholesale customer service connections, and installing large diameter valves.
Background: The San Francisco Public Utilities Commission (SFPUC) Crystal Springs Pipeline No. 2 Reach 5 is almost 90 years old and conveys potable water from the Lower Crystal Springs Reservoir to San Francisco. It also provides potable water to the City of Millbrae, the City of San Bruno, and the San Franciso International Airport . The pipeline was found to be in good condition overall, but the interior lining needs to be replaced, appurtenances need to be brought up to current standards, and new pipeline isolation valves need to be installed to allow safe worker entry for maintenance. This project will rehabilitate the aging pipeline segment and improve operations, reliability, water quality, and safety of the pipeline.
Scope of
Contract:
The contract work spans 3.8 miles and is located in the City of Millbrae, the City of San Bruno, and the City of South San Francisco. The contract work consists of the following:
- Replace the coal tar enamel lining with cement mortar lining; - Improve over thirty appurtenances (air valves, manway access structures and blowoffs);
- Upgrade five wholesale customer service connections;
- Install nine large diameter in-line valves for safe pipeline entry; - Traffic control; and,
- Site restoration.
Funding and
Costs:
Funding Source: Water Enterprise Capital Improvement Program, Project No. 10034578 , Crystal Springs Pipeline No. 2 Reach 5 Lining Replacement
Engineer’s Estimate: $55,000,000
Award Amount: $63,102,346
Agenda Title: WD-2915, Crystal Springs Pipeline No. 2 Reach 5 Lining Replacement Commission Meeting Date: September 8, 2026
Bid Rank Base Bid
Amount
Compensable
Delay (20-Day
Duration)
Social Impact
Partnership
Bid Discount
Adjusted
Bid
Final
Rank
2. Mitchell
Engineering $63,102,346 $100,000 2.21% $61,805,574 1
1. Cratus, Inc. $62,899,735 $20,000 N/A $62,919,735 2
3. J.F. Shea
Construction,
Inc.
$84,318,656 $180,000 3.20% $81,794,699 3
4. SMCI/
Obayashi
Joint Venture
$95,217,780 $100,000 4.00% $91,505,069 4
Schedule: Estimated Notice-to-Proceed Date: December 2026 Contract Duration: 960 consecutive calendar days (900 consecutive calendar days to Substantial Completion and an additional 60 consecutive calendar days to Final Completion)
Estimated End Date: July 2029
Bid History:
Advertised: February 4, 2026
Bids Received: On June 4, 2026, the SFPUC received sealed bids from four firms.
Application of bid preferences do not apply to this contract as the engineer’s estimate is in excess of $10,000,000.
Application of Social Impact Partnership (SIP) Bid Discounts resulted in Mitchell Engineering becoming the lowest responsive bidder.
Because the SFPUC anticipates that potential unforeseen conditions or other factors outside the contractor’s control may impact the schedule, Staff included a requirement in the Invitation for Bids for bidders to provide a daily compensable time extension
rate. At the bid opening, Staff
announced that SFPUC would use the value of 20-days to calculate the compensable delay bid adjustment amount. Staff used the daily rate in each bid to determine the total Compensable Delay value shown in the table above by multiplying the bidder’s daily rate by 20. The Adjusted Bid value in the table above is the sum of the Base Bid Amount and Compensable Delay less any applicable bid discount. Staff used the Adjusted Bid value to compare and rank the bids to determine the lowest bidder. However, the contract award amount is the Base Bid value (not the Adjusted Bid value) and, if the Commission awards the contract, the bidder’s daily compensable delay rate will become a term of the contract.
Protest: On June 11, 2026, the SFPUC received a protest letter from J. F.
Shea Construction, Inc., protesting the bids submitted by Cratus, Inc. and Agenda Title: WD-2915, Crystal Springs Pipeline No. 2 Reach 5 Lining Replacement Commission Meeting Date: September 8, 2026
the highest-ranked bidder Mitchell Engineering . Mitchell Engineering provided a response to the protest on June 26, 2026. On July 27, 2026, after review of the protest, response, and rebuttals, the Contract Administration Bureau, in consultation with the City Attorney and the Contract Monitoring Division, denied the protest. Staff determined Mitchell Engineering to be the responsible bidder that submitted the lowest responsive bid.
Environmental
Review:
On September 30, 2010 , the Planning Commission certified the Final Environmental Impact Report (Final EIR) for the Crystal Springs Pipeline No. 2 Replacement Project (Case No. 2005.0963E), prepared pursuant to the CEQA.
On October 15, 2010, by Resolution No. 10-0174, this Commission adopted the CEQA Findings and a Mitigation Monitoring and Reporting Program (MMRP) pursuant to the CEQA and approved the Crystal Springs Pipeline No. 2 Replacement Project.
On August 6, 2025, the Planning Department issued an Addendum to the Final EIR (Case No. 2005.0963ENV-03), which evaluated rehabilitation of
3.8 miles pipeline by replacing its lining, upgrading appurtenances, renewing wholesale customer service connections, and installing large diameter valves , and prepared a refined MMRP for the Reach 5 Lining Replacement project.
This action is within the scope of the project evaluated in the Final EIR and Addendum.
View the Final EIR, CEQA Findings, MMRP, Resolution No. 10-0174, and Addendum with the refined MMRP.
Local Business
Enterprise
Utilization and
Non-
Discrimination
in Contracting:
The Contract Monitoring Division (CMD) established a 14.00% Local Business Enterprise (LBE) subcontracting requirement for this contract.
The bidder committed t o 13.59% subcontractor LBE participation with its bid submittal. Although the bidder committed to less than the 14.00% LBE subcontracting requirement, pursuant to Section 14B.8(C) of the San Francisco Administrative Code, CMD finds that the bidder undertook good faith efforts, exercises discretion to find that the bidder falling short of
14.00% resulted from excusable error, and deems the bid to be responsive.
Attachment(s): CMD Memorandum
Agenda Title: WD-2915, Crystal Springs Pipeline No. 2 Reach 5 Lining Replacement Commission Meeting Date: September 8, 2026
Project Location Map
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO. __________________
WHEREAS, The San Francisco Public Utilities Commission ’s (SFPUC) Crystal Springs Pipeline No. 2 Reach 5 is almost 90 years old and is in need of rehabilitation; and
WHEREAS, On February 4. 2026, SFPUC advertised Contract No. WD-2915, Crystal Springs Pipeline No. 2 Reach 5 Lining Replacement; and
WHEREAS, The Engineer’s Estimate is $55,000,000 for this construction work to rehabilitate 3.8 miles of 60-inch diameter transmission pipeline in the City of Millbrae, City of San Bruno, and the City of South San Francisco; and
WHEREAS, The contract duration is 960 consecutive calendar days; and
WHEREAS, On June 4, 2026, SFPUC received and publicly opened four 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 Mitchell Engineering is the responsible bidder with the lowest responsive bid; and
WHEREAS, The CMD established a 14.00 % Local Business Enterprise (LBE) subcontracting requirement for this contract, Mitchell Engineering committed to 13.59% LBE subcontractor participation in its bid submittal, and CMD deems the bid responsive; and
WHEREAS, On September 30, 2010, the Planning Commission certified the Final Environmental Impact Report (Final EIR) for the Crystal Springs Pipeline No. 2 Replacement Project (Case No. 2005.0963E), prepared pursuant to the California Environmental Quality Act (CEQA); and
WHEREAS, On October 15, 2010, by Resolution No. 10- 0174, this Commission adopted the CEQA Findings and a Mitigation Monitoring and Reporting Program (MMRP) pursuant to the CEQA and approved the Crystal Springs Pipeline No. 2 Replacement Project; and
WHEREAS, On August 6, 2025, the Planning Department issued an Addendum to the Final EIR (Case No. 2005.0963ENV -03), which evaluated rehabilitation of 3.8 miles pipeline by replacing its lining, upgrading appurtenances, renewing wholesale customer service connections, and installing large diameter valves, and prepared a refined MMRP for the Reach 5 Lining Replacement project; and
WHEREAS, This action is within the scope of the project evaluated in the Final EIR and Addendum; and
WHEREAS, The Planning Department is the custodian of records for Case Nos. 2005.0963E and 2005.0963ENV-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 F inal EIR, CEQA Findings including the Statement of Overriding Considerations and MMRP, Resolution No. 10-0174, Addendum, and refined MMRP, 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. 10034578, Crystal Springs Pipeline No. 2 Reach 5 Lining Replacement; now, therefore, be it
RESOLVED, This Commission has reviewed and considered the Final EIR, the Addendum, and the record as a whole, and finds that the Final EIR and Addendum 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 hereby adopts the refined MMRP; and, be it
FURTHER RESOLVED, This Commission further finds that since the Final EIR and Addendum were finalized, there have been no substantial changes in the Project or its circumstances that would require major revisions to the Final EIR and Addendum 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
FUTHER RESOLVED, That this Commission hereby awards Contract No. WD - 2915, Crystal Springs Pipeline No. 2 Reach 5 Lining Replacement , in the amount of $63,102,346, and with a duration of 960 consecutive calendar days , to the responsible bidder that submitted the lowest responsive bid, Mitchell Engineering.
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
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: July 28, 2026
To:
Janet Ng, SFPUC
Jeremy Brooks, SFPUC
From: Helen Smolinski for Jovi Cuntapay-Vitin, CMD
Subject:
CMD Review of Bids Submitted on June 4, 2026 for WD-2915 Crystal Springs Pipeline No. 2 Reach 5 Lining Replacement
Mitchell Engineering is the apparent low bidder after the application of bid discounts.
The LBE 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 Author- ity. [Sec. 14B.7(D)].
Bidder
LBE Sta-
tus, Type
and Size
Base Bid
LBE Bid
Dis-
count
Compensa-
ble Delay
(20 days)
SIP Bid
Discount
Adjusted Bid
with
Bid Discounts
& Compensa-
ble Delay
Mitchell
Engineering
SF LBE
(Small)
$63,102,346.00 N/A $100,000.00 2.21% $61,805,574.15
Cratus, Inc. Non-LBE $62,899,735.00 N/A $20,000.00 N/A $62,919,735.00 J.F. Shea Con-
struction, Inc.
Non-LBE $84,318,656.00 N/A $180,000.00 3.20% $81,794,699.01 SMCI/
Obayashi Joint
Venture
Non-LBE $95,217,780.00 N/A $100,000.00 4.00% $91,505,068.80
Mitchell Engineering satisfactorily demonstrated how they will meet the LBE subcontractor participa- tion requirement.
A combination of Micro-LBE and Small-LBE participation will count toward LBE subcontractor participa- tion compliance. Mitchell Engineering’s credited commitment for this contract is 13.59%.
Requirement % Commitment %
Micro/Small LBE 14.00% 13.59%*
* Pursuant to Section 14B.8(C), CMD has exercised discretion to find that the bidder falling short of 14% resulted from excusa- ble error.
In their bid, Mitchell Engineering listed the following subcontractors on this contract:
Supplier Name Scope of Work LBE LBE
Size
LBE
Perce
nt
Percent
of Work Amount
R&S Construction
Management Inc. Concrete (Partial) SF LBE Micro 100% 3.97% $2,507,805.00 Camajani Trucking Trucking (Partial) SF LBE Micro 100% 1.58% $1,000,000.00 Esquivel Grading &
Paving Inc. Paving (Partial) SF LBE Small 100% 0.21% $134,000.00 Vibrasure Consulting
Engineers, Inc.
Noise & Vibration
Monitoring (Partial) SF LBE Micro 100% 0.68% $430,400.00 DR Traffic Control Traffic Control (Partial) SF LBE Micro 100% 2.38% $1,500,000.00 Mike O'Dell Surveys Surveying (Partial) SF LBE Small 100% 0.48% $300,000.00 RES Engineers Inc. Quality Control (Partial) SF LBE Small 100% 0.79% $500,000.00 LEFEVRE Welding Inc. Welding (Partial) PUC LBE Micro 100% 0.79% $500,000.00 ALTA Group, Inc. Rebar/Excavation
(Partial) SF LBE Small 100% 1.90%* $1,200,000.00
MC Metals Inc. Mics Metals (Partial) SF LBE Micro 100% 0.80% $503,100.00
Brand Safway Coal Tar Removal/Coat
ing (Partial) 13.27% $8,371,447.12
Vortex Services Cement Mortar Lining
(Partial) 16.77% $10,581,566.00
Pica Pipeline Inspec
tion and Condition
Analysis Corp USA
Pipeline Inspection
(Partial) 1.43% $904,570.00
Marina Landscape,
Inc. Landscape (Partial) 0.47% $297,000.00
*Per a June 15, 2026 email from Mitchell Engineering, Mitchell Engineering plans to use ALTA Group for partial rebar and exca- vation work in the amount of $1,700,000 as reflected in CMD Form 6 and ALTA’s bid quote.
Mitchell Engineering satisfied the “Good Faith Efforts” requirement.
Mitchell Engineering utilized Approach C by achieving at least 50 points with their demonstration of LBE outreach.
CMD finds Mitchell Engineering 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: Helen Smolinski, [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/HS