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SFPUC approves $45 million increase to Clark Construction contract for 2000 Marin Water Division campus
Summary
The commission approved a modification that raises the Clark Construction Group construction contract for the San Francisco Water Division campus at 2000 Marin Street to $305 million, reflecting inflation, scope additions and interagency utility work. The contract retains a remaining contingency and a not‑to‑exceed value of $329 million.
The San Francisco Public Utilities Commission voted to modify Contract WD2879R with Clark Construction Group to update the budget and account for scope additions for the new San Francisco Water Division campus at 2000 Marin Street.
"We're requesting a modification of the original contract of $260,000,000 to $305,000,000," said Shelby Campbell, senior project manager for the SFPUC, describing the requested change. Campbell said the increase reflects roughly $39 million for escalation since the original engineer’s estimate plus about $6 million for work performed on behalf of other projects, including a duct bank and a water line crossing the site and a solar photovoltaic system funded by SF Power.
The nut graf: the commission approved the increase after staff explained the project delivery and procurement strategy, including a recommendation to defer some trade-package procurements to limit price volatility and to hold funds in the general construction contract in the near term.
Campbell told commissioners the campus will include an office building, two large industrial buildings, a warehouse and a parking structure, and that the relocation from an aging 1960s facility at 1990 Newcomb is scheduled for 2028. She noted reuse of demolition grinding as a temporary site cap and highlighted outreach and labor metrics: Clark held 18 LBE outreach events and nine LBE matchmaking events, has executed contracts up to $44 million with local business enterprises, and staff reported that 40 percent of hours worked have been by San Francisco residents with 89 percent of apprentice hours by San Francisco residents.
Campbell said remaining escalation and scope accounted for the contract increase and that the project team plans to mitigate cost risk by deferring packages that will not be installed for two or more years, such as fencing or large shop equipment that may be imported.
Commissioners asked for clarification on the $45 million increase and whether the utility work should be considered enhancements to the campus. Commissioner Arce suggested the duct bank, waterline and solar array are closely linked to campus operations; Campbell confirmed the services are being installed on behalf of those other projects and staff framed them as intentional, funded additions.
The commission approved the modification by unanimous recorded vote (President Stacy, Vice President Arce, Commissioner LeVarone, Commissioner Thurlow; Commissioner Jamdar excused) and the item passed.
