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Committee approves forwarding $9.6 million amendment request for CDM Smith contract on Sonoma Valley ozonation project
Summary
The Budget and Finance Committee voted to forward an amendment that increases the SFPUC contract with CDM Smith by $9.6 million and extends the contract term to support construction and operations work on the Sonoma Valley Water Treatment Plant ozonation project.
The Budget and Finance Committee on Feb. 26 voted to forward a resolution authorizing the San Francisco Public Utilities Commission (SFPUC) to execute Amendment No. 1 to its engineering-services contract with CDM Smith Inc., increasing the contract by $9.6 million to a new not-to-exceed amount of $24.6 million and extending the contract term by four years.
Brian DeSorr (project manager, SFPUC) described the amendment as necessary to provide engineering services during extended construction, to develop standard operating procedures and preventative maintenance plans, and to provide training and water treatability testing in support of the Sonoma Valley Water Treatment Plant ozonation facility. DeSorr said the construction contract for ozonation was awarded in May 2024 to J.F. Shea Construction for $234.7 million and that construction is underway; a second short-term improvements contract is expected to begin in mid-2025.
The project's construction budget grew during planning and final bids to a forecast of roughly $326.3 million, DeSorr said, and the SFPUC commission approved the higher budget as part of a mid-year capital improvement update.
Budget and Legislative Analyst staff recommended approval and noted the amendment is funded by water revenues and revenue bonds and will not impact the general fund. During committee questions, Supervisors probed why the amendment represents roughly a 40% increase over the original $15 million engineering contract and asked SFPUC to present more information about how the agency manages scope changes and contingency. SFPUC representatives offered to brief supervisors on the agency's overall capital program and the contracting practices used to manage amendments.
The committee recorded a motion to forward the amendment to the full board with a positive recommendation. Vice Chair Matt Dorsey, Member Joan Engadio and Chair Connie Chan voted aye; the motion passed with three ayes.
SFPUC said the amendment will pay for increased engineering during construction and for operational readiness activities so PUC staff can operate the new ozone facility once construction is complete.
