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SFPUC updates SSIP progress; biosolids contract modification and local hire metrics highlighted

San Francisco Public Utilities Commission · March 14, 2017
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Summary

SFPUC staff reported that Phase 1 of the Sewer System Improvement Program includes 70 projects in the $2.9 billion baseline, with 11 projects in construction; staff previewed a roughly $73.5 million modification to the biosolids contract (bringing the total to about $153.5 million) and reported San Francisco residents logged 36% of prime‑contract hours and 72% of apprentice hours on active contracts.

Karen Kubik, director of the Wastewater Capital Program, briefed the commission on SSIP progress and workforce outcomes on March 14. She said the Phase 1 baseline encompasses 70 projects and $2.9 billion in authorized work, with the larger Headworks and Biosolids projects moving toward construction management procurement.

Kubik highlighted several schedule and cost items marked as red‑dot risks, including a 19.9‑month delay to the San Joaquin Pipeline Rehabilitation driven by scope additions, rebids that returned significantly higher costs (she cited a 13% increase and a $2.5 million uptick on the Northpointe Outfall re‑bid), and right‑of‑way delays at the Lower Cherry Aqueduct tied to a federal review. She noted 11 projects are in construction and that staff plan to award a CMGC contract for Biosolids in April following re‑advertisement and additional outreach to bidders.

On workforce and local hire metrics, Kubik said 19 active prime contracts show San Francisco residents performed 36% of hours (above the 30% requirement), producing a combined $5.5 million in wages and benefits; apprentices from San Francisco worked 72% of apprentice hours (above a 50% target), representing 58 apprentices and more than 26,000 apprentice hours to date. The commission and the public applauded the outreach and small‑business engagement measures.

Kubik also previewed a likely modification to the biosolids contract: "we're looking at about a $73,500,000 modification that'll bring us up to a $153,500,000," she said, explaining that the work will complete design and construction services and allow staff to pick the delivery method that best fits project phasing. Commissioners pressed about bidder counts and procurement approach; staff said two bidders ultimately submitted responsive bids after re‑advertisement.

Next steps: staff will bring the biosolids CMGC award to the commission in April and continue quarterly SSIP reporting, including a Central Bayside tunnel sizing presentation (which followed during the same meeting).