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SFPUC increases contingency for Bay Division pipeline contract to cover unforeseen conditions
Summary
The commission authorized a $13.9 million contingency increase on the Bay Division Pipeline No. 5 construction contract to cover unforeseen site conditions, restoration, right‑of‑way contamination and environmental mitigation; staff said program-wide contingency will be used and pledged to improve project reporting.
The San Francisco Public Utilities Commission on Oct. 11 approved an increase in the contingency for the Bay Division Pipeline No. 5 construction contract (W2541), adding $13,918,197 to address unexpected field conditions, additional restoration obligations, right‑of‑way contamination and environmental mitigation.
Harlan Kelly, assistant general manager for infrastructure, said the unanticipated conditions fell into four categories and that roughly half of the requested increase is for unforeseen site conditions. He said the proposed total contract authority could reach approximately $87.7 million following the modification.
Commissioner questioning focused on program reporting. One commissioner noted the quarterly trend report previously provided had not signaled a negative trend and asked why the program contingency — rather than project contingency — was being tapped; staff said the contingency increase was program‑level because the overrun exceeded project contingency and acknowledged the reporting shortfall, committing to adjust early‑warning reporting practices.
The commission moved, seconded and approved the contingency increase by voice vote.
