SFPUC approves CEQA findings and multiple contracts, denies procurement protest

The San Francisco Public Utilities Commission on Oct. 14 approved an initial-study/mitigated-negative-declaration and related California Environmental Quality Act findings for the Baden and San Pedro valve-lot project and authorized staff to include construction funding in an upcoming supplemental appropriation.

"This is a key investment," Julie Levante, the project lead, told commissioners, describing the roughly $25,000,000 project as important to increasing the flexibility and reliability of the water system. The commission voted to adopt the IS/MND, mitigation monitoring and reporting program and related findings, and to authorize project implementation pending subsequent Board of Supervisors action and award of the construction contract.

At the same meeting the commission approved awarding the New Crystal Springs Bypass Tunnel construction contract to the lowest responsive bidder, a joint venture of Schenck and Balfour Beatty, for a bid that staff said was about 8% below the engineer—9s estimate. Staff reported the lowest bid at about $55,700,000 and said it would seek Board of Supervisors supplemental funding for the construction.

Separately, the commission approved professional-services agreements: selection of MWH for on-call water-quality services under agreement CS924 (not to exceed $2,000,000 over five years) and the selection of program-controls firms for the Water System Improvement Program. Environmental Construction Solutions (ECS) was approved for the first program-controls contract (13a) and Centimeters Pro was approved on the second contract (13b).

During the program-controls discussion ARA Engineering Group raised a formal protest alleging procurement irregularities and referenced a Dispute Resolution Board report involving a separate Fourth Street Bridge project. Ali Alta of ARA Engineering told the commission he was "extremely concerned" about the integrity of the selection process and questioned whether the prime firm met program-level qualifications and whether key staff had attended oral interviews.

City Attorney John White and staff replied that the Fourth Street Bridge matter is litigation in the Department of Public Works and is not a timely basis to protest this procurement. Staff outlined their evaluation of the protest points'1 including prime-team percentages, required experience, key-person commitments and Human Rights Commission preference eligibility'1 and said the protest was denied because the proposals met the RFP criteria. Centimeters Pro's president confirmed the firm would perform more than the 20% prime role alleged in the protest and said the engagement would be a multi-year commitment.

All contested items were decided by voice vote after discussion; commissioners moved and seconded the motions on the record and the motions carried.

The commission recorded no public comments opposing the CEQA actions for the Baden and San Pedro valve-lot project, and staff noted the planning department had adopted the IS/MND and related findings on Sept. 25.

Next steps: staff will proceed with contract award and supplemental appropriation requests to the Board of Supervisors where required; the procurement files and the protest responses will remain part of the public record.