OCII approves $19.08 million package, moves Folsom Street construction toward September start

The Office of Community Investment and Infrastructure (OCII) on its public agenda Wednesday approved amendments to two agreements that will allow construction of the Folsom Street improvement project to proceed.

The commission voted to increase the CMG design contract by $667,969, bringing the contract ceiling to $4,420,106, and separately approved a third amendment to OCII’s memorandum of understanding (MOU) with the City and County of San Francisco Department of Public Works (DPW) that authorizes $17,966,556 for construction management and contractor work, bringing the MOU total to $19,079,347. Both votes passed on roll call: the CMG amendment passed 3–0 with one absence; the DPW MOU amendment passed by the same margin.

Shane Hart, OCII’s Transbay project manager, told the commission the design for the six-block project — running from Second Street to Spear Street — is complete and that OCII funds the portion from the TJPA bus ramp to Spear. "We plan on starting construction in September of this year and complete construction sometime around summer of 2020," Hart said.

CMG Landscape Architecture presented the final streetscape design, which includes widened sidewalks, a continuous two-way protected bike lane, three bus islands, rain gardens that double as seating areas, consistent street trees (Brisbane box) and a unified suite of site furnishings. Carrie Rubzynski of CMG described the project as intended “to create a more enhanced experience for pedestrians” and to reestablish transit along Folsom.

DPW project manager Kelly Rudnick outlined outreach and construction coordination plans and described the bidding climate. "The low bidder is $16,500,000. It did come in about 150% over what we estimated," Rudnick said, noting high demand for materials — particularly concrete — drove much of the cost escalation. She said DPW expects to award the construction contract in July or August and issue a notice to proceed in time for a September start.

Staff said the construction portion will be funded with existing OCII bond proceeds. On contracting goals, OCII staff told commissioners the city sets a 25% LBE target; the apparent low bidder, Mitchell Engineering, was selected as a city-certified small LBE and OCII-calculated SBE participation on the bid is 72%. City workforce requirements referenced include a 30% local participation goal and a minimum 50% of apprentice hours performed by local workers.

Commissioners pressed staff on tradeoffs: Commissioner Bustos questioned the removal of parking and the potential effects on street-level retail and asked how plantings would be maintained and secured against nuisances. Staff said about 22 parking spaces remain along a key stretch and that a Community Benefit District will provide maintenance above the city standard; public works will retain routine street maintenance.

The commission’s actions authorize staff to finalize the contract and MOU amendments and allow DPW to proceed with bid award and construction scheduling. The construction timeline and high bid prices leave open the option to pause the project if market conditions change, but staff said pausing risks an unknown delay and that current schedules assume a September start.

Next steps: DPW awards the construction contract and issues notice to proceed; OCII and city staff will continue neighborhood outreach (30-day and 10-day notices, mailings and electronic updates) and coordinate with adjacent development during construction.