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SFPUC seeks $7.78 million amendment for Mountain Tunnel engineering work
Summary
The Budget & Finance Committee heard a detailed SFPUC briefing on additional engineering needs for the Mountain Tunnel rehabilitation (Hetch Hetchy system) and approved forwarding an amendment to increase the McMillan Jacobs design contract to $28.78 million and extend the term to 2029 to support construction and closeout.
The San Francisco Public Utilities Commission told the Budget & Finance Committee May 25 it needs additional engineering funding and time to support construction of the Mountain Tunnel rehabilitation, a critical component of the Hetch Hetchy regional water system.
Randy Anderson, SFPUC project manager for the Mountain Tunnel improvements project, presented Amendment No. 1 to contract CS249 with McMillan Jacobs. Anderson described a string of construction milestones — a 100-foot-deep shaft and bypass tunnels, a 1,000-foot access adit, siphon extension and interior lining and grouting work — and said the amendment increases the contract by about $7.78 million to a new not-to-exceed of $28,780,000 with a contract duration extended through February 2029. “The mountain tunnel is a critical and non redundant component of the system, which conveys water to 2,800,000 residents and businesses over 4 counties,” Anderson said in his presentation.
Anderson and SFPUC staff explained the amendment is needed because the project’s scope shifted from an earlier alternative analysis that favored a lower-cost rehabilitation over a new bypass tunnel; the change saved an estimated $370 million but required additional engineering support during construction. The department noted the project is approximately 20% complete and that the total program secured funding from the Drinking Water State Revolving Fund.
The Budget Legislative Analyst recommended approval and said the amendment’s billing rates are consistent with the original agreement. Committee members asked about subcontractor participation, LBE utilization (the contractor reported 13.8% LBE utilization versus a 10% RFP expectation) and schedule milestones. The committee forwarded the amendment to the full Board with a positive recommendation.
What’s next: The full Board will consider the amendment; SFPUC will continue construction management work and provide monitoring updates as requested by the committee.
