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SFPUC Seeks $1M Contract Increase to Close Out New Irvington Tunnel Repairs; Project Budget Has Ballooned

San Francisco Board of Supervisors Budget and Finance Committee · February 10, 2016
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Summary

SFPUC requested a $1 million amendment to the Hatch Mott MacDonald construction management contract to support inspection and closeout work after liner failures; the committee was told the overall project budget has risen to about $347 million from $214.7 million originally.

The Budget and Finance Committee recommended forwarding a resolution authorizing Amendment No. 3 to Agreement CS-918 to add $1,000,000 (bringing the total construction-management amount to $20,500,000) for Hatch Mott MacDonald's services on the New Irvington Tunnel project.

Dan Wade, director of the Water System Improvement Program, told the committee two sections of the tunnel liner failed during construction in 2014 and repairs required regrouting and extended inspection. "We required an investigation of the full length of the tunnel. There were repairs to these failed sections that required the project schedule to be extended," he said, describing extra inspection, overtime and change-order work required for closeout.

Budget analyst Harvey Rose noted that the revised project budget shown in the report is approximately $347,000,001.28, up 61.7% from the original 2005 budget of about $214,650,000, and recommended approval of the requested amendment to allow orderly closeout.

SFPUC said the tunnel is now in service and delivering water to about 2.6 million people in the Bay Area, and that the requested amendment will fund additional construction management staff, quality-assurance inspection and final change-order negotiations.

The committee voted to forward the item with a positive recommendation to the full board.