SFPUC seeks $55M increase for Southeast Plant biosolids digester services; committee asks for annual contractor reviews
September 21, 2022 | San Francisco County, California
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The San Francisco Public Utilities Commission on Sept. 21 asked the Board of Supervisors Budget & Finance Committee to approve a $55 million increase to its Brown & Caldwell professional‑services agreement for the Southeast Plant biosolids digester project, bringing the contract ceiling to $208.5 million and extending the term into 2029.
Project managers Howard Fung and Carolyn Chu described the digester replacement as the largest capital improvement project in the PUC’s wastewater program. Chu said the Southeast Plant treats about 80 percent of the city’s wastewater, and that the new facilities are designed to use 100 percent of treated biosolids and the biogas generated while limiting odors and noise within the plant fence. “We are building a brand new facility from the ground up,” Chu said, noting the project budget of $2.4 billion and construction value of approximately $1.9 billion.
PUC staff said Brown & Caldwell has been on the project since early planning and remains the designer‑of‑record; the requested amendment would fund construction‑phase engineering, RFIs, commissioning support and training for operations and would make the professional services agreement coterminous with the revised project schedule. BLA staff reported the contract amendment increases the agreement from $153.5 million to $208.5 million and extends the agreement term from December 2025 through July 2029. The analyst noted project costs have risen since 2017 and recommended memorializing an annual performance review of the contractor in the legislative file.
Supervisors pressed PUC staff on cost increases, scope reductions and workforce and local business outcomes. SFPUC project staff said they paused and redesigned portions of the project following high 95 percent‑design cost estimates, deferred nonessential scope (for example, a maintenance building) into a future program, and continued with a CMGC delivery model to retain collaborative benefits. Chu highlighted local hiring and apprenticeship numbers: 35 percent local hire (goal 30 percent) and 67 percent apprenticeship participation (goal 50 percent); she said Brown & Caldwell has exceeded the LBE goal, awarding more than $118 million to LBEs to date.
Committee Vice Chair Ashish Safaie moved to amend the resolution to request annual performance reviews of Brown & Caldwell be produced and placed in the legislative file; PUC staff agreed. The committee approved that amendment and unanimously forwarded the amended resolution to the full Board with a positive recommendation.
What’s next: The committee’s amendment requests annual contractor performance reviews that PUC staff committed to provide; the full Board will consider the amended resolution at its upcoming meeting.
Project managers Howard Fung and Carolyn Chu described the digester replacement as the largest capital improvement project in the PUC’s wastewater program. Chu said the Southeast Plant treats about 80 percent of the city’s wastewater, and that the new facilities are designed to use 100 percent of treated biosolids and the biogas generated while limiting odors and noise within the plant fence. “We are building a brand new facility from the ground up,” Chu said, noting the project budget of $2.4 billion and construction value of approximately $1.9 billion.
PUC staff said Brown & Caldwell has been on the project since early planning and remains the designer‑of‑record; the requested amendment would fund construction‑phase engineering, RFIs, commissioning support and training for operations and would make the professional services agreement coterminous with the revised project schedule. BLA staff reported the contract amendment increases the agreement from $153.5 million to $208.5 million and extends the agreement term from December 2025 through July 2029. The analyst noted project costs have risen since 2017 and recommended memorializing an annual performance review of the contractor in the legislative file.
Supervisors pressed PUC staff on cost increases, scope reductions and workforce and local business outcomes. SFPUC project staff said they paused and redesigned portions of the project following high 95 percent‑design cost estimates, deferred nonessential scope (for example, a maintenance building) into a future program, and continued with a CMGC delivery model to retain collaborative benefits. Chu highlighted local hiring and apprenticeship numbers: 35 percent local hire (goal 30 percent) and 67 percent apprenticeship participation (goal 50 percent); she said Brown & Caldwell has exceeded the LBE goal, awarding more than $118 million to LBEs to date.
Committee Vice Chair Ashish Safaie moved to amend the resolution to request annual performance reviews of Brown & Caldwell be produced and placed in the legislative file; PUC staff agreed. The committee approved that amendment and unanimously forwarded the amended resolution to the full Board with a positive recommendation.
What’s next: The committee’s amendment requests annual contractor performance reviews that PUC staff committed to provide; the full Board will consider the amended resolution at its upcoming meeting.
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