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Board approves amendment capping management-contract spending on Water System Improvement Program at $7 million, orders competitive RFP
Summary
The Board of Supervisors approved an amendment to the Water System Improvement Program agreement that reduces an immediate management-contract authorization from $19 million to $7 million and directs a competitive RFP for further construction-management work once the reduced amount is exhausted. The vote was 10–1.
The San Francisco Board of Supervisors approved a resolution amending agreement number CS 7 6 5 for the Water System Improvement Program, reducing the immediate contract authority for management services from $19,000,000 to $7,000,000 and directing that a competitive request for proposals be issued when that reduced amount is spent.
The move, introduced and moved for approval by Supervisor McGoldrick and seconded by Supervisor Ellsburn, passed on a roll call vote of 10 ayes and 1 no. Supervisor Daley cast the lone no vote and gave an extended explanation on the floor.
Why this matters: Supervisors and union representatives have long debated whether large outside management contractors would transfer institutional knowledge to the city'owned Public Utilities Commission (PUC). The amendment narrows the immediate scope of contractor spending and requires competitive bidding for additional construction-management work, a change the budget committee and PUC staff said reflected a letter from PUC government-relations staff dated March 14.
Supervisor McGoldrick summarized the committee'PUC position before moving the amendment, saying the draft resolution "incorporates the following important changes: 1 is that, the separate RFP for the program construction management would be issued at the point when the reduced contract amount indicated as $7,000,000 is to be used up, as opposed again to the $19,000,000 that was previously requested." The motion to approve the amendment was accepted without objection before the roll call.
Supervisor Daley, explaining his no vote, traced the matter'''s long history and cited concerns from labor and ratepayer advocates about relying on outside managers rather than building expertise inside the PUC. "I'm afraid that, over the years, for some reason, that, we have lost our path," Daley said, noting earlier agreements intended to grow in-house capacity and saying the overall management expenses could reach nine-figure levels over the contract term.
Supervisor Maxwell and other members said they had only just received a union letter raising concerns and expressed disappointment at the timing of that input, but supported the amended action as a step to limit near-term spending and to create a pathway for competitive procurement.
Formal action: the board adopted the resolution approving Amendment No. 1 to agreement CS 7 6 5, with the specific changes described above. The resolution directs issuance of a competitive RFP for construction management when the $7,000,000 authorized in the amendment is expended.
Next steps: Under the amendment, the city will use the reduced contract amount for current work and then initiate a competitive selection for further work; the PUC and budget committee will follow up as needed.
