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Committee backs $80 million SFPUC water capital program management contract
Summary
The Budget and Finance Committee forwarded to the full Board a resolution authorizing the SFPUC to award a 10-year, $80 million program management contract to HDR Stantec JV to oversee the Water Enterprise and Hetch Hetchy capital improvement programs; staff described program scale, LBE commitments and procurement process.
The Budget and Finance Committee voted Feb. 5 to forward to the full Board a resolution authorizing the San Francisco Public Utilities Commission (SFPUC) to execute a 10-year, up to $80 million program management contract (Pro205) with the HDR Stantec Joint Venture to support delivery of the water enterprise and Hetch Hetchy capital improvement programs.
Katie Miller, SFPUC Director of Water Capital Programs, told the committee the regional system delivers drinking water to 28 wholesale customers and more than 180,000 metered retail customers and that major capital work is needed to maintain aging infrastructure. "There are over $4,000,000,000 of projects currently underway to provide these critical asset upgrades," Miller said, and described three capital programs with combined 10-year budgets: Hetch Hetchy ($1.5 billion), regional water CIP ($1.6 billion) and local water CIP ($1.3 billion).
The contract will provide program administration, strategic capital planning, program delivery and technical project support. Miller said the SFPUC sought a program management team to drive efficiencies and quality and that HDR Stantec JV scored highest in the technical evaluation. The contractor proposal included a Local Business Enterprise (LBE) commitment of 20.83% (above the 15% requirement) and a "social impact partnership" commitment of about $1,045,000 plus volunteer hours.
The Budget and Legislative Analyst (BLA) recommended approval and characterized the contract as roughly 1.8% of the water enterprise's planned 10-year capital spending and noted comparable program management contracts exist for other utilities. The committee asked about oversight of the potable emergency firefighting water system on the west side; Miller confirmed the contract is expected to provide oversight and third‑party review for that work.
With no public commenters on the item, the committee voted 3-0 to forward the contract award recommendation to the full Board. The clerk recorded votes as: Dorsey, aye; Engadio, aye; Chan, aye.
The contract will return to the Board of Supervisors for final approval; SFPUC staff said services will be phased and include technology transfer and training to SFPUC staff over time.
