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SFPUC adopts 10-year capital and financial plans, updates fund reserve policy and greenlights Southeast headworks construction
Summary
The Commission adopted updated 10-year capital and financial plans (2017'2027), approved revisions to the fund balance reserve policy (minimum ~90 days, maximum ~250 days), and authorized construction to proceed for the Southeast Water Pollution Control Plant headworks project (CWWSIP SE02) with an $11.6 million contract adjustment to coordinate SSIP work.
San Francisco — At its Feb. 28 session the San Francisco Public Utilities Commission approved key financial and capital planning items for the coming decade and moved multiple capital projects forward.
CFO Eric Sandler presented the mid-cycle updates to the SFPUC's 10-year capital and financial plans, which adjust the planning horizon to fiscal year 2027 and reflect mid-year operating and capital assumptions. Commissioners voted to adopt both the ten-year capital plan and the ten-year financial plan. Sandler noted that Clean Power SF was not incorporated in the plans yet and that a separate growth-plan and capital/financial package for that enterprise will be brought forward.
On reserves, staff proposed simplifying the fund balance reserve policy to use a single metric: fund balance as a percentage of operating expenditures. The commission adopted a minimum working-capital target equivalent to roughly 90 days of operating expenditures and a maximum (for transparency/reporting triggers) of approximately 250 days (about 68% of annual operating expenditures). Staff will present a separate debt-service coverage policy and additional financial policies in the coming months.
The commission also adopted project and contract actions: it approved the final mitigated negative declaration and authorized proceeding to construction for the Southeast Water Pollution Control Plant new headworks project (CWWSIP SE02). Staff described a planned construction start in late summer/early fall and said a CM/GC contractor will proceed with procurement; a contract increase of $11.6 million will be funded from other SSIP project budgets to enable coordination.
Other items on the consent calendar and several contract amendments were moved, seconded and approved without separate public removal. The commission indicated it will return next year with revised capital baselines for major programs including SSIP and WSIP and with an updated financial plan that integrates Mountain Tunnel findings and other new information.
What happens next: staff will bring separate debt-service coverage and capital-financing policies for commission review in March and continue to refine capital baselines and the Clean Power SF growth plan.
