PUC approves March 2016 WSIP revision: $80 million net increase, schedule extended to Dec. 2019

Dan Wade, director of the Water System Improvement Program, asked the San Francisco Public Utilities Commission on April 26 to approve a March 2016 revision to the WSIP that refines scope on four projects, adds four WSIP closeout projects, and extends the program completion date by seven months to December 2019.

Wade said the revised program budget is $4,845,500,000 — a net increase of $80,000,000 driven mainly by schedule adjustments for the Calaveras Dam replacement project and cost increases in several regional projects. He told commissioners that the program remains nearly complete at the local level and that forecasted financing costs have been carried forward since 2009; more favorable bond rates and financing savings, he said, are expected to offset much of the additional expense.

Commission discussion focused on whether schedule slips on Calaveras or other supply projects could affect level‑of‑service goals. BOSCO (the bond oversight body) had recommended that the commission seek regular updates that explicitly address water supply impacts and public‑health and safety implications of schedule or scope changes. The commission directed staff to review BOSCO's recommendations and to return with confirmation that level‑of‑service goals can be met despite certain schedule slips.

A motion to endorse the March 2016 revised WSIP, approve the project‑level scope, schedule and budget, and direct staff to file a notice of change with the state was moved and seconded; the commission voted to approve the revision.

Wade and others said staff would follow up with financing details and continue quarterly reporting on impacts to schedule, scope and budget.

Next steps: staff will send the notice of change to the state in compliance with the California Water Code and return to the commission with additional financing and schedule analyses.