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PUC updates Sewer System Improvement Program, flags rebaselining and site control concerns
Summary
Staff reported 68 SSIP projects (57 in planning/design), early construction awards, workforce outcomes and local contracting results; they said staff will return March 8 for program rebaselining and noted a Central Shop relocation and digester siting as escalation risks.
Karen Kubik, Director of the Wastewater Capital Program, told the commission that the Sewer System Improvement Program currently includes 68 projects, with most in planning and design and two actively in construction. She said early implementation projects such as Mission‑Valencia and Holloway will begin construction in the coming weeks and that the program has secured $2.2 billion in pre‑approval from State Revolving Loan funds for specific items.
Workforce and local contracting: Kubik highlighted that of the $328 million awarded in SSIP prime contracts to date, about $112 million was paid to subcontractors and nearly half of that subcontract amount went to locally‑based local business enterprises (LBEs). She said San Francisco residents accounted for more than 40 percent of the labor hours on SSIP projects through June, exceeding requirements.
Risks and schedule: Staff said they will present a rebaselining proposal to the commission on March 8 that will update schedules, scopes and costs. A major near‑term concern is site control for Central Shop relocation needed for digester construction; staff warned that each month of delay on that front could add roughly $3 million in escalation costs.
Next steps: Kubik said staff will continue design and outreach work, pursue additional State Revolving Fund awards and return to the commission for rebaselining and awards at future meetings.
