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SFPUC reports SSIP progress; seeks $1.5B in low‑cost SRF financing and highlights local hire gains
Summary
The SFPUC—s Sewer System Improvement Program update outlined projects moving into construction, a request to obtain $1.5 billion in State Revolving Fund loans at about 1.7% interest for eight projects, and local‑hire metrics showing strong San Francisco participation on SSIP work to date.
Karen Kubik, director of the Wastewater Enterprise Capital Improvement Program, briefed commissioners on SSIP quarterly progress and financing. She reported 68 green infrastructure projects in the pipeline, several projects moving into construction (Sunset Greenway in construction; Holloway and Mission Valencia nearing construction), and preconstruction work on Headworks and biosolids projects.
On financing, Kubik said staff is pursuing State Revolving Loan Fund assistance with the California State Water Resources Control Board to obtain about $1.5 billion over the next three years for eight projects; staff described the SRF interest rate as roughly 1.7 percent and estimated that borrowing through SRF yields material savings compared to other state general obligation rates. Kubik said the SFPUC has a borrowing capacity for the SSIP of about $2.24 billion over the program term.
Kubik emphasized local economic benefits: of roughly $328 million in SSIP prime contracts awarded to date, about $112 million went to subcontractors and nearly half of that subcontractor spending (48%) was awarded to San Francisco local business enterprises (LBEs). Through June 2015, the workforce on SSIP projects exceeded local hire requirements, with San Francisco residents performing more than 40 percent of hours on SSIP work and 120 residents earning combined wages of around $2.5 million.
Commissioners asked about schedule risks (the Central Bayside system improvement project was flagged as the only red item this quarter and will return for discussion) and the timeline for transitioning projects into construction. Staff said they will return in the fall with decisions on tunnel sizing and next steps.
Next steps: Holloway Green Street is on the agenda for contract award; staff will return with the Central Bayside sizing and financing recommendations and continue SRF application work.
