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PUC approves consent calendar, a NorthStar Solar mitigation agreement and several construction contracts
Summary
The commission approved the consent calendar of contract acceptances and awards, authorized a system-impact mitigation agreement with NorthStar Solar (and similar future agreements), approved a regional cost-sharing agreement for NPDES permit processing and authorized increased contingency and awards for several pipeline and wastewater contracts.
At the meeting the San Francisco Public Utilities Commission approved a slate of procurement and authorization items on the consent calendar and across several agenda items.
Consent calendar: the commission approved a multi-part consent calendar that accepted completed work, approved contract modifications, awarded several sewer-replacement and spot-repair contracts and authorized a five-year cellular lease for watershed lands. The consent calendar passed by voice vote.
Item 9 — NorthStar Solar mitigation agreement: Assistant General Manager Steve Ritchie described a proposed system-impact mitigation agreement requiring NorthStar Solar to pay the SFPUC for costs necessary to mitigate impacts to the city's electric system caused by interconnection; staff estimated mitigation capital (transformers and switches) for identified developers at about $28,000,000 to be allocated among surviving projects. Commissioners asked about NorthStar’s background and whether local-hire rules apply; staff said the Central Valley project is not on PUC property and so does not itself fall under San Francisco contracting/local-hire provisions, though how the PUC spends any funds it receives will be subject to city procedures. The commission authorized staff to negotiate and execute the agreement and to pursue substantially similar agreements with other interconnecting projects.
Item 10 — Regional cost-share for NPDES permit: Staff reported a cost-sharing arrangement among seven Bay Area water agencies to prepare a national pollutant discharge elimination system (NPDES) permit for portable water discharges; SFPUC’s share is $50,000 over two years (about $25,000/year). The commission approved the agreement.
Item 11 — San Joaquin Pipeline contingency increase: The commission approved increasing construction contract contingency for contract HH-935C (San Joaquin Pipeline System, Eastern segment) by $5,786,249, revising the authorized total up to $55,648,606 to accelerate the eastern segment.
Item 12 — Southeast Plant contract award: The commission approved plans and awarded contract WW525 for Southeast Water Pollution Control Plant reliability upgrades (phase 2) in the amount of $11,160,000 to the lowest qualified, responsible bidder. Public commenters and commissioners stressed local hiring and outreach for these projects.
Next steps: staff will return with updates as larger capital program items (including WESIP) evolve and as specific mitigation agreements exceed the $1,000,000 threshold that requires Board of Supervisors approval.
