SFPUC endorses $6.93 billion Sewer System Improvement Program and authorizes Phase 1 planning

The San Francisco Public Utilities Commission on Aug. 28 voted to endorse the goals and validate the Sewer System Improvement Program (SSIP), a $6.933 billion, multi-decade plan to repair and upgrade the city’s sewer and biosolids infrastructure and to invest in green stormwater projects.

Commissioners approved a resolution authorizing Phase 1 planning and development — a package of high-priority work including replacement biosolids digesters, early green-infrastructure pilots and treatment-plant reliability upgrades — at an estimated Phase 1 cost of about $2.7 billion. After staff presentations and public comment, the commission moved and passed the resolution by voice vote; the meeting record notes “the resolution carries.”

The SSIP workshop presented by staff laid out recommended treatment and collection projects, phasing, and rate impacts. Karen Kubik, SSIP director, asked the commission for “validation of our $6,900,000,000 program” and described a phased approach intended to deliver the most urgent projects first. Senior program staff said the revised program total reflects schedule-driven savings of about $65 million from accelerating the biosolids digester work.

Dan Donahue, program management team lead, summarized treatment recommendations and timing. He told the commission the recommended biosolids option — building new digester facilities and adding food- and fog-receiving stations — carried a construction cost of just under $2 billion after schedule adjustments and would be relocated away from the nearest residences to reduce neighborhood impacts.

Staff quantified customer impacts in their financial model. Todd Reidstrom, chief financial officer, said the digester component would result in a projected $33-per-month increase in the average monthly bill by 2032. He described a phased financing plan and projected that Phase 1 implementation would raise the average combined water and sewer bill to roughly $244 by 2032 under the staff assumptions, with tools available to smooth increases over time.

The SSIP combines treatment-plant projects (Southeast, Oceanside and Northpoint), collection-system upgrades including a Central Bayside tunnel, and a $400 million commitment to green infrastructure. Staff recommended a combined strategy for the Bayside project, selecting a budget figure of roughly $1.294 billion that blends a tunnel solution with green measures.

Commissioners pressed staff on two key uncertainties: the final sizing of the Bayside tunnel (staff said further watershed analyses and regulatory negotiations will guide the final size) and how quickly digesters and other projects can be accelerated without undermining environmental review or operational continuity. Staff said acceleration reduces escalation-driven costs and that early pilots and watershed assessments will inform later sizing and phasing decisions.

The commission heard substantial public comment from Bayview Hunters Point residents and community groups urging faster work in the Southeast, stronger local-hire and contracting commitments, and more immediate neighborhood benefits. Staff noted existing local-hire goals and said outreach, a contract-assistance center, and community benefits policies will be applied to SSIP projects.

The resolution endorses the SSIP goals and levels of service, validates the program total, and authorizes staff to proceed with planning and development of Phase 1 projects. Staff will return to the commission with project-level authorizations, environmental review, and financing plans as individual projects are refined.