Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Capital Infrastructure topic
No spam. Unsubscribe anytime.
PUC adopts WESIP revisions: $4.59B budget unchanged, schedule extended to July 2016 and $161M reserve created
Summary
WESIP director Julie Labonte told the commission the overall WESIP budget remains $4.59 billion, but the program completion date moves from December 2015 to July 29, 2016; the commission approved moving $161 million into a program management reserve and adopted amendments requiring additional reporting on water-supply projects.
The San Francisco Public Utilities Commission adopted revisions to the Water System Improvement Program after a public hearing and staff presentation that explained schedule, scope and cost changes.
Julie Labonte, WESIP director, told the commission the proposed June 2011 revision keeps the overall program budget unchanged at $4.59 billion but extends the program completion date from Dec. 4, 2015, to July 29, 2016. Labonte said the program continues to include the same portfolio of projects, but that four regional projects and several local projects have had modest scope changes and schedule adjustments.
Labonte said the revisions reflect: contracting and construction realities (including lower construction bid prices that produced nearly $300 million in construction savings), project‑level delivery‑cost increases driven by additional environmental permitting and unforeseen field conditions, and new geotechnical work that led to scope additions. The net effect, she said, is that $161 million of savings is being moved into a program management reserve intended to fund regional projects that exceed their project budgets.
As part of the motion tied to wholesale customer concerns, the commission adopted amendments directing staff to: define major scope changes and refinements in the notice of change report to the state, report back to the commission by Aug. 31 on water‑supply issues related to Crystal Springs and Calaveras projects, and report by Oct. 31 on the regional groundwater storage and recovery project with alternatives if problems exist.
Wholesale customers’ representatives (BOSCA) and its CEO Art Jensen and chair Barbara Pierce said they appreciated the staff response but reiterated concern that extending the schedule beyond the date San Francisco committed to in the water supply agreement raises serious risks. Commissioners and staff emphasized stronger reporting, a change‑control board and the reserve as means to increase oversight and transparency. Commissioners also discussed the risk of aggressive low bids followed by change orders, and staff described quarterly reporting and charter controls requiring commission approval for cost increases over 10%.
The commission approved amendments and then the main resolution by voice vote. Staff will move forward with the state notice of change and the amended reporting schedule; staff also said the five local water‑supply projects being transferred to the Water Enterprise CIP will remain funded and will be reported through the Water Enterprise process.
Next steps: staff will file the notice of change with the California Joint Legislative Audit Committee, the California Department of Public Health and the California Seismic Safety Commission, provide Aug. 31 and Oct. 31 status reports per the adopted amendments, and continue quarterly reporting on reserve use and change orders.
