SFPUC outlines $54 million bioregional approach to WSIP habitat mitigation, staff urged to track schedule risk

The San Francisco Public Utilities Commission on Thursday reviewed a consolidated plan to deliver habitat mitigation for the Water System Improvement Program (WSIP), with staff saying the approach will consolidate restoration obligations across projects and reduce implementation risk and costs. "The projected cost is $54,000,000," Greg Lyman, who leads the restoration initiative, told the commission.

Staff described the Bioregional Habitat Restoration Initiative as a program to satisfy CEQA and resource-agency permit requirements by concentrating mitigation in larger, ecologically connected restoration sites rather than scattering small compensatory projects. Irina Torrey, manager of the Bureau of Environmental Management, said the program is intended to "avoid environmental impacts to the extent possible" and, where avoidance is not feasible, to minimize or mitigate impacts through consolidated planning and permits.

Carrie O'Neil, environmental construction compliance manager, outlined the field program that will enforce those obligations during construction. She described a four-level compliance log (acceptable, incident, minor problem, noncompliance), the use of specialty monitors (archaeologists, biologists, paleontologists), and the authority of environmental monitors to temporarily halt or redirect work if sensitive species are encountered. "They'd halt the piece of equipment temporarily while they captured and safely relocated the tiger salamander outside of the work limits," O'Neil said.

The staff presentation included detailed delivery and funding notes: the consolidated approach covers more than 2,200 acres of restoration, including roughly 1,600 acres on PUC-owned property; about 16 of 46 WSIP projects have natural‑habitat impacts; and the program will require a package of permits, conservation easements, perpetual monitoring and maintenance, and financial assurances. Staff said the projected $54 million includes an $8 million initial deposit to a special account and roughly $26 million budgeted for construction work. Permits typically require monitoring for 10 years, with the Natural Resources Division assuming ongoing monitoring responsibilities thereafter.

Art Jensen of Bosco, who reviewed the WSIP annual report, told commissioners the projects remain "within scope" and "within budget" but recommended continued tracking of change orders and contract modifications and a staff review of schedule compression. Jensen noted the current forecast shows several projects under construction in the program's final year, which could create resource and scheduling risk.

Public commenters generally welcomed the consolidated approach but raised concerns about using PUC‑owned lands for mitigation. Jeff Miller of the Alameda Creek Alliance said much of the proposed mitigation is on land the PUC already owns and is not at risk of development, asking whether using such land is appropriate mitigation for construction impacts. Commission staff responded that resource agencies in some regions have directed mitigation to be implemented on PUC property to meet permitting schedules and species requirements, while other regions will use mitigation banks or private‑land acquisitions where available.

Staff outlined next steps: preparing roughly 11 contracts to deliver restoration at about 20 sites, returning to the commission with two professional services contracts for construction management, two contracts for seed and plant propagation using local genetics, additional construction contracts and real‑estate services approvals, and requests for funds for the special account after agency concurrence. Commissioners and staff emphasized ongoing coordination with resource agencies and a public accounting of how change orders and schedule pressures are being addressed.

The commission did not take an action on the restoration budget at the meeting; staff said approvals for specific contracts and property acquisitions will be brought forward in the coming months.