PUC lays out 30-year sewer program, estimates up to $6.78 billion and seeks long-term program manager

San Francisco — The San Francisco Public Utilities Commission on Tuesday detailed how it plans to deliver a multi-decade Sewer System Improvement Program, telling commissioners the effort will be city-led, require sustained program management and could cost as much as $6.78 billion over 30 years.

Harlan Kelly, assistant general manager for infrastructure, told the commission the PUC will use a matrix organization that draws on in-house engineering, construction management and consultants for large and small projects. "We wanted more of a long term, upfront appropriation for financing," Kelly said, explaining why the agency is seeking longer funding horizons than annual appropriations.

Karen Kubik, director of wastewater capital improvement projects, gave the program's technical outline and said staff will integrate design standards, Maximo asset management, system optimization and a "triple bottom line" approach that balances environmental performance, cost and social outcomes. Kubik described two delivery models: a traditional "design-at-risk" model where preliminary design supports environmental review and a model that completes environmental review before final design for particularly complex neighborhood projects.

Kubik provided the program's upper-bound cost estimate, stating that a full implementation of proposed flood-control, treatment-plant and LID projects could reach about $6.78 billion over 30 years. She said staff is preparing an RFP for a long-term program management professional services contract and estimated a program management professional-services contract in the range of $170 million (with $30–34 million of that city-performed work).

Commissioners pressed staff on outreach and rate impacts. Commissioner Moran and others emphasized the need for sustained, neighborhood-level public engagement, and asked how the PUC will explain rate implications to ratepayers. Kubik said outreach and a communications director will be part of the program manager's role and that project-level outreach will accompany each major project. "We need to have meetings in all of the neighborhoods and be able to focus on their individual issues," she said.

Staff said the program will include a dedicated community benefits budget, a stronger quality-assurance program, and a process for resolving consultant conflicts of interest (so firms that assist in scoping early work are not barred from later tasks where conflicts would arise). Next steps include advertising the program management RFP and returning to the commission with watershed prioritization and project schedules in the January meeting.

The commission did not take action on the program at Tuesday's meeting; staff will return with contract documents and scheduling for future procurement and environmental review.