SFPUC updates WISIP: construction ramps up, some local cost/schedule pressures

Julie Labonte, director of the Water System Improvement Program, told the San Francisco Public Utilities Commission on Aug. 10 that WISIP is moving from planning into a construction surge, with $1.3 billion in regional projects currently under construction and multiple projects nearing major milestones.

Labonte said the program-level forecast is $53 million under the approved budget as of July 1, driven by lower-than-estimated bids and favorable market conditions. At the same time, she said the local program faces a $35 million cost overrun — about $3 million higher than the prior quarter — primarily because of added scope to the Westside recycled water project, and is forecasting a 13.3‑month delay on local schedules tied to that work. Construction remains on track at the regional level for the approved December 2015 completion date.

The presentation detailed recent contract awards and workforce metrics: three contracts totaling about $381 million were awarded this quarter, roughly 16 percent below engineer estimates, and construction craft hours logged have increased fivefold, surpassing 1,000,000 hours. Safety and compliance remain strong, Labonte said, with a program incidence rate of 1.7 versus a 4.7 industry average and compliance incidents under 1 percent of roughly 1,200 reports filed.

Labonte flagged several preconstruction and project‑specific risks. New seismic design work on a pipeline segment increased costs by roughly $3 million and added three months to the schedule; Bay Division pipeline #5 encountered soils with elevated nickel concentrations that require hazardous‑materials handling and stricter disposal; and archaeological finds in several locations will require tunneling work to avoid disturbance. She said the department is addressing permitting bottlenecks with an interagency task force and is issuing phased notices to proceed to allow contractors to begin procurement and early work while awaiting remaining permits.

Two projects exceed the commission’s 10 percent change‑order threshold: the Lawrence Livermore project (about 12 percent over original cost and 17 percent over schedule), for which a change order is on the agenda, and the Roselle crossover contract, which may exceed 10 percent after negotiation; Labonte said staff will return to the commission as required for approval. She also noted a 100 percent draft design submittal for the Calaveras replacement project and said the EIR certification process is on track for completion by year‑end.

Labonte recommended continuing the current monitoring and construction management approach; commissioners asked about personnel continuity, the concentration of project schedules, and steps to maintain consistency across multiple Centimeters teams. Labonte said the program is segmented regionally, she is collocated with Centimeters teams for closer oversight, and an audit team will review construction management performance later in the year.

The commission did not take an additional formal action on the WISIP update during the meeting; commissioners thanked staff for the report and discussed possible future special sessions to manage the fall environmental review workload.

Ending: The PUC will review specific change orders and return to the commission as required; staff will continue milestone tracking and bring audit findings and any required change‑order approvals back for commission consideration.