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SFPUC approves $146.9 million supplemental appropriation for new headquarters at 525 Golden Gate

San Francisco Public Utilities Commission · July 14, 2009

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Summary

The commission authorized a supplemental appropriation of $146,889,046 toward a $190.6 million SFPUC headquarters at 525 Golden Gate Ave, a 13‑story LEED Platinum target building designed to house ~1,000 staff and an emergency operations center; funding depends on land sales, COPs and potential grants.

The San Francisco Public Utilities Commission on July 14 approved a supplemental appropriation request of $146,889,046 to fund construction of a new SFPUC headquarters building at 525 Golden Gate Avenue.

Harlan Kelly, assistant general manager for infrastructure, introduced the item and deferred to Brook Mobratu (Department of Public Works project manager) for design and sustainability details and to Todd Wistrom for financing. Mobratu described the project as a 13‑floor (plus basement) building of approximately 277,000 gross square feet, designed to meet LEED Platinum standards, to host an emergency operations center and to be occupiable after a seismic event. He said the building will reduce energy use by roughly 55% compared with Title 24 code baselines and generate a portion of its own clean energy on site through photovoltaics and wind turbines.

Wistrom presented the budget and funding plan: total project cost estimated at $190,600,000; sources include $32.8M in land sale proceeds already closed, an assumed $120.3M of certificates of participation (COPs) or indebtedness, potential grant awards (subject to award), and existing fund balances previously appropriated. He flagged major sensitivities: interest rates (a 1% swing could change proceeds by about $16M) and uncertainty about federal stimulus grant timelines and amounts. Staff indicated approximately $7.7M in known block grant allocation for energy components; other stimulus funding remained uncertain.

Commissioners questioned variations between older cost estimates (e.g., $181.3M) and the $190.6M figure; staff attributed changes to scope (adding a 13th floor and energy items), value engineering and shifting components. Commissioners discussed building program elements to balance sustainability goals and budget sensitivity and confirmed the supplemental appropriation motion, which passed.