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SFPUC says $1 billion in WESIP work will move to market as it outlines budget outlook
Summary
SFPUC staff told commissioners the Water System Improvement Program will advertise about 18 contracts in 2009—roughly $1 billion in work—and presented a second-quarter financial update showing modest positive operating results and reserve levels above minimum guidance.
Commissioners at the San Francisco Public Utilities Commission on Jan. 13 heard an update on the Water System Improvement Program and the agency’s current finances, including plans to advertise roughly 18 contracts this year representing about $1,000,000,000 in work.
Julie Levante, presenting the WESIP update for the general manager’s office, said bids on the Lake Merced pump station — the program’s largest local project — drew 10 responses and “all 10 bids came in between $30,000,000 and $40,000,000,” well below the engineering estimate of $52,000,000. Levante said staff expects to put more contracts into the market quickly while contractor interest remains high.
Todd Reitstrom, assistant general manager for business services and the PUC’s chief financial officer, gave the commission a second‑quarter financial report and projections through June 30, 2009. Reitstrom said the water enterprise shows net operating results of about $1,200,000 and Hetch Hetchy Water and Power about $5,700,000 positive on a projected basis. He highlighted a cellular‑account audit that deactivated 81 lines and moved 70 accounts to unlimited plans, producing roughly $150,000–$180,000 in savings.
Reitstrom drew the commission’s attention to a circled figure in his slides — $29,600,000 — and noted the projected reserves equal about 11.1% of revenues. He compared that with the Government Finance Officers Association guidance, which he said typically recommends a reserve range in the mid single digits to mid teens.
The general manager reported Board approval earlier this month of a $19,000,000 amendment to the Parsons contract and said staff is preparing a $26,000,000 contract with AECOM for forthcoming Board action. The PUC will seek Board of Supervisors approval of CEQA findings on three projects to unlock construction funding, the general manager said.
Why it matters: WESIP represents the largest near‑term capital push for the PUC; lower-than-expected bids on some projects could reduce construction costs and accelerate work, but staff said many projects still require environmental review and Board approvals before construction funds are released.
What’s next: Staff said it will return with contract awards and that the commission will review the budget materials and rate implications at scheduled budget hearings later in the month.
