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PUC hears risk assessment for $4.3 billion WESIP; staff and consultants urge workshops before adding contingency
Summary
The San Francisco Public Utilities Commission heard a Parsons/CH2M Hill risk assessment for the Water System Improvement Program (WESIP). Consultants recommended raising the escalation rate (adds $105M) and a 5% program contingency (adds $233M); commissioners asked for focused workshops and more analysis before any policy changes.
The San Francisco Public Utilities Commission on July 6 reviewed a program-level risk assessment for the Water System Improvement Program (WESIP), a $4.3 billion capital effort, and agreed to convene targeted workshops before making policy changes that could raise program costs.
Tony Irons, deputy general manager, and Julie Labonte, WISA director, presented consultant findings prepared by Parsons and CH2M Hill. Labonte said the consultants recommend increasing the escalation rate used to calculate future construction costs from 3.5% to 4.5% — a change she said would represent roughly $105,000,000 added to the program — and adding a 5%–10% program contingency to account for uncertainties.…
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