SFPUC hears WESIP quarterly update as staff flags schedule delays and hiring shortfalls

Julie Labonte, the Water Enterprise Capital Improvement Program (WESIP) director, told the San Francisco Public Utilities Commission at its quarterly briefing that the program is approximately 4% complete and moving from planning into design for most regional projects. Labonte said three items are producing significant negative variances: a pipeline repair and readiness improvement program that will be delayed 15 months because the scope was expanded to add three pipeline rolling facilities; SCADA Phase II, delayed six months to allow development of operation-prioritization criteria; and the Crystal Springs Bypass Tunnel, which faces a 13-month delay after the city planning department determined an EIR (environmental impact report) — not a negative declaration — is required.

Labonte said those schedule adjustments reflect staffing shortfalls, weather impacts and a recent planning determination, and she asked commissioners to note that the program is transitioning many projects from planning to design. Tony Irons, assistant/general manager, added staff is developing an emergency response plan and stockpiling pipes and fittings to reduce near-term vulnerability while longer-term construction proceeds. He also said the program will likely request a supplemental appropriation before year-end to address local funding needs and to consider a two-year combined appropriation if regional funds remain available.

Commissioners pressed staff for clearer, reconciled dates after they found apparent disconnects between summary charts and detail pages for environmental review timelines. Suzanne Massa, regional project manager, said some environmental work started later than the report's timeline shows and that project-specific EIR timing is tied to the program-level PEIR, which complicates per-project scheduling. Commissioners asked staff to reconcile the charts and return with corrected milestone dates at the next meeting.

Several commissioners, noting market pressures from anticipated bond-driven capital spending, pressed staff on hiring and contractor availability. Harlan Kelly, assistant general manager for infrastructure, said the agency is recruiting aggressively, including using headhunters and adjusting compensation to attract engineers and environmental specialists. Labonte outlined a phased prequalification program for contractors to be effective January 1, 2007, intended to broaden the pool of qualified bidders for both local and regional projects.

The commission also heard from the Revenue Bond Oversight Committee, which reported a favorable first financial audit of WESIP and recommended continuing oversight of scope, schedule and cost uncertainties. The commission asked staff to return with a contract-procurement reform summary at the next meeting and to provide a sample project management plan for commissioners to review.