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Committee forwards Central Shops relocation and $62.2M wastewater transfer after questions about sole-source selection
Summary
The committee advanced a package to relocate Central Shops to consolidate site control around the Southeast Water Pollution Control Plant, authorizing phase 1 work up to $10.3 million and proposing a $62.2 million transfer from the Wastewater Enterprise Fund with a $45 million reserve; members probed a sole-source developer selection and the exemption from Chapter 29 fiscal-feasibility reporting.
The Budget and Finance Committee on Jan. 27 moved forward a proposal from the San Francisco Public Utilities Commission and the Real Estate Division to relocate the city's Central Shops to multiple sites near the Southeast Water Pollution Control Plant to allow expansion of the plant.
SFPUC deputy general manager Michael Carlin and John Updike, the city's director of real estate, described the plan to assemble two acquisitions and a lease (including a leasehold at 450 Tolland) so the SFPUC can expand solids-handling and other treatment facilities at the Southeast plant. Updike told the committee phase 1 work is limited to a not-to-exceed $10.3 million authorization for 100% construction drawings, site securing, demolition and foundational work; phase 2 would return to the board for approval of a guaranteed maximum price.
Up dike described the proposed lead developer selection as sole-source: Oryx LLC as lead developer, with Charles Pankow Builders as general contractor and FME Architecture as project architect. He said the city contacted several top Bay Area industrial/PDR developers and received three robust responses; those respondents said they lacked the availability to perform on the project in the city's compressed schedule. Updike and SFPUC staff argued a competitive solicitation would add six months to a year to the schedule and produce escalation costs they estimated could be roughly $3 million per month.
Budget analyst Mr. Rose recommended clarifying that the board is only approving phase 1 design work, confirming the Chapter 29 fiscal-feasibility exemption for SFPUC utility projects, and placing $45 million of the requested appropriation into a Budget and Finance reserve pending phase 2 approval. Committee members pressed for city-attorney vetting of the Chapter 29 exemption before a full-board vote.
Supervisor Tang moved to accept the analyst's recommendations and forward items 7 and 8 to the full board with a positive recommendation; Supervisor Yi seconded and the motion was taken without objection.
Next steps: the full Board of Supervisors will consider the phase 1 authorization, the Chapter 29 exemption language, and the proposed reserve prior to any release of additional funds for phase 2 work.
