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Committee forwards PUC requests: extend HDR contract, adopt CEQA findings and release reserve funds for Peninsula Pipeline upgrade
Summary
The committee received a PUC update on the Water System Improvement Program and approved staff recommendations: extend HDR Engineering construction management agreement (increase by $1.5M), forward CEQA findings for the Peninsula Pipeline seismic upgrade to the full Board, and conditionally release ~$10.2M in reserved funds pending full‑board EIR approval.
PUC officials updated the Budget & Finance Committee on the Water System Improvement Program and sought multiple actions related to Peninsula projects.
The PUC Water System director said the program is approximately 80% complete against an approved budget of about $4.6 billion, with roughly $2.7 billion in active construction and 16 projects in progress. Officials highlighted major transmission projects — including the Bay Tunnel and the Irvington Tunnel — and noted the Calaveras Dam replacement is the program’s largest and most complex remaining challenge.
Item 6: the committee considered a second amendment to extend an agreement for construction management services with HDR Engineering for the Peninsula region and to increase the not‑to‑exceed amount by $1.5 million (from ~$26M to $27.5M). Budget staff noted the contract included an inadvertent reference to a two‑year extension option and recommended deleting that option; the committee approved the amendment and forwarded the recommendation.
Item 7: PUC requested adoption of CEQA findings and a mitigation monitoring and reporting program and a statement of overriding considerations for the Peninsula Pipeline seismic upgrade project in San Mateo County. Item 8: PUC requested release of approximately $10.2 million in reserved water revenue bond funds to fund the Peninsula Pipeline project; the budget analyst recommended release contingent on the Board of Supervisors approving the EIR findings. The committee forwarded the CEQA findings to the full Board for consideration and agreed to release the reserved funds conditional on full Board approval of the EIR findings.
The budget analyst recommended approving the release of reserved funds subject to the Board’s approval of CEQA findings; the committee accepted that contingency.
