Committee approves PUC reserve release and CEQA findings; PUC warns Calaveras dam costs may rise

The Budget and Finance Committee approved the Public Utilities Commission—s request to release and reallocate reserves for the Water System Improvement Program (WISP) and advanced CEQA findings for the San Antonio backup pipeline, while PUC staff warned of growing cost and schedule impacts at the Calaveras Dam project.

Julie Levante of the PUC presented a quarterly update on the WISP, saying 58 of 81 projects were complete and 18 projects were in active construction phases. She described major tunneling efforts, work at treatment plants, and system shutdowns needed to accommodate construction. On Calaveras Dam she said exploratory work discovered unexpected subsurface conditions and multiple ancient landslides on a slope called Observation Hill; the PUC estimated excavation of roughly 3,000,000 cubic yards of material and said earlier cost and schedule impacts ("about $60,000,000 and a year") were likely to increase. "Originally, we placed the cost impact at about $60,000,000 and schedule impact of a year. But now, we have received new information that shows that those impacts are going to be even greater," Levante said.

On funding, the PUC asked the committee to release $34,900,000 currently reserved and to reallocate $27,400,000 from the program management reserve to six ongoing projects. The budget analyst reviewed the PUC attachments and recommended approval, noting the funds are financed through water revenue bonds paid by water ratepayers. The clerk—s agenda language listed a total amount of $62,253,692 for the requested releases; the analyst summarized combined totals in his report as $62,945,000 and recommended approval.

The committee approved releasing the reserves and moved the CEQA item forward with a recommendation to the Board. The PUC said it will return with a cost and schedule update for Calaveras on Nov. 13.