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SFPUC seeks $150M program‑management contract as sewer repair program scales up
Summary
The Public Utilities Commission requested authorization for a program management contract not to exceed $150 million to support an estimated $6.9 billion Sewer System Improvement Program that targets aging infrastructure, seismic upgrades, biosolids digesters and stormwater management.
The San Francisco Public Utilities Commission asked the Budget & Finance subcommittee to approve a program management services contract with AECOM Parsons Joint Venture not to exceed $150 million over 15 years to support an expansive Sewer System Improvement Program (SSIP).
Assistant General Manager Harlan Kelly and Capital Program Manager Karen Kubik outlined the program, which staff presently estimates at about $6.9 billion for treatment plant and collection system upgrades, including seismic strengthening, a new biosolids digester at the Southeast plant, odor control and green infrastructure for stormwater management.
Kubik said parts of the city's wastewater system date to the 1800s and some assets are more than 120 years old. She described a 15–30 year implementation timeline with the bulk of projects in the first 15–20 years and emphasized each project will return to the Board of Supervisors for planning, environmental review and appropriation.
Budget staff recommended approval of the $150 million not‑to‑exceed contract. The analyst's report estimated debt financing costs associated with the program manager contract at about $341.2 million (principal plus interest) and projected the average monthly impact to a single‑family household at about $1.74 on the SFPUC bill, subject to financing choices.
Supervisors pressed staff on financial planning, alternatives to commercial paper, and how program manager services will validate costs and delivery mechanisms. Kubik said the program manager will refine cost estimates, delivery strategies and rate impacts and help evaluate financing and implementation approaches meant to minimize rate impacts.
The committee moved the contract forward with recommendation.
If approved by the full Board and funded through the budget and debt issuance, the program manager will oversee task orders to validate costs, schedule projects and help coordinate implementation across a portfolio of capital investments.
