Budget panel advances SFPUC Crystal Springs transmission upgrade after analyst flags funding error

The Budget and Finance Subcommittee on Monday forwarded to the full Board a request from the San Francisco Public Utilities Commission to release construction reserves for the Crystal Springs–San Andreas transmission upgrade, after the city budget analyst identified and corrected an error in the requested amount.

Sussan Massey, project manager with the San Francisco Public Utilities Commission, told the committee the transmission upgrade is part of the Water System Improvement Program (WISIP). Massey said the project’s objectives are to increase seismic- and delivery‑reliability across the Crystal Springs and San Andreas reservoirs and associated pump stations, and described three primary components: a complete replacement of an existing pump station, seismic and hydraulic improvements to system facilities, and a PG&E substation replacement.

The SFPUC presented a total project estimate of about $192 million and a construction estimate of $147 million. The commission said bids were advertised in June with a bid due date of Aug. 12, an award expected in September and a notice to proceed in October, and that construction will take roughly 30 to 36 months.

The department’s initial call for funds was read into the record as $170,549,282. Budget analyst Mr. Rose told the committee the department had inadvertently requested roughly $170.5 million but that the correct reserve for construction costs is $147,000,006.68 and recommended placing the funds on the controller’s reserve, with any difference reverting to the Budget and Finance Committee reserve; he recommended reducing the requested release by approximately $22,000,008.86.

Chair John Avalos then moved to accept the budget analyst’s recommendations and forward Items 1 and 2 with recommendation to the full Board; the motion carried "without objection." The clerk stated items sent out of committee will be considered by the full Board next Tuesday unless another date is specified.

The committee also addressed a question about mercury in fish at Lower Crystal Springs. Massey said she did not have specific information and that the water quality bureau was looking into the matter and could provide details later. Todd Reedstrom, assistant general manager and CFO for the SFPUC, stated, "The water supply is completely safe," and described how mercury can bioaccumulate in bottom‑feeding fish while the water itself showed no measurable levels of concern.

The committee also recommended the resolution adopting CEQA findings, including a mitigation monitoring and reporting program and a statement of overriding considerations related to mitigation habitat actions in two San Mateo County sites, and forwarded that resolution to the Board with the funding item.

Next step: the full Board will consider the appropriation and CEQA resolution at its next meeting date indicated by the clerk.