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PUC moves to issue water bonds and advances a major Calaveras Dam contract amendment
Summary
The committee recommended authorization for near‑term PUC water revenue bond sales to fund the Water System Improvement Program and advanced a sizeable negotiated amendment to the Calaveras Dam design contract to address steelhead restoration, supplemental dam‑safety work and naturally occurring asbestos.
Public Utilities Commission (PUC) officials briefed the Budget & Finance Committee on a planned series of water‑revenue bond sales to fund the Water System Improvement Program and sought approval of contract amendments tied to the Calaveras Dam replacement project.
Todd Reedstrom and General Manager Harrington said the PUC plans near‑term sales (August/September) to minimize interest costs and meet construction cash needs. Reedstrom described two sales totaling roughly $750 million in near‑term issuance and said the structure would be 30‑year bonds with a 10‑year call feature; the disclosure documents and official statements were before the committee. The committee accepted a technical reduction recommended by the budget analyst and moved items 21 and 22 to the full Board with recommendation.
Calaveras Dam contract amendment: PUC staff also requested a large amendment to the existing engineering contract to cover additional design work prompted by stakeholder comments, endangered‑species (steelhead) restoration requirements, supplemental dam‑safety analyses and unexpectedly high concentrations of naturally occurring asbestos at the site. Harlan Kelly and senior project manager Dan Wade said these issues had lengthened the schedule and expanded scope, and the PUC previously authorized an interim $410,000 amendment to keep critical work moving.
Budget‑office view: Budget analyst Mister Rose said he understood the complexity but noted the original RFP was competitively procured while significant subsequent amendments were negotiated; he described the additional amendment as a policy matter for the Board and recommended limiting the noncompetitive amount the committee recommend. PUC staff said delays and new technical findings made additional design work necessary and that the engineer‑of‑record needs to be available during construction.
Next steps: Committee voted to release $4,690,012 from reserve and to forward the requested amendment package and bond authorization items to the full Board with recommendation. PUC said construction start for Calaveras is targeted for 2011, with the project intended to restore reservoir storage and meet seismic safety requirements.
