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PUC asks committee to release $55M for Alameda Siphon No.4 amid budget and schedule risk
Summary
The Public Utilities Commission requested release of $55,035,000 to build Alameda Siphon No.4, a seismic reliability project. PUC staff warned of a forecasted 20% overrun on that project and described program‑level risks (notably Harry Tracy WTP); the committee agreed to forward CEQA findings.
The San Francisco Public Utilities Commission asked the Budget & Finance Committee on March 25 to release $55,035,000 in reserve funds to move the Alameda Siphon No.4 project into construction and to adopt CEQA findings and a mitigation monitoring program for the work.
Julie Labonte, director of the Water System Improvement Program, described the siphon as a priority seismic lifeline designed to survive a Calaveras Fault event and deliver Hetch Hetchy water to the region if other conduits fail. She said current forecasts — prior to contractor bids — show the project could be about 20% over the previously‑approved budget and roughly eight months behind schedule. Labonte attributed the variance to additional consultant scope, geotechnical discoveries on separate program projects (notably the Harry Tracy Water Treatment Plant), and project‑specific technical reviews.
Budget Analyst Deborah Newman reminded the committee that when the board placed large WISIP projects on reserve it did not define release criteria, and that Alameda Siphon No.4 had been grouped with the Irvington Tunnel for the $100M threshold. Newman said the Budget Analyst’s Office regards release decisions as a policy matter for the board and noted the PUC’s quarterly reports show program variance of roughly $268M (~6% of the total program).
Supervisors pressed the PUC on steps to control costs: risk assessments, increased use of city staff where feasible, contingency management and clearer reporting for supervisors’ offices. PUC staff said they would complete a project‑level risk assessment, solicit consultant assistance where needed, and consider improved quarterly reporting and a cover highlights page for supervisors.
The committee approved forwarding the release request and the accompanying CEQA findings to the full board for final action.
