SFPUC Biennial
Budget
FY 2022-23 and
FY 2023-24
Infrastructure Division
January 7, 2022
Alan Johanson
Acting Assistant General Manager
Biosolids Digester Facilities Project
Installing Rebar Cage for Slurry Wall
Agenda
• Introductions
• Infrastructure’s Mission, Roles and Organization
• Functional Service Area Reviews
• Capital Programs and Staffing Plan
• Highlight of Accomplishments
• Deliverability Reviews
• Ongoing Deliverability Challenges
• Overhead and Cost Recovery
• Racial Equity Progress Update
2 Mission, Roles, and Responsibilities
• Mission:
Effectively plan and implement capital improvements to
the Water, Wastewater and Power Systems of the SFPUC
in order to continue to provide high quality utility services to our customers.
• Roles and Responsibilities:
Work with Enterprises and Finance to develop/update the 10-yr Capital Plan programs and projects. Manage
planning, design and construction of capital programs and projects, as well as the repair and replacement of water, wastewater and power enterprise facilities.
3 Organization Chart
4 DEPUTY GENERAL MANAGER
Michael Carlin
ASSISTANT GENERAL MANAGER INFRASTRUCTURE (Acting)
Alan Johanson
Total Positions: 4
PROGRAM DIRECTORS
WSIP AND WATER CAPITAL PROGRAM
Katie Miller
SSIP AND WASTEWATER CAPITAL PROGRAM
Stephen Robinson
Total Positions: 4
PROJECT MANAGEMENT
BUREAU
Howard Fung
PROJECT CONTROLS
Mojgan Yousefkhan
Total Positions: 68
ENGINEERING MANAGEMENT
BUREAU
Johanna Wong
Total Positions: 122
CONSTRUCTION MANAGEMENT
BUREAU
Algynon Collymore
Total Positions: 83
ENVIRONMENTAL
MANAGEMENT GROUP (Acting)
Kimberly Stern
Total Positions: 15
Department Personnel Liaison
Angelica Salazar
Total Positions: 14
Racial Equity
Leesha Langlois
Total Positions: 1
Project Administration
Ivy Fine
Total Positions: 19
Workforce & Economic Program Services
Benjamin Poole
Total Positions: 13
Budget & Finance
Rosiana Angel
Total Positions: 23
GENERAL MANAGER
Dennis Herrera
Functional Service Area
• Office of the Assistant General Manager, Infrastructure:
Provide management, oversight and direction for all water, power and sewer capital programs and projects and for the three Infrastructure Bureaus and Environmental Management Group, Program Directors, Project Administration, Workforce Development, Budget and Finance, Personnel Liaison and
Racial Equity. 19 FTEs (15 loaned) $3.8M
• Program Directors:
Provide program management, including oversight of all
phases, for the projects that comprise the Water and Hetchy Capital Programs and the Sewer System Improvement and
Wastewater Capital Programs. 4 FTEs $800K
5 Functional Service Area
• Project Management Bureau:
Provide project management for all capital and repair & rehabilitation programs and projects, including risk
management, right-of-way services and scheduling, estimating, cost control, and QA services. 68 FTEs (15 Project Controls) $13.6M
• Engineering Management Bureau:
Provide planning, water and wastewater systems engineering, and design and design support during construction for all capital and repair & rehabilitation programs and projects, as well as engineering records management. 122 FTEs $21.6M 6 Functional Service Area
• Construction Management Bureau:
Provide construction management, construction inspection, and job order contracting for all capital and repair &
rehabilitation programs and projects. 83 FTEs $16.1M
• Environmental Management Group:
Provide environmental services for all capital and repair & rehabilitation programs and projects, including programmatic environmental impact reports, project-specific review and permitting, and comprehensive mitigation. 15 FTEs $4.4M 7 Functional Service Area
• Infrastructure Management and Administration
Project Administration
Provides contracting and contracts administration for all capital and repair & rehabilitation programs and projects. 19 FTEs $2.5M
Workforce & Economic Program Services
Provide labor relations, workforce development, and contractor outreach for all capital and repair & rehabilitation programs and projects. 13 FTEs $1.7M
Budget & Finance
Provides operating budget development and administration, SRF/WIFIA Loan Disbursement, online invoicing, consultant timekeeping system, payment processing, reporting and reconciliation. 23 FTEs $20.7M (includes $17.6M of Operating Expenses)
Department Personnel Liaison
Provides support for recruiting and hiring services. 14 FTEs (13 Interns) $1.9M Racial Equity
Lead the Racial Equity Action Plan for Infrastructure. 1 FTE $100K 8 Filled and Vacant Positions
9 Fiscal Year Filled
Positions
Vacant
Positions
Loaned
Positions
Total
Positions
FY 2017-18 278 91 20 389
FY 2019-20 255 113 16 384
FY 2021-22 257 108 14 379
Project Team Matrix Approach
10 Project / Program Team
Project Management
Engineering Management
Bureau
Construction Management
Bureau
Environmental Management
Group
Project Administration
Project Manager
Engineer / Designer
Construction Manager
Scheduler / Cost Controller
Environmental Manager
Contracts
Jobs and Small Business
Operational Liaison Enterprises
(Water / Wastewater / Power)
Quality Assurance
Workforce & Economic Program
Services
FY2020-21 Workload
**12.79% Includes WSIP funds spent for the Groundwater and Recycled Water projects. 11 SFPUC Capital Improvement Programs
12 PROGRAM COST DURATION BEGIN END COMPLETION
STATUS
Sewer System
Improvement
Program
$8.2 Billion 24 Years 2011 2035 24%
Facilities &
Infrastructure $0.7 Billion 21 Years 2012 2032 18%
Water System
Improvement
Program (WSIP)
$4.8 Billion 20 Years 2003 2023 99%
Water CIP - Regional
Water Program $2.1 Billion 26 Years 2009 2035 15%
Water CIP - Local
Water Program $2.8 Billion 29 Years 2003 2032 30%
Hetch Hetchy Water
CIP $1.6 Billion 21 Years 2011 2032 14%
* Based on the draft September 2021 Quarterly Report
13 Highlight on Accomplishments
SEP New Headworks Facilities Project
Construction Progressing Above Grade Alongside the Power Feed and Primary Switchgear Upgrades Project
14 Highlight on Accomplishments
Mountain Tunnel Improvement Project
Flow Control Facility (FCF) Shaft Excavation
15 Highlight on Accomplishments
Southeast Community Center at 1550 Evans
Highlight on Accomplishments
Contracting, Jobs and LBE
• 30 Construction Contracts awarded - $420M
total
• 63 Professional Services; 53 Amendments
• SSIP Workforce and Economic Program update:
• Currently maintain 35% of Local Hire Participation of the legislation requirement of 30%
• At 62% of the 50% requirement for Apprentice Hours.
• 36% of Apprentice Hours are performed by District 10
(the construction location)
• LBEs have been awarded $430 million
16 Deliverability Reviews
• Scope, schedules, budgets updated to the latest forecast • Reviewed and approved by Infrastructure and Enterprise • EMB performed detailed staffing resource review and confirmed resources or recommended revisions
• PMB and CMB resources applied based on historical data • Revisions adopted in Proposed CIP 10-Year Plan
• FTE calculations are based on:
o $210.88/hour (Rate for class 5207 – Associate Engineer) o 1,920 hours/year
• Consultants/City Staff are split 60/40
• Biosolids and Headworks are split 70/30
17 18
Sample Review
Note: Data truncated for legibility
19 Sample Review
Note: Data
truncated for
legibility
Ongoing Deliverability Challenges
• Hiring and Recruitment
• Infrastructure only hires when the needs arise
• Normal Vacancy Rate is 25% to 30%
• FY 2021-22 – 28%
• FY 2019-20 – 29%
• FY 2017-18 – 23%
• Procurement Contracting Timeline
• 8 to 12 months for Professional Services
• 7 months for Construction
• Covid-19
• Supply Chain Disruptions
• Escalation
• Vaccination Mandate
20 Infrastructure Division’s Overhead
• Infrastructure charges direct labor and
mandatory fringes directly to all the projects
• Infrastructure recovers its overhead expenditures
through a monthly recovery process
• Overhead is the indirect cost related to
performing direct labor services on projects. It
includes:
• Indirect Labor
• Indirect Mandatory Fringes and Paid Time Off (PTO)
• Indirect Materials/Operating Expenses
• Work Orders
21 Overhead Formula
• Formula to calculate overhead rate:
22 +
Direct Labor
Overhead
Rate =
Method of Calculation:
Indirect Labor sum of regular, temp, and overtime salaries charged to personnel fund PTO (Indirect) sum of vacation, sick pay, floating holiday, etc. charged to personnel fund MFB (Indirect) sum of all fringe benefits charged to personnel fund Operating Expenses sum of non-personal services, materials & supplies, and equipment charged to operating fund
Work Orders sum of services of other departments charged to operating fund Direct Labor sum of salaries charged to all capital and R&R projects Indirect
Labor PTO MFB
Operating
Expenses
Work
Orders+ + +
Total Charges to the Project
• Formula to calculate multiplier for projects:
• Example:
23 Category Factor Frequency
Salaries 1.00 Directly to projects every 2 weeks
MFB 0.37 Directly to projects every 2 weeks
Overhead Rate 1.58 Monthly journal entry
Multiplier: 2.95
+
5207 Associate Engineer - $71.48/hr @ 1 hour $71.48
MFB @ 37% $26.45
Overhead Rate @ 158% $112.95
Total Charged to Project: $210.88
Example of Multiplier Comparison
24 Infrastructure Public
Works Airport Private
2.95 2.87 - 3.75* 3.50 2.33**
* Rate varies depending on the Bureau performing work
** Nation-wide rate; to be used as a point of reference only. Multiplier used on PUC contracts range from 2.53 to 3.155 Budget | Use of Funds
FY 2022, FY 2023, FY 2024
25 Total Budget
FY 2022, FY 2023, FY 2024
26 ($ Millions) Budget Change $ Change %
FY 2021-22 Adopted $ 89.8
Salaries and Fringe Benefits COLA 1.7
All Other 0.3
FY 2022-23 Request 91.9 2.1 2%
Salaries and Fringe Benefits COLA 2.2
All Other 0.4
FY 2023-24 Request 94.5 2.6 3%
Total Positions
27 Position Type
Budget "Operating" Change %
FY 2021-22 Adopted 379
FY 2022-23/24 Request 379 0%
Infrastructure’s Racial Equity Priorities
1. Hiring and Recruitment
2. Retention and Promotion
3. Discipline and Separation
4. Diverse and Equitable Leadership and
Management
5. Mobility and Professional Development
6. Organizational Culture of Inclusion and
Belonging
7. Boards and Commissions
28 Hiring and Recruitment
Student Engineering Trainee Program
• Successfully promoting an ongoing pipeline of future engineers • Continued program improvements and refinements to attract diverse candidate pools
Currently Attending Engineering Fairs
• Society of Hispanic Professional Engineers (SHPE)
• Regional National Society of Black Engineers (NSBE)
• Sacramento State University, Cal Poly San Luis Obispo, UC Berkeley, UC Davis
Previously Attended
• Society of Women Engineers (SWE)
• American Indian Society Engineers and Scientists (AISES) Project Pull
• High school students summer internship program
29 Hiring and Recruitment, Retention and
Promotion, Professional Development
Construction Management Series
• Challenges
• Formalized Construction Management Training – Engineers acquire skills on the job
• Industry Demand for Construction Management Staff
• Promotional opportunity of individuals in the City 6318/6319 Inspection Series
• Training Options
• Construction Management Degree
• American Institute of Constructors (AIC)
• Construction Management Association of America (CMAA) • Action
• City Engineering Positions Group
• Construction Management Series Subcommittee
30 Hiring and Recruitment, Retention and
Promotion, Professional Development
Infrastructure Mentoring Program
• Develop a pilot in advance of broader SFPUC rollout
• Chronus Mentoring Software
• Currently utilized at the Airport
• Coordination with SFPUC HR
• Joint effort Water Enterprise and Infrastructure
• Intent to engage staff and learn lessons
• Use of coaching techniques
• Sponsor staff in the exploration of career options
31 Contract Procurement
Professional Service and Alternative Delivery
Contracts
• Diversity in Contracting section now includes City
Ordinance and SFPUC Resolution
• Coordinate a City-Wide Approach
• Timeline February 2022
Examples:
2000 Marin CM/GC, Treasure Island D-B, Wastewater
Capital Plan Program Services
32 Identifying Resources Needed
Scope
• Stakeholder Assessment – Engage staff to access the
current conditions and barriers related to racial equity specifically within Infrastructure and its interface with the broader SFPUC
• Refine and enhanced the REAP and support delivery
Timeline
• Draft submitted for review
• Start anticipated in mid 2022
Interface
• Infrastructure consultant will interface with broader SFPUC efforts
33 Infrastructure Appendix
Operating
A. Operating Budget by Category & Position Summary
B. Position Change Summary
Infrastructure Appendix
A. Operating Budget by Category & Position Summary
Category
FY 2021-22
Adopted
FY 2022-23
Request
FY 2022-23
versus
FY 2021-22
FY 2023-24
Request
FY 2023-24
versus
FY 2022-23
Labor 56,964,891 58,985,213 3.5% 60,754,769 3.0%
Mandatory Fringe Benefits 15,444,553 15,170,302 -1.8% 15,625,411 3.0% Materials & Supplies 844,092 844,092 0.0% 844,092 0.0%
Non-Personnel Services 4,753,681 4,168,527 -12.3% 4,757,565 14.1% Capital Outlay - 589,038 100.0% - -100.0%
Services of Other Departments 11,835,700 12,152,808 2.7% 12,517,393 3.0% Grand Total 89,842,917 91,909,980 2.3% 94,499,230 2.8%
Category
FY 2021-22
Adopted
FY 2022-23
Request
FY 2022-23
versus
FY 2021-22
FY 2023-24
Request
FY 2023-24
versus
FY 2022-23
Full-Time 378.52 378.52 - 378.52 -
Off-Budget 0.00 0.00 - 0.00 -
Total Positions 378.52 378.52 - 378.52 -
Attrition 0.00 0.00 - 0.00 -
Grand Total 378.52 378.52 - 378.52 -
INFRASTRUCTURE
OPERATING BUDGET BY CATEGORY
POSITION SUMMARY
Appendix A
A1
Infrastructure Appendix
B. Position Change Summary
Appendix B
Infrastructure FY 2022-23 Position Changes
Indicator Position Position Title ADM Const Mgt Eng Mgt Grand Total AR 0932 Manager IV -1 1 0
1450 Executive Secretary I 1 -1 0
1820 Junior Administrative Analyst -1 1 0
1822 Administrative Analyst -1 -1 2 0
1824 Principal Administrative Analyst -1 1 0
5241 Engineer -1 1 0
Grand Total -2 -3 5 0
AR Operating Position Reassignment
B1