the future as appropriating funds well over what can be reasonably expended gives a false sense of expected productivity. BAWSCA appreciates that the SFPUC is taking a closer look at project delivery and looks forward to better understanding the changes being made internally and seeing improved capital program delivery results.
2. BAWSCA recommends the use of appropriate placeholder funding where necessary to provide greater level of transparency regarding what funding may be needed in latter years of the 10-year CIP. In his presentation to the Commission at its January 14, 2022 budget hearing, Steve Ritchie, SFPUC Assistant General Manager for the Water Enterprise, pointed out that certain CIP projects, such as Pilarcitos Dam, San Andreas Dam, and Bay Division Pipeline No. 4) are not fully funded in the CIP, and therefore, the monies proposed in the CIP to fund the work required is significantly lower than what will actually be needed in coming years. BAWSCA agrees with Mr. Ritchie that more exacting costs estimates will be generated in the short-term, following the completion of additional facility assessments. However, this approach may pose a constraint to doing future work in the expected timeframes as future CIPs with greatly increased budgets in certain projects may require phasing work on other projects to balance cash flow needs. Placeholder funding would provide a greater level of transparency regarding what funding may be needed in latter years of the 10-year CIP cycle.
3. For future 10-Year CIPs, BAWSCA suggests that the SFPUC consider including separate tables and spreadsheets that document projected cash flows. Such cash flow tables would be similar to the current tables which show budget appropriation. In this approach, an initial column would indicate the prior year’s cash flow (indicating monies spent in the year prior to the 10-year cycle) followed by the anticipated cash flow for each year in the 10-year cycle. This cash flow table will show timing of project activity much more clearly than can be inferred from the appropriations table, avoiding the confusion that can be created by concepts such as the use of already appropriated funding. BAWSCA is willing to meet with SFPUC to provide examples of how other water agencies incorporate such a concept in their CIP documentation.
4. BAWSCA is pleased to see that the project data sheets that accompany the 10- year CIP documentation have been revised for this particular cycle, such that they provide much more detail. Specifically, the data sheets now include information stipulating the total budget proposed, the project’s start and finish date, the current stage the project is in, as well as text that provides a more detailed description of specific work actions that will be taken in the coming years. The discussion in the tables also notes if the scope of the project has been modified since the prior CIP was adopted.
BAWSCA is focused on ensuring that the SFPUC successfully delivers a 10-year CIP that includes the necessary projects with appropriate implementation schedules, robust cost estimates, and budgets.
BAWSCA appreciates the efforts of the SFPUC staff to develop the 10-year CIP and the opportunity for discussions that have been constructive for both BAWSCA and SFPUC, and beneficial to the water customers. BAWSCA understands that this particular 10-year CIP has The Hon. Anson Moran, President
January 31, 2022
been more challenging than many of those that preceded it, and we are pleased to see that the SFPUC has continued to incorporate, into the CIP, a robust number and type of projects that are required to maintain the integrity of the RWS.
Sincerely,
Nicole Sandkulla
CEO/General Manager
TF/NS//le
cc: Dennis Herrera, SFPUC, General Manager
Steven Ritchie, SFPUC, Assistant General Manager of Water Enterprise Alan Johanson, SFPUC, Chief Engineer / Assistance General Manager of Infrastructure Alison Kastama, SFPUC, BAWSCA Liaison
BAWSCA Board of Directors
BAWSCA Water Management Representatives
Allison Schutte, Hanson Bridgett, LLP, Legal Counsel