Supplemental Appropriation 2010 & 2014 ESER
General Obligation Bonds Fund Interest Earnings
for the Emergency Firefighting Water System
(EFWS)
August 27, 2024
SFPUC
Presenters:
SFPUC – Laura Busch and Josh Andresen
Purpose - Appropriate Interest Earnings
2 • Interest earnings will be utilized to supplement funding of planning and design phases:
• Potable Emergency Firefighting Water System (PEFWSP in the western region of San Francisco
• Fireboat manifold projects at Fort Mason, Pier 2, and Pier 35.5 • Reinvesting the 2010/2014 interest earnings advances
planning/design and decreases risk of a funding gap prior to the next ESER 2020 bond sale.
ESER Bonds 2010, 2014, 2020, and WE CIP
Budget Status
3 Proposed and Approved Future Funding
4 • Proposed interest earnings for planning and design phase:
• Two additional PEFWS contracts
• Fireboat manifold at Fort Mason, Pier 2, and Pier 35.5 • Two more ESER 2020 bond sales (January 2025 $41M and late 2026 $75M) for construction:
• Two contracts for PEFWS
• One contract for fireboat manifolds
• Additional funding is needed after 2028 to continue improvements and build- out of EFWS
Summary of Proposed Action
5 • Approve the appropriation of ESER 2010 & 2014 General Obligation Bonds Intertest earnings, in the amount of $6,180,354, for the Earthquake Firefighting Water System (EFWS) Projects; and authorize General Manager to submit a capital project supplemental appropriation ordinance and associated bond authorization to the Mayor and Board of Supervisors.
Questions & Answers
6 AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT
Business Services
AGENDA NO.
9 MEETING DATE August 27, 2024
Calendar: Regular Calendar
Project Manager: Josh Andresen (Project Manager), Frank McPartland (Budget)
Approve Supplemental Appropriation of Earthquake Safety and Emergency Response (ESER) 2010 and 2014 General Obligation Bonds Interest Earnings
Summary of
Proposed
Commission
Action:
Approve the appropriation of Earthquake Safety and Emergency Response 2010 and 2014 General Obligation Bonds interest earnings, in the aggregate amount of $6,180,354, for the Emergency Firefighting Water System; and authorize the General Manager to submit a capital project supplemental appropriation ordinance to the Mayor and Board of Supervisors.
Background: The San Francisco Public Utilities Commission (SFPUC) owns and maintains the Emergency Firefighting Water System (EFWS) and the Auxiliary Water Supply System (AWSS), improvements of which have been funded by Earthqua ke Safety and Emergency Response ( ESER) 2010 and 2014 General Obligation Bonds .
ESER-funded approved capital projects include $102.4 million for the AWSS and $54.3 million for the EFWS. Staff proposes appropriating the remaining ESER 2010 and 2014 General Obligation Bonds interest earnings , accruing on both the AWSS and EFWS projects, and expending that interest entirely on the EFWS program.
Such interest earnings will be used to fund the planning and design phases of EFWS projects. These projects include the Potable Emergency Firefighting Water System (PEFWS) project in the western region of San Francisco and the fireboat manifold projects near Fort Mason, Pier 2, and Pier 35 1/2. These projects are vital for protecting against the loss of life, homes, and businesses from fire following an earthquake.
The projects are currently funded by the ESER 2020 General Obligation Bonds , and this additional interest is expe cted to supplement that funding. The PEFWS project is also funded by the SFPUC Water Enterprise Capital Improvement Program.
The PEFWS project will construct a new pipeline in the western region of San Francisco capable to serve seismically reliable high-pressure water for firefighting and domestic drinking water. Design is currently progressing for the PEFWS Pipeline Contract A and B for new pipelines from the Lake Merced Pump Station to Sloat Blvd/19th Avenue (A), and 23rd Ave/Vicente St to Lawton St (B). Planning is currently underway for Contracts C and D in the Richmond area. Construction is anticipated to be completed by approximately 2030 for Contracts A and B.
Agenda Title: Approve Supplemental Appropriation 2010 and 2014 ESER General Obligation Bonds Fund Interest Earrings
Commission Meeting Date: August 27,2024
Reinvesting the ESER 2010 and 2014 General Obligation Bonds interest earnings will help advance the planning and design of the EFWS and PEFWS projects and decrease the possibility of funding gaps.
Budget and
Costs:
The source for this supplemental appropriation is interest earnings on ESER 2010 and 2014 General Obligation Bonds issued for the AWSS and EFWS, with all such interest being expended on the EFWS program.
Bond Program Interest
Amount
2010 ESER GO Bond Emergency Firefighting Water System $2,870,047 2014 ESER GO Bond Emergency Firefighting Water System $3,310,307 TOTAL $6,180,354
Environmental
Review:
Approval of the appropriation of the ESER 2010 and 2014 General Obligation Bonds does not constitute a “project” under the California Environmental Quality Act (CEQA) Guidelines section 15378 because the action is a government fiscal activity that does not involve a commitment to any specific project that may result in a direct or indirect physical change in the environment.
Appropriation of the bonds is not an approval of any proposed project and SFPUC retains discretion to, among other things, modify proposed project s to mitigate significant environmental impacts, require the implementation of specific measures to mitigate any significant environmental impacts of the projects, or reject the project, following completion of environmental review.
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The Earthquake Safety and Emergency Response (ESER) 2010 and 2014 General Obligation Bonds approved capital projects include $102.4 million for the Auxiliary Water Supply System (AWSS) and $54.3 million for the Emergency Firefighting Water System (EFWS); and
WHEREAS, Interest earnings in the amount of $6,180,354 have accrued, in aggregate, within both the AWSS and EFWS unspent project funds; and
WHEREAS, Staff proposes appropriating the remaining ESER 2010 and 2014 General Obligation Bonds interest earnings, accruing on both the AWSS and EFWS projects, and expending that interest entirely on the EFWS program; and
WHEREAS, The interest appropriation will fu nd the Potable Emergency Firefighting Water System (PEFWS) project in the western region of San Francisco and the fireboat manifold projects near Fort Mason, Pier 2, and Pier 35 1/2; and
WHEREAS, The PEFWS is currently funded by the ESER 2020 General Obligation Bonds, and this additional interest is expected to supplement that funding, and the PEFWS project is further funded by the SFPUC Water Enterprise Capital Improvement Program; and
WHEREAS, The PEFWS project will construct a new pipeline in the western region of San Francisco capable to serve seismically reliable high -pressure water for firefighting and domestic drinking water; and
WHEREAS, Reinvesting the ESER 2010 and 2014 General Obligation Bonds interest earnings will help advance the planning and design of the EFWS and PEFWS projects and decrease the possibility of funding gaps; and
WHEREAS, Approval of the appropriation of the ESER 2010 and 2014 General Obligation Bonds does not constitute a “project” under the California Environmental Quality Act Guidelines section 15378 because the action is a government fiscal activity that does not involve a commitment to any specific project that may result in a direct or indirect physical change in the environment; and
WHEREAS, Appropriation of the bonds is not an approval of any proposed project and SFPUC retains discretion to, among other things, modify proposed projects to mitigate significant environmental impacts, require the implementation of specific measures to mitigate any significant environmental impacts of the projects, or reject the project, following completion of environmental review; now, therefore, be it,
RESOLVED, That this Commission hereby approves the appropriation of ESER 2010 and 2014 General Obligation Bonds interest earnings , in the amount of $6,180,354, accruing on both the AWSS and EFWS projects, and expending that interest entirely on the EFWS program; and be it
FUTHER RESOLVED, The General Manager is hereby authorized to submit a capital project supplemental appropriation ordinance and associated bond documentation to the Mayor and Board of Supervisors in the amount of $6,180,354.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of August 27, 2024
Director of Commission Affairs,
San Francisco Public Utilities Commission