Water-project costs balloon
By: Brent Begin
Examiner Staff Writer
March 30, 2009
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| These two major pipelines near San Francisco Bay carry drinking water from the Hetch Hetchy reservoir in Yosemite National Park to the Bay Area. (Examiner file photo) |
SAN FRANCISCO — A critical seismic safety improvement along the Hetch Hetchy water delivery system is beset by delays and cost overruns, adding millions to the $4.4 billion voter-approved bond project.
There are currently three existing siphons that transport water to the Bay Area from both the Hetch Hetchy supply and the Sunol Valley Water Treatment Plant. Because the devices are at risk of sustaining damage in a major earthquake, the Public Utilities Commission is building a fourth seismically designed siphon and upgrading the existing facilities. But those improvements are now eight months behind schedule, at an estimated cost of $12.2 million.
Some of the delays are due to a change in management. “This is one of the projects that was identified early on as one that we felt we had the expertise in house,” said Julie Labonte, director of the improvement project. “It turns out that midway through it we had to bring in outside consultants.”
The Hetch Hetchy system provides water for 2.6 million people in San Francisco, San Mateo, Santa Clara and Alameda counties, and includes a 167-mile stretch of pipes that begins at the Hetch Hetchy reservoir in Yosemite National Park.
The retrofit plan encompasses some 84 separate projects along the route. The Public Utilities Commission, which oversees the regional water system, is paying for the projects by issuing revenue bonds financed through increased water rates.
The commission is expected to vote May 5 on whether to increase rates by an average of 15 percent in the next five years.
The entire Water System Improvement Project is more than 6 percent over budget, a total of $268 million, according to a budget analyst’s report. One project, the Harry Tracey Water Treatment Plant, accounts for $184 million in unexpected costs.
But there is one cost-saver. The price of steel is down by 50 percent from 2008, Labonte said, and several project bids are coming in lower than the original estimates. About 26 projects have been completed already within budget, she said.
Supervisor David Campos believes the PUC is doing its best to stay within the budget, but he’s worried that cost overruns will become a trend.
“That is a very significant amount of money,” he said.
