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San Francisco
Public Utilities Commission Capital Improvement Program
In May 2002, the San
Francisco Public Utilities Commission (SFPUC) adopted
a $2.9 billion capital improvement program (CIP) to rebuild
and retrofit the regional water system to improve system reliability,
especially to ensure seismic safety.  This action was the result of intense advocacy by the wholesale customers
of the regional water system. At the same time, the wholesale
customers worked with state legislators who represent their
service areas to secure state legislation to ensure the system
is rebuilt. AB 1823 (Authors: Assembly
members Louis Papan and Joe Simitian) enacted in 2002, amended
the state water code to require the SFPUC to adopt and implement
the CIP, and to submit progress reports to the Joint Legislative
Audit Committee, the California Seismic Safety Commission
and the Department of Health Services, among other requirements.
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Many parts of the
regional water system are 75-100 years old and/or do not meet
today’s seismic codes. Major pipelines cross active
earthquake faults and according to the U.S. Geological Service,
there is a 70 percent likelihood that an earthquake, the size
of the devastating 1906 San Francisco earthquake, will occur
within the next 30 years. As reported in one SFPUC study commissioned
in 2000, a major earthquake could cripple the system to such
an extent that service might not be restored for 20-30 days
or longer. For this reason, AB 1823 purposefully singled out
nine key projects among the 38 projects in the CIP for quick
action. These nine projects are intended to ensure that should
a large seismic event occur, the system can remain relatively
intact and continue to deliver water to the 2.4 million people
and business that depend on it.
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The cost to make
these improvements is shared in proportion to water delivered
between San Francisco and its regional customers in Alameda,
Santa Clara and San Mateo counties. As the outlying areas
consume about two thirds of the water delivered by the SFPUC,
two thirds of the cost of the regional CIP is borne there.
 For the average homeowner, the monthly residential
water bill is expected to nearly double, from the current
$35 to nearly $60. (Additional improvements in local distribution
systems are estimated to add another $15 to one’s bill.)
The good news is that the increase in rates will be phased
in over the next 10-12 years. When these projects are completed,
the total increase in one’s water bill amounts to about
a dollar a day. Thus, for the price of a can of soda, residents
will be ensured the delivery of safe and reliable water for
years to come. For more information, see the BAWSCA AB
1823 Fact Sheet (27k PDF) or visit www.leginfo.ca.gov,
Water Code 73500.
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The CIP could be
funded with revenue bonds issued by the San Francisco Bay
Area Regional Water System Financing Authority, which was
created by SB 1870 (Author: Senator Jackie Speier). Under
SB 1870, the SFPUC must ask the Financing Authority to issue
bonds or otherwise secure funds. SB 1870 also requires the
SFPUC to enter into a contract with the Financing Authority
that dictates the conditions under which the Authority will
provide revenue bond proceeds to San Francisco, including
identifying projects for which the proceeds are to be used.
For more information, see the BAWSCA SB
1870 Fact Sheet (39k PDF) or visit www.leginfo.ca.gov,
Water Code Section 81600.
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View a map of the
regional projects (165K
pdf) Source: San Francisco Public Utilities Commission
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Reports:
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WSIP Draft Program
Environmental Impact Report (PEIR)
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Revenue Bond Oversight
Committee (RBOC)
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Left photo courtesy
of the Hayward Shoreline Interpretive Center
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