SFPUC details $11.8 billion 10-year capital plan and affordability measures; committee asks about contract compliance and local hiring

SFPUC deputy general manager Ron Flynn and CFO Nancy Hom told the Board’s Budget Committee on May 15 that the commission’s proposed two-year operating budget is about $2.0 billion per year and the agency’s 10-year capital improvement plan totals roughly $11.8 billion. Flynn said the agency prioritized affordability and described an affordability policy adopted in November to evaluate the effect of rate increases; he said discounts now reach more than 6,500 low-income participants.

Nancy Hom described the drivers of budget growth — debt service for capital, power purchases, and personnel — and noted the agency’s plan to request $3 billion in debt authorization across enterprises over the next two fiscal years. Flynn and Hom emphasized use of state and federal loans and grants and stressed workforce retention through converting temporary positions to permanent roles.

Supervisors questioned contract oversight and social-impact deliverables tied to large capital projects. Supervisor Walton pressed the PUC on whether contractors were fulfilling social impact partnership commitments (SSIP); Flynn acknowledged early delays, described corrective steps, said the PUC is tracking contractor delivery on a public dashboard and pledged ongoing oversight.

SFPUC leaders also presented metrics on local hire and LBE participation for major projects and asked for follow-up with the Budget & Legislative Analyst on bond/legislative items returning next week.