Committee splits SFPUC contract items; sends one (Southeast plant amendment) without recommendation amid BLA concerns

The committee debated several SFPUC contract amendments grouped under items 9–12. Staff described item 9 (a five‑year extension and $13.13M increase to WAPA scheduling and full‑load service contracts to secure low‑cost power for Treasure Island and Yerba Buena Island), item 10 (first modification to a Parsons construction management contract for the Southeast Water Pollution Control Plant, increasing the not‑to‑exceed by $12M to $47M), item 11 (a $7.5M, 48‑month modification to the Folsom Area Stormwater Improvement Project professional services contract), and item 12 (a $175k increase and five‑year extension to a Yardi SaaS agreement).

Budget and Legislative Analyst (BLA) staff and supervisors focused lengthily on item 10, noting that the Parsons contract had spent roughly 90% of its originally authorized $35M value within about five years and BLA flagged scope additions and the need for better performance measures and oversight. Supervisor Asha Safai pressed SFPUC on why the contract had been significantly utilized earlier than expected and urged stronger performance standards, more transparent reporting of local business enterprise participation, and exploration of bringing some work in house where feasible. SFPUC staff (Steven Robinson and others) said the pandemic and the pace of construction drove higher utilization, that the contractor’s local business enterprise participation was unusually high (reported at about 50–53 percent), and that the agency has instituted new procedures in response to a recent controller audit to improve spend‑rate tracking and contract management.

Supervisors split their recommendations: items 9, 11 and 12 were forwarded with positive recommendation; item 10 (the Parsons amendment) was forwarded to the full Board without recommendation to allow closer Board scrutiny and follow‑up reporting on performance measures, spend rate management and plans for in‑house capability. Committee members asked SFPUC to report back on LBE participants and a plan for the remaining contract years if the amendment is approved. The motion passed (3–0) to forward 9, 11 and 12 with recommendation and item 10 without recommendation.