Hetch Hetchy Upgrade Starts at S.F. Reservoir

PUC manager vows close scrutiny of $1.6 billion project

by Katia Hetter
San Francisco Chronicle - December 19, 2003

More than a year after San Francisco voters approved $1.6 billion in bonds to upgrade the Hetch Hetchy water delivery system, Mayor Willie Brown broke ground on the first of 77 renovation projects Thursday at Summit Reservoir atop Twin Peaks.

The San Francisco Public Utilities Commission, which had come under fire for allowing the city to raid $600 million in agency revenue for other purposes while the system fell into disrepair over two decades, promised to be good stewards of the public's funds during the 13-year capital improvement project.

"The public will scrutinize the use of the $1.6 billion that that voters have authorized," said Pat Martell, the PUC general manager. "I welcome that scrutiny. I welcome the opportunity to establish a high level of accountability in the implementation of our capital program."

The funds will pay for part of a $3.6 billion program to upgrade the city-owned, Sierra-fed Hetch Hetchy aqueduct and its aging pipelines and tunnels, reservoirs and dams. San Francisco built the system in the early 1900s, and the city still runs the system that delivers water from Yosemite's Hetch Hetchy reservoir to the Bay Area. The structural reliability of the Hetch Hetchy system is critical because the aqueduct crosses several earthquake fault lines, officials said, and a city consultant's report said a break in the system could halt water delivery for up to two months.

The business community is also counting on a steady supply of water to support job growth in the region, said San Francisco Chamber of Commerce President A. Lee Blitch, whose organization worked with the PUC to pass the bond measure in November 2002.

"When the earthquake hits, and it's going to hit, from the business community standpoint, we would be 60 days repairing the system," Blitch said. "If you look at the city's economy and job creation, 9/11 would be nothing to what would have happened to us if we went without water for 60 days. ... We need to start this and get on with this."

Suburban customers, who will pick up the tab for $2 billion in repairs, will be watching the PUC closely to ensure their money is well spent, said Arthur Jensen, general manager of the Bay Area Water Supply and Conservation Agency. The agency represents the suburban cities and water districts in San Mateo, Santa Clara and Alameda counties that purchase water from the PUC.

"It's in our best interest for them to succeed," Jensen said. "We would like to see that happen, so we're watching carefully."

The city nearly lost control of the regional system over failures to maintain its infrastructure, Brown said.

"Our neighbors, particularly to the south in San Mateo County, were really chafing at the bit to take over management, operation and control of this system," Brown. "This bond measure and the implementation of this bond measure will keep Hetch Hetchy ... the wonderful, phenomenal system that it really is."

Public oversight is now required by a state law that mandates annual progress reports by the city and a first-ever state Department of Health Services audit of maintenance on Hetch Hetchy. Proposition P, introduced by Supervisor Tony Hall, set up a citizen oversight panel to monitor PUC spending, while Proposition E, written by Supervisor Tom Ammiano, made it more difficult for the city Board of Supervisors to raid PUC funds for other city programs rather than on maintenance.

Summit Reservoir is the first of the six projects within the city. The PUC expects the $8 million project to start construction in January 2004 and take about 20 months.

The 14 million-gallon reservoir, located near Glenbrook and Palo Alto avenues, will be upgraded to meet seismic, building and health codes. Built in 1954, it provides drinking water and fire protection to residents in Twin Peaks. Mitchell Engineering is the contractor on the project.

The entire $3.6 billion worth of Hetch Hetchy projects from San Francisco to the Sierra foothills will more than double the monthly bills of suburban users of the system to about $71. San Francisco customers will see their bills almost triple to about $43.