Supervisors approve revenue bonds for water system
February 15, 2006
By Angela Hokanson, Bay City News Service
SAN FRANCISCO (BCN) - The San Francisco Board of Supervisors
on Tuesday unanimously approved the issuance of up to $525 million
in water revenue bonds by the San Francisco Public Utilities Commission
to finance the next phase of improvements to the Hetch Hetchy
water system, the SFPUC reported.
The revenue bonds will finance design, engineering, environmental
review and construction work on seismic repair and improvement
projects to the water system over the next 18 months.
"Seismic repairs and major improvements to the Hetch Hetchy
water system are under way and now we are working to accelerate
that work in every possible way," said SFPUC general manager
Susan Leal. "The board's authorization to issue these voter-approved
revenue bonds will keep the program to rebuild and improve the
Hetch Hetchy system on track.''
The funding will go toward the more than 70 seismic repair and
improvement projects in San Francisco and around the Bay Area
that are part of the $4.3 billion Water System Improvement Program.
The projects include the SFPUC-East Bay Municipal Utility District
Emergency Intertie in Hayward, the Sunset Reservoir in San Francisco,
and the Lincoln Way Transmission Main in San Francisco.
Voters in San Francisco gave the SFPUC the authority to issue
revenue bonds to fund the capital improvement program for the
Hetch Hetchy system in 2002, the SFPUC reported.
The bonds will be repaid over 30 years through money received
from SFPUC retail customers in San Francisco and from 28 wholesale
customers around the Bay Area who purchase water from the Hetch
Hetchy water system.
Drinking water is delivered through the Hetch Hetchy system to
more than 2.4 million Bay Area residents in the counties of Alameda,
San Francisco, San Mateo and Santa Clara, according to the SFPUC.
The Board of Supervisors also approved the sale of up to $125
million in additional bonds to refund and refinance past debt
issuances, according to the SFPUC. This sale will save the SFPUC
Water Enterprise $4 million on a net present value basis.
Copyright © 2006 by Bay City News, Inc. -- Republication,
Rebroadcast or any other Reuse without the express written consent
of Bay City News, Inc. is prohibited.