San Francisco Public Utilities Commission Meeting – November 9, 2021

The San Francisco Public Utilities Commission (SFPUC) held a regular meeting on November 9, 2021, via teleconference due to the COVID-19 emergency. The meeting included a drought update, approval of consent calendar items, issuance of up to $127 million in power revenue bonds, and adoption of a resolution establishing priorities for the new General Manager Dennis Herrera. Public comment focused on environmental stewardship, the Tuolumne River, and welcoming the new General Manager. The commission also adopted renewed findings for remote meetings and approved minutes from previous meetings.

Consent Calendar

• 9a: First Amendment to the Prepayment and Collection Agreement between the Bay Area Water Supply and Conservation Agency (BAWSCA) and the City and County of San Francisco – approved unanimously.
• 9b: Award Contract No. WD-2871, Sunol Valley Water Treatment Plant and Chloramination Facility Aqua Ammonia Structural Repairs and Tank Replacement, in the amount of $1,769,014 – approved unanimously.
• 9c: Award Contract No. WW-704, Various Locations Sewer Replacement No. 9, in the amount of $3,898,770 – approved unanimously.

Public Comments & Testimony

• Seventeen callers spoke during general public comment and on specific items. Key themes:
  • Many speakers welcomed new General Manager Dennis Herrera and urged him to adopt stronger environmental leadership, particularly regarding the Tuolumne River and Bay-Delta health.
  • Several speakers called for the SFPUC to withdraw from lawsuits against the State Water Board’s 2018 Bay-Delta Plan and to prioritize science-based water management, fish and wildlife protection, and water recycling.
  • Speakers from organizations such as the Golden State Salmon Association, Tuolumne River Trust, Center for Biological Diversity, Sierra Club, and Save California Salmon expressed support for improved river flows, habitat restoration, and sustainable water supply planning.
  • A few speakers raised concerns about contract integrity, corruption, and the need for workforce development and transparency.
  • One speaker requested inclusion of AWSS (auxiliary water supply system) expansion and desalination on the west side.

Discussion Items

• Item 3: State Urgency Legislation for Remote Meetings – Adopted findings to continue remote meetings for 30 days. Commissioner Harrington inquired about returning to in-person meetings; staff reported no information on a timeline beyond December 2021. Passed 4-0 (Commissioner Paulson absent).
• Item 4: Approval of Minutes – Minutes of October 26 and October 29, 2021 meetings approved unanimously.
• Item 7A: Drought Update – Assistant General Manager Steve Ritchie presented a detailed update. Reservoir storage exceeded 1 million acre-feet (up to 4.5 years of supply). October storms provided 81,000 acre-feet to the city, more than the entire previous water year (57,000 acre-feet). Demand dropped sharply during the storm to 163 million gallons per day. Curtailments on the Tuolumne were suspended as of November 1. The SFPUC plans to propose a water shortage emergency declaration at the next meeting. Commissioner Harrington requested inclusion of environmental health indicators (e.g., salmon returns) in future reports. Commissioner Ajami suggested communicating per capita water use to the state.
• Item 11: Issuance of up to $127 million in 2021 Series AB Power Revenue Bonds – Rich Morales, Deputy General Manager, presented the bond structure: two subseries (A for generation projects, B for transmission and redevelopment), 30-year maturity, fixed rate, competitive sale, green bond designation for Series A. Estimated true interest cost (yield to maturity) 3.29%. The bonds will refund commercial paper used for interim financing. Approved unanimously (5-0).
• Item 12: Resolution Establishing Commission Priorities for the General Manager – President Moran introduced the resolution, which was extensively amended during the meeting. Amendments added:
  • A new bullet on regional leadership: “continued strengthening of the PUC’s working relationship with BAWSCA representing the PUC’s wholesale customers.”
  • Under environmental leadership: “review the status of the Tuolumne River Voluntary Agreement with a view towards strengthening relationships with state and local government partners.”
  • Revised a bullet to: “coordinate with Tuolumne state and local partners toward early implementation of habitat measures in the Tuolumne River Voluntary Agreement.”
  • Under capital program effectiveness: “integrate SFPUC capital planning between SFPUC enterprises and with other city departments to maximize public benefits in addressing climate change, sea level rise, flood resiliency, and water supply resiliency.”
  • Under organizational leadership: “special attention to effective and successful workforce development in the commission’s capital and employment contracts and priorities.”
  • Additional bullet: “established programs to support SFPUC employee growth and professional development and excellence.”
  • The resolution also directed that the term “EDI” be spelled out as “Equity, Diversity, and Inclusion.” The amended resolution passed unanimously (5-0).

Key Outcomes

• Remote meeting extension approved for 30 days (4-0).
• Minutes of October 26 and October 29, 2021 adopted unanimously.
• Consent Calendar items 9a, 9b, 9c approved unanimously.
• Item 10 (Folsom Area Stormwater Improvements) was pulled from the agenda and will be heard at a future meeting.
• Power Revenue Bonds – Authorized issuance of up to $127 million Series AB; staff will report back on sale results.
• Commission Priorities Resolution – Adopted with multiple amendments; the resolution will guide General Manager Dennis Herrera’s performance evaluation.
• Next steps – Staff will bring a proposed water shortage emergency declaration to the next commission meeting. The commission will continue to monitor drought conditions and federal infrastructure funding opportunities.