San Francisco Public Utilities Commission Meeting – December 14, 2021

The San Francisco Public Utilities Commission (SFPUC) held a regular meeting on December 14, 2021, via teleconference due to the COVID-19 emergency. The commission addressed a range of topics including renewal of remote meeting findings, water supply development, drought conditions, long-duration energy storage procurement, emergency firefighting water system expansion, and routine consent calendar items. All votes were unanimous (5-0) unless noted.

Consent Calendar

• Item 10a: Decommission up to eight former irrigation wells.
• Item 10b: Engineering Design Services contract with Stantec Consulting Services Inc. for Oceanside Plant.
• Item 10c: Increase contract duration contingency by 180 days for Contract No. DB-129.1, Bay Corridor Transmission and Distribution.
• Item 10d: Increase contract duration contingency by 180 days for Contract No. DB-129.2, Bay Corridor Transmission and Distribution.
• Item 10e: Increase contract duration contingency by 240 days for Contract No. WD-2861, Auxiliary Water Supply System Clarendon Supply 2019.
• Item 10f: Increase contract duration contingency by 180 days for Contract No. WW-696, Cargo Way Flush Line.
• Item 10g: Increase contract duration contingency by 30 days for Contract No. WW-703, Mission Street Brick Sewer Rehabilitation.

Public Comments & Testimony

• Eileen Boken (Coalition for San Francisco Neighborhoods) spoke on blended water quality, stating that water quality is declining while rates rise, and urged the commission to revisit the blended water issue. She also opposed making San Jose and Santa Clara permanent customers, saying “give the water to the salmon, not the Silicon Valley Growth Machine.”
• Peter Dreckmeyer (Tuolumne River Trust) urged the commission to take action on the Bay Delta Water Quality Control Plan, noting that demand has been under 200 MGD for seven years and that the SFPUC could voluntarily contribute its share of unimpaired flow. He also requested that the commission discuss the design drought at the first meeting in January 2022.
• David Pilpel recognized departing employees for their public service and later commented on the contract advertisement report, requesting a narrative report on SFPUC real estate in the southeast sector of the city.
• Dave Warner (Palo Alto) provided a fish passage update, calculating that one salmon passes by on average every 70 minutes on the Tuolumne River, and thanked Commissioner Harrington for requesting fish passage data be reported with water supply updates.
• An unnamed caller raised concerns about water quality, safety issues at the Oceanside plant, and the need for real data on leaking pipes.

Discussion Items

Renewed Findings for Remote Meetings (Item 3)

• The commission unanimously adopted renewed findings under state urgency legislation to continue remote meetings for the next 30 days, with a directive to agendize a similar resolution within 30 days. (5-0)

Approval of Minutes (Item 4)

• The minutes of November 23, 2021, were approved unanimously. (5-0)

Communications (Item 6)

• Commissioner Harrington requested an executive summary format for the Alternative Water Supply Program quarterly report. Commissioner Ajami praised the Water Resources Division annual report. Commissioner Moran noted the program may not be ambitious enough and called for a future agenda item to discuss the report in depth. Commissioner Paulson cautioned against treating the commission as a “think tank.”

Water Supply Development Report (Item 7)

• Assistant General Manager Steve Richie presented the annual report, noting that San Jose and Santa Clara (interruptible customers) have current combined demands of about 5 MGD, down from the original 9 MGD target. The 2009 water supply agreement extended the decision deadline to 2028. Gary Welling (Santa Clara) and Jeff Provenzano (San Jose) presented their cities’ water conservation efforts and requested permanent status. Commissioner Moran questioned the disconnect between the 184 MGD supply assurance and actual demand of 162 MGD. Commissioner Ajami explored potential trades with other customers. The commission agreed to advance discussions, with President Moran urging a quicker conclusion. Public comment: Eileen Boken opposed permanent status.

Report of the General Manager (Item 8)

8a: California Community Power Long-Duration Storage Procurement

• Barbara Hill presented the Tumbleweed project (69 MW, 8-hour lithium-ion battery in Kern County), which would meet more than half of Clean Power SF’s 15.5 MW procurement mandate. The project has a 15-year fixed price, with total cost estimated at $45–65 million over 15 years. Commissioner Maxwell expressed concern that workforce language “encourages” rather than “requires” local labor and apprenticeships. Commissioner Harrington asked about dispatch priority and market signals. Public comment: David Pilpel questioned the environmental impact of lithium mining and asked who bears ultimate responsibility. The item will return for a vote in January/February 2022.

8b: Drought Conditions Update

• Steve Richie reported that as of December 6, storage levels were unchanged due to a cold storm bringing snow rather than rain. Year-to-date precipitation was 7.25 inches (20% of annual average) before the current storm, which brought it to about 30% (11 inches). Snowpack was above the median for the date. The state water board suspended curtailments on October 19 and continued suspension through December. Vice President Ajami noted that demand rebounded quickly after the previous atmospheric river, emphasizing the need for clear communication. Public comment: Dave Warner provided a fish passage update.

8c: Emergency Firefighting Water System Update

• John Scarpula presented a draft citywide plan for the Auxiliary Water Supply System (AWSS). The proposed expansion would add pipelines in Districts 7, 10, and 11 at an estimated cost of $1.6 billion (2021 dollars), escalating to $2.6 billion over 15 years or $3.3 billion over 25 years. The plan includes connecting additional reservoirs and increasing seawater pump station capacity. Commissioner Harrington voiced strong opposition, calling the project a “religious fervor” and questioning its necessity. Commissioner Ajami asked about data on system failures and the potential for multi-benefit use with alternative water supplies. Public comment: Eileen Boken criticized the AECOM report as incomplete and noted Supervisor Marr’s opposition to draining Lake Merced. David Pilpel suggested a public workshop to discuss pros and cons.

8d: Water System Improvement Program Quarterly Report

• Katie Miller reported that the program is 99% complete, with five projects in construction and $112 million remaining budget. The quarterly report format will be revised for Hetchy and Sewer programs but kept unchanged for WSIP due to stakeholder familiarity. No public comment.

8e: Report on Recent SFPUC Activities

• General Manager Dennis Herrera noted that the Controller’s Office issued a performance audit of the Social Impact Partnership Program on December 9, and the commission will discuss it in January 2022. No public comment.

New Commission Business (Item 9)

• No commissioners raised new business.

Key Outcomes

• Item 3: Adopted renewed findings for remote meetings (5-0).
• Item 4: Approved November 23, 2021 minutes (5-0).
• Item 10: Consent calendar adopted as a whole (5-0).
• Item 11: Authorized MOU for stream gauge monitoring on Pillar Point Creek, $9,695 for 58 months (5-0).
• Item 12: Authorized amendment to Bay Area Regional Reliability Partnership MOA, extending term 15 months to March 31, 2023, and adding Marin Municipal Water District (5-0).
• Item 13: Authorized purchase of three properties totaling 653 acres in Alameda and Santa Clara counties for $9,151,875, plus up to $200,000 for due diligence (5-0).
• Closed Session (Items 14-19): The commission voted to assert attorney-client privilege (5-0) and not to disclose the discussions (5-0). The meeting adjourned, with the December 28, 2021 regular meeting canceled.