San Francisco Public Utilities Commission Meeting – February 22, 2022

The San Francisco Public Utilities Commission (SFPUC) held a regular meeting on February 22, 2022, at 9:45 AM via teleconference due to the COVID-19 emergency. Commissioners present: President Moran, Commissioner Maxwell, Commissioner Paulson; Vice President Jami excused. The meeting covered 19 agenda items, including routine approvals, public comments, reports, and several major contracts and policy actions.

Consent Calendar

• Item 11a, 11b, 11c: Approved three consent items: Job Order Contracts JOC-86 and JOC-87 (each $5,000,000) for general engineering construction, and a 180-day contract duration extension for Contract WD-2668 (Regional Groundwater Storage and Recovery). All passed unanimously.

Public Comments & Testimony

• General Public Comment (Item 5): Multiple speakers addressed the commission:
  • A speaker called for transparency and accountability in community benefits, alleging discrepancies and lack of outreach.
  • A speaker criticized the transfer of the Auxiliary Water Supply System (AWAS) from the Fire Department to SFPUC, arguing it has led to questionable modifications and urging a transfer back.
  • Dave Warner (Palo Alto resident) praised the Long-Term Vulnerability Assessment (LTVA) and climate workshop, recommending a five-year update cycle. He noted that the LTVA found no clear change in average precipitation but expected 4°C warming, making severe droughts rarer.
  • Peter Dreckmeyer (Tuolumne River Trust) claimed SFPUC’s official filing inflated current water demand by 22% (citing 238 MGD vs. actual 195 MGD), calling it a violation of the Sunshine Ordinance. He also highlighted San Francisco’s water conservation success: 82 MGD in 1998 to 37.3 MGD today despite population growth.
  • Barry Nelson (Golden State Salmon Association) raised concerns about SFPUC’s letter supporting the Tuolumne River Voluntary Agreement, stating it lacks scientific basis and ignores peer review. He urged a public forum on salmon declines (80% in three years).
  • A speaker (CleanPowerSF user) urged the commission to continue working for clean, renewable electricity and affordable conversions, noting her all-electric kitchen.
  • David Tilpel (regular attendee) stressed the importance of maintaining remote public participation in future hybrid meetings.
• Item 7 (RBOC Report): Public comment included Francisco De Costa criticizing the revenue bond oversight, alleging failures and FBI involvement. David Tilpel defended the committee’s narrow focus, and Peter Dreckmeyer requested more detailed future presentations.
• Item 8 (BAWSCA): Dave Warner thanked CEO Nicole Sandkuhle for the innovative approach to demand projections.
• Item 13 (CDD Campus Design): Four callers spoke in favor: Ellen Lewenberger (Mark Cavagnero Associates), Yakuaski (YA design), Felicia Venom (Mark Cavagnero Associates), and Ann Cervantes (San Francisco Latino and Black Builders Association), who urged breaking larger projects into smaller trade packages for local BIPOC businesses.
• Item 15 (Tumbleweed Energy Storage): Alex Lanceburg (San Francisco Electrical Construction Industry) commended labor standards but criticized CC Power’s lack of institutional transparency and labor guidelines. Another speaker supported the project for mitigating solar curtailment and enhancing resilience.
• Item 18 (CAP Program): David Tilpel raised concerns about outreach to the Citizens Advisory Committee, comparison with other utility discount programs, and use of an outside contractor for customer data verification.

Discussion Items

• Item 3 – Remote Meetings Extension: Adopted renewed findings under state urgency legislation to continue remote meetings for 30 days. Passed 3-0.
• Item 4 – Minutes: Approved minutes of February 8, 2022. Passed 3-0.
• Item 6 – Communications: President Moran asked staff to prepare a schedule for unfinished business workshops.
• Item 7 – Revenue Bond Oversight Committee (RBOC) Report: Chair Etora Lile presented the annual report (January 2020 – June 2021), highlighting bond sales monitoring, performance audit findings, and recommendations. Commissioners thanked the committee.
• Item 8 – Bay Area Water Supply and Conservation Agency (BAWSCA) Update: CEO Nicole Sandkuhle presented an update on demand projections. She showed that projections have consistently overestimated actual demand due to droughts and COVID. BAWSCA is conducting a 2022 demand study update with sensitivity analysis to quantify uncertainty. Key statistic: BAWSCA region population increased 27% since 1990, while total water use decreased 13% and residential per capita use decreased 30%.
• Item 9a – Drought Conditions Update: Ellen Levin reported that Hetch Hetchy Reservoir is at 84.2% capacity (crossed 300,000 acre-feet), curtailments on Tuolumne River are suspended. Precipitation in January was driest on record at Hetch Hetchy; February storms brought some relief. Overall demand reduction since July 2021 is 8.7% compared to baseline (FY 2019-20).
• Item 9b – Quarterly Audit and Performance Review: Nancy Holm presented the Q2 FY 2021-22 audit portfolio. Five audits completed, including the Social Impact Partnership Program audit (7 recommendations). Inventory counts showed challenges at some divisions. 97% of 256 total audit recommendations are closed; 7 remain open. Welcomed new Audit Director Irella Blackwood.
• Item 12 – Tree Services Contracts: Awarded four master tree services contracts (not-to-exceed $9,700,000) to A&L Builders Inc., Arborist Now Inc., CPEX Group Inc., and Professional Tree Care Company. Duration 1,826 days. Passed 3-0.
• Item 13 – CDD Campus Design Contract: Staff presented plan to award $27,800,000 design contract to Mark Cavagnero Associates (MCA) for a new City Distribution Division campus at 2000 Marin. Only one responsive bid received; two other bidders were deemed non-responsive due to material errors in overhead and profit schedules. Commissioners questioned the process but approved. Passed 3-0.
• Item 14 – Groundwater Storage Phase 2A: Awarded contract WD-2878A ($6,850,000) to Marine Ship Development LLC for retrofitting well pump systems. Only one responsive bid; second bidder did not meet license requirements. Passed 3-0.
• Item 15 – Tumbleweed Long Duration Energy Storage: Authorized CleanPowerSF to participate in the 69 MW lithium-ion battery project (8-hour discharge) via California Community Power (CC Power). Total not-to-exceed $65 million over 15 years (20-year term including pre-operations). Discussion focused on labor standards and need for stronger institutional policies at CC Power. Passed 3-0.
• Item 16 – UDC Operations Agreement with CAISO: Authorized General Manager to enter into a Utility Distribution Company operations agreement for the new substation at Potrero. Term for life of substation. Passed 3-0.
• Item 17 – COVID-19 Relief Extension: Extended moratorium on shutoffs, liens, and late fees until July 1, 2022 (from March 31, 2022), and late fee resumption delayed to July 1, 2023. Staff noted federal relief from ARPA will pay off a significant amount of customer debt. Passed 3-0.
• Item 18 – Customer Assistance Program (CAP) Memorialization: Approved moving CAP rules into water service regulations, with streamlined enrollment (self-certification, online application, annual third-party verification). Discount changed to uniform 25% for water and sewer (from 15%/35%). Income eligibility remains at 200% federal poverty level. Passed 3-0.
• Item 19 – Water Waste Restrictions Update: Updated permanent water waste restrictions to align with state regulations, including prohibitions on watering during rain and on hardscapes. Passed 3-0.

Key Outcomes

• Votes: All consent and regular calendar items passed unanimously (3-0).
• Directives: Staff to prepare a schedule for unfinished business workshops (Item 6).
• Next Steps: For the Tumbleweed project, staff will seek Board of Supervisors approval in March and execute agreements by April 25, 2022. For CAP, implementation of online application and verification process will proceed.
• Reports: The commission received the RBOC annual report, BAWSCA demand study update, drought update, and quarterly audit report; no specific actions taken.