San Francisco Public Utilities Commission Meeting - April 12, 2022
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San Francisco Public Utilities Commission Meeting - April 12, 2022
The San Francisco Public Utilities Commission (SFPUC) held a hybrid meeting on April 12, 2022, at City Hall. Commissioners present: President Moran, Commissioner Maxwell, Commissioner Paulson; Vice President Ajami was excused. The meeting covered drought conditions, financial reports, infrastructure projects, renewable energy procurement, and land disposition. The commission approved consent calendar items, contract amendments, bond refinancings, and participation in a long-duration energy storage project.
Consent Calendar
- Item 9a: Awarded Job Order Contract No. JOC-85R for general engineering construction in San Joaquin, Stanislaus, and Tuolumne Counties and at Hetch Hetchy for two years.
- Item 9b: Approved Amendment No. 1 to contracts with Siemens Industry Inc. and Utilicast, LLC, extending each by one year (total six years) with no cost change.
- Item 9c: Accepted work by Ronan Construction for Millbrae Warehouse Loading Dock Repair; approved Modification No. 1 decreasing contract by $74,787.
- Item 9d: Accepted work by Azul Works Inc. for Ocean Beach Coastal Erosion and Wastewater Infrastructure Protection; approved Modification No. 1 decreasing contract by $1,252,932.
- Item 9e: Approved a 106-day increase to contract duration contingency for Various Locations Sewer Replacement No. 8 with Precision Engineering, Inc.
All consent items were approved unanimously.
Public Comments & Testimony
- Nate Rangell (California Outdoors) expressed support for working with the commission on hydro operations and win-win scenarios.
- Aliza Dupree (general public) urged the commission to improve website usability and emphasized the importance of electricity education and CleanPowerSF.
- Dave Warner (Palo Alto) criticized the use of a 49% rationing figure in the Urban Water Management Plan, arguing it overstated risk and was based on outdated assumptions. He urged the commission to avoid referencing that figure.
- Peter Dreckmeyer (Tuolumne River Trust) criticized staff for not addressing the design drought, population projections, and environmental metrics despite prior commissioner requests. He claimed staff denied a Sunshine Ordinance request by citing attorney-client privilege.
- Jerry Merrill (former deputy secretary, California Natural Resources Agency) requested that staff consider a flow release schedule similar to the South Fork American River and negotiate a permanent solution for whitewater releases.
- Teresa Larrejo Simpson (American Whitewater) thanked the commission for past cooperation but noted that changing energy markets (duck curve) are impacting whitewater releases; she urged long-term solutions.
- Anonymous caller (lower Tuolumne River) accused the commission of being subservient to irrigation districts and failing to protect trout and salmon populations, citing ongoing legal battles over water quality certification.
Discussion Items
- Drought Conditions Update (7a): Steve Richie reported reservoir storage at Hetch Hetchy was ~300,000 acre-feet (increased to 310,000 due to runoff). System-wide demand dropped to 181 MGD in late March but jumped to 198 MGD in early April, indicating outdoor water use. The commission discussed the governor's executive order requiring Level 2 shortage actions (up to 20% reduction) and a ban on non-functional turf irrigation. Staff noted San Francisco's residential use is 42 gpcd, well below state average. The commission expressed concern about demand increases.
- Annual Comprehensive Financial Report (7b): Nancy Hall presented the FY2020-21 reports, which received an unmodified opinion from KPMG and GFOA awards. The report theme was "Respond, Recover, and Reimagine." The SFPUC is the only city department that issues both reports.
- Upper Islais Creek Watershed Plan Update (7c): Sarah Minnick and Steve Robinson presented a multi-benefit approach to flood management in the Alemany Corridor. The project envisions soaking up stormwater via green infrastructure, storing it, and protecting downstream areas. Cost estimate: $289 million. Community outreach included door-to-door surveys in four languages. A parallel pipe tunnel project is at 10% design. The commission will decide on a preferred alternative later in 2022.
- Mountain Tunnel Improvements Contract Amendment (10): Randy Anderson and Joseph Vitrago requested approval to increase the contract by $7.78 million (total $28.78 million) and extend by three years for engineering support during construction. The project includes a new flow control facility, tunnel rehabilitation, and road improvements. The tunnel is 90 years old and critical to the regional water system. The amendment was approved unanimously.
- Westside Recycled Water Pump Station Contingency Increase (11): Barbara Palacios requested a $500,000 increase in cost contingency and 300 additional calendar days for the pump station and reservoir in Golden Gate Park. Delays were due to pandemic impacts, supply chain issues, and PG&E power service problems. The project will produce 1.6 MGD of recycled water. The amendment was approved unanimously.
- CleanPowerSF Long-Duration Storage Project (12): Michael Himes presented the Goal Line Project agreements with Onward Energy for a 50 MW/400 MWh lithium-ion battery near Escondido. The project will provide 17.1 MW of qualifying capacity, meeting CPUC requirements. The total cost over 20 years is not to exceed $60 million (note: agenda summary incorrectly stated $45 million). The project uses prevailing wage and a project labor agreement. The commission approved the agreements unanimously.
- Surplus Land Declaration (13): Michael Carlin presented the sale of 10,925 sq ft of property in Sunnyvale to Santa Clara Valley Water District for $33,000. The land is exempt from the Surplus Lands Act. Approved unanimously.
- Bond Refinancings (14 & 15): Charles Pearl presented two refinancing proposals: up to $950 million in water revenue bonds (taxable advanced refunding) and up to $475 million in wastewater refunding bonds (tax-exempt and taxable). The water refinancing aims for at least $23 million in savings (3% threshold), but current interest rate increases may delay execution. The wastewater refinancing targets $32 million in savings. The commission approved both authorizations separately.
Key Outcomes
- Votes: All items passed unanimously (3-0) with Vice President Ajami excused.
- Directives: Staff was directed to continue drought messaging and evaluate the governor's executive order. The commission will consider a tour of the Mountain Tunnel project during outage 2.
- Next Steps: Staff will seek Board of Supervisors approval for the Mountain Tunnel amendment, CleanPowerSF agreements, and bond issuances. The water bond refinancing will be executed only if interest rates allow at least 3% savings.
- Closed Session: The commission asserted attorney-client privilege and went into closed session. After returning, they reported recommending settlement of the USDA Forest Service claim (unlitigated) to the Board of Supervisors and voted not to disclose further discussions.
Meeting Transcript
Uh Madam Secretary, please call the roll. President Moran? Here. Vice President Ajami is excused today. Commissioner Maxwell? Here. Commissioner Paulson. Here. You have a quorum. Oh, sorry. This meeting is being held in person at San Francisco City Hall Room 400 as authorized by the California Government Code Section 54953E. And Mayor Breed's 45th supplementary February 25th, 2020 emergency proclamation. I would like to remind all individuals present in attending the meeting in person today that all health and safety protocols and building rules must be adhered to at all times. This includes wearing a mask that covers your nose and mouth at all times and no eating or drinking in the hearing room. Failure to adhere to these rules and requirements may result in your removal from this room. We appreciate your cooperation with these important rules and requirements in the interest of everyone's health and safety. Please note that hand sanitizer stations are available throughout the building and at each elevator, and masks are available upon request at City Hall entrance. We welcome the public's participation during public comment periods. For each item, the commission will take two minutes of public comment, first from people attending the meeting in person and then from people attending the meeting remotely. Members of the public may provide remote public comment by dialing one, 415-655-0001, meeting ID 249-390 5690, pound pound and pressing star three to raise your hand to speak. Please note that you must limit your comments to the topic of the agenda item being discussed unless you are speaking under general public comment. And remind you if you do not stay on the top of the chair can interrupt and ask you to limit your comment to the agenda item. We ask that public comment be made in a civil and respectful manner and that you address the remarks to the commission as a whole, not to individual commissioners or staff. On behalf of S of the Commissioner, I'd like to extend our thanks to SFGTV staff and SFPCIT staff for their assistance during this meeting. Thank you. And before calling the first item, I would like to announce that the San Francisco Public Utilities Commission acknowledges that it owns and are stewards of the unceded lands located within the ethnohistoric territory of the Moequa Lone tribe and other familial descendants of the historic federally recognized Mission San Jose Verona Band of Alameda County. The SFPUC also recognizes that every citizen residing within the Greater Bay Area has and continues to benefit from the use and occupation of the Moekma Loney tribe's aboriginal lands since before and after the San Francisco Public Utilities Commission's founding in 1932. It's vitally important that we not only recognize the history of the tribal lands on which we reside, but also we acknowledge and honor the fact that the Moeq Maalone people have established a working partnership with the SFPUC and a productive and flourishing members within many greater San Francisco Bay Area communities today. Madam Secretary. Thank you. Your next item is item number three. Adopt renewed findings under state urgency legislation to allow hybrid in-person meetings during the COVID-19 emergency and direct the Commission Secretary to agendize a similar resolution at a commission meeting within the next 30 days. Okay, thank you. Uh any comment from the commissioners? Seeing none, please open public comment. Members of the public wish to make two minutes of remote public comment, please press star three to raise your hand to speak. Do we have any members of the public in person who wish to provide comment on this item? See none, Mr. Moderator. Do we have any speakers with their race? Hands raised. Secretary, there are two callers in the queue. Okay, callers, please note this is for item number three. I've opened your line. You have two minutes. I was just wanting to make a general comment. Not on this particular item number three. That will be called next. Thank you, caller. There are no more callers in the queue.
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