San Francisco Public Utilities Commission Meeting - April 26, 2022
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San Francisco Public Utilities Commission Meeting - April 26, 2022
The San Francisco Public Utilities Commission (SFPUC) held a hybrid meeting on April 26, 2022, at 9:45 AM in City Hall Room 400. The meeting included a land acknowledgement, adoption of hybrid meeting findings, approval of previous minutes, general public comment, employee retirement recognitions, updates from the Bay Area Water Conservation Agency (BAWCA), a drought update, and approval of several items on the consent and regular calendars. The commission also entered closed session to discuss a settlement.
Consent Calendar
- Item 11a: Approved an eight-year lease to the County of San Mateo for approximately 40,000 square feet on Montara Mountain for a communications facility.
- Item 11b: Accepted work by A. Ruiz Construction Co. & Assoc., Inc. for paving and approved increasing the contract to a total of $22,940,706.
- Item 11c: Approved an increase of $101,000 and approximately two years to the contract duration for mechanical systems inspection, maintenance, and repairs at 525 Golden Gate Avenue.
Public Comments & Testimony
- General Public Comment (Item 5): Francisco DeCosta expressed concern about community benefits linked to sewer system improvement projects and alleged that a suspended contractor, Garrett Smith, was allowed to proceed. He also criticized the city administrator's office. Marty (Tuolumne County) thanked the commission for supporting whitewater recreation flows on the Tuolumne River, noting the tourist industry. Nate Frangale (California Outdoors) reiterated appreciation for staff's work on balancing needs. Teresa Larray Hostman (American Whitewater) thanked staff for the annual Tuolumne River Recreation Coordination meeting and the tentative flow summary.
- Communications (Item 6): Peter Dreckmeyer (Tuolumne River Trust) noted that a request from former Commissioner Harrington (November 9, 2021) for environmental measures in the drought report was missing from the Outstanding Commission Request Report. He also criticized the response to President Moran's request about population projection disparities between Plan Bay Area and California Department of Finance, calling it inadequate.
- Drought Update (Item 9a): Peter Dreckmeyer commented that the 182,000 acre-feet available from the Tuolumne River was close to the 187,000 acre-feet needed, suggesting things looked good. Francisco DeCosta questioned the need for a needs assessment on pipeline linkages and criticized water use by tech companies and swimming pools in the region.
- WSIP (Item 14): BAWCA CEO Nicole Senko LaBosca submitted formal comments expressing three primary concerns: the 44-month schedule extension (to February 2027) requires continued state oversight; the Regional Groundwater Storage and Recovery Project may need additional funding; and the notice of change fails to discuss possible lower project yields from the Alameda Creek Recapture Project and the Regional Groundwater Storage and Recovery Project. BAWCA recommended a written report by January 2023 with updated cost and yield estimates and proposed replacement projects. Francisco DeCosta questioned the claimed $29 million savings on Calaveras Dam and criticized cost overruns.
- Closed Session (Item 15): Francisco DeCosta commented that the city should have contested the claim in court rather than settling.
Employee Retirement Recognitions
- The commission recognized three retiring employees: John Martin (25 years, stationary engineer at Southeast Treatment Plant), Manfred Wong (25 years, senior manager in Infrastructure Bureau), and Marge Viscara (36 years, manager of Customer Service Bureau). Resolutions were read, and staff spoke in their honor. The retirees expressed gratitude. Commissioners thanked them for their dedication.
Bay Area Water Conservation Agency Update
- CEO Nicole Senko LaBosca (BAWCA) updated the commission on the responsibilities of the SFPUC to its 26 wholesale customers serving 1.8 million residents. She noted that implementation of the Bay Delta Plan could result in a loss of 90 million gallons of water per day and require rationing up to 50% during a multiple-year drought. She urged a fresh commission strategy for productive negotiations and referenced Governor Newsom's support for voluntary agreements. Commissioner Maxwell responded that BAWCA's customers are also the SFPUC's customers.
Discussion Items
- Drought Conditions Update (Item 9a): Steve Richie, Assistant General Manager for Water, reported that Hetch Hetchy Reservoir was at 320,000 acre-feet and expected to fill. He noted that releases were being made to accommodate snowmelt. Statewide, Shasta Dam was at 47% capacity, a problem for the Central Valley Project. Bay Area precipitation for the year was above average (22.39 inches). System-wide water demand was about 183 million gallons per day (MGD), with a 7% reduction since July 1, 2021, but only 2% since January 2022. Richie recommended moving the conservation target from 10% to 11% system-wide, keeping San Francisco at 5% and requiring wholesale customers to reduce by about 16%. He expressed confidence in achieving summer reductions. Commissioners discussed the volatility of precipitation patterns, the need for strategic planning, and the importance of outdoor irrigation cuts. Commissioner Maxwell requested a report on river health conditions; Richie said a draft was being prepared with the city attorney's office.
- General Manager's Report (Item 9b): General Manager Herrera highlighted a study with Lawrence Berkeley National Laboratory using DOE supercomputers to model future storm precipitation. The study found that by the end of the century, storm total precipitation could increase by 37%, making storms like the October 2021 category 5 storm common. A guidebook for planners will be published by year-end.
- Item 12: Lease Amendment at 1980 Oakdale Avenue: Rosanna Russell, Real Estate Director, presented the first amendment for an eight-year lease of warehouse and office space for the Water Enterprise City Distribution Division. Monthly base rent for the first year is $85,337.85, subject to CPI increases. The city has a unilateral right to terminate after December 31, 2027 with 270 days' notice. Approved unanimously.
- Item 13: Fund Balance Reserve Policy Revision: Christina Aligar Cordero, Director of Financial Planning, presented the revision to incorporate a CleanPowerSF fund balance reserve into the SFPUC-wide policy, replacing the standalone 2018 CleanPowerSF reserve policy. The new policy sets a minimum of 150 days cash on hand (41% of operating expenditures) and a target of 180 days (50%) for CleanPowerSF, reflecting program maturity, volatile power markets, and best practices from other CCAs. The revised policy will be evaluated quarterly. Approved unanimously.
- Item 14: Water System Improvement Program (WSIP) Changes: Katie Miller presented the proposed Notice of Change to the State Water Resources Control Board and Seismic Safety Commission. The program completion date is extended from May 2023 to February 2027 (44 months). Schedule extensions are requested for eight projects, budget increases for five projects (totaling about $20 million for Regional Groundwater Storage and Recovery, $10 million for Alameda Creek Recapture), and scope modifications for three projects. The overall program budget remains $4.8 billion due to savings from completed projects (e.g., $29 million from Calaveras Dam). Reasons for changes include COVID-19 delays, permitting challenges, and higher bid costs. Commissioners discussed the modifications to chemical treatment processes for safety and the reasons for the Alameda Creek Recapture cost increase. BAWCA expressed concerns. Approved unanimously.
Key Outcomes
- Adoption of Hybrid Meeting Findings (Item 3): Unanimously approved (4-0).
- Approval of Minutes (Item 4): Unanimously adopted (4-0).
- Consent Calendar (Item 11): Unanimously passed (4-0).
- Lease Amendment (Item 12): Unanimously approved (4-0).
- Fund Balance Reserve Policy Revision (Item 13): Unanimously adopted (4-0).
- WSIP Notice of Change (Item 14): Unanimously approved (4-0).
- Closed Session (Item 17): The commission recommended settlement of an unlitigated claim (Any Jew vs. City and County of San Francisco) for $30,000 to the Board of Supervisors. No disclosure motion was made.
- Directives: Staff was directed to send the WSIP Notice of Change to the State Water Resources Control Board and the Alfred E. Alquist Seismic Safety Commission. Staff will provide a report on river health conditions at a future meeting. Staff will respond to BAWCA's comments on the WSIP changes.
Meeting Transcript
President Moran? Here. Vice President Jami. Yeah. Commissioner Maxwell? Here. Commissioner Paulson. 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 supplement to her 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. Hand sanitizer stations are available throughout the building and masks are available upon request at any of central city hall entrances. 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 2495 661-8235 pound pound and pressing star three to raise your hand to speak. Please know that you must limit your comments to the topic of the agenda agenda item being discussed unless you are speaking under general public comment and remind you if you do not stay on the topic, the chair can interrupt and ask you to limit your comments to the agenda item. We ask that public comment be made in a civil and respectful manner and that you address your remarks to the commission as a whole, not to individual commissioners or staff. On behalf of the commission, I would like to extend our thanks to SFGTD staff and SFPUCIT staff for their assistance during the meeting. Thank you. And before uh before moving with the first item, uh 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 Moacma Alone 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 Mawekma Alonee tribes or aboriginal lands since before and after the San Francisco Public Utilities Commission's founding in 1932. It is 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 Moekma Alone people have established a working partnership with the SFPUC and are productive and flourishing members within the many greater San Francisco Bay Area communities today. Madam Secretary, please call the first item. Your first item is item 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. Is there any discussion on this item? If not, may I have a motion and a second? Um we need public comment. In public comment, of course. Thank you. Members of the public who wish to make two minutes of remote public comment. Are there any members of the public present who wish to make comment on this item? Mr. Moderator, do you have any callers? Madam Secretary, there is one caller in the queue. And caller, this is for item number three, state urgency legislation. No callers in the queue. Thank you. Public comments closed. Okay, we have a motion and do I have a second? I'll second. And a second. I'll call the roll, please. President Moran. Aye. Vice President Ajami. Aye. Commissioner Maxwell? Aye. Commissioner Paulson? You have four eyes. Thank you. Uh the item passes.
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