San Francisco Public Utilities Commission Meeting - June 28, 2022

The San Francisco Public Utilities Commission (SFPUC) held a regular meeting on June 28, 2022, at 9:45 AM in San Francisco City Hall Room 400. The meeting included the adoption of hybrid meeting protocols, approval of minutes with a spelling correction, retirement recognitions for two long-serving employees, an update from the Bay Area Water Supply and Conservation Agency (BAWSCA) on drought conditions, a detailed drought update from staff, approval of several real estate easements and large construction contracts, and a public hearing on a temporary ban on irrigation of non-functional turf. The commission also entered closed session to discuss existing litigation and reported no action taken.

Consent Calendar

• Adoption of Renewed Hybrid Meeting Findings (Item 3): Unanimously approved (4-0) a resolution to continue hybrid in-person meetings under state urgency legislation, directing the secretary to agendize a similar resolution within 30 days.
• Approval of Minutes (Item 4): Unanimously approved (4-0) the minutes of June 14, 2022, with a correction to the spelling of a public commenter's first name (from "Aleta" to "Aleta").
• Consent Calendar (Item 11): Unanimously approved (4-0) the consent calendar as presented.

Public Comments & Testimony

• Alita Dupree urged the commission to prioritize basic water and electricity services for San Francisco residents and noted a broken link in the municipal benchmarking report.
• Kevin Delano (commercial raft guide and geologist, speaking as an individual) advocated for legally binding recreational whitewater releases on the Tuolumne River, citing significant economic, recreational, and educational value.
• Peter Dreckmeyer (Policy Director, Tuolumne River Trust) accused SFPUC staff of being disingenuous about the long-term vulnerability assessment, claiming that key staff are leaving because they were forced to keep quiet on findings showing that instream flow requirements, a 15% demand increase, and a 15% precipitation decrease are equivalent in impact.
• Dave Warner (Palo Alto, Tuolumne River Trust) presented analysis indicating a 95% probability that the design drought (at 23% above current demand) has a return period of once in 3,000 years, arguing no justification exists to plan for such a rare event.
• David Pilpel (recurring commenter) requested that maps and photos be included as standard attachments in staff reports where appropriate.
• Francisco DeCosta criticized the commission for insufficient water releases for salmon, accusing them of ignoring empirical data and wasting water.
• Mark Musgrove (whitewater kayaker) attempted to comment on water releases but was redirected as it was not the relevant agenda item.

Discussion Items

Retirement Recognitions (Item 7)

The commission honored two retiring employees with resolutions and tributes:

• Alan Joha (Acting Assistant General Manager of Infrastructure, nearly 30 years of service) – Recognized for his leadership on the $4.8 billion Water System Improvement Program and a record of millions of hours without major injury. Public comments praised his professionalism and good humor.
• Michael Carlin (Deputy General Manager, nearly 26 years of service) – A certificate of commendation from Senator Dianne Feinstein was presented. Carlin spoke briefly, thanking colleagues. Commissioners, former General Manager Ed Harrington, and BAWSCA CEO Nicole Sandkulla praised his integrity, mentorship, relationship-building, and quiet leadership. A caller from Restore Hetch Hetchy acknowledged him as a respectful adversary.

BAWSCA Update (Item 8)

Nicole Sandkulla (CEO, BAWSCA) reported on drought impacts across the 26 member agencies. Key points:

• Agencies strongly support demand reduction, but alternative supplies are constrained. For example, Alameda County Water District (ACWD) received only a 5% State Water Project allocation (normally ~50%) and faces PFOS contamination in its groundwater requiring blending, leading to increased SFPUC purchases.
• April 2022 total potable use was 3% lower than April 2015, but SFPUC deliveries were higher, partly because large agencies with alternative supply constraints are buying more water.
• She committed to a detailed analysis to help distinguish conservation progress from increased reliance on SFPUC supply.
• Commissioner Jamy asked about tracking recycled water projects; Sandkulla said a white paper would be provided.

Drought Conditions Update (Item 9a)

Steve Ritchie (Assistant General Manager for Water) presented an update. Key points:

• Storage: Hetch Hetchy Reservoir is full; Cherry Reservoir is nearly full. The Water Bank is down about 230,000 acre-feet. Overall system storage is at 93% (excluding Water Bank).
• Statewide Context: Shasta and Oroville reservoirs are very low. SFPUC reservoirs are relatively full due to system design and October storms that added about 200,000 acre-feet, buying another year of time.
• Power Generation: Generation varies due to water availability and curtailment risks. He showed a slide projecting that if curtailment risks persist, generation from the Holm powerhouse could be reduced by about 50 GWh.
• Deliveries: After trending upward, the most recent report showed a slight dip. He noted that agencies like ACWD are reducing overall demand but need more SFPUC water due to alternative supply constraints, which may affect the perceived conservation numbers.
• PFOS Contamination: Explained that PFOS are ubiquitous, persistent organic chemicals. SFPUC has not found them in its supply. ACWD is blending to manage PFOS while working on permanent treatment.

Real Estate Easements (Items 12 & 13)

Approved two real estate agreements for the groundwater project:

• Item 12: Purchased two small easements (179 sq ft for $7,500 plus $5,000 in lieu of independent appraisal; 1.7 sq ft for $1,000) and granted a 300 sq ft easement to PG&E at no cost for electrical service to a water sampling station. (Vote: 4-0)
• Item 13: Purchased a 14,619 sq ft permanent easement and a temporary construction easement from BART for $306,000 to provide access to the Treasure Island Trailer Court Well and Treatment Facility. (Vote: 4-0)

Biosolids Digester Facilities Project – Contract Amendments (Items 14 & 15)

Approved amendments to two contracts for the Southeast Plant Biosolids Digester Facilities:

• Item 14 (Construction): Amendment No. 5 to Contract WW-647R increased the amount by $498,103,597 (total now $1,781,787,283) and extended duration by 621 days (total 3,848 days). The increase reflects construction cost escalation, market conditions, and the added complexity of a phased bidding strategy after a pause in 2021. (Vote: 4-0)
• Item 15 (Design): Amendment No. 2 to Contract CS-235 with Brown and Caldwell increased the amount by $55 million (total $208.5 million) and extended duration by 3.5 years to July 2029 to ensure engineering support through construction and commissioning. (Vote: 4-0)
• Commissioners discussed lessons learned, risk allocation, and the need for better project assessment and data tracking to avoid future cost escalations.

City Distribution Division Campus – Contract Award (Item 16)

Approved award of Contract WD-2879R to Clark Construction Group as CM/GC for the new campus at 2000 Marin Street, total amount $260,450,682, duration 2,464 days (~7 years). The contract is a not-to-exceed amount for pre-construction and construction services. Clark’s team includes 60% people of color and women, and the company’s Strategic Partnership Program has graduated over 1,250 small businesses, including 61 from San Francisco. (Vote: 4-0)

• Commissioner Jamy noted the three bids were close, lending confidence. Commissioner Paulson asked about the SPP program, which was explained as a program for subcontractors, not individuals.

Temporary Ban on Non-Functional Turf Irrigation (Item 17)

After a public hearing, approved a temporary mandatory prohibition on irrigation of non-functional turf at commercial, industrial, and institutional (CII) sites. The prohibition takes effect immediately and will remain in place until the State Water Board acts or the SFPUC lifts it. Staff stated that parks and sports fields are functional and not targeted. (Vote: 4-0)

Transmission Line 7/8 Upgrades – Contract Award (Item 18)

Approved plans, specifications, and award of Contract HH-1007 to Wilson Utility Construction Company for reconductoring and upgrading 12.5 miles of transmission lines, amount $23,980,141, duration 668 days. The project resolves 18 hard clearance safety issues and mitigates grid reliability impacts from renewable energy interconnection. Developers are funding the project ($33.3 million total; 85% under agreement). (Vote: 4-0)

• Commissioner Paulson raised concerns about the contractor’s track record on training and wage compliance based on correspondence from a fair contracting organization. Walt Posey (Wilson Safety and Training Director) responded that Wilson is an IBEW signatory with a 70-year history, participates in joint apprenticeship programs, has three training facilities, and will sign the project labor agreement. He also noted the bid was independently evaluated and deemed reasonable.

Key Outcomes

• All votes on items 3, 4, 11, 12, 13, 14, 15, 16, 17, and 18 passed unanimously (4-0).
• Closed session (Item 21) on litigation (Drummer v. SFPUC) resulted in no action. The commission voted not to disclose discussions (Item 23).
• Staff directed to: correct the municipal benchmarking report link; provide a white paper on recycled water projects; continue analysis of alternative supply constraints with BAWSCA; and improve project assessment and data tracking for lessons learned.
• The next meeting will include a similar resolution on hybrid meetings within 30 days as required by the adopted findings.