San Francisco Public Utilities Commission Meeting - September 13, 2022

The San Francisco Public Utilities Commission (SFPUC) held a hybrid meeting on September 13, 2022, at City Hall, Room 400. The meeting began at 9:45 AM and covered a wide range of items including drought updates, energy planning, capital projects, and public comments on the design drought and Tuolumne River flows. The Commission approved all consent calendar items and all regular calendar items unanimously.

Consent Calendar

• Item 9a: Approved attestation of veracity for CleanPowerSF’s 2021 Power Source Disclosure Reports.
• Item 9b: Approved attestation for Hetch Hetchy Power’s 2021 Power Source Disclosure Reports.
• Item 9c: Approved Amendment No.2 to Contract No.CS-388 for river ecosystem science support services with McBain Associates.
• Item 9d: Approved an increase of 267 calendar days for as-needed water main replacement with Hernandez Engineering.
• Item 9e: Approved an increase of $2,600,000 and 252 calendar days for the Alameda Creek Recapture Project.
• Item 9f: Approved plans and award for Oceanside Water Pollution Control Plant slide gate system improvements.
• Item 9g: Approved terms of a Facilities Easement Deed for 432-440 Natoma Street.

Public Comments & Testimony

• General Public Comment (Item 5): Eleven callers provided comments. Many speakers expressed strong disappointment with the SFPUC’s design drought, calling it arbitrary and overly conservative. Speakers urged the Commission to adopt a shorter design drought (e.g., 7.5 years) to release more water for the Tuolumne River. Speakers included representatives from the Sierra Club, Tuolumne River Trust, Golden State Salmon Association, and individual residents. They argued that the design drought ignores best available science and that demand forecasts are inflated. Some speakers also criticized the SFPUC’s pursuit of voluntary agreements instead of minimum flow standards.
• Item 6 (Communications): Public comments included criticism of the August 23 meeting’s handling of public comment time and a request for more transparency. One speaker noted that the demand projections in the Urban Water Management Plan are not realistic and that staff overproject demand.
• Item 7a (Drought Update): Public comments on the drought update reiterated concerns about the design drought and the SFPUC’s water storage. Speakers noted that Hetch Hetchy was at 83% capacity and that the agency had captured more water than demand in the past year.
• Item 7b (CleanPowerSF IRP): One speaker thanked staff for their work on the integrated resource plan.
• Item 7e (Voluntary Agreements): Two speakers opposed the voluntary agreements, calling them unenforceable and lacking public input. They urged the SFPUC to drop the lawsuit and support the Bay Delta Water Quality Control Plan.
• Item 10 (COVID-19 Relief): One speaker requested restoration of in-person customer service hours and improvements to online payment receipts, noting minor wording corrections in the resolution.
• Item 11 (Public Health Goal Report): One speaker claimed the presentation was misleading and urged the Commission to consider biomonitoring data.
• Item 12 (Surplus Property): No public comments.
• Item 13 (Google Soil Fill Agreement): One speaker supported the staff recommendation but suggested Google should also cover all staff costs; another speaker criticized the Commission for prioritizing money over community health.
• Item 14 (Kennedy/Jenks Contract): No public comments.
• Item 15 (Rescind Contract): No public comments.
• Item 16 (Southeast Plant HVAC): No public comments.

Discussion Items

• Item 3: Adopted renewed findings for hybrid in-person meetings during the COVID-19 emergency, extending through June 30, 2023. Passed unanimously.
• Item 4: Approved minutes of August 23, 2022, with corrections (Commissioner Moran noted his comment about “return period” was clarified).
• Item 7a: Drought Conditions Update – Steve Ritchie reported that Hetch Hetchy reservoir was at 83% capacity (normal 86%), water bank at 44%. Demand reduction was about 9% year-to-date, short of the 11% target. Staff noted that four wholesale customers (Woodside, Atherton, Los Altos Hills, Hillsborough) drive peak demand. The Commission discussed the need for stricter outdoor irrigation measures in future dry years.
• Item 7b: CleanPowerSF Integrated Resource Plan Update – Cheryl Taylor presented initial modeling results. The base case portfolio requires nearly 2,000 MW of capacity by 2035, including 300 MW new solar, 60 MW geothermal, and 150 MW storage. Community engagement included outreach to 600+ organizations. Staff will return in October for approval of the preferred portfolio. Commissioners discussed rooftop solar, leasing roofs, and microgrids.
• Item 7c: Hetch Hetchy Capital Improvement Program Quarterly Report – Katie Miller reported 29% overall completion ($175M spent). Major projects include Mountain Tunnel improvements, Moccasin Powerhouse transformer, and San Joaquin Pipeline valve upgrades.
• Item 7d: Wastewater Enterprise Quarterly Report – Stephen Robinson reported 52% completion of the Sewer System Improvement Program ($3.65B phase). Key milestones: Mariposa pump station nearing completion, microtunneling finished on Wahconah stormwater project, and biosolids digester construction underway. The Commission discussed the August 2022 algae bloom in the Bay and potential treatment options.
• Item 7e: Report on MOU for Voluntary Agreements – General Manager Dennis Herrera reported that negotiations with the state and irrigation districts are ongoing but no document has been finalized. Commissioner Ajami emphasized the need for strong monitoring and performance measures.
• Item 7f: Report on Recent SFPUC Activities – No discussion.
• Item 8: New Commission Business – Commissioner Maxwell requested a future report on algae bloom solutions.
• Item 10: Authorized extension of COVID-19 relief moratorium through June 30, 2023, for residential water, wastewater, and power shutoffs. Also allowed the General Manager to resume collections for multifamily accounts with unpaid bills over $25,000 (90+ days past due). Staff will develop arrearage management strategies.
• Item 11: Public Health Goal Report – Staff presented the 2022 triennial report. No contaminants exceeded regulatory limits, but three (bromate, coliform, lead) exceeded public health goals. The Commission discussed lead service line replacement, school testing, and coordination with the public health department.
• Item 12: Declared surplus property in Fremont and unincorporated Alameda County for Caltrans safety improvements, authorizing sale for $11,970.
• Item 13: Approved a soil fill agreement with Google LLC for work near a 45-foot-wide easement containing two pipelines. Google will pay $190,000 as compensation for future shoring costs. The Commission discussed the adequacy of the payment and long-term access.
• Item 14: Approved Amendment No.6 to contract with Kennedy/Jenks Consultants, extending the contract by four years and two months (no cost increase) to support groundwater projects.
• Item 15: Rescinded Resolution No. 22-0039 and terminated the design services agreement with Mark Cavagnero Associates for the CDD campus due to RFP issues (only one responsive proposal and a conflict of interest).
• Item 16: Approved plans and award of $12,947,014 for the Southeast Water Pollution Control Plant HVAC and mechanical upgrades, with a 990-day duration.

Key Outcomes

• All consent calendar items (9a-9g) were adopted unanimously (4-0).
• All regular calendar items (10-16) were approved unanimously (4-0).
• Closed Session: The Commission voted to assert attorney-client privilege and approved settlements for two litigation cases: (1) John LaSalle personal injury claim for $489,000, and (2) Jeanette Hudson EEO discrimination complaint for $275,000. The Commission voted not to disclose discussions.
• The Commission directed staff to provide a report on algae bloom mitigation options by October 2022.
• Commissioner Paulson requested a future field tour of capital projects, possibly including the Mountain Tunnel.
• The meeting adjourned at approximately 4:30 PM.