San Francisco Public Utilities Commission Special Meeting - October 24, 2022

This special meeting of the San Francisco Public Utilities Commission (SFPUC) convened at 9:45 AM on Monday, October 24, 2022, via teleconference due to the COVID-19 emergency. The Commission elected new officers, received updates on drought conditions, water conservation outreach, and policy affairs, and voted on several major contracts and programs. A quorum was present with five commissioners. The meeting lasted approximately four hours and included extensive public comment on environmental and water management issues.

Consent Calendar

• Item 11a: Extension of participation in the Bay Area Regional Heat Pump Water Heater Contractor Incentive Program.
• Item 11b: Approval of a $410,000 cost increase and 100-calendar-day extension for Water Main Replacement on 17th Street.
• Item 11c: Approval of plans and award of $3,274,441 for Cathodic Protection for Transmission Pipelines, Phase 2.
• Item 11d: Acceptance of work by Precision Engineering, Inc., for As-Needed Main Sewer Replacement No. 7.
• Item 11e: Acceptance of work by J. Flores Construction Company, Inc., for As-Needed Spot Sewer Replacement No. 38, totaling $13,808,733.
• Item 11f: Acceptance of work by JMB Construction Inc., totaling $4,671,834 over 652 days. All consent calendar items were approved unanimously (5-0).

Public Comments & Testimony

General Public Comment (Item 6)

Eight callers spoke on a range of issues. Key themes included:

• Toxic algae blooms in San Francisco Bay: Multiple speakers urged the Commission to take concrete action, such as recycling wastewater to remove nutrients, and criticized the SFPUC for not doing enough. Speakers included Peter Belton (resident), Judy Irving (documentary filmmaker), and Mary Butterwick (resident).
• Tuolumne River flows and salmon: Several speakers, including Peter Dreckmeyer (Tuolumne River Trust) and Nathan Rangel (California Outdoors), called for increased in-stream flows, withdrawal of lawsuits against the State Water Board, and adoption of a less conservative drought design. They noted that only 22 salmon were counted on the Tuolumne River compared to 541 on the Stanislaus River.
• Welcome to new commissioners: Public speakers welcomed Commissioner Stacy and expressed hope for more active commission engagement.
• Policy concerns: Eileen Vogen requested inclusion in a site tour of the Oceanside Treatment Facility. Denise Mue (Center for Biological Diversity) urged action to protect Bay Delta ecosystems. David Pilpel raised audio technical issues and a Brown Act concern regarding public access.

Comments on Specific Agenda Items

• Item 3 (Election of Officers): Peter Dreckmeyer supported Commissioner Ajami for President and Commissioner Maxwell for Vice President. David Pilpel echoed support based on seniority.
• Item 7 (Communications): Three callers, including David Pilpel, complained about audio problems preventing the public from hearing speakers at the lectern, citing the Brown Act. Peter Dreckmeyer commended the Lagrange habitat restoration project and urged attention to flows.
• Item 8 (BAWSCA Update): David Pilpel and Peter Dreckmeyer commented on audio issues and water conservation benefits. Dreckmeyer noted that water conserved rarely benefits the environment.
• Item 9a (Drought Update): One caller, Francisco De Costa, criticized the Commission for not prioritizing salmon and for lacking focus.
• Item 9b (Drought Outreach): David Pilpel praised the outreach efforts and suggested edgier messaging. Peter Dreckmeyer urged similar energy for salmon issues.
• Item 9c (Policy & Government Affairs Update): David Pilpel noted a minor letterhead error.
• Item 12 (Social Impact Partnership): Thirteen callers spoke, most in support. Supporters included Tanish Collins (SF Black Wall Street), representatives from PENCO Builders, YCD, students and graduates from Tuolumne County programs, and workforce development organizations. David Pilpel opposed the program, arguing it is ripe for abuse and that benefits should be included in project scopes.
• Item 13 (Contract Modification, Headworks): One caller commended the leadership, another (David Pilpel) supported the item but requested clearer documentation on scope and environmental review.
• Item 14 (CleanPowerSF IRP): Two callers supported the filing, including Jeremy Pollock (WAPCO) who praised community engagement.
• Item 15 (Water Supply Assessment): Four callers commented. Eileen Vogen urged continuation for more robust analysis. David Pilpel supported. Two callers criticized the project and the SFPUC's approach to water supply.
• Item 16 (Radio Equipment Agreement): No public comment.
• Item 17 (Security System Products): No public comment.
• Item 18 (Treasure Island WWTP): No public comment.

Discussion Items

Item 3: Annual Election of Officers

Commissioners elected new officers for one-year terms. Commissioner Ajami was nominated and unanimously elected President (5-0). For Vice President, Commissioner Maxwell was nominated; she accepted. Commissioner Paulson expressed interest, resulting in a roll call vote: President Ajami aye, Commissioner Maxwell aye (self), Commissioner Paulson no, Commissioner Rivera aye, Commissioner Stacy aye. The motion passed 4-1. Commissioner Ajami emphasized priorities including climate change, staff retention, and equity.

Item 4: Adopt Renewed Findings for Hybrid Meetings

Approved unanimously (5-0) to continue hybrid meetings under state urgency legislation. The Commission directed the secretary to agendize a similar resolution within 30 days.

Item 5: Approval of Minutes (September 27 and October 11, 2022)

Approved after public comment and noting a correction for the September 27 date. Vote: 5-0.

Item 7: Communications

Reports included the Advance Calendar, Contract Advertisement, Correspondence Log, Low Carbon Fuel Standard Credit Sales Fund Annual Report, Multi-Enterprise Climate Program Update, Green Infrastructure Grant Program, Quarterly Report on PG&E Grid Connection Disputes, and Update on Lower Tuolumne River Pilot Habitat Restoration Projects. Commissioners questioned staff on green infrastructure project completion and habitat restoration monitoring. Technical audio issues were noted but partially resolved by switching microphones.

Item 8: Bay Area Water Supply and Conservation Agency (BAWSCA) Update

Nicole Sandkulla (CEO, BAWSCA) presented an overview of the agency, which represents 26 wholesale water suppliers serving 1.8 million residents. She reported that the region uses 24% less water than in 1986-87 despite a 32% population increase, and that average residential use has dropped 37% since 1986. She expressed concern about declining conservation savings and highlighted ongoing efforts with member agencies to prepare for a potentially dry 2023. The presentation ended without a formal vote.

Item 9: Report of the General Manager

• 9a (Drought Conditions Update): Steve Richie reported that Hetch Hetchy reservoir is 75% full (normal), but the water bank is at 44% (lower than normal). Precipitation for the water year is essentially zero. He noted that water demand has flattened close to the 2015 target but fell short of the 11% reduction goal. Staff plans to work with BAWSCA to refine conservation measures for 2023.
• 9b (Drought Public Outreach Summary): Betsy Rhodes presented a comprehensive campaign including 78 million impressions, 155,000 clicks, and partnerships with the San Francisco Giants. The campaign achieved a 10.5% water use reduction (target 11%). She outlined improvements needed and a planned hiatus for winter.
• 9c (Annual Policy and Government Affairs Update): Megan Scott reported on achievements including 35 Board of Supervisors items, tracking over 300 state bills, and securing over $20 million in ratepayer assistance. She noted upcoming federal funding opportunities from the Infrastructure Investment and Jobs Act and Inflation Reduction Act.

Item 12: Social Impact Partnership (SIP) Program

Ronnie Versher and Chelsea Ballard presented the program, which has been operating since 2011 and included in over 90 contracts. They highlighted improvements: a public dashboard, strengthened verification, and drafted rules and regulations. The Commission voted unanimously (5-0) to authorize staff to seek formal authorization from the Board of Supervisors and to develop formal rules and regulations.

Item 13: Modification No. 5 to Contract WW-628 (New Headworks)

Jignesh Desai requested a $58,572,067 increase (to $548,823,816) and a decrease in contingency, with no change to scope. The project is 70% complete on Scope 3, with substantial completion targeted for September 2023. Vote: 5-0.

Item 14: CleanPowerSF 2022 Integrated Resource Plan (IRP)

Cheryl Taylor presented the recommended conforming portfolio (90% time-coincident renewable energy by 2030). This portfolio was ranked best on affordability, reliability, and risk. The Commission adopted it as the preferred portfolio and authorized submission to the California Public Utilities Commission by the November 1, 2022 deadline. Vote: 5-0.

Item 15: Water Supply Assessment for 3251 20th Avenue (Stonestown) Project

Steve Richie presented the assessment required by state law for projects with over 500 dwelling units. The assessment concluded water supply is adequate under all scenarios. The Commission approved the assessment (5-0), which is not a project approval but a technical document for the planning department.

Item 16: Agreement with VB Nimbus, LLC for Radio Equipment

Steve Richie requested approval of a five-year site use agreement (four optional five-year extensions) for 345 square feet on a tower in Tracy, CA, for $2,500/month with 3% annual increases. Approved (5-0).

Item 17: Sole Source Finding for Security System Products

Ron Flynn requested approval of a General Manager's finding that Lenel OnGuard and Milestone XProtect security products are necessary to match existing systems. The Commission approved (5-0) after discussion about the risks of sole source reliance and periodic evaluations.

Item 18: Award of Contract DB-132, New Treasure Island Wastewater Treatment Plant

Jignesh Desai presented the award to PCL Construction and Stantec Consulting Services JV for $165,032,269 with a 1,095-day duration. The plant will include biological nutrient removal and produce Title 22 recycled water. The Commission approved (5-0) after negotiation efforts saved $5.6 million.

Key Outcomes

• Election of President: Commissioner Ajami elected President (5-0).
• Election of Vice President: Commissioner Maxwell elected Vice President (4-1, with Commissioner Paulson voting no).
• Hybrid Meeting Resolution: Adopted (5-0) with a directive to agendize a similar resolution within 30 days.
• Minutes Approval: Approved (5-0) for September 27 and October 11, 2022.
• Consent Calendar: Approved (5-0) all six items.
• Social Impact Partnership Program: Authorized (5-0) to seek Board of Supervisors approval, develop rules, and staff the program.
• Contract Modification (Headworks): Approved (5-0) increase to $548,823,816 and contingency decrease.
• CleanPowerSF IRP: Approved (5-0) preferred conforming portfolio for filing.
• Water Supply Assessment (Stonestown): Approved (5-0) for conveyance to planning department.
• Radio Equipment Agreement: Approved (5-0) for five-year term with extensions.
• Security System Sole Source Finding: Approved (5-0) General Manager’s finding.
• Treasure Island WWTP Contract: Awarded (5-0) for $165,032,269 to PCL/Stantec JV.
• Audio Fix: The meeting was recessed briefly to address audio issues affecting public comment; the problem was partially resolved by switching microphones.