San Francisco Public Utilities Commission Meeting - November 8, 2022

The San Francisco Public Utilities Commission (SFPUC) held a hybrid meeting on Tuesday, November 8, 2022, starting at approximately 9:45 AM. The meeting included adoption of renewals for hybrid meeting procedures, approval of minutes, updates on drought conditions, audit reports, an in-depth presentation on the decline of Lower Tuolumne River fall-run Chinook salmon, and approval of several contracts. Key actions included unanimous approval of all agenda items, including a consent calendar of four contracts and resolutions, a supplemental appropriation for a clean energy efficiency program, and a contract for electrical distribution work.

Consent Calendar

• Item 9a: Accepted work performed by Alta Group, Inc. for Contract No. WD-2858R, Sunol Valley Water Treatment Plant Water Quality Modular Office, total contract amount $1,272,839.
• Item 9b: Approved plans, specifications, and award of Contract No. WW-684 for sewer replacement on 45th, 46th, 47th Avenues, Vicente, Wawona Streets, and Sloat Blvd. in the amount of $7,342,613.
• Item 9c: Approved a 365-day increase to the contract duration contingency for Contract No. WW-700 (as-needed sewer cleaning and inspection) with Pipe and Plant Solutions, Inc.
• Item 9d: Approved plans, specifications, and award of Contract No. WW-705 for various locations sewer replacement No. 10 in the amount of $4,739,540, with an amendment correcting the resolution date from August 8, 2011, to August 8, 2022. All consent calendar items passed unanimously (5-0).

Public Comments & Testimony

• General Public Comment (Item 5):
  • David Pilpel noted the new PUC letterhead, enjoyed a tour of the Oceanside treatment plant, praised quick repair of a water main break at Union and Fillmore, and highlighted recent rainfall.
  • A speaker expressed concern that major developments (e.g., at Lake Merced) are approved without updated sound needs assessments, urging conservation and that existing pipes are not being upgraded.
  • Another caller questioned the jurisdictional issues for a possible vertical expansion of the Oceanside recycled water facility, including the National Guard site and the outfall pipe within the Monterey Bay National Marine Sanctuary.
  • A caller requested an update on water rates, stating that wholesale rates ($2,000 per acre-foot) appear highest in the state and projected to increase 50% in 10 years, asking for comparisons and impacts of demand and WISER bonds.
  • Barry Nelson (Golden State Salmon Association) welcomed Commissioner Stacy and noted the serious challenges facing salmon runs and the Bay-Delta ecosystem.
• Item 3 (Adopt renewed hybrid meeting findings): One caller (Barry Nelson) was initially on the wrong item but offered no substantive comment.
• Item 4 (Minutes approval): David Pilpel offered minor non-substantive edits.
• Item 6 (Communications): David Pilpel appreciated the timely presentation of a report to the Board of Supervisors.
• Item 7A (Drought update): A caller urged inviting local tribes to comment on river conditions and referenced the RICA Act.
• Item 7B (Audit report): A caller requested a final audit on building 1550 after quality control.
• Item 7C (Salmon update): Multiple public comments:
  • A caller criticized the presentation for not mentioning river temperature, algae, pesticides, or inviting partner agencies.
  • Another caller noted that historical salmon counts (pre-dam) were much higher, showing an 80% decline over recent 21-year periods and a 98% reduction from historical peaks; argued the disconnect between spring flows and salmon counts is due to destruction of habitat, not hatchery fish.
  • Barry Nelson (Golden State Salmon Association) argued that the flow-salmon population relationship was historically strong and that the problem is killing of wild salmon eggs and juveniles, not hatchery fish; said Tuolumne River has the worst record in the Sierra Nevada.
  • Peter Dreckmeyer (Tuolumne River Trust) pointed out a data discrepancy: the slide used two different counting methods (carcass surveys vs. weir counts), with weir counts being 2.5 times higher, so recent bars are inflated; also urged the Commission to voluntarily contribute flow as per a previous proposal.
  • Dave Warner thanked for the report and said the goal should be higher than 3,000 fish.
  • John McManus (Golden State Salmon Association) noted that river temperatures often exceed the 53.4°F needed for egg incubation, and that increased Delta exports after 2000 contributed to the 2008-09 collapse, not ocean conditions.
  • Cindy Charles (Tuolumne River Trust board) suggested looking at juvenile salmon condition (size, health), not just numbers.
• Item 10 (West Side Recycled Water Project amendment): David Pilpel commented on the complexity of financing and suggested improving the resolution's layout.
  • Another caller noted inconsistency in the PUC accepting state funds for recycled water while suing the state over the Delta plan.
• Item 12 (Electrical distribution contract): David Pilpel asked about potential need for Civil Service Commission or Board of Supervisors approval and about outreach to IBEW Local 6.
• Closed Session (Item 13): David Pilpel requested a one-sentence summary of the underlying claim in the settlement (Oaks v. City).

Discussion Items

• Item 3: Adopt Renewed Findings for Hybrid Meetings – Staff presented resolution to continue hybrid meetings under state urgency legislation. Unanimously approved (5-0).
• Item 4: Approval of Minutes – Minutes of the October 24, 2022 special meeting approved as amended with minor edits. Unanimous (5-0).
• Item 6: Communications – Commissioners reviewed the advance calendar, correspondence log, net energy metering report, chlorate exceedance notification, and power quarterly report. Chair Jamy thanked staff.
• Item 7A: Drought Conditions Update – Steve Ritchie reported reservoir storage at 73% (Hetch Hetchy) and 45% (Water Bank); state reservoirs (Shasta, Oroville, Folsom, San Luis) at 25-31% capacity. Recent storm brought 2 inches of rain to Hetch Hetchy; snow level at 4,000 feet. Demand is tracking at 171 mgd (as of last week), close to 2015 levels. State suspended curtailments on Tuolumne River diversions due to increased flows. Discussion included requests for more historical precipitation charts and acknowledgment of increasing extremes. No vote required.
• Item 7B: Quarterly Audit and Performance Review – Audit Director Irvella Blackwood reported that 14% of the portfolio is completed, 54% in progress, 32% upcoming. First-quarter audits included the controller's post-audit and physical inventory. Seven open recommendations from social impact program; two from revenue bond funds. Upcoming audits include FY 2021-22 audited financials, franchise fee audits, and cybersecurity risk assessment.
• Item 7C: Lower Tuolumne River Fall-run Chinook Salmon Update – Bill Sears presented a detailed biology and population update. Escapement as of Nov 7 was 356 fish, on par with 2020. Historical peaks of ~40,000 fish have declined 98% over the long term. Spring flow-escapement relationship has broken down since ~2000. Factors include hatchery strays (50-100% of fish), drought, ocean conditions, and invasive hyacinth. The SFPUC is party to the Voluntary Agreement for pulse flows and habitat restoration. Commission discussion focused on the impact of hatchery fish (introgression), need for 100% marking, role of temperature and pesticides, and the need for a holistic approach. Committed to providing regular updates and addressing missing data (e.g., carcass survey vs. weir count discrepancy).
• Item 7D: Report on SFPUC Activities – General Manager Herrera highlighted the opening of the Southeast Community Center on October 22, 2022, noting volunteer efforts and community benefits.
• Item 10: Amendment for West Side Recycled Water Project – Staff requested authorization to increase the State Revolving Fund loan/grant amount from $186,220,000 to $191,094,031 and extend the construction completion date to October 7, 2024, to align with project budget and schedule changes. Unanimous (5-0).
• Item 11: Supplemental Appropriation for CleanPowerSF Community Food Service Energy Efficiency Program – Staff requested Board of Supervisors approval of $4,579,056 in supplemental appropriation from CPUC ratepayer public purpose program funds. Unanimous (5-0).
• Item 12: Award Contract for As-Needed Electrical Distribution Installation & Construction Support – Staff awarded a two-year, $11.5 million contract to VIP Power Line Corporation. The contract was re-advertised after initial lack of bids. VIP is signatory to IBEW Local 1245 and has qualified staff. Commission discussed outreach to IBEW Local 6 (public sector union) and confirmed Local 6 was informed and supportive. Unanimous (5-0).

Key Outcomes

• Approved renewed hybrid meeting authority (5-0).
• Approved minutes of October 24, 2022 (5-0).
• Approved consent calendar (Items 9a-9d) as amended (5-0).
• Authorized amendment to State Revolving Fund loan/grant for the West Side Recycled Water Project, increasing to $191M and extending completion to October 2024 (5-0).
• Authorized supplemental appropriation of $4,579,056 for CleanPowerSF energy efficiency program (5-0).
• Awarded Contract No. PW-009R to VIP Power Line Corporation for $11.5 million (5-0).
• Held closed session to discuss litigation (Oaks v. City) and approved settlement of $95,000 with a full and final release; motion passed not to disclose discussions (5-0).