San Francisco Public Utilities Commission Meeting - December 13, 2022

The San Francisco Public Utilities Commission (SFPUC) held a regular meeting on December 13, 2022, starting at 9:45 AM. The meeting was conducted via hybrid teleconference due to the COVID-19 emergency. President Jami presided with Commissioners Maxwell, Paulson, and Stacy present; Commissioner Rivera was excused. The commission addressed a broad agenda including adoption of state urgency legislation for hybrid meetings, approval of minutes, general public comment, communications reports, the Citizens' Advisory Committee (CAC) annual report, the General Manager's report (covering drought conditions, budget status, capital plan, and an algal bloom update), revisions to commission rules of order, consent calendar items, and several regular calendar items involving partnerships, contracts, and infrastructure projects. The meeting concluded with a closed session regarding a pending settlement.

Consent Calendar

• Item 10 (Consent Calendar) was approved unanimously (4-0). This included rescinding a prior contract award, approving amendments, awarding contracts for emergency planning and construction management, accepting completed work, increasing contract durations, and approving a license agreement with the City of Los Altos. A member of the public requested item 10a be severed, but the commission did not remove it.

Public Comments & Testimony

• General Public Comment (Item 5): Eight callers spoke. Topics included requests for sediment studies in the Tuolumne River system (Bob), presentation of demand study results (Nicole Sandkulla, BAWSCA CEO), a request to sever consent item 10a, criticism of commission failures regarding salmon and building standards, a call for a hearing on the emergency firefighting water system report, concerns about fire hydrant maintenance and freshwater flows for the Bay Delta, criticism of SFPUC's data integrity and transparency (Peter Dreckmeyer, Tuolumne River Trust), and a comment on water conservation and environmental impacts (Lawrence Abbott). One caller expressed sadness over land acknowledgment and systemic racism.
• Communications (Item 6): Callers commented on the Alternative Water Supply Report (Dave Warner), demand projections and rationing scenarios (Peter Dreckmeyer), and the Water Enterprise Environmental Stewardship Policy (Bob Stanley, Mark Gonzalez). Concerns were raised about transparency in water supply needs and the need for independent review.
• Citizens' Advisory Committee Report (Item 7): Multiple callers spoke in support of adopting workforce and environmental justice standards for Clean Power SF and California Community Power energy projects (Alex Lanceburg, Benjamin Eichert, Melissa Yu, Joni Eisen, Jill Zamek, Emily Gartenberg, Batouin Eyes Daggy, Eric V, Roth Delai, Jason Kumakelko).
• General Manager's Report (Item 8): Callers commented on the drought update (requesting data transparency), budget status (David Pilpel, caller on energy alternatives), and budget development (David Pilpel, caller on SFPUC culture, Nicole Sandkulla, caller on dams and young people).
• New Commission Business (Item 9): David Pilpel supported the revised rules of order; Peter Dreckmeyer expressed concern about moving general public comment to later in the agenda.
• Consent Calendar (Item 10): David Pilpel commented on items 10c and 10j, urging more in-house staffing and better project descriptions. Another caller again requested 10a be severed but was informed only commissioners can pull items.
• Regular Calendar Items (Items 11-17): Comments on Item 11 (Yosemite MOA) from a caller on Buffalo soldiers history. Item 12 (P3 biogas) from David Pilpel on typographical errors and delegation concerns. Item 13 (sewer rehabilitation) from David Pilpel on PG&E risks and project coordination. Item 14 (South Bay feasibility study) from Nicole Sandkulla (support) and Peter Dreckmeyer (cautious, questioning cost allocation). Item 15 (Los Vaqueros) from Nicole Sandkulla (support) and Peter Dreckmeyer (concern over lack of discussion on alternative water supplies). Items 16 and 17 had no public comments.

Discussion Items

• Adoption of Hybrid Meeting Findings (Item 3): Unanimously approved (4-0).
• Approval of Minutes (Item 4): Unanimously approved (4-0).
• Communications (Item 6): Commissioners commended staff for comprehensive reports. No action required.
• Citizens' Advisory Committee Annual Report (Item 7): Chair Moises Garcia presented the CAC's work, including resolutions on grid reliability, water supply, clean power SF transition, transparency, and public power. Discussion on Girl Scout Camp closure at Lake Merced clarified that it is not shuttering. Several callers urged the commission to adopt the CAC's resolution on workforce and environmental justice standards. Commissioners expressed support and requested staff to agendize the resolution. Assistant GM Barbara Hale explained the status of similar policies at the California Community Power JPA.
• General Manager's Report (Item 8):
  • 8a Drought Update: Steve Ritchie reported recent storms improved conditions: Calaveras Reservoir received first significant inflow (3,000 acre-feet) since 2019; upcountry precipitation at Hetch Hetchy reached ~10 inches; local precipitation at 4.92 inches (above monthly median); snowpack near 50% of average; water available to city jumped to 13,000 acre-feet. Salmon counts on Stanislaus River (3,400) and Tuolumne River (602) are below historical averages. Commissioners asked about turbidity management; staff noted post-storm monitoring.
  • 8b Quarterly Budget Status: Laura Bush reported positive operating results for Water ($38.3M) and CleanPower SF ($21.1M), but a small shortfall in Power (-$1.3M) due to high power purchase costs attributed to inflation and the Ukraine war. Policy ratios are on track.
  • 8c FY2023-24 Budget & 10-Year Capital Plan: Nancy Hom presented the budget process and challenges: ongoing drought, economic uncertainty, rate study, historical underspending. Key priorities include responsible management, affordability, environmental stewardship, and workforce retention. The capital plan faces a $1.3B unfunded gap; staff are working to align budgeting with deliverability. Commissioners discussed recruitment and retention, noting citywide vacancies (5,000 jobs). President Jami requested a report on HR strategies.
  • 8d Water Enterprise CIP Quarterly: Katie Miller reported 36 projects with $3.3B total budget; $28M expended in Q1. One project (Millbrae HVAC) saved $9M.
  • 8e WSIP Quarterly: Three remaining projects; Alameda Creek Recapture reported $4M forecasted increase.
  • 8f Algal Bloom & Nutrient Reduction: Amy Chastain presented on the August 2022 harmful algal bloom, the worst in 30 years, caused by nitrogen from wastewater plants. SFPUC has two treatment plants discharging to the bay. Options: side-stream treatment (~$100M, 15-20% removal) or full-stream treatment (~$1B, 80% removal). Southeast Plant is on a congested site; space is preserved for future nutrient removal. Commissioners emphasized monitoring and interim solutions. President Jami noted the Bay Area's science collaboration model.
  • Commissioner Maxwell requested a report from Human Resources on vacancies and retention.
• New Commission Business (Item 9): Hearing to adopt revised Rules of Order. Commissioners approved the changes, including moving consent/regular calendar earlier, revising rate-setting language, and adding parental leave provisions. Public comment raised concern about moving general public comment later, but commissioners clarified it is not a demotion.
• Regular Calendar:
  • Item 11 (Yosemite MOA): Approved (4-0). Minor administrative amendment to MOU with National Park Service.
  • Item 12 (P3 Biogas Project): Approved (4-0) to use public-private partnership delivery method for the biogas utilization project at Southeast Treatment Plant. The commission will recommend a special ordinance to the Board of Supervisors. Discussion focused on risk allocation and monitoring.
  • Item 13 (Sewer Rehabilitation): Approved (4-0) a contract with Anvil Builders for $15.8M to connect the Channel Force Main to the Islais Creek Transport/Storage Box. Also authorized an agreement with PG&E for utility work.
  • Item 14 (South Bay Purified Water Feasibility Study): Approved (4-0) a $300K feasibility study (SFPUC share $100K) with San Jose and Santa Clara.
  • Item 15 (Los Vaqueros Reservoir Expansion): Approved (4-0) Amendment No. 4 increasing contract by $7.66M (SFPUC share $1.09M) for planning studies. Commissioners noted no commitment to construction.
  • Item 16 (Residential Green Infrastructure Grant): Approved (4-0) a $155K grant agreement with Greenprint Partners for a pilot program.
  • Item 17 (Alameda County RCD Agreement): Approved (4-0) a $8.5M, 9-year agreement for watershed management services.
• Closed Session (Items 18-22): The commission voted to assert attorney-client privilege and entered closed session to discuss a pending settlement with the San Francisco Bay Regional Water Quality Control Board. After closed session, they announced recommendation to the Board of Supervisors to approve an unlitigated claim of $236,500 for effluent limitation violations. The commission voted not to disclose the closed session discussions.

Key Outcomes

• Approved (4-0): Hybrid meeting findings, minutes, consent calendar (Item 10), revised Rules of Order (Item 9), Yosemite MOA (Item 11), P3 delivery method for biogas (Item 12), sewer rehabilitation contract and PG&E agreement (Item 13), South Bay feasibility study (Item 14), Los Vaqueros amendment (Item 15), residential green infrastructure grant (Item 16), Alameda County RCD agreement (Item 17).
• Directed: Staff to agendize the CAC's workforce/environmental justice resolution; Assistant GM to provide report on vacancies and retention strategy; staff to bring back updates on nutrient reduction at Southeast Plant.
• Closed Session: Commission asserted privilege, recommended settlement approval to Board of Supervisors, and voted not to disclose discussions.
• Next Meeting: The regular meeting of December 27, 2022 was canceled.