San Francisco Public Utilities Commission Meeting - March 14, 2023
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San Francisco Public Utilities Commission Meeting - March 14, 2023
The San Francisco Public Utilities Commission (SFPUC) met on March 14, 2023, at 9:45 AM. The meeting included updates on water supply conditions, audited financial statements, capital improvement programs, and approval of a distributed antenna system (DAS) master license. Commissioners voted unanimously on routine consent items and discussed risk management, contractor accountability, and drought declarations.
Consent Calendar
- Approved the minutes of the February 28, 2023 meeting.
- Approved five consent items: Job Order Contract No. JOC-92 with Sierra Mountain Construction; cost and duration contingency increases for Sunol Valley Water Treatment Plant repairs and Southeast Plant upgrades; and two eight-year communications site leases with New Cingular Wireless PCS, LLC. All passed 5-0.
Public Comments & Testimony
- Nicole Sandkulla (CEO, BAWSCA): Expressed appreciation for the water supply report and urged continued coordination with the state regarding drought conditions.
- Peter Drekmeier (Policy Director, Tuolumne River Trust): Questioned the design drought risk and recommended shortening the drought planning period to reduce expensive alternative water supply investments. He also advocated for continuing hybrid meetings.
- Tim Franklin (Outside Plant Technician, CWA Local 9410): Highlighted the 2019 Geary Boulevard gas explosion caused by an unqualified subcontractor. Urged the commission to require license verification and contractor accountability for DAS installations.
- Other callers: Raised concerns about the PUC's debt portfolio, contracting irregularities, and the Sunset Reservoir seismic retrofit risk assessment.
Discussion Items
- Water Supply Update (Item 4A): Steve Ritchie reported that precipitation is at 50% above normal, with the Tuolumne watershed tracking 1983 (the wettest year on record). Staff will recommend rescinding the local water shortage emergency and the 5% drought surcharge at the April 11, 2023 meeting. Commissioners discussed groundwater recharge, risk tolerance, and the benefits of capturing floodwater.
- Audited Financial Statements (Item 4B): CFO Nancy Hom and KPMG's Lisa Avis presented a clean (unmodified) opinion for FY2021-22. No material misstatements or internal control deficiencies were noted. Commissioners asked about key risk areas (e.g., debt covenants) and best management practices.
- Water Enterprise CIP Quarterly Report (Item 4C): Katie Miller reported that the $3.3 billion program has 36 projects, with $1 billion expended. Forecast cost increases of $125 million and schedule delays were attributed to scope changes, staffing constraints, and COVID. Commissioners discussed risk management, alternative delivery methods (CMGC, design-build), and the need for lifecycle cost analysis.
- Water System Improvement Program Quarterly Report (Item 4D): The WSIP is 99% complete. Two projects remain: the Regional Groundwater Storage and Recovery project and the Alameda Creek Recapture Project. The latter faces a $9.5 million cost variance due to erosion and corrosion issues; staff are evaluating long-term solutions.
- Distributed Antenna System Master License (Item 6): Barbara Hale presented a 12-year master license for wireless facilities on SFPUC streetlight poles. Approved with amendments to correct a carrier name and clarify language. Commissioners emphasized contractor qualification, RF safety, and digital tracking of installations. The public commenter Tim Franklin urged stronger oversight. Staff directed to develop accountability mechanisms by late 2023.
Key Outcomes
- Approved the consent calendar (5 items) unanimously.
- Approved the 2023 DAS master license agreement with amendments (5-0).
- Commission directed staff to bring a resolution to rescind the local water shortage emergency and surcharge at the April 11, 2023 meeting.
- Staff to report on Alameda Creek Recapture Project solutions and on asset management improvements for DAS contractor oversight.
- Approved closed session settlement of litigation with M. Hernandez Construction for $137,000, subject to Board of Supervisors approval.
Meeting Transcript
Thanks for braving the wind and the rain and joining us today. I would like to call this meeting in order. Thank you. Okay. Madam Secretary, could you please call it roll? President Jami. Aye. Vice President Maxwell? Commissioner. Aye. Commissioner Paulson. Here. Commissioner Rivera. Here. Commissioner Stacy? Here. And we have a quorum. Members of the public may make up to two minutes of remote public comment on an item by dialing 1 415 655 0001. Meeting ID 2498 601 9823 pound pound. To raise your hand to speak, press star three. Please note that you must limit your comments to the topic of the agenda item being discussed unless you are speaking under general public comment. And to remind you that if you do not do not stay on the topic, the chair can interrupt and ask you to limit your comment to the agenda item. We ask that public comment be made in a civil and respectful manner. Please address your remarks to the commission as a whole, not to individual commissioners or staff. On behalf of the commission, I would like to extend our thanks to SFG TV staff and SFPUCIT staff for their assistance during this meeting. For those present, please silence your electronic devices. Excellent. Thank you so much. Before calling this meeting, um calling the first item, I would like to announce that the San Francisco Public Utilities Commission acknowledges that it owns and are stewards of the unceded lands located within the ethnohistoric territory of Moach Mayalone tribe and other familial descendants of the historically historic federally recognized Mission San Jose Verona Band of Alameda County. The SFPUC also recognizes that every citizen residing within the Greater Bay Area has and continues to benefit from the use and occupation of the Moachma Alonee tribe's aboriginal lands since before and after the San Francisco Public Utility Commission's founding in 1932. It is vitally important that we not only recognize the history of the tribal land on which we reside, but also we acknowledge and honor the fact that Moachma Loney people have established a working partnership with the SFPUC and our productive and flourishing members within the many greater San Francisco Bay Area communities today. Madam Secretary, please call the first item. Item number three, approval of the minutes of February 28, 2023. Colleagues, any comments, edits to the minutes. If none, can we have public comment, please? Members of the public who wish to make two minutes of remote public comment on item number three, the minutes. Please press star three to raise your hand to speak. Do we have any members of the public present to provide comment on the minutes? Cena, Mr. Moderator, do you have any callers with their hands raised? Madam Secretary, there are no callers with our hands raised at the time. Thank you. Public comment on item three is closed. Thank you. If there are no more comments, can I have motion and a second to approve the minutes? Move to approve. Sorry. Madam Secretary Clues, please take a roll call. President Jami. Aye.
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