San Francisco Public Utilities Commission Meeting - August 22, 2023\n\nThe San Francisco Public Utilities Commission (SFPUC) met on August 22, 2023, at 9:45 AM. The meeting included approval of minutes, a quarterly audit report, an update from the Bay Area Water Supply and Conservation Agency (BAWSCA), consent items, a contract amendment for the Los Vaqueros Reservoir Expansion planning, and a land transfer for the new Treasure Island Wastewater Treatment Plant. Commissioners also heard public testimony on community mitigation commitments and initiated several items for staff follow-up. No closed session was held.\n\n### Consent Calendar\n- Item 6a: Awarded Job Order Contract No. JOC-97, General Engineering Construction, to Ground Control Inc. in an amount not-to-exceed $5,000,000.\n- Item 6b: Accepted work performed by Western Water Constructors, Inc., under Contract No. WW-667 for the Mariposa Dry Weather Pump Station Improvements.\n- Both items were approved unanimously by a roll call vote (3-0).\n\n### Public Comments & Testimony\n- On Item 5 (BAWSCA Update): Peter Drekmeier (Policy Director, Tuolumne River Trust) participated in the regional roundtable and praised the process. He urged the SFPUC to conduct sensitivity analyses on demand scenarios, noting that population projections show potential decreases, and cautioned against over-investing in expensive alternative supply.\n- On Item 7 (Los Vaqueros Amendment): Nicole Sandkulla (CEO, BAWSCA) expressed support for the proposed amendment. Peter Drekmeier questioned the investment, suggesting that future nutrient discharge regulations may make wastewater recycling a more multi-beneficial option than the reservoir expansion.\n- General Public Comment (Item 11): Toya Jones and Ronin Jackson, descendants of Dr. Espinola Jackson, spoke about unmet commitments from the Southeast Community Center mitigation agreement. They stated that the PUC promised to keep 1800 Oakdale Avenue as a landmark and to provide college credit courses, senior programs, job training (including biosolids treatment), and other resources at 1550 Evans Avenue. They presented a video of Dr. Jackson meeting with a former general manager and demanded the PUC honor these promises. President Ajami acknowledged the concerns and noted that staff is investigating the four topics previously raised (1800 Oakdale, 1550 Evans, educational building, greenhouses).\n- On Item 12 (Commissioner-Initiated Items): Peter Drekmeier thanked President Ajami for proposing to move general public comment back to the top of the agenda.\n\n### Discussion Items\n- Quarterly Audit and Performance Review Report (Item 4a): Irella Blackwood (SFPUC Audit Director) reported that as of June 30, 2023, 18 audits (46% of the year’s plan) were completed, 15 (39%) were in progress, and 6 (15%) were scheduled. Three audits were completed in Q4, including the Energy Center franchise fee audit (focused on $338,000 paid to the city) and two green energy verification audits. The Budget and Legislative Analyst (BLA) is conducting a Chapter 6 compliance audit (motion M22-85) involving 24 staff and 400 hours of work on nearly 40 contracts totaling $740 million. A parallel BLA conflict-of-interest audit is also in progress. The bureau anticipates completing 11 audits in Q1 FY24 and launching four new audits. Commissioner Maxwell inquired about the frequency of BLA audits (every three years per department) and possible overlap with internal audits.\n- Bay Area Water Supply and Conservation Agency Update (Item 5): Nicole Sandkulla presented findings from a regional reliability roundtable held via four workshops from May 2022 to February 2023. The effort aimed to identify collaborative one-water opportunities. Project information sheets were collected, mapping surface water, stormwater, recycled water, and other projects with a combined potential yield of 21–40 MGD. Key takeaways include strong interest in grant assistance (to be provided by BAWSCA) and recognition of natural partnerships. Discussion touched on demand management, on-site reuse policies, and the need to differentiate demand reduction from housing opposition. Commissioner Ajami noted that the projects on the map have been similar for a decade, but the timing is now ripe for collaboration due to climate threats.\n- Los Vaqueros Reservoir Expansion Amendment No. 5 (Item 7): Steve Ritchie (Assistant General Manager for Water) presented a request to increase the contract by $8,673,000 (SFPUC share $1,239,000) for planning and extend the duration by 12 months. The project would add 115,000 acre-feet of storage; SFPUC’s potential allocation is 40,000 acre-feet for dry-year supply. Ritchie noted that the schedule is being driven by state/federal grant opportunities and that a final project decision is expected early 2024. Complex negotiations among eight agencies on service agreements, cost allocation, and operational rules are underway. Commissioner Maxwell questioned the certainty of the schedule, and Ritchie answered “cautiously yes.” Commissioner Ajami inquired about the allocation process and modeling. A resolution amendment was proposed to delete a duplicate whereas (the fifth whereas), which was accepted.\n- Treasure Island Wastewater Treatment Plant Land Transfer (Item 9): Staff presented real estate transactions to accept a ~7-acre parcel (Block Lot 892801) in fee for the treatment plant and to execute a 66-year lease for ~3 acres (Block Lot 8946002) for constructed wetlands at no cost. The treatment plant parcel was removed from the State Lands Commission public trust via a trust exchange; the wetlands parcel remains under trust consistent with public use. The project received a notice to proceed for construction on August 21, 2023. Commissioner Stacy confirmed that all CEQA mitigation measures are being implemented. Commissioner Ajami asked about lease renewal after 66 years and technological options to bypass wetlands if needed. Staff noted that a new lease could be renegotiated or the plant could discharge directly to the bay with regulatory approval.\n\n### Key Outcomes\n- Approval of Minutes of August 8, 2023: Approved unanimously (3-0).\n- Consent Calendar: Approved unanimously (3-0).\n- Amendment No. 5 for Los Vaqueros Reservoir Expansion: Approved unanimously (3-0) with an amendment to delete the fifth whereas in the resolution.\n- Certificate of Acceptance and Lease for Treasure Island WWTP: Approved unanimously (3-0) to authorize the General Manager to recommend acceptance and execute the wetland lease.\n- Items Initiated by Commissioners (Item 12): President Ajami requested staff to:\n 1. Move the general public comment period back to the top of the agenda.\n 2. Provide a report on California’s best-value selection requirements for projects, including how SFPUC currently uses best-value procurement.\n 3. Explore holding job fairs at the Southeast Community Center and report on job training programs.\n 4. Prepare a report on TIDA’s electricity issues (brownouts/blackouts) on Treasure Island, including the relationship between SFPUC and TIDA and options for more fundamental system investments.\n- No Closed Session: The closed session was cancelled.