San Francisco Public Utilities Commission Special Meeting - September 20, 2023
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San Francisco Public Utilities Commission Special Meeting - September 20, 2023
The San Francisco Public Utilities Commission (SFPUC) held a special meeting on September 20, 2023, at 4:45 PM UTC. The meeting covered the General Manager's report (including human resources, budget, bond issuances, and capital program updates), a consent calendar of routine contracts and approvals, and a regular calendar item authorizing up to $145 million in Power Revenue Bonds. The commission also entered closed session to discuss several legal matters, including proposed settlements for water main damage claims. All five commissioners were present for votes.
Consent Calendar
- Items 5a through 5i were approved unanimously. These included attestations for power source disclosure reports (CleanPowerSF and Hetch Hetchy Power), contract contingency increases (San Joaquin Pipeline Valve improvements, general engineering construction, Treasure Island WRRF management augmentation, water main replacement on Gold Mine Drive, acceptance of work at Southeast Community Center, sewer replacement duration contingency, and large diameter sewer cleaning contract).
Public Comments & Testimony
- Francisco De Costa (public speaker) criticized the HR presentation as lacking outreach and needs assessment, and urged the commission to address underutilization of the SFPUC training center and improve public engagement. He also commented on the Sewer System Improvement Project, bond transparency, and salmon protection.
- Nicole Tenko (CEO of Baska) expressed appreciation for the HR discussion and encouraged continued focus on staffing challenges.
- Nicole Tenko (BAWSCA CEO) thanked the commission for including the Water Enterprise CIP and WISIP quarterly reports, noting that BAWSCA member agencies pay roughly two-thirds of regional water system operating costs ($288 million in FY 2021-2022) and rely on these updates to monitor expenditures.
- Francisco De Costa (during general public comment) stressed the importance of remote public comment access and advocated for greater advocate participation.
Discussion Items
- Human Resources Update (Item 4a): Chief People Officer Wendy Macy and CIO Jennifer Hopkins presented on HR-ITS partnership, vacancy rates (highest in infrastructure and HRS), and efforts to improve hiring through technology, data dashboards, and process efficiencies. Commissioners asked about hiring timelines, candidate communication, and job classification flexibility. The commission acknowledged the challenges of citywide hiring processes and encouraged continued innovation.
- Quarterly Budget Status Report (Item 4b): Laura Bush presented fourth-quarter FY 2022-2023 results. All enterprises projected positive net operating results: Water +$12.4 million, Wastewater +$12.5 million, Power +$42.5 million, CleanPower +$32.7 million. Variances were attributed to drought recovery, weather, wholesale energy prices, and vacancy savings.
- 2023 Water Revenue Bond Issuance (Item 4c): Nicolai Skarloff reported on the pricing of $450 million in new money bonds and a tender offer refinancing that achieved $85.3 million in future debt service savings ($58 million present value, 9.5% savings). The bonds received strong demand (4x subscription) and maintained high credit ratings.
- Water Enterprise Capital Improvement Program Quarterly Report (Item 4d): Katie Miller reported on 36 projects with a $3.3 billion total budget, $1.1 billion expended. A $6 million forecast increase on the San Andreas Service Road project for geotechnical improvements was noted. Three projects were advertised for construction.
- Water System Improvement Program Quarterly Report (Item 4e): Katie Miller reported 52 projects at 99% completion ($3.7 billion expended). The Alameda Creek Recapture Project contract termination (approved April 11) was being negotiated; equipment reuse planned. PG&E delays impacted the regional groundwater storage project.
- General Manager's Report – Water Main Break Update (Item 4f): General Manager Herrera detailed the September 10-11 water main break at Green and Fillmore. As of the meeting, 50% of sewer repairs were complete; water work estimated October 2-15; PG&E work October 16-29; final restoration by November 10. Outreach included daily flyering, two updates to the supervisor's office, and a webinar. Lessons learned on expanding communication via DEM's neighbor alert system.
- Power Revenue Bonds Authorization (Item 6): The commission authorized up to $145 million in 2023 Series A Power Revenue Bonds to refinance commercial paper, fund capitalized interest, and potentially fund a debt service reserve. Underwriters selected: JP Morgan, Morgan Stanley, and Siebert Williams Shank. Staff recommended delaying green bond certification due to SEC concerns about greenwashing and the need for external verification; an RFP for certification is underway. The bonds will have a 30-year maturity with deferred principal. Good faith estimate: interest rates higher but still favorable. Approved unanimously.
Key Outcomes
- Consent Calendar: Approved unanimously (5-0).
- Power Revenue Bonds (Item 6): Approved unanimously (5-0).
- Closed Session (Items 12-19): The commission voted to recommend that the Board of Supervisors approve the settlements for water main damage claims (Items 13-19) totaling approximately $320,064.48 (individual claims: $36,000; $35,000; $50,000; $50,000; $65,000; $46,867; $37,197.48). No action was taken on Item 12 (existing litigation). The commission voted not to disclose closed session discussions.
- Recusal: President Ajami recused herself from Item 12 (City and County of San Francisco v. U.S. EPA and State Water Resources Control Board) due to her previous role on the state water board. Vice President Maxwell chaired that portion.
Meeting Transcript
Good morning, everyone. Hope you all made it here safe and sound and easy. It's a not a regular time that we generally have a meeting, but you know, we figured we'd change the scene, scenery and the time for once to see how it feels. But joking aside, thanks for accommodating this time. Um with that, um gonna call this meeting to order. Uh we will um hopefully soon we'll be joined by the other two commissioners. Madam Secretary, could you please call the roll? President Jami. Here. Vice President Maxwell. Here. Commissioner Stacy? Here. And we have a quorum. Members of the public may make up to two minutes of remote public comment and an item by dialing one four one five six five five zero zero zero one, meeting ID two five nine nine three five eight seven five one seven five nine one pound followed by pound again. To raise your hand to speak, press star three. Speakers will hear a chime when there are thirty seconds remaining to speak and another chime when the two minutes have expired. 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 remind you if you do not stay on the topic, the president 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 SFGTV staff and SFPUCIT staff for their assistance during this meeting. For those of you present, if you have not already done so, please silence your electronic devices. Thank you. Before calling the first item, I would like to announce that the San Francisco Public Utilities Commission acknowledges that it owns and our stewards of the lands on ceded lands located within the ethnohistoric territory of Moach Maalone tribe and other familial descendants of the historic federally recognized Mission San Jose Verona Band of Alameda County. The SFUC also recognizes that every citizen residing within the within the Greater Bay Area has and continues to benefit from the use and occupation of the Moach Mayalone tribe of Aboriginal lands since before and after the San Francisco Public Utilities Commission's founding in 1932. It is vitally important that we not only recognize the history of the tribal lands on which we reside, but also we acknowledge and honor the fact that the Moach Mailone people have established a working partnership with the SFUC and our productive and flourishing members within the many greater B San Francisco Bay Area communities today. Item three approval of the minutes of August 22nd, 2023. Colleagues, any comments, edits uh on the minutes. No. Uh if not, can I have a motion and a um we need to public comment on that? Thank you. Yes. Members of the public who wish to make two minutes of remote public comment on item number three, the minutes of August 22nd, press star three to raise your hand to speak. Speakers will hear a chime when there are 30 seconds remaining to speak and another chime when the two minutes have expired. Are there any members of the public present who wish to provide comment on the minutes? Seeing none, Mr. Moderator, do you have any callers with their hands raised? Madam Secretary, there are no callers wishing to be recognized for this item. Thank you. Public comment on item three is closed. Thank you. Um if there are no comments or edits, can I have a motion and a second to approve the minutes? Move to approve. Second. Thank you. Can we have a roll call, please? President Jamy. Uh aye. Commissioner Rivera. Aye.
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