San Francisco Public Utilities Commission Regular Meeting – February 13, 2024
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San Francisco Public Utilities Commission Regular Meeting – February 13, 2024
The San Francisco Public Utilities Commission (SFPUC) held a regular meeting on February 13, 2024, at 9:45 AM. The meeting included approval of prior minutes, general public comment, a consent calendar, a major MOU with the San Francisco Unified School District, and adoption of the biennial operating budget, two-year capital budget, 10-year capital plan, and 10-year financial plan. The commission also entered closed session to discuss a settlement. All items were approved unanimously.
Consent Calendar
- Approved minutes of five prior meetings (January 22, 23, 26, 29, and February 2, 2024) unanimously (4-0).
- Approved Consent Calendar items 6a–6d, including contract awards for engineering services for the Emergency Firefighting Water System, Sunol Valley Chemical Facility Improvements, San Francisco Zoo Recycled Water Project, and Channel Pump Station Bar Screen Replacement. Discussion on item 6a noted that only one bid was received after revising subconsultant requirements, insurance, and billing rates to attract more bidders.
Public Comments & Testimony
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General Public Comment (Item 4):
- Mr. DeCosta urged a hearing on replacing aging water and sewer pipes on the west side and ensuring adequate hydrant pressure to prevent fire disasters.
- A speaker (Mr. Rosecrans) corrected the record regarding an MOA with the National Park Service, stating that public review was denied despite requests.
- Dave Warner requested reinstatement of remote public comment (citing other commissions that allow it) and thanked SFPUC staff for storm response.
- Denise Lewis (Center for Biological Diversity) urged the commission to withdraw lawsuits against the State Water Board, citing the Bay Delta ecosystem collapse and the PUC's own environmental stewardship policy.
- Peter Dreckmeyer (Tuolumne River Trust) highlighted discrepancies between water demand projections used for the Urban Water Management Plan and those used for the budget, and requested the long-overdue Alternative Water Supply Plan.
- Liz Jackson Simpson (Success Centers) spoke in support of the SIP program, which provides workforce development and support services, noting that program dollars help with tools, union dues, and prescription goggles.
- Mary Butterwick urged the commission to reduce the design drought from 8.5 to 7.5 years, apply realistic demand projections, and drop the lawsuit against the state's Bay Delta Plan.
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Public Comment on Item 7 (SFUSD MOU):
- Denise Lewis (California Native Plant Society) urged incorporating native plant habitats and San Francisco genetics in green infrastructure projects.
- Katie Poyle (SFUSD Executive Director of Facility Services) and Kate Levitt (SFUSD Bond Program Communications Director) endorsed the MOU, highlighting its potential for student learning and play.
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Public Comment on Items 8–11 (Budget, Capital Plan, Financial Plan):
- Tom Francis (BOSCA) supported the budget but urged the commission to require an annual report on the Capital Planning Improvements Initiative with metrics; staff response rejected BOSCA's recommendations.
- Peter Dreckmeyer questioned the 9 MGD increase in water demand projections from last year, noted that the average combined water/wastewater bill projection increased 43% over the previous plan, and urged the commission to reduce the design drought to avoid costly alternative water supply projects.
- Dave Warner stressed the long-term risk of debt and the lack of flexibility once projects are committed; he noted that the 8.1% annual rate increase over 10 years is up from 6.6% last year.
- Judy Irving (filmmaker and Bay swimmer) expressed concern about the 1.2 billion dollar nutrients project, urged reducing the design drought, and noted that conservation leads to higher rates (drought surcharge).
- Barbara Folger (Presidio Heights resident) described the poor water quality from aging 100-year-old supply pipes and asked for coordinated replacement of water and sewer lines.
- Mary Butterwick (retiree) expressed alarm that rates could triple in 15 years, urged prioritizing recycled water for nutrient reduction, and asked for analysis using a 7.5-year design drought.
- Denise Lewis requested that the Emergency Firefighting Water Supply pipelines for the Richmond and Outer Sunset districts be included in the capital plan, asked for disclosure of lawsuit costs, and urged withdrawal of lawsuits.
- Jacob Evans (Cycle California) warned that the 11.8 billion dollar plan relies on overestimated water demand and population growth; reducing the design drought by one year could save billions.
Discussion Items
- Item 7: Umbrella MOU with San Francisco Unified School District – The commission approved a 40-year framework agreement for green infrastructure projects on SFUSD properties. The MOU does not commit to specific projects but establishes a process for site agreements. Commissioners stressed the importance of data collection on performance and educational opportunities for students.
- Items 8–11: Budget, Capital Plan, and Financial Plan – The commission held a public hearing on the biennial operating budget, two-year capital budget, 10-year capital plan, and 10-year financial plan. Staff presented an overview of the $1.8 billion per year capital budget (FY 2024-25 and FY 2025-26) and the $11.8 billion 10-year capital plan. Key themes included:
- Climate change as a lens: $789 million for climate resiliency, $1.2 billion for Southeast Outfall Nutrient Reduction Project, $780 million for clean energy expansion.
- Operating budget growth of 18% ($323 million) over two years, driven by capital costs (36%) and power purchase/distribution costs (26%).
- 171 new permanent positions, including 87 conversions from temporary to permanent, to improve retention.
- 10-year financial plan projects average residential water/sewer bill to reach $308/month in 10 years and $436/month in 20 years (8.1% annual increase).
- Wastewater debt service is projected to rise from 24% to 58% of expenses over 10 years, with $13 billion in bonds issued.
- Power enterprise: Hetch Hetchy rates remain ~30% below PG&E; CleanPowerSF aims for 150 days cash on hand reserves.
- Commissioners discussed risks of demand projections, affordability, and the need for cross-enterprise collaboration. Commissioner Ajami requested a sensitivity analysis on demand uncertainty and further exploration of decoupling.
Key Outcomes
- Approval of Minutes (numerous prior meetings) – Unanimous (4-0).
- Consent Calendar (Items 6a–6d) – Approved unanimously (4-0).
- Item 7: MOU with SFUSD – Approved unanimously (4-0).
- Item 8: Biennial Operating Budget – Adopted unanimously (4-0).
- Item 9: Two-Year Capital Budget – Adopted unanimously (4-0).
- Item 10: 10-Year Capital Plan – Adopted unanimously (4-0).
- Item 11: 10-Year Financial Plan – Adopted unanimously (4-0).
- Commissioner Initiated Items – Commissioner Ajami requested that the commission agenda for the next meeting include a discussion on reinstating remote public comment. This was noted.
- Closed Session (Item 16) – Commission voted to assert attorney-client privilege (4-0) and subsequently voted not to disclose closed session discussions (4-0). The closed session concerned a proposed settlement of personal injury claims against the city (Ralph Bauer et al. v. City and County of San Francisco) for $400,000 each to plaintiffs Adian Galper and Corey Marriott, subject to Board of Supervisors approval.
Meeting Transcript
So we are now calling the San Francisco Public Utilities Commissioned regular meeting of February 13th to order. Can we have a roll call, please? President Paulson. Present. Commissioner Maxwell? Commissioner Stacy? Here. We have a quorum. Thank you. Um so before we get to the first item, I'd like to announce that the San Francisco Public Utilities Commission acknowledges that it owns and are stewards of the unceded lands located within the ethno historic territory of the Molequa Ohlone tribe and other familiar descendants of the historically federally recognized Mission San Jose Verona Band of Alameda County. The S FPUC also recognizes that every citizen residing within the Greater Bay Area has and continues to benefit from the use and occupation of the Molecular Ohlone tribes aboriginal lands since before and after the San Francisco Public Utilities Commission's founding in 1923. 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 Molecula Ohlone people have established a working partnership with this SFPUC and our productive and flourishing members of the many greater San Francisco Bay Area communities today. So Donna, can you call the first item, please? Item number three, approval of the minutes of the January 22nd, 2024 special meeting, January twenty-third, twenty twenty-four regular meeting, January twenty-sixth, twenty twenty-four special meeting, January twenty-ninth, twenty twenty-four special meeting, and February second, twenty twenty-four special meeting. So are there any corrections or comments on any of the minutes from these past meetings, Commissioners? Seeing none, we will open this to uh public comment, Donna. Do any members of the public pr present to provide comments on any of the minutes? See none. Seeing none, can we get a motion and second to approve the minutes for those um numerous meetings? Can we have a roll call, please? President Paulson. Aye. Commissioner Maxwell. Aye. Commissioner Jamy. Aye. Commissioner Stacy. Aye. You know, four eyes. Item four, general public comment. Um, can you open the item four is general public comment? Public members of the public may address matters uh uh address the commission on matters that are within the commission's jurisdiction but are not on today's agenda. I have some speaker cards. First, Mr. DeCosta, Mr. Rosecrans, Dave Warner, Denise Louie, and if you've not turned in the card, you can go ahead and sign um stand on the side. Commissioners, today I want to talk about our pipes, drinking pipes, sewer pipes, pipes leading to hydrants. So uh we need a hearing on how you are going to address fixing the pipes on the west side that has now been transferred or was transferred because of insufficient money to the SFPUC. It's important that those hydrants have uh the pressure if there is a fire. Otherwise, we'll have the same type of situation we had in Hawaii. Now, as to the citizens of San Francisco, we had agreed a long time ago when Karen Kubick was there, that at least twice a year we would get um some sort of a report on the clean drinking water pipes and the sewer pipes that had to be replaced. We haven't heard anything. I know the pandemic came in the way. But that doesn't mean that we don't have a hearing. We need a hearing on those issues. Thank you very much. Thank you. Next speaker, please. Thank you. Good afternoon, Commissioners.
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