San Francisco Public Utilities Commission Meeting - April 9, 2024

The San Francisco Public Utilities Commission (SFPUC) held a regular meeting on April 9, 2024, at 9:45 AM. The meeting included a land acknowledgment, approval of prior minutes, general public comment, a report from the Chief Diversity Officer on racial equity initiatives, discussion and approval of the consent calendar, and several regular agenda items including updates to the Water System Improvement Program, water and wastewater fee schedules, an easement acquisition, modifications to the Green Infrastructure Grant Program, and a discussion on recruiting a new Commission Secretary. The meeting also included a closed session on litigation and settlement matters.

Consent Calendar

• The commission approved the consent calendar (items 6A through 6J) unanimously with a roll call vote of 3-0.
• Prior to the vote, Commissioner Maxwell questioned the difference between items 6D (water main replacement with earthquake-resistant ductile iron pipe, manufactured in Japan by Kubota) and 6E (standard ductile iron pipe). Staff explained that item 6D is part of a pilot project to install seismic backbone pipes to San Francisco General Hospital, while item 6E uses standard pipe but with upgraded joints. The earthquake-resistant pipe is about twice as expensive but proven for large earthquakes. Staff noted that the cost of such pipe may decrease as more U.S. manufacturers develop seismic joints.

Public Comments & Testimony

• General Public Comment: Two speakers addressed the commission. The first speaker, an environmentalist, urged the SFPUC to use the underutilized contracting center to connect elder wisdom and resources, and requested commission approval. The second speaker, Jacob Evans, organizer with Chair California, commented on the SFPUC’s lawsuit against the State Water Board over freshwater flows to the Bay-Delta. He urged the commission to accept the recent court ruling rather than appeal, stating that appealing would waste ratepayer dollars and harm vulnerable Delta communities. He asked that future conversations on this matter be made public.
• Public Comment on Item 7 (Water System Improvement Program): Nicole from the Bay Area Water Supply and Conservation Agency (BAWSCA) spoke in support of the staff recommendation, noting BAWSCA staff had met with SFPUC and appreciated the proposed changes.
• Public Comment on Item 5A (Chief Diversity Officer Report): One speaker commented on the need for good leadership and kindness in the workplace, referencing the HR system and temporary workers hired during the pandemic.
• No public comments were made on items 6, 8-9, 10, 11, 12, or 14.

Discussion Items

• Item 5A – Report of the General Manager: Chief Diversity Officer Update – Chris Bijou, Chief Diversity Officer, presented an oral update on racial equity and inclusion initiatives over the past nine months. He emphasized three focus areas: relationships (building trust with staff and community), professional development (creating a sustainable, internal curriculum rooted in equity), and rethinking data use (moving beyond quantitative metrics to qualitative measures). He noted that the agency’s Racial Equity Action Plan has many action items, but the team is prioritizing four pillars: hiring/recruiting, retention/promotion, mobility/professional development, and organizational culture. Commissioners praised the approach and asked for more concrete examples in future reports. Commissioner Rivera asked about recurring themes from staff feedback; Bijou cited a convoluted hiring process and a need for improved management skills.
• Item 7 – Water System Improvement Program (WSIP) Proposed Revised Scope, Schedule, and Budget – Katie Miller, Director of Water Capital Programs, presented the March 2024 proposed revised WSIP. The program is 99% complete; only three active projects remain. Key changes: the Alameda Creek Recapture Project will have a schedule extension to June 30, 2032, and a $5 million budget increase for planning and redesign. Staff noted that further budget increases are likely as costs become better understood. The commission approved the item unanimously.
• Items 8 & 9 – Water and Wastewater Miscellaneous Fee Schedules – Christina Venice, Rates Analyst, presented the proposed updates. The changes result from a 2025 fee study that evaluated existing fees using a bottom-up cost methodology. Key proposals: new fees for backflow inspection and after-hours temporary service shutdown; elimination of the flow restricting installations fee, pending shutoff notice fee, and others. The fee schedules also include CPI escalations, no changes, and structural updates (e.g., tiered meter test fees). The commission approved both items separately, each by a 3-0 vote.
• Item 10 – Easement Acquisition for Pipeline Crossing – Staff presented a purchase and sale agreement for a 1,386-square-foot easement from the San Mateo County Flood and Sea Level Rise Resiliency District (One Shoreline) for $70,000, to allow an aerial pipeline crossing over Colma Creek for the Regional Groundwater Storage and Recovery Project. A correction was noted: the pipeline is 8-inch, not 12-inch. The commission approved the item with the correction.
• Item 11 – Green Infrastructure Grant Program Guidelines Modification – Sarah Bloom, Senior Watershed Planner, presented proposed modifications including increasing the maximum cost per acre of impervious surface managed from $930,000 to $1,035,000, raising the maximum grant award from $2 million to $2.5 million, expanding eligibility to include projects in the public right-of-way, and revising disbursement for city departments. The commission approved the modifications unanimously.
• Item 12 – Process to Recruit and Select a New Commission Secretary – President Paulson proposed that the President serve on the interview committee and that the final candidate be presented to the full commission. The commission agreed without objection. The position is posted and will remain open for at least two weeks.
• Item 14 – Items Initiated by Commissioners – Commissioner Maxwell announced that the next meeting (April 23, 2024) would be her last as a commissioner. Commissioners expressed gratitude and surprise.

Key Outcomes

• Consent Calendar (Items 6A-J): Approved unanimously (3-0).
• Item 7 – Water System Improvement Program Changes: Approved unanimously. Staff directed to send a notice of change report to the State Water Resources Control Board and the Alfred E. Alquist Seismic Safety Commission.
• Item 8 – Water Miscellaneous Fee Schedule: Approved unanimously, effective July 1, 2024.
• Item 9 – Wastewater Miscellaneous Fee Schedule: Approved unanimously, effective July 1, 2024.
• Item 10 – Easement Acquisition: Approved unanimously, with the corrected resolution referencing an 8-inch pipeline.
• Item 11 – Green Infrastructure Grant Program Guidelines: Approved unanimously. Staff will submit revised guidelines to the Board of Supervisors and request a two-year extension of delegated authority through June 2026.
• Item 12 – Commission Secretary Recruitment: The commission approved the proposed process: President Paulson will serve on the interview committee, and the selected candidate will be presented to the full commission.
• Closed Session: The commission voted to assert attorney-client privilege. Staff recommended approval of settlements in items 17, 18, and 19 (personal injury and property damage claims). No action was taken on items 20 and 21 (litigation updates). The commission adjourned without further action.