San Francisco Public Utilities Commission Meeting - June 11, 2024
STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE
San Francisco Public Utilities Commission Meeting - June 11, 2024
The San Francisco Public Utilities Commission (SFPUC) met on June 11, 2024, to discuss the Water Enterprise Capital Improvement Program, the Alternative Water Supply Program, and several contract awards. Commissioners heard extensive public testimony on water supply planning, river flows, and rate impacts. They approved the consent calendar, a construction contract, contract amendments for natural resources services, and the 2024 Wildfire Mitigation Plan. The meeting also included a closed session on litigation.
Consent Calendar
- The Commission unanimously approved the consent calendar (items 6A–6D) with no discussion or public comment.
Public Comments & Testimony
- General Public Comment (Item 4): Multiple speakers addressed the Commission:
- A community member from Bayview Hunters Point urged the SFPUC to address environmental justice and health impacts, stating that the SFPUC is mandated to help the community but has been "nonchalant."
- Mary Butterwick (San Francisco resident) urged the Commission not to appeal the Sacramento Superior Court ruling on the Bay Delta Plan and instead work with the state to set instream flow standards. She noted that the proposed Tuolumne River Voluntary Agreement is a delay tactic and that salmon counts are critically low.
- Peter Dreckmeyer (Policy Director, Tuolumne River Trust) criticized the SFPUC for defending the status quo and urged commissioners to hold staff accountable. He referenced a 1970s lawsuit over wholesale rates and called for a long-term capital improvement strategy.
- A caller expressed concern about SFPUC's $8.5 billion debt and projected annual rate increases of at least 8%, questioning the budget planning.
- Francis Mendoza (from the Philippines, representing California Salmon) spoke in support of indigenous water rights and urged the Commission to reconsider the alternative water supply plan, which he said would double water rates, decrease river flows, and increase the budget to over $20 billion. He called for stopping water diversion for salmon.
- Another caller argued that the design drought plan was overly conservative and that demand projections should be more realistic, suggesting that balancing water use across years could reduce the need for expensive alternative supplies.
- Public Comment on Item 5A (Water Enterprise CIP):
- A speaker criticized the Commission for focusing on materialistic projects and ignoring the salmon and water leases.
- Peter Dreckmeyer noted staff's excellent presentation but highlighted the $633 million cost variance and warned that the Alternative Water Supply Plan would also see significant cost overruns.
- Public Comment on Item 5B (Alternative Water Supply Program):
- Many callers spoke, including representatives from BOSCA, environmental groups, and residents. Common themes: the design drought assumption is too conservative; demand projections should be lower; the plan risks financial crisis and ratepayer burden; sensitivity analysis and alternative scenarios are needed; the plan should prioritize conservation and on-site reuse. Callers urged the Commission to reduce the design drought by one year and use realistic demand figures.
- No public comment on items 6, 7, 8, 9, or 12 (closed session matter).
Discussion Items
- Approval of Minutes (Item 3): Due to technical issues, approval of the May 14 and May 28, 2024 minutes was continued to the next meeting.
- Report of the General Manager (Item 5):
- 5a. Water Enterprise Capital Improvement Program (CIP) Quarterly Report: Katie Miller, Director of Water Capital Programs, presented an update as of Q3 FY2023-24. The program includes 38 projects with a total budget of $3.1 billion. About 30% has been spent. A cost variance of $633 million (20% increase) is forecast due to scope refinement and post-pandemic pricing. Key highlights: the Sunol Valley Water Treatment Plant Ozone Project bid prices were high but staff recommended award; Pillar CEDOS Dam Improvements alternatives (full replacement at $273 million vs. lowering reservoir at $63 million); Southern Skyline Ridge Trail construction underway; College Hill Reservoir project nearing completion; 2000 Marin site headquarters design development completed. Commissioners discussed cost increases, the need for life-cycle cost analysis, innovation in projects, and the importance of data and sensing infrastructure. Assistant General Manager Robinson noted ongoing delays with PG&E but improved coordination.
- 5b. Annual Alternative Water Supply Program Report: Manisha Kothari presented the annual progress report. The Alternative Water Supply Plan, finalized in February 2024, serves as a roadmap. The projected dry-year water supply gap is 92–122 MGD (depending on demand vs. obligations). Six projects are in planning: Los Vaqueros and Daly City projects (construction funded in 10-year CIP, online 2030–2032), plus purified water programs (planning only). Program spending to date: $12.4 million. The report includes 15 recommendations, including revisiting demand projections and incentivizing wholesale customer conservation. Commissioners expressed support for the plan but raised concerns about cost, environmental benefits, the need for more aggressive demand management, and the potential for on-site reuse and recycled water. Commissioner Stacy urged exploring recycled water at the Southeast and Oceanside plants. Commissioner Ajami emphasized that demand is the key driver and that partnerships with BOSCA and better data are needed. President Paulson noted the historical challenge of water supply.
- 5c. Report on Recent Activities: General Manager announced the sudden passing of employee Oscar Muron, an emergency planning lead. The Commission observed a moment of silence.
- Item 7: Award Contract No. WW-742 (Southeast Plant Health & Safety Improvements): Staff requested approval to award to Anvil Builders Inc. for $18,700,490 with a 940-day duration to address structural, mechanical, and electrical reliability issues in buildings from the 1950s. No questions; approved.
- Item 8: Approve Amendment No. 1 to Natural Resources Specialized and Technical Services Contracts: Steve Richie presented amendments to three contracts (with AECOM, ATS, and Avila) increasing each by $7 million for ongoing watershed management and mitigation work. No questions; approved.
- Item 9: Adopt 2024 Wildfire Mitigation Plan: Ethan Billigmeyer presented the annual update. The plan covers SFPUC electrical assets in high fire-threat districts. Zero reportable ignitions in the last two years. Accomplishments in 2023 include drone inspections, upgraded pole standards, satellite vegetation monitoring, and controlled burns. The plan will be filed with the California Office of Energy Infrastructure Safety by July 1, 2024. Commissioners discussed risk prioritization, prescribed burns, and insurance for power assets. Cheryl Sperry noted that SFPUC is going to market for insurance and has received interest.
- Items 10–11: Communications were received as information; no commissioner-initiated items.
- Items 12–16 (Closed Session): The Commission deliberated on a litigation matter (RES System Three LLC claim). After closed session, they voted to recommend approval of the settlement and not to disclose the discussion.
Key Outcomes
- Minutes: Continued to next meeting.
- Consent Calendar (Item 6): Approved unanimously (3-0).
- Item 7 – Contract WW-742: Approved unanimously (3-0).
- Item 8 – Contract Amendments: Approved unanimously (3-0).
- Item 9 – 2024 Wildfire Mitigation Plan: Resolution adopted unanimously (3-0).
- Closed Session (Item 14): The Commission voted unanimously to recommend Board approval of the settlement and not to disclose discussions (3-0).
- Next Steps: The Alternative Water Supply Plan will be updated as new data emerges; staff will continue demand modeling and engage with BOSCA. The wildfire mitigation plan will be filed by July 1. The next meeting is scheduled for June 25, 2024.
Meeting Transcript
Commission meeting of the San Francisco Public Utilities call to order. Can we have a roll call, please? President Paulson. Here. Vice President Rivera. Here. Commissioner Jami. Commissioner Stacy. You have a quorum. Thank you. The San Francisco Public Utilities Commission acknowledges that it owns and are stewards of the unceded lands located within the ethnohistoric territory of the Mule Clawing tribe and other familiar descendants of the historically federally recognized San Jose Mission, excuse me, Mission San Jose Verona Band of Alameda County. The SFPUC also recognizes that every citizen residing in the Greater Bay Area has and continues to benefit from the use and occupation of the Molecular Alone 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 lands on which we reside, but also we acknowledge and honor the fact that the Molecula Allone 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. So Cyrillo, can you call the first item, please? Yes, agenda item number three, approval of commission meeting minutes. So they're due to some technical issues with the presentation of the minutes that are on the agenda. We're going to need to continue the approval of both the March 14th and the May 28th minutes to our next meeting. So can we call the next item, please? It's May 14th. May 14th. May 14th and May 28th. I'm sorry if I mispronounced. Okay, thank you. So let's call item number four, please. Agenda item number four, general public comment. Members of the public may address the commission on matters that are within the commission's jurisdiction and are not on today's agenda. Remote callers, please raise your hand if you wish to provide general public comment. Do we have any members of the public present who wish to provide general public comment? Please come to the microphone. Welcome. Commissioners, I want you all to pay careful attention to what I'm going to say. On June the 5th, a few of us from the community at the controller's office. The lead investigator was there, and the lead auditor was there. We broke down what is happening in the community. And the controllers, both the controllers paid attention to what we are going to say. We are fed up because our children are dying, our women are dying, our elders are put in trailers, and the SFPUC is mandated to help the community because the Bayview Hunters point has been adversely impacted. I don't have to go into the details, but we have people who are nonchalant. It's like Gaza. We can't be nonchalant. We can't allow the babies to die, the women to die. We cannot do that. And call ourselves that, you know, we have a democracy and we can do this and we can do that. We have to take care of our people. And so when these members spoke to the controller, the two controllers, they understood for the first time that the controllers report to the people and not to the bully. Thank you. Any more speakers in the room for public comment. Seeing none, Cyrillo. Moderator, are there any callers that have their raised and hands raised? Commission secretary, there are two callers with their hands raised. Thank you.
openpublica.com