San Francisco Public Utilities Commission Meeting – August 13, 2024

The San Francisco Public Utilities Commission (SFPUC) convened on August 13, 2024, to address consent items, regular calendar items, and closed session matters. Commissioners heard a detailed Human Resources update highlighting vacancy reductions and recruitment strategies, a Water System Improvement Program quarterly report, and approved several contracts, leases, easements, and a mitigated negative declaration. Public comment focused on Tuolumne River flows and adaptive management. The commission also approved a settlement in closed session.

Consent Calendar

• Items Approved (A, B, D, E, F–K): The commission approved all consent calendar items except Item C, which was moved to the regular calendar as Item 10. Approved items included:
  • Amendment No. 2 for CleanPowerSF’s participation in the Bay Area Regional Heat Pump Water Heater Contractor Incentive Program (Item 6A).
  • Amendment No. 4 to Contract CS-388 for River Ecosystem Science Support Services with McBain Associates (Item 6B).
  • Contract No. HH-1015, O’Shaughnessy Dam Drainage and Miscellaneous Improvements awarded to Sierra Mountain Construction, Inc. (Item 6D).
  • Contract No. PRO.0187, Regional Groundwater Treatment Improvements Project awarded to Kennedy/Jenks Consultants (Item 6E).
  • Acceptance of work by J. Flores Construction Company, Inc. (Item 6F).
  • Increase of $2,150,000 to cost contingency for Design Build Contract No. DB-121R2, Moccasin Powerhouse Generator Rehabilitation (Item 6G).
  • Increases in calendar days for Bay Corridor Transmission and Distribution Phase 3 (Item 6H), San Joaquin Pipeline Valve and Safe Entry Improvements (Item 6I), Auxiliary Water Supply System Clarendon Supply 2019 (Item 6J), and Various Locations Main Sewer Inspection No. 1 (Item 6K).
• Discussion on Consent Items: Commissioner Stacy noted that Sierra Mountain Construction’s low compensable delay rate ($10 for 10 days) was a bidder’s business decision. Commissioner Jami reiterated her preference for performance-based contracts to improve accountability.

Public Comments & Testimony

• Peter Drekmeier (Tuolumne River Trust) spoke during General Public Comment (Item 4) and later on Item 10. He expressed support for the Tuolumne River restoration project but urged higher instream flows (currently 21% of unimpaired flow). He referenced SFPUC Resolutions 19-007 and 20-013A calling for adaptive management with performance measures, and stated that SFPUC staff had denied his public records request citing attorney-client privilege. He also commented during the HR update (Item 5A), congratulating staff but warning that rising capital costs (e.g., 50% budget overrun on WSIP) could trigger a rate revolt.

Discussion Items

• Item 5A – SFPUC Human Resources Update: Chief People Officer Wendy Macy and Business Services Manager Cheryl Sperry presented. The permanent vacancy rate had dropped from a high of 27.2% in FY21-22 to 21.8%, despite an increase in total positions. Focus on Hetch Hetchy Water & Power showed a net gain of 26 filled positions from FY21 to FY24, achieved through 110 appointment transactions. Strategies included targeted recruiting for power generation technicians and electrical engineers (vacancy rate peaked at 38% in June 2023), community partnerships (Mother Lode Job Training, colleges, Tuolumne County Collaborative), and a database of 800+ candidates. Challenges included location (rural area), housing, childcare, and insurance availability. Commission discussion addressed the need for long-term housing solutions and policy ideas.
• Item 5B – Water System Improvement Program (WSIP) Quarterly Report: Director of Water Capital Programs Katie Miller reported the program is 99% complete. Two remaining active projects: Alameda Creek Recapture Project (budget increased by $5 million, schedule extended to June 2032) and Regional Groundwater Storage and Recovery Project (Phase 2B contract awarded; easements with Kaiser pending). No cost or schedule variances since the April 9, 2024 revised budgets.
• Item 7 – Lease Approval at 19500 Nugget Boulevard, Sonora: Assistant Director of Real Estate Josh Keene presented a five-year lease (plus two two-year options) for 15,800 sq ft of warehouse space at $0.89/sq ft/month ($169,000/year), for storage of Hetch Hetchy critical spares. Current storage at the outdated Moccasin Powerhouse is deteriorating due to concrete cancer. Commissioner Jami questioned the interim nature and potential for a permanent owned facility; staff noted that option to purchase is not currently feasible but will be explored.
• Item 8 – Easement Acquisition from Kaiser Foundation Hospitals: Right-of-Way Manager Dina Brazil sought approval to purchase permanent and temporary easements (441 sq ft pipeline, 1,273 sq ft electrical) for the Regional Groundwater Storage and Recovery Project. Negotiated price: $266,100. Commissioner Jami asked about easement valuation; staff explained the appraisal and negotiation process.
• Item 9 – Newcomb Avenue Campus Project (CDD Campus at 2000 Marin): Project Manager Shelby Campbell presented plans for a new City Distribution Division campus to replace 1960s facilities. Budget: $393 million. Design includes a spine with stormwater garden, solar generation (nearly 1 MW), and improved safety. Final Mitigated Negative Declaration was adopted with no public comments. Commissioner Jami asked about on-site water reuse; staff stated it was infeasible due to space constraints.
• Item 10 – Tuolumne River Restoration (Moved from Consent): Bill Sears (Natural Resources Division) presented a statutory exemption under CEQA for the Tuolumne River Mainstem Channel Restoration Project (Old La Grange Bridge). A technical correction clarified that no Mitigation Monitoring and Reporting Program (MMRP) adoption is required, but protective measures are included. Commission expressed support and noted collaboration with TID, Stanislaus County, and nonprofits.

Key Outcomes

• Consent Calendar Approved (Items A, B, D–K) with 3-0 vote.
• Item 7 Approved – Five-year warehouse lease in Sonora (3-0).
• Item 8 Approved – Easement acquisition from Kaiser for $266,100 (3-0).
• Item 9 Approved – Final Mitigated Negative Declaration and project authorization for Newcomb Avenue campus (3-0).
• Item 10 Approved – Tuolumne River restoration project with corrected CEQA exemption (3-0).
• Closed Session Settlement Approved – Payment of $42,111.60 to Chelsea Motor Inn for property damage from a September 10, 2023 water main break at Fillmore and Green Streets, with a full release. The commission voted to assert attorney-client privilege and not to disclose discussions.