San Francisco Public Utilities Commission Meeting - August 27, 2024
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San Francisco Public Utilities Commission Meeting - August 27, 2024
The San Francisco Public Utilities Commission (SFPUC) met on Tuesday, August 27, 2024, at 9:45 AM. The meeting included routine approvals, a report from the General Manager with quarterly audit and financial updates, a major discussion on updating the delegation of authority for contracts, and several regular calendar items including new programs and contract amendments. The meeting concluded with a closed session.
Consent Calendar
- Item 6 – Consent Calendar: Approved unanimously. Items included contract amendments (e.g., Amendment No. 2 to Contract PRO.0165 with Eurofins Eaton Analytical, LLC) and awards (e.g., Contract PRO.0227(R2).A-D with Siemens Industry, Inc., $2,000,000). Item 6B was pulled from the consent calendar due to an agenda error. Commissioner Stacey asked clarifying questions on 6A and 6C but was satisfied with staff explanations.
Public Comments & Testimony
- Francisco De Costa: Expressed that the SFPUC has not conducted a community needs assessment for video monitoring, and urged the commission to address community benefits and consider an inspector general's office. He criticized past management.
- Dave Warner: Urged SFPUC staff to improve transparency by presenting alternatives, using financial plans as an example. He noted that other agencies (MWD, San Diego) presented choices to boards, while SFPUC does not.
- Peter Dreckmeyer (Policy Director, Tuolumne River Trust): Commented on bond rating slides (lowered to negative for wastewater) and the large debt ($10.2B outstanding, $11B additional borrowing projected). He urged the commission to prioritize questions about rates and credit rating, and referenced the Long-Term Vulnerability Assessment report on demand forecasting risks.
- Steve Lawrence: Reminded the commission of past financial difficulties and corruption, urging them not to abdicate oversight.
Discussion Items
- Item 5A – Quarterly Audit and Performance Review (FY 2023-24 Q4): Irella Blackwood presented the audit bureau's report. Completed audits: 15 financial, 8 performance, 1 from Revenue Bond Oversight Committee. She described the audit selection process (risk assessment, regulatory requirements, etc.). Commissioner Ajami asked about the zero percent recommendation closure rate; Blackwood explained it's due to pending verification by the Controller's office. Cybersecurity audit planned in partnership with IT.
- Item 5B – Recent Wastewater Enterprise Bond Sale Results: Edward Kwong reported on the July 2024 bond sale: Series A/B (taxable) and C/D (tax-exempt) totaling ~$1.9B. Bonds were rated AA2 (Moody's) and AA (S&P) but with negative outlook from S&P due to large capital plan. Strong demand: 1.2x oversubscribed (taxable) and 2.2x (tax-exempt). Aggregate yield 4.3%. Commissioners asked about the rating outlook; staff acknowledged it is a concern and will review financial policies.
- Item 5C – Capital Financing Plan FY 2024-25: Edward Kwong outlined a $10B outstanding debt portfolio and projected $11B in additional borrowing over 10 years. Plans include a water bond sale up to $762M, SRF loans, and exploring Inflation Reduction Act tax credits for electric vehicles and solar projects. Commissioners highlighted the need for data transparency and updating technology systems.
- Item 7 – Delegation of Authority to the GM (Contract/Lease/Grant Approvals): Ron Flynn presented a major update to the delegation matrix, last revised in 2009/2015. Key changes include raising construction contract thresholds for consent vs. regular calendar from $10M to $25M, adding new categories (grants, MOUs, power purchases). After extensive debate, Commissioners Rivera, Ajami, and Stacy discussed thresholds. Commissioner Ajami expressed concern about lowering oversight; she proposed changing the construction contract threshold from $25M to $20M with a 10-year maximum. Staff agreed to bring a report on contract statistics. The motion passed unanimously. Public comment opposed the proposal, arguing it weakens commission oversight.
- Item 9 – Appropriation of Earthquake Safety and Emergency Response GO Bond Interest Earnings: Laura Bush and Josh Anderson requested approval to appropriate $6,180,354 in interest earnings from 2010 and 2014 GO bonds for the Emergency Firefighting Water System. The funds will bridge a temporary funding gap for planning and design of projects like the West Side Potable Emergency Firefighting Water System and fire boat manifolds. Approved unanimously.
- Item 10 – Amendment No. 1 to Contract PRO.0138.C (Engineering Services for Dams and Reservoirs): Ted Ben Lee presented an amendment with AECOM Technical Services, Inc., increasing the contract by $9M (from $11M to $20M) with no time extension, to continue planning and engineering design for several dams and reservoirs (San Andreas, Turner, Pillar CEDOS, Sunset Reservoir, University Mound) following updated DSOD requirements after the Oroville Dam failure. Commissioner Stacy inquired about the wide cost range for Pillar CEDOS; staff explained alternatives are being evaluated. Approved unanimously.
- Item 11 – Irrigation Controller Rebate Program: Julie Ortiz proposed a new rebate program for smart irrigation controllers: up to $250 per controller for small landscapes, $35 per active station for large landscapes. Program will launch January 2025. Commissioner Ajami expressed support and suggested outreach to Recreation and Parks. Approved unanimously.
Key Outcomes
- Item 6 (Consent Calendar): Approved unanimously.
- Item 7 (Delegation Matrix): Approved with an amendment changing the construction contract regular calendar threshold from $25M to $20M (10-year term remains). Staff to provide a future report on contract distribution. Public comment opposed.
- Item 9 (GO Bond Interest Appropriation): Approved unanimously.
- Item 10 (Dam Engineering Contract Amendment): Approved unanimously.
- Item 11 (Irrigation Controller Rebate): Approved unanimously.
- Closed Session (Items 15-18): The commission asserted attorney-client privilege, went into closed session to discuss litigation (Brian McSharry v. CCSF), and after closed session, voted to approve the settlement and not to disclose discussions.
Note: The minutes for the August 13, 2024 meeting were approved without public comment. General Public Comment included two speakers. The meeting adjourned after the closed session announcements.
Meeting Transcript
Meeting to order. Um, first of all, I'd like to ask for a uh roll call. President Rivera. Here, Commissioner Jami. Yeah. Commissioner Stacy. Here, you have a quorum. Before calling 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 Mi Wakma Alone tribe and other familial descendants of the historic federally recognized Mission San B San Jose Verona Band of Alameda County. The SFPUC also recognized that every citizen residing within the Greater Bay Area has and continues to benefit from the use and occupation of the Mawikma Ohlone tribes aboriginal lands since before and after the San Francisco Public Utilities Commission founding in 1932. It is virtually 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 Mawikma Loney 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. Please call the first item. Are there any corrections uh to the minutes of August 13th? Okay. See none. Um would you like to please call for any uh public comment on this item? Remote callers, raise your hand if you wish to provide comment on item number three. Do we have any members of the public present who wish to provide comment on this item? Moderator, are there any callers with their hand raised? Ms. Lanier, there are no callers that wish to be recognized. Thank you. Okay, seeing none, I would like to request a motion and second for the approval of the minutes of August 13th. I'll move. Second. Um please have a uh roll roll call vote, please. Vice President Rivera, yay, Commissioner Ajami, yes, Commissioner Stacy. Aye. All righty. Please read the next item. Director of excuse me, 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? My name is Francisco De Costa, and I would like to bring the attention today. And in that disposition and the agreement, whoever is building whatever you have. They have to relay it to the community. The San Francisco public utilities commission has not done a needs assessment of the video on this one. If they did one, then they would be able to address the community benefits. The community benefits that you have now is connected. The commissioners may think that the SFPUC can move the people all the time. That's not possible. Really? And I'm glad there's some talk about creating the inspector general's office. And I hope this Inspector General Office will work with us, the community. Because we try to work with SFPUC, and it's not going anywhere. And um got going somewhere, but we missed Dodd because he retired. And you know all your commissioners and many other commissions, they have attorneys, you know. And I don't know what they do. They they kind of rub a stem. They have to take the initiative of the needs assessment and helping the community. Thank you very much.
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