SFPUC Commission Meeting – September 10, 2024: Reappointment Controversy, Hazards Plan, and Funding Expansion
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SFPUC Commission Meeting – September 10, 2024
The San Francisco Public Utilities Commission met on September 10, 2024, at 9:45 AM. President Paulson opened with a land acknowledgment and then announced that Mayor’s office had informed him that he and all other commissioners up for reappointment would not be reappointed, calling it a “slap in the face to public service.” He expressed gratitude for serving. The commission then proceeded through the agenda, including a consent calendar, a report on the 2025 Hazards and Climate Resilience Plan, approvals for a pipeline easement, expansion of interim funding programs, and final contract modifications. Public comment addressed the reappointment news, climate resilience, and water supply planning.
Consent Calendar
- Item 3 (Minutes of August 27, 2024): Approved unanimously by roll call (3-0).
- Item 6 (Consent Calendar): Approved unanimously by roll call (3-0).
Public Comments & Testimony
- Francisco (in person): Criticized Mayor London Breed for not respecting the commission and for failing to address crime and infrastructure.
- Max Von Vulnitz (remote, Hillsborough, CA): Expressed support for public access to Crystal Springs Reservoir and requested a subcommittee to update the Peninsula Watershed Management Plan for public access.
- Peter Drekmeier (remote, Tuolumne River Trust Policy Director): Stated that staff did not follow 2019/2020 commission resolutions to include biological goals and adaptive management in the Tuolumne River Voluntary Agreement; urged commissioners to support his request for a response.
- Nicole Sandul (remote, CEO of wholesale customer agency): Thanked President Paulson and Commissioners Rivera and Stacy for their service to water customers.
- Public comment on Item 5A (Climate Resilience Plan): In-person speaker criticized the plan as lacking short-term actions and accountability, and called for more focus on urban canopy. Remote caller (Peter Drekmeier) questioned the design drought return period, noting that a consultant’s draft found a 1-in-25,000-year event, but the final document published only 31% of that number, implying an 8,000-year return period; he argued this could reduce the need for expensive alternative water supplies.
- Public comment on Item 8 (Interim Funding Expansion): In-person speaker accused the SFPUC of corruption and waste, noting that the original $8 billion project is now heading to $12 billion. Remote caller (Peter Drekmeier) referenced the Water Enterprise Capital Improvement Program Quarterly Report (Item 11F) showing a $632 million cost overrun (20% above approved budget) and warned that overinvestment in alternative water supply could drive water prices to $4,500–$5,700 per acre-foot.
Discussion Items
- Item 5A – Draft 2025 Hazards and Climate Resilience Plan: Melissa Higby (Resilience Program Manager) presented the plan, which includes 13 natural hazards, 74 actions, and extensive community engagement (15 events). SFPUC leads actions on energy resilience, earthquake and fire preparedness, waterfront adaptation, and water system resilience. Commissioner Stacy emphasized the importance of climate resilience and green infrastructure. Commissioner Rivera praised interdepartmental and community engagement.
- Item 7 – Pipeline Easement with Sunol Glen Unified School District: Dina Brazil (Right-of-Way Manager) presented a purchase and sale agreement for a permanent pipeline easement (408 sq ft) and temporary construction easement (34,834 sq ft) for $35,000 (appraised value). The project will replace a pipeline segment while preserving a mature tree and scheduling work around school calendar. The refined Mitigation Monitoring and Reporting Program (MMRP) was adopted.
- Item 8 – Expansion of Interim Funding Programs: Staff proposed expanding the Wastewater, Water, and Power Enterprise Interim Funding Programs from $750M, $500M, and $250M to $1.25B, $750M, and $350M respectively (total increase of $950M). The program allows the PUC to issue commercial paper at lower rates (0.25–0.42%) instead of bonds (4.5%) until needed. Commissioner Stacy clarified that this tool defers bond issuance and reduces costs. The resolution authorizes the General Manager to seek Board of Supervisors approval.
- Item 9 – Contract Modification for Mitchell Engineering (Bay Corridor Transmission): Staff reported a final contract modification decreasing the amount by $1,276,441 (14% savings, ~$3.3M) and extending duration by 280 days due to re-sequencing and punchlist work. Commissioner Stacy asked about “fluidized thermal backfill exceeding design strength”; staff explained that higher-strength concrete was analyzed and found acceptable up to 400–500 PSI.
- Item 10 – Contract Modification for Rubecon Builders (Pumping Station No. 2): Staff requested approval of Modification No. 14, increasing the contract by $1,120,000 (to $22,699,579) and extending duration by 380 days (total 2,180 days). The increase was a negotiated settlement for delays due to site conditions and alarm system integration. Commissioner Rivera praised the historic pumping station’s importance for firefighting.
Key Outcomes
- Item 3 (Minutes): Approved unanimously (3-0).
- Item 6 (Consent Calendar): Approved unanimously (3-0).
- Item 7 (Pipeline Easement): Adopted refined MMRP and approved purchase agreement and easement deed (3-0).
- Item 8 (Interim Funding Expansion): Approved resolution to expand interim funding programs for all three enterprises, authorizing General Manager to seek Board of Supervisors ordinance (3-0).
- Item 9 (Mitchell Engineering Contract): Accepted work and approved Modification No. 21 (3-0).
- Item 10 (Rubecon Builders Contract): Accepted work and approved Modification No. 14 (3-0).
- Closed Session: The commission voted to assert attorney-client privilege and, after closed session, recommended that the Board of Supervisors approve the five pending litigation settlements (Anne Marie Farrow vs. City, PG&E vs. City, 150 Post Street LLC vs. City, Awad Vadul vs. City, and 24th & Mission Partners vs. City). The commission voted not to disclose the closed session discussion.
Note: President Paulson’s announcement about non-reappointment was not a formal agenda item but was made during the opening of the meeting. The meeting adjourned after closed session.
Meeting Transcript
Francisco Public Utilities Commission is now called to order. Can we have a roll call, please? President Paulson. Here? Vice President Rivera? Here. Commissioner Jami is excused. Commissioner Stacy. Here. We have a quorum. Thank you. So I'd like to acknowledge and 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 Molecula Alone tribe and other familiar descendants of the historic federally recognized Mission San Jose Verona Band of Alameda County. The SFPUC also recognizes that every citizen residing within the Greater Bay Area has and continues to benefit from the use and occupation of the Molecula Ohlone 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 Mooleca Alone people have established a working partnership with the SFPUC and our productive and flourishing members within the greater San Francisco Bay Area communities today. And I just thought I'd mention that. And so I've been sitting here and I've uh you know, I've been honored and I've been um serving in the in this position, you know, for many years right now. And I frankly was um you know reappointed also to this commission and unanimously uh um uh approved by the Board of Supervisors. That's part of the um checks and balances as things happening. So um, you know, and and considering that when I was walking down the aisles not too damn long ago, um, you know, talking with you know the mayor's folks and whatever, it's like you know, I reaffirmed that I continued to want to uh serve, you know, as your commissioner, because it has been an honor, and I'm actually it's kind of breathtaking that uh that I got that call yesterday. And I'm I'm sure the you know the Board of Supervisors uh yesterday, or as least as of yesterday didn't know that that was going to be. And and the other thing that's sort of breathtaking, I was also told by the mayor's office that everybody who is up, everybody who's on this commission who is up for um you know for reappointment is also not going to be reappointed. So I mean this is you know, you know, pretty breathtaking that you know I'm hearing this right now. So I I just uh wanted folks to know that. And and uh and I might say that you know, just you know, I I read the city's charter and I know that uh the city charter has a uh you know a pretty you know very vibrant uh series of checks and balances. It's also an extremely um mayor-heavy um charter. And I mean the mayor has a lot of part uh a lot of uh a lot of a lot of power in terms of uh running administration, which uh people like or don't like based on you know usually what the politics are. But you know, here but here's what's funny when I was reading around, there's some knucklehead that's actually come up with when we vote this November a piece of legislation that actually is gonna give the mayor more power and get rid of some damn commissions as we're going on. And boy, I I'm telling you, I uh, you know, if there's a you know uh how should I say it, a fake solution and in search of an imaginary problem. I I really don't even know one, and I don't know which knuckleheads came up with this. So um, you know, the checks and balances that we have. I'm almost finished, can I I understand what's going on. Thank you. And um, so um, you know, I you know, I'm I'm uh I know that there's you know a bit of a slap in the face to the labor movement for those that have pushed things together, and frankly, a slap in the face to public service when when things are all said and done. But that being said, I know that the workers of San Francisco are what make this city and county work. And I uh would be more than remiss in my uh couple words right now if I didn't just say that no matter what comes from this side of the bench during the course of my many years here, those of you who uh do the work in particular in this great department uh protecting our natural resources and our water and and putting together all infrastructure. I am just so more than pleased that I've been able to be a commissioner for the two terms that I've been on for you, and I'd be remiss if I if I didn't say that. And I also um fellow commissioners um I'm also honored to you know serve with both you and uh uh fellow commissioners that I um also served with and uh I am actually honored that you guys have um thought it thought it important that uh you elected me to be the president during this uh during this term that I'm here but uh um sounds like uh you know the mayor's office has uh different type of vision for public service. Um so anyway, I want to thank you, uh fellow commissioners for serving. So um uh Commission Secretary, um can you read item number three, please? Approval of the minutes of August 27th, 2024. Um are there any corrections or additions to the minutes, Commissioners? Seeing none, I'll entertain a motion and a second for item three, please. Motion to I'm sorry, extra excuse me. Um uh before that, let's uh turn this uh item three over to uh public comment. Thank you. Remote callers, please 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? If so, please approach the microphone at the podium. Moderator, are there any callers with their hand raised? Ms.
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