San Francisco Public Utilities Commission Meeting - January 28, 2025

The San Francisco Public Utilities Commission (SFPUC) met on January 28, 2025, at 9:30 AM. The meeting covered water supply planning, contract awards, a joint powers agreement, employee recognitions, and public comments on water system management and affordability. Commissioners voted on several items, including consent calendar approval, contract modifications, and a water supply assessment for a development project.

Consent Calendar

• Item 7a – Contract WW-741R, Various Locations Spot Main Sewer Replacement No. 1, was approved unanimously.

Public Comments & Testimony

• General Public Comment:
  • Mr. DeCosta raised concerns about fire hydrant and cistern inspections, citing the 1989 earthquake and Southern California fires. He urged commissioners to clarify maintenance responsibilities between SFPUC and DPW.
  • Dave Warner criticized staff presentations as biased, particularly on demand projections, drought planning, and rates. He urged commissioners to increase due diligence, bring in outside experts, and hold workshops.
• On Item 5a (Water Supply Planning):
  • Tom Smegel (BAWSCA CEO) expressed appreciation for the presentation and highlighted the importance of the level-of-service goal. He noted BAWSCA's upcoming regional water demand study.
  • A public speaker urged the commission to read the Raker Act, prioritize San Francisco's needs, and consider Indigenous water rights.
  • Jason Foster (Islais Richmond) requested that managing costs be added to planning priorities and that stakeholders reach consensus on planning assumptions.
  • Peter Drekmeier (Tuolumne River Trust) found the presentation outdated and called for a workshop. He questioned the design drought severity and cited data from the Long-Term Vulnerability Assessment (LTVA) showing the 1987-92 drought was a 1-in-420-year event.
  • Dave Warner again spoke, emphasizing data-driven risk assessment and stating that the LTVA indicated climate change may reduce drought frequency.
• On Item 6 (BAWSCA Report): Peter Drekmeier commented, urging BAWSCA to closely review the Alternative Water Supply Plan.
• On Item 9 (Water Supply Assessment): Peter Drekmeier argued the assessment lacked analysis of job-housing balance and recommended a joint meeting with the Planning Commission.
• On Item 10 (Millbrae Campus Contract): Jason Foster asked about change order history and contract provisions related to performance audit findings.

Discussion Items

• Item 5a – San Francisco Water Supply Planning: Assistant General Manager Steve Ritchie presented an overview, noting that 85% of supply comes from the Tuolumne River, with the SFPUC using ~14% of river flow. Current residential per capita use in San Francisco averages 41 gallons per day (among lowest in CA), and wholesale customers average 55 gallons per day. The planning premise includes an 8.5-year design drought (1987-92 plus two dry years) with no more than 20% rationing from a 265 MGD baseline. Challenges include the Bay-Delta Plan (potential 93 MGD impact), state curtailments, population growth (82,000 new units in SF over 10 years), and climate change. Alternative supplies include purified water (Pure Water Peninsula, South Bay), groundwater storage, and projects with Turlock/Modesto irrigation districts. Commissioners asked about the design drought’s conservatism, snowpack vs. rain impacts, trade-offs between storage and environmental flows, cost implications, and the feasibility of achieving 20% rationing given already low per-capita use. Ritchie emphasized that the system cannot go to zero storage, and the commission must plan for worse droughts.
• Item 5b – Employee Retirement Recognition: Two retirees were honored: Michael Lacey (25 years, wastewater painter, also served in Navy and COVID health screening) and Frank McPartland (26 years, capital budget manager, not present). Commissioners thanked them for their service.
• Item 6 – Bay Area Water Supply and Conservation Agency (BAWSCA) Report: Tom Smegel (CEO) noted BAWSCA’s role in reviewing SFPUC capital plans per the water supply agreement, which assures water supply reliability for 40,000+ businesses and communities.
• Item 8 – First Amended Joint Powers Agreement (JPA) of the San Joaquin Tributaries Authority: Steve Ritchie explained the JPA updates to expand the authority’s focus beyond legal advocacy to include environmental protection and beneficial uses. The authority hired an executive director. Commissioners expressed interest in collaboration and re-engaging former member irrigation districts. Approved unanimously.
• Item 9 – Water Supply Assessment for 447 Battery Street and 530 Sansome Street: Ritchie stated the assessment is a legally required document for the Planning Department, confirming water supply is sufficient for the project, which includes a 19-story tower with hotel, office, and commercial space, plus a standalone fire station at 447 Battery. Commissioner Arce noted a prior residential variant (256 apartments) but clarified the current proposal does not include housing. The assessment was approved 4-0 after public comment.
• Item 10 – Contract WD-2900, Millbrae Campus Improvements: Project manager Tracy Cale presented the $269 million CMGC contract with Clark Construction ($5.1 million for pre-construction). The project will consolidate ~400 staff from multiple locations, modernize the water quality lab, and meet essential facility seismic standards. Construction in three phases; environmental review pending. Approved unanimously.
• Item 11 – Contract WD-2878A, Regional Groundwater Storage and Recovery Phase 2A: Staff requested a 300-day increase in duration contingency (to 1,258 calendar days) with no cost change due to delays in installing vertical turbine line shafts (contractor did not initially follow manufacturer’s O&M manuals). Approved unanimously.
• Item 12 – Contract WW-719A, Folsom Area Stormwater Improvements: Staff requested a $350,000 cost increase and 140-day duration increase due to unexpected issues during 60-inch sewer pipe installation on 11th Street (including damage to Muni overhead lines, absorbed by contractor). Approved unanimously.
• Item 14 – Items Initiated by Commissioners: Commissioner Arce reported attending the Citizens Advisory Committee meeting and appreciated the dialogue.
• Closed Session: The commission discussed Ralph Bauer vs. City and County of San Francisco. In open session, Commission Stacy announced a settlement recommendation was approved.

Key Outcomes

• Approved unanimously: Consent Calendar (Item 7a).
• Approved unanimously: First Amended JPA of San Joaquin Tributaries Authority (Item 8).
• Approved unanimously (4-0): Water Supply Assessment for 447 Battery/530 Sansome (Item 9).
• Approved unanimously: Millbrae Campus CMGC contract (Item 10).
• Approved unanimously: Duration contingency increase for Regional Groundwater Storage contract (Item 11).
• Approved unanimously: Cost and duration contingency increases for Folsom Area Stormwater contract (Item 12).
• Closed Session: The commission voted to recommend settlement of the Ralph Bauer case.