San Francisco Public Utilities Commission Meeting - May 13, 2025

The San Francisco Public Utilities Commission (SFPUC) convened on May 13, 2025, at 9:30 AM with all commissioners present. The meeting covered a wide range of topics including a Climate Action Plan update, approval of wholesale water rates for FY2025-2026, bond refinancing results, multiple contract awards and amendments, and public comments on several issues.

Consent Calendar

• Approved unanimously: Items 7A through 7F, including multiple as-needed construction management contracts (e.g., four contracts for $4.8 million each and three contracts for $6 million each). The Commission noted that bundling similar contracts provides flexibility for task order assignments.

Public Comments & Testimony

• Pierce Street Outfall: Several speakers (Ashley Ressinger, Bill Clark, David Hooper) expressed strong opposition to the closure of the Pierce Street outfall, arguing it caused flooding in the Marina neighborhood and that the decision was made despite available modeling data warning of reduced drainage capacity. They urged the Commission to reactivate the outfall.
• Tuolumne River & Water Management: Peter Drekmeier (Tuolumne River Trust), John Ross (fisheries biologist), and others criticized SFPUC’s water management, claiming the agency plans for a “design drought” without proper risk analysis, avoids public engagement, and harms river ecosystems. They requested a study session on the Voluntary Agreements.
• Climate Action Plan: Multiple speakers (Nancy Haber, Elena Engel, Susan Green, Paul Wormer) urged stronger financial support for building electrification, including upfront rebates and zero-interest loans for heat pumps. They highlighted the need for equitable transition and criticized CleanPowerSF for being slow to offer customer programs. Paul Wormer also raised concerns about the impact of electrification on peak demand and the need for district heat strategies.

Discussion Items

• Climate Action Plan Update (Item 5a): Staff presented SFPUC’s contributions to the city’s updated plan, covering water supply efficiency (goal of 42 gallons per capita per day by 2030, 2.5 MGD recycled water by 2040), healthy ecosystems (green infrastructure to manage 440 million gallons of stormwater annually by 2030), building decarbonization (new bill credit for heat pump water heaters, decarbonizing the Civic Center steam loop), and 100% renewable electricity (current 75% coverage, need to acquire PG&E grid assets). Commissioners Jamdar, Arce, and Stacy praised interdepartmental collaboration and asked about affordability, federal funding risks, and incentives. Public comment followed with three minutes per speaker.
• 2025 Water Refunding Bond Sale (Item 5b): The Commission heard that a $523 million refinancing transaction delivered $56.2 million in future ratepayer savings (net present value savings of $42.4 million, 7.16% NPV savings). The average interest cost was 3.28%, with a subscription rate of 1.9 times. The transaction included green bond components.
• Wholesale Water Rates FY2025-2026 (Item 8): Staff proposed a 2.3% increase to $5.80 per CCF (up from $5.67), driven by revenue-funded capital, debt service growth, and higher wholesale allocations. The balancing account (currently $12 million owed to SFPUC, expected to swing to $10 million owed to customers) will be used to moderate rate increases. Vice President Arce discussed the need to control costs to avoid steeper hikes in FY2029-2030 (5.1% and 8.0% projected). The item was approved.
• Contract Approvals and Amendments (Items 9-15): The Commission approved several infrastructure contracts and amendments, including:
  • Item 9: 212-day extension (no cost increase) for the Southeast Water Pollution Control Plant New Headworks Facility (now 65% complete, 14 billion gallons treated since August 2024).
  • Item 10: $15 million, 10-year professional services contract to CDM Smith for Sunol Valley improvements.
  • Item 11: $26.5 million increase (to $68.5 million) for Biosolids Digester Facilities construction management with Arcadis; total project budget is $2.8 billion.
  • Item 12: Amendments for as-needed construction management contracts (multiple firms) totaling $4 million each plus $2 million additions.
  • Item 13: $4.3 million increase (to $33.2 million) for water service line replacement contract with JMB Construction, to cover pavement restoration during a gap in an unrelated paving contract.
  • Item 14: Approved the 2025 Amended and Restated Water Supply Agreement with wholesale customers, modifying minimum purchase quantities for four customers (e.g., Mountain View facing $3.4 million imputed fee) to encourage efficiency and local supply development. Also introduced a “family plan” for drought allocation among wholesale customers.
  • Item 15: Approved the second amendment to the water sales contract with Redwood City, transferring 12 suburban retail customers to Redwood City for improved reliability.

Key Outcomes

• Vote on Climate Action Plan Update: Informational; no formal vote. Staff will return in fall for plan authorization.
• Wholesale Water Rates (Item 8): Approved unanimously (4-0). Rates effective July 1, 2025.
• Bond Refinancing (Item 5b): Received as report; no vote required.
• Contract Actions (Items 9-15): All approved unanimously (4-0) with no public opposition.
• Consent Calendar: Approved unanimously.
• Closed Session: The Commission asserted attorney-client privilege and approved four settlements. They voted not to disclose closed session discussions.
• Commissioner Initiated Items: Commissioner Jamdar congratulated General Manager Dennis Herrera on receiving an award at City Hall (presentation on May 14).
• Next Steps: The next regular meeting is anticipated in June 2025 (advance calendar noted).