San Francisco Public Utilities Commission Meeting - June 24, 2025
STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE
San Francisco Public Utilities Commission Meeting - June 24, 2025
The San Francisco Public Utilities Commission (SFPUC) met on June 24, 2025, to discuss and approve several items, including updates to water conservation rebate programs, bond sale results, contract modifications, and increased funding for CleanPowerSF's participation in the California Community Power Authority. The meeting also featured reports on wastewater projects, water supply conditions, and a presentation from the Bay Area Water Supply and Conservation Agency (BAWSCA). Commissioner Arce and Commissioner Jamdar were excused.
Consent Calendar
- Approved the minutes of June 10, 2025, as corrected for the attendance list, with a unanimous vote (President Stacy, Commissioner Leveroni, Commissioner Thurlow aye).
- Approved the consent calendar (motion by Commissioner Leveroni, second by Commissioner Thurlow) unanimously.
Public Comments & Testimony
- Paul Wermer, a member of the public, urged the Commission to move forward with a memorandum of understanding with LAFCO to study the creation of a public bank for San Francisco. He argued that the mayor's budget had "gutted" climate programs and that relying 100% on the market to provide low-income housing is insufficient, noting that the city's inclusionary housing program only covers 20% of needed units at half the cost.
- No other public comments were made on any agenda item.
Discussion Items
- Report of the General Manager (Item 5): Bessie Tan presented the quarterly wastewater enterprise report, highlighting construction milestones. The Southeast Plant Biosolids Digesters project is over 64% complete, and the New Headworks Facility is approaching substantial completion. The SSIP Phase 1 program shows a positive cost variance of $9 million this quarter. The SFPUC also received two citywide partnership awards: a bronze for the Wawona Area Stormwater Improvement Project and a silver for the Brick Sewer Improvement Project.
- Water Bonds Update (Item 5B): Nikolai Sklarov reported on the results of a bond sale approved May 27, 2025. The sale of $988 million in bonds (including $304 million for local/regional projects, $13 million for Hetch Hetchy, and $555 million in refunding bonds) achieved true interest cost (TIC) of 3.54% for the refunding portion. The refunding of Build America Bonds (Series E and F) produced cash flow savings of $39.4 million and released a debt service reserve fund, improving ratepayer impact. Combined with an earlier sale, total cash flow savings reach $95.6 million. A third series (Series G) was not refunded; action will be taken if Treasury yields drop by 75 basis points.
- BAWSCA Report (Item 6): Tom Smegiel, CEO of BAWSCA, presented annual survey data showing that member agency water use decreased 29% since FY1986-87 while population increased 34%. Residential per capita water use is now 57.2 gallons per day, a 50% reduction since 1983. The 2021-2023 drought report highlighted "demand hardening" and the need for improved regional drought planning.
- Commercial Clothes Washer Rebate Program Updates (Item 8): Julie Ortiz, water conservation manager, sought approval to reduce the rebate from $5,000 (temporarily increased in 2023 with a $2.3 million Board of Supervisors allocation) to $1,000 per machine, and to remove the multifamily property size restriction (previously limited to properties with over 10 units). Since 2023, over 150 rebates were issued, mostly to laundromats.
- Moccasin Compound Water System Filtration (Item 9): Kim McFarland requested approval for a $1.5 million cost contingency increase and 266-day duration extension for Contract HH-1013, due to deeper-than-expected competent bedrock requiring a foundation redesign from shallow footings to drilled piers. The revised cost limit is $6.1 million; revised completion date is June 30, 2026.
- CleanPowerSF - California Community Power Authority (Item 11): Cheryl Taylor requested approval to increase CleanPowerSF's payment to CC Power from $4,772,710 to $8,286,095 for the remaining 23 years of the agreement, to fund a full-time general manager and additional staff for project procurement. CC Power has nine members serving 3 million customers; CleanPowerSF benefits from joint procurement of renewable energy and market intelligence services.
- Communications (Item 12): Commissioners noted the Triennial Public Health Goal Report (2025) will have a hearing in September. No action taken.
Key Outcomes
- Item 7 (Consent Calendar): Approved unanimously.
- Item 8 (Commercial Clothes Washer Rebate): Approved unanimously.
- Item 9 (Moccasin Filtration Contract Modification): Approved unanimously.
- Item 10 (JDB and Sons Sewer Replacement Contract Acceptance): Approved unanimously, with a $10,750 decrease in contract amount via Modification No. 4.
- Item 11 (CleanPowerSF CC Power Payment Increase): Approved unanimously.
- Item 15 (Closed Session): Commissioners voted to assert attorney-client privilege. In closed session, the commission recommended approving three settlements. After reconvening, the commission voted to not disclose the attorney-client discussion.
Staff Recognition
- General Manager Dennis Herrera acknowledged Ivy Fine, Director of the Contract Administration Bureau, who will retire on June 30, 2025, after 20 years of service. Commissioners praised her leadership and the quality of her team's work.
Next Steps
- Staff will schedule a future meeting to discuss communications items in detail (likely September/October).
- Staff will continue to monitor market conditions for potential refunding of the Build America Bonds Series G.
- A more thorough geotechnical investigation will be recommended for future projects in the Moccasin area.
Meeting Transcript
Thank you. Roll call, please. President Stacy. Here. Vice President Arce, excused. Commissioner Jamdar, excused. Commissioner Leveroni. Here. Commissioner Thurlow. Here. You have a quorum. Thank you. 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 Mawekma Alonee tribe and other familial 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 Mawekma Alone tribe's aboriginal lands since before and after the San Francisco Public Utilities Commission's founding in 1932. It is vitally important that we not only recognize the history of the tribal lands on which we ride reside, but also we acknowledge and honor the fact that the Mawekma Aloney 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. Thank you. Item three, approval of the minutes of June 10th, 2025, as corrected for the attendance list. Thank you. Commissioners, any comments or questions on the minutes. Public comment. Remote callers. Please raise your hand if you wish to provide comment on item three. Are there any members of the public present who wish to comment on this item? Seeing none, moderator, are there any callers who have their hand raised? Ms. Lanier, there are no callers that wish to be recognized. Thank you. Thank you. Commissioners, could I have a motion and a second to approve the corrected minutes of June 10th? So moved. Second. Thank you. President Stacy. Aye. Commissioner Leverone? Aye. Commissioner Thurlow. Aye. The item passes. Item four, general public comment. Members of the public may address the Commission on matters that are within the Commission's jurisdiction and are not on today's agenda. The Commission values civic engagement and encourages respectful communication at the public meeting. We ask that all public comment be made in a civil and courteous manner, and that you refrain from the use of profanity. Thank you. Remote callers, please raise your hand if you wish to provide comment on item four. Are there any members of the public present who wish to comment on this item? Good afternoon, Commissioners. My name is Paul Wermer, and I'm generally running around as a climate nag at commission hearings. In this case, it's more than just climate, it's housing. And I have this vague recollection that there was some talk about an MOU with LAFCO to study the issue of a green bank, a public bank that would serve San Francisco.
openpublica.com