San Francisco Public Utilities Commission Meeting - October 28, 2025

The San Francisco Public Utilities Commission (SFPUC) met on October 28, 2025, beginning at 9:30 AM and adjourning at 3:44 PM. The meeting included a land acknowledgment, approval of minutes, a detailed water supply planning presentation, reports from the Bay Area Water Supply and Conservation Agency (Bosca), and several action items on property acquisition, financing, and contract amendments. Public comments focused on allegations of retaliation and discrimination in employee terminations, as well as concerns about water supply planning and rate affordability.

Consent Calendar

• Approval of Minutes (Item 3): The commission approved the minutes from September 23 and October 14, 2025, with a unanimous vote (5-0). No corrections were raised.
• Consent Calendar (Item 7): The consent calendar was approved unanimously (5-0).

Public Comments & Testimony

• General Public Comment (Item 4): Several members of the public spoke about the termination of employees at the SFPUC, alleging retaliation, harassment, false accusations, and systemic racism. Speakers included Francisco de Costa (who referenced a pastor and called for accountability), a retired Caltrans maintenance supervisor (who described the termination process as disrespectful), Joseph King (a terminated employee who said he was the first Samoan politician to hold a supervisor role and suffered emotional distress), Adolfo Padilla Rios (who described discrimination and humiliation), Conrad Valencia King (who said he was targeted after his father's false accusation), and Shirley Thomas Box (who linked the Kings family to Pastor King and demanded justice). Steve Zeltzer from the United Front Committee for a Labor Party accused the commission and management of covering up corruption and framing workers. All speakers expressed strong opposition to the treatment of the terminated workers and called for accountability and reinstatement.
• Public Comment on Water Supply Planning (Item 5A): Multiple callers commented on the water supply planning presentation. A Redwood City resident opposed the 8.5-year design drought as an unrealistic basis for rate increases, stating it had a one-in-8,000-year probability. Dave Warner argued that the design drought and 50% rationing assumptions impact wholesale customers’ planning. Mary Butterwick urged the commission to adopt state flow standards and criticized inflated demand projections. Martin Gothford said the drought planning mindset hoards water and harms the Tuolumne River. Mark Shahannikon argued that demand projections are consistently overestimated and that droughts reduce demand permanently. Peter Dreckmeyer (Yosemite Rivers Alliance) requested a workshop on the design drought and noted that the SFPUC ended 2016 with five years of water storage. John Rose (Pepe) noted technical difficulties with the meeting access and urged a workshop on salmon survival. Overall, commenters expressed concern that overly conservative planning drives up rates and ignores environmental needs.
• No public comment was offered on items 6, 7, 8, 9, 10, or 11.

Discussion Items

• Report of the General Manager – Water Supply Planning (Item 5A): Assistant General Manager Steve Ritchie presented an overview of SFPUC’s water supply planning, emphasizing perpetual service to 2.7 million people, the 8.5-year design drought (based on the 1987-1992 drought), and the “water first” policy. He outlined challenges including the Bay-Delta Plan, climate change, population growth, and affordability. Commissioners asked about snowpack shifts (Thurlow), the design drought’s robustness (Leveroni), demand projections (Stacey, Jamdar), and rate implications (Arce). Ritchie noted that the design drought is a planning tool and that new water supplies will be more expensive. He also mentioned that the upcoming budget process will involve trade-offs between risk and affordability. Commissioner Arce highlighted the need for ratepayer advocacy and upcoming rate discussions.
• Bay Area Water Supply and Conservation Agency (Bosca) Report (Item 6): Tom Smigel reported that Bosca has completed two years of financial reviews as required by the water supply agreement, bringing them back on schedule. He also described two new conservation activities: a non-functional turf ban education campaign (partnering with CalWEP) and workshops on new California conservation regulations (partnering with Valley Water). Vice President Leveroni asked about artificial turf studies; Smigel offered to send a policy paper. Commissioner Arce thanked Bosca for its perspective on capital investments and rate affordability.
• Acquisition of Property at 10115 Moccasin Switchback Road (Item 8): Assistant Real Estate Director Josh Keene presented a proposal to acquire approximately 41.14 acres for $525,000, adjacent to existing SFPUC property in Tuolumne County. The property offers maintenance benefits, emergency egress, and extinguishes existing easements. A Phase I environmental assessment was clean, and the acquisition is CEQA-exempt. Commissioners Stacey and Arce praised the deal’s value and strategic importance. The item was approved unanimously.
• Drinking Water State Revolving Fund Loan for Sunol Valley Water Treatment Plant Ozonation Project (Item 9): Loans and Grants Director Alexandra Gannell presented a request to approve an installment sale agreement for a $50 million loan (up to $54 million including interest) from the Drinking Water State Revolving Fund, at an anticipated 1.9% interest over 30 years. The loan is partial financing for a $326 million project. Commissioners asked about the $4 million difference (interest cost), federal compliance requirements, construction delays, and repayment terms. The loan was approved unanimously.
• Interim Funding Program – Credit Facility with BMO Bank (Item 10): Capital Finance Director provided details on a $150 million revolving credit and term loan agreement with BMO Bank at a fee of 0.31%. This facility supports the wastewater enterprise’s interim funding program, allowing deferral of bond issuance and saving ratepayer costs. The three-year facility can be extended to nine years. Vice President Leveroni praised the low rate and commented on the benefits of commercial paper. The item was approved unanimously after a clarifying amendment to the resolution language.
• Amendment to Contract PRO.0138B for Engineering Services for Dams and Reservoirs (Item 11): Civil Design Division Manager Tedman Lee requested approval to add $7 million to the contract with GEI Consultants (for Moccasin Dam work) and to reallocate scope from another contract (PRO.0138A) due to a conflict of interest. The amendment covers design of Moccasin Lower Dam (new side channel spillway) and planning/design for O’Shaughnessy Dam (drum gates, slide gates, valves). Commissioners Leveroni and Stacey asked about contract capacity and funding transfers. The item was approved unanimously.

Key Outcomes

• Votes: All action items were approved unanimously (5-0). These included:
  • Approval of minutes (Item 3) and consent calendar (Item 7).
  • Resolution to authorize acquisition of the Moccasin Switchback Road property (Item 8).
  • Resolution to approve the form of installment sale agreement for the SRF loan for the Sunol Ozonation project (Item 9).
  • Resolution to approve forms for the BMO credit facility and related documents (Item 10).
  • Resolution to approve amendment to contract PRO.0138B (Item 11).
• Directives/Next Steps:
  • The commission heard public testimony on employee terminations; no formal action was taken but the issue was noted.
  • The water supply planning presentation was informational; further discussions on rates and capital budget are expected.
  • Bosca will continue conservation education and will send a policy paper on artificial turf to the commission.
  • Staff will proceed with property acquisition and execute loan and credit documents.
  • Commissioner Arce initiated a potential partnership with the Mayor’s Department on the Status of Women for a roundtable on water access and women’s views.