San Francisco Public Utilities Commission Meeting (January 2026)

The San Francisco Public Utilities Commission (SFPUC) met in public session with President Arce, Vice President Leveroni, and Commissioners Jamdar, Stacey, and Thurlow present (quorum). The meeting included approval of prior minutes, extensive general public comment (notably on artificial turf impacts, debt levels, and wildfire preparedness), an annual update from the Citizens Advisory Committee (CAC), multiple financial authorizations to renew/expand interim borrowing facilities, an easement approval for a PG&E natural gas meter station supporting the Southeast Plant biosolids project, and approvals of construction contract closeout and schedule extensions for emergency firefighting water infrastructure and a Peninsula watershed trail project. The meeting adjourned at 3:15 p.m.

Consent Calendar

• Approved by unanimous roll call (5–0).
• Included an item discussed on the record: Item 7E (stormwater management system contract)
  • Commissioner question: Commissioner Stacey asked whether the work could be brought in-house over time.
  • Staff response (Rajesh Prasad, Project Manager): For the next 5 years, the work was described as ad hoc/intermittent and difficult to staff internally given other workload; staff stated they would reassess after five years.

Public Comments & Testimony

• Susan Mullaney (in-person): Expressed opposition to SFPUC promoting artificial turf (referencing a July calendar page). Stated California does not recognize artificial turf as drought-tolerant landscaping; asserted artificial turf requires about 1,000 gallons of water per square meter to produce, cannot be recycled, and ends up in landfills or pyrolysis. Raised concerns about toxic runoff and plasticizer leaching (including bis(2-ethylhexyl) phthalates) and impacts to wildlife.
• Bob Hall (in-person): Expressed opposition to framing artificial turf as water-saving. Cited life-cycle claims including nearly 1,000 gallons to manufacture one square meter, and estimated ~7.5 million gallons embodied water for a soccer field before installation. Asserted stormwater contacting turf becomes contaminated (microplastics, PFAS, plasticizers, dyes, flame retardants) and cited an estimate that a single turf field could leach PFAS to contaminate ~800,000 gallons annually. Referenced SFPUC statements that there is no technology capable of removing PFAS at needed scale, and argued SFPUC should focus on stopping pollution at the source.
• Francisco Da Costa (in-person): Urged respect for Indigenous peoples and land acknowledgement; expressed concern that commissioners do not listen sufficiently to public expertise; expressed opposition to artificial turf and called for cleaning reservoirs.
• Martin Gothberg (remote): Raised concerns that SFPUC has an excessive amount of debt, comparing it to “maxing out credit cards” (while noting staff disputed the analogy). Claimed that more than 50% of SFPUC expenses are going toward debt service in a declining sales environment; contrasted with cited figures for other agencies (Los Angeles 27%, Metropolitan Water District 27%, San Diego County Water Authority 24%). Asked for transparency on costs driven by the “design drought.”
• Denise Louis (remote): Advocated prioritizing/expanding the Auxiliary Water Supply System (AWSS) in areas near dense eucalyptus fuels (Mount Davidson and Glen Canyon). Noted the National Weather Service issued red flag wildfire warnings for San Francisco in October and November 2024. Suggested that running out of water is unlikely (“only one in 8,000 years,” as stated) and said her household averages 13 gallons per day per person.
• Peter Drekmeyer, Yosemite Rivers Alliance (remote):
  • Requested improvements to SFPUC’s call-in/streaming system, citing choppy audio and reporting a 48-second lag between video and telephone audio.
  • Later (on Item 5), expressed support for stronger CAC utilization and called for renewed workshops. Referenced past demand projections and outcomes: said 2018 demand projections were 285 MGD, capped at 265, while actual was 196 (stated as 31% lower). Urged revisiting the “design drought” framework first implemented in 1994.

Discussion Items

Approval of Minutes (Item 3)

• Approved the minutes of December 9, 2025 by unanimous roll call (5–0).

Annual Citizens Advisory Committee (CAC) Update (Item 5)

• Presenter: Douglas Jacuzzi, CAC Chair.
• CAC organizational note: Chair highlighted that in October 2025, CAC submitted a resolution asking not to be sunsetted, and asking that term limits and membership size not be reduced.
• CAC FY 2025–2026 priorities (highlights as presented):
  • Full Committee: PG&E reliability/power outages (with special attention to Treasure Island), contracting and capital projects, environmental justice, stormwater and water supply (and the “nexus” between them), SFPUC posture on artificial turf, communications/customer outreach.
  • Water Subcommittee: alternative water supplies (including groundwater and sustainable yield), environmental stewardship and Tuolumne River flow regime, urban watershed management plan, affordability policies.
  • Power Subcommittee: impacts of AI data centers on power (as a topic of inquiry), power transparency/accountability, climate/weatherization impacts, public power.
  • Wastewater Subcommittee: tours of wastewater facilities, biosolids/headworks learning, Treasure Island plant status, green infrastructure grants (untangling funding to increase distribution), impacts from litigation, capital plan update/renewal.
• Commission discussion:
  • Commissioner Stacey asked how CAC approaches topics; the Chair described staff presentations plus CAC deliberations, with an intent to increase the number of CAC resolutions forwarded to the Commission.
  • Discussion referenced an upcoming CAC meeting and a planned SFPUC budget overview presentation to CAC (referenced as “next Tuesday night,” date not stated in the transcript).
• Public comment on Item 5: Peter Drekmeyer (Yosemite Rivers Alliance) supported expanded CAC use and called for workshops.

Easement to PG&E for Natural Gas Meter Station (Item 8)

• Action: Approved terms and authorized the City’s Director of Real Estate to execute an easement deed conveying an approximately 2,944 sq. ft. easement to PG&E for a natural gas meter station at 1–800 Gerald Avenue (subject to Board of Supervisors and Mayor approval).
• Project context (staff report by Dina Brazil, Right-of-Way Manager):
  • Supports SFPUC’s Biosolids Digesters Facilities Project at the Southeast Plant, requiring increased natural gas supply and a new meter station.
  • Meter station needs above-ground piping with perimeter fence; must have direct street access due to the Southeast Plant being a secure facility.
  • Environmental review referenced: Biosolids Project EIR certified March 2018; Planning Department issued a minor project modification on November 11, 2025 for meter station installation; SFPUC Environmental Management Group found the easement-related activities within the scope of the EIR and modification.
• Vote: Unanimous (5–0).

Interim Financing / Bank Credit Facilities (Items 9 & 10)

• Presenter: Nikolai Sklarov, Capital Finance Director.
• What was approved (two separate votes):
  • Item 9 (Power): Approved amendments/agreements with Bank of America (BANA) for Series A-1 and Series A2, each in an aggregate principal amount not to exceed $125 million, plus related fee agreements, letters of credit, and bank notes; authorized General Manager execution.
  • Item 10 (Water/Wastewater interim program as described in the presentation): Approved reimbursement agreements with BANA (Series A2 up to $150 million and Series A3 up to $100 million) and Truist Bank (Series A5 up to $125 million) plus related documents (letters of credit, bank notes, issuing/paying agent agreements, and offering memorandum); authorized General Manager execution.
• Key financial explanations (as stated):
  • Interim funding tools are used to reduce borrowing costs by delaying long-term bond issuance and issuing smaller, shorter-term commercial paper draws (typically $30–$50 million at a time).
  • Reported recent short-term pricing: SFPUC locked six-month commercial paper for the water enterprise at an all-in rate of 2.72%.
  • Facility fees cited as approximately 0.21% to 0.42% (21–42 basis points), compared to an example long-term bond environment stated at about 4.25% for a 30-year bond for a highly rated entity.
  • Stated that these actions completed use of the entire $950 million expansion authorized by the Board of Supervisors the prior year; total interim program across the three enterprises stated as $2.45 billion.
  • Diversification: noted adding Truist Bank as new to SFPUC’s interim program.
• Commission questions:
  • Vice President Leveroni asked what was renewal vs. new money; staff said the power facilities were renewals, and for wastewater there was one renewal and two new facilities (including Truist as new).
  • Commissioner Stacey asked about revised resolutions; staff described the revisions as non-substantive, clarifying authorization/designee language.
  • Commissioner Jamdar asked about why short-term costs appeared lower than long-term; staff explained the short tenor (1–270 days, typically 30–60 days roll) and current liquidity environment.
• Votes: Item 9 and Item 10 each approved unanimously (5–0).

AWSS Clarendon Supply 2019 Contract Closeout (Item 11)

• Action: Accepted work performed by Mitchell Engineering under Contract WD-2861 (Auxiliary Water Supply System Clarendon Supply 2019) and approved Modification No. 7 (Final) and final payment.
• Key figures/time:
  • Modification increased contract amount by $44,352 (stated as within approved contingency).
  • Increased contract duration by 1,027 calendar days, including 896 days previously approved and an additional 131 days requested.
  • Final contract amount stated as $2,784,504; total duration stated as 1,620 calendar days.
• Purpose (as described): Improves post-seismic fire suppression capabilities, particularly for western San Francisco.
• Vote: Unanimous (5–0).

Southern Skyline Boulevard Ridge Trail Extension Time Contingency (Item 12)

• Action: Approved an increase of 188 calendar days to duration contingency for Contract WD-2840 with Gordon N. Ball, Inc.
• Project description (Mary Tinkin, Project Manager): Construction of a six-mile trail plus an ADA loop on Peninsula watershed land.
• Contract info: Originally awarded September 2023 for $20,523,445; Notice to Proceed issued January 2024. Project had a prior time extension request of 150 calendar days due to environmental permitting and additive alternates.
• Reasons stated for the additional 188 days: adverse weather, signage package issues, and late hydroseeding with a 180-day maintenance period, extending the end date.
• Vote: Unanimous (5–0).

Closed Session (Items 15–18)

• Item 16: Commission voted to assert attorney-client privilege for the closed session matter(s) (unanimous 5–0).
• Item 18: After returning, Commission voted not to disclose closed session discussion under Administrative Code 67.12(a) (unanimous 5–0).

Key Outcomes

• Approved Dec. 9, 2025 minutes (5–0).
• Approved Consent Calendar (5–0).
• Approved PG&E easement for a 2,944 sq. ft. natural gas meter station at 1–800 Gerald Ave tied to the Southeast Plant biosolids project (subject to BOS/Mayor approval) (5–0).
• Approved interim financing/bank facility actions:
  • Power facilities with Bank of America: two facilities up to $125M each (5–0).
  • Additional facilities including BANA ($150M, $100M) and Truist ($125M) (5–0).
  • Staff stated actions complete use of the $950M program expansion and place total interim program at $2.45B.
• Accepted AWSS Clarendon Supply 2019 work and approved final modification: +$44,352 and +131 additional days (within a total +1,027-day duration increase reported) (5–0).
• Approved +188 days duration contingency for the Southern Skyline Boulevard Ridge Trail Extension project (5–0).
• Entered closed session under attorney-client privilege and voted not to disclose closed session discussion (5–0 each).
• Adjourned at 3:15 p.m.