San Francisco Public Utilities Commission Meeting - June 9, 2026

The San Francisco Public Utilities Commission (SFPUC) held a regular meeting on June 9, 2026, starting at 9:30 AM and adjourning at 3:28 PM. The meeting included approval of minutes, a report from the General Manager on the capital financing plan and wastewater capital improvement program, recognition of four retiring employees, a consent calendar, and a regular calendar item authorizing bond issuances for the SFPUC headquarters and refunding of Build America Bonds (BABs). Public comments addressed employee safety and community engagement.

Consent Calendar

• Item 6 – Consent Calendar: The commission unanimously approved the consent calendar (5-0 vote: President Arce, Vice President Leverone, Commissioners Jamdar, Stacy, Thurlow all aye). No discussion or public comment was offered.

Public Comments & Testimony

• General Public Comment (Item 4): Francisco de Costa spoke about confined space training and safety, stating that “confined space needs training” and that most commissioners have not read the relevant policy. He claimed he has empirical data and that OSHA agrees with him, urging that employees must be treated as human beings and with respect.
• Wastewater Capital Improvement Program Quarterly Report (Item 5B): Mr. de Costa again addressed the commission, urging that the community of Bayview be involved in large projects, noting that residents were promised reports every six months, and warning about impacts from tariffs and El Niño flooding.
• Retirement Recognition (Item 5C): Cheryl Taylor and Chiyao (deputy manager) offered supportive remarks for retiring Assistant General Manager Barbara Hale, praising her mentorship, leadership, and role in creating Clean Power SF.

Discussion Items

• Item 5A – Capital Financing Plan Report: Nikolai Sklarov presented the annual capital financing plan, noting approximately $11 billion in outstanding debt and $2.45 billion in interim funding across three enterprises. He highlighted that a planned $931 million wastewater bond was deferred to the next fiscal year to reduce rate impacts. The plan includes refinancing opportunities and a focus on risk mitigation, including the potential for sequestration loss of a $13 million annual subsidy from the federal government on BABs. A wastewater bond issuance is scheduled for July 29, 2026, alongside refinancing proposals. Staff are also updating the SFPUC's debt policy and evaluating the green bond program after a verifier withdrew from the market.
• Item 5B – Wastewater Enterprise Capital Improvement Program Quarterly Report: Bessie Tam presented the quarterly report for the $9 billion wastewater capital program, with $4.4 billion remaining to be spent. Seventeen milestones were achieved in the prior quarter, including progress on the Biosolids Digester Facilities Project, the new headworks project (forecasting a slight cost savings of approximately $10 million), and the nutrient reduction project at the Southeast Treatment Plant. The project is designed to be adaptable for future regulatory changes. Commissioner Stacy inquired about tracking budget variances from project inception; staff acknowledged the challenge due to the rolling 10-year CIP.
• Item 5C – Employee Retirement Recognition: The commission honored four retiring employees with resolutions detailing their service: Terrence O'Sullivan (41 years, 38 at SFPUC, clean energy program), Glorina “Glo” Chrysostoma (37 years, Customer Service Bureau, chief water inspector), Howard Fung (26 years at SFPUC, infrastructure project management), and Barbara Hale (21 years as Assistant General Manager for Power Enterprise, launched Clean Power SF). Each retiree gave brief remarks. Commissioner Stacy, Jamdar, Vice President Leverone, and President Arce expressed gratitude for their service.
• Item 7 – Authorizing Bonds for 525 Golden Gate and Refunding BABs: Nikolai Sklarov presented a proposal to authorize up to $731 million in bonds to fund remaining development costs for the SFPUC headquarters at 525 Golden Gate Avenue, to prepay outstanding 2009 certificates of participation (issued as Build America Bonds), and to refund other SFPUC BABs with revenue bonds or commercial paper. The goal is to mitigate risk from potential federal sequestration of BAB subsidies (currently $13 million per year, with a 3% net present value savings test). The transaction requires Board of Supervisors approval and would be executed when market conditions are favorable. The commission discussed the risk of subsidy loss and the flexibility provided by direct purchase or commercial paper options. The item was approved unanimously (5-0).

Key Outcomes

• Minutes Approval (Item 3): The minutes of May 26, 2026, were approved unanimously (5-0).
• Consent Calendar (Item 6): Approved unanimously (5-0).
• Regular Calendar Item 7: Authorized the issuance of bonds and other debt instruments for 525 Golden Gate Avenue and refunding of BABs, with the general manager directed to forward to the Board of Supervisors. Vote: 5-0.
• Closed Session Items 11-13: The commission voted unanimously to assert attorney-client privilege (Item 11) and later recommended that the Board approve items discussed in closed session (Item 12). A motion to disclose closed session discussion was not carried (Item 13).
• Adjournment: The meeting adjourned at 3:28 PM.