San Francisco Public Utilities Commission Meeting - July 28, 2026

The San Francisco Public Utilities Commission (SFPUC) met on July 28, 2026, at 9:45 AM. The meeting included approval of the consent calendar, a report on the Hetch Hetchy Capital Improvement Program, updates on the General Manager search, adoption of the amended Alameda Watershed Management Plan, several financing authorizations, and contract awards. All votes were unanimous (4-0) with President Arce excused.

Consent Calendar

• Approval of Minutes of July 14, 2026 – Approved unanimously.
• Consent Calendar Items (6A, 6B, 6C) – Approved. Commissioner Stacy inquired about the relationship between Item 6B (as-needed spot sewer repairs) and Item 6C (large-diameter sewer inspections). Staff clarified that 6C inspections are for known locations, while 6B is a flexible contract for future identified work.
• General Consent Items – All routine approvals and actions passed without objection.

Public Comments & Testimony

• Francisco de Casta (on Item 4 – General Public Comment) – Expressed concerns about confined space safety at SFPUC facilities. He criticized remote management practices, urged commissioners to personally inspect reservoir sites, and stated he had opened an OSHA case and was supporting traumatized workers.
• Peter Directmeyer (on Item 14 – GM Search) – Representing Yosemite Rivers Lowland. Urged the commission to conduct a fully competitive national search, noting that the previous search in 2021 was effectively overridden by the mayor and resulted in only one applicant. Recommended verifying mayoral support for an open process.

Discussion Items

• Item 5a: Hetch Hetchy Capital Improvement Program Quarterly Report (Q4 FY 2025-26) – Katie Miller, Director of Water Capital Programs, presented. The program includes 22 major projects funded by water, power, or joint revenue/bonds. As of June 30, 2026, $568 million had been spent against an ~$2 billion budget, with $62 million in Q3/Q4 and $109 million in total for FY 2025-26. No new cost variances were reported. Key milestones included completion of Priest tunnel repairs, erection of Priest flow control facility walls, and progress on Moccasin Water Filtration Plant. Commissioner Stacy asked about Moccasin penstock alternatives; staff explained that geotechnical investigations are underway to compare tunnel vs. above-ground/buried pipeline options, with a decision expected by January 2027.
• Item 14: Update on General Manager Selection Process – Sean Sherburn from the Department of Human Resources (DHR) reported that bids from executive search firms were received by July 24 and are under evaluation. Commissioner Stacy was designated as the commission’s point person. DHR aims to have a firm selected by the next meeting (September 8). Sherburn emphasized evaluating firms based on past performance (diverse candidate pools, relevant municipal water/wastewater experience). Commissioners Jamdar and Stacy stressed the importance of diversity. Discussion included timelines for job posting, stakeholder outreach, and community engagement (e.g., surveys, public forums). The commission will consider a draft job description and roadmap in September.
• Item 7: Adopt Amended Alameda Watershed Management Plan – Tim Ramirez, Division Manager, presented the plan update (first since 2000). Key changes: allowing public fishing access at Calaveras Reservoir (shoreline only, no boats or docks) to help control non-native bass while protecting native trout by catch-and-release; updated grazing and land management rules; and inclusion of acquired properties. The program is expected to open in July 2027. Commissioner Stacy asked about monitoring (staff will check permits daily, with support from Fish and Game wardens and sheriff), overnight camping (only by East Bay Regional Park District under its own lease), and water rates for lessees (all now pay commission-approved rates). The plan was adopted unanimously.
• Item 8: Wastewater Revenue Bonds (Series 2026 A and B) – Staff presented a two-part financing: up to $506 million in taxable Series A bonds for the Biosolids Digester Facilities Project and retire commercial paper, and up to $556 million in Series B bonds to refund certain outstanding bonds to achieve savings. The refunding transactions (2010 Build America bonds and 2016 bonds) are expected to produce ~$32.6 million gross savings ($1.7 million/year for 10 years). Staff also announced that S&P and Moody’s recently affirmed the SFPUC’s ratings and restored the stable outlook. Approved unanimously.
• Item 9: Credit Facility Agreements for Wastewater Enterprise – Edward Quang requested approval to replace an existing Bank of America liquidity facility (Series A6) with a lower-cost Royal Bank of Canada facility (reducing fee from 42 to 33 basis points) and to establish a new $125 million series (A9) with TD Bank (27 bps fee) using remaining authorized interim funding capacity. Approved unanimously.
• Item 10: Water Revenue Bonds (Direct Purchase) – Staff requested authorization for up to $400 million in direct-purchase water revenue bonds from Wells Fargo Bank to cover short-term capital needs and support reserve releases. The bonds are structured as fixed-rate (expected ~3.58%) and will be repaid by a larger financing in August 2027. Approved unanimously.
• Item 11: Standby Letters of Credit for Non-Capital Permits – Staff requested general manager authority to enter standby letters of credit required by California Department of Fish and Wildlife permits for the wastewater enterprise. These are not financing instruments and have never been drawn upon. Approved unanimously.
• Item 12: Contract Amendment for Moccasin Powerhouse Generator Rehabilitation – Javad Mersadi requested a $400,000 cost increase and 212-day extension to Contract DB-121R2 to install a vibration monitoring system. The original generator rewind work encountered shaft misalignment (now corrected); the monitoring system will proactively detect future alignment issues. Approved unanimously.
• Item 13: Award Power Capital Program Management Contract to Deloitte – Jimmy Leong presented: a $30 million, 10-year contract for program management services (strategic planning, delivery support, technical modeling) to support the Power Enterprise’s $2.2 billion capital improvement program. This is the first such contract for power. Staff noted procurement challenges (only Deloitte responded after readvertisement) and emphasized that the contract includes knowledge transfer to SFPUC staff. Approved unanimously.
• Item 16: Items Initiated by Commissioners – Commissioner Stacy requested a future hearing on the Alternative Water Supply Program report, noting the commission had not reviewed it in two years.

Key Outcomes

• Consent Calendar – Approved (4-0).
• Item 7: Alameda Watershed Management Plan – Adopted (4-0). Fishing access to open July 2027.
• Item 8: Wastewater Revenue Bonds – Authorized up to $506M (Series A) and $556M (Series B) (4-0). Ratings outlook restored to stable.
• Item 9: Credit Facilities – Approved replacement and new facility (4-0).
• Item 10: Water Revenue Bonds (Direct Purchase) – Authorized $400M (4-0).
• Item 11: Standby Letters of Credit – Authorized general manager to administer (4-0).
• Item 12: Contract Contingency Increase – Approved $400K and 212 days for vibration monitoring (4-0).
• Item 13: Power Program Management Contract – Awarded to Deloitte Transactions and Business Analytics LLP for $30M over 10 years (4-0).
• Closed Session – Commission voted unanimously to assert attorney-client privilege and later voted not to disclose discussions.