OUR MISSION: To provide our customers with high-quality, efficient and reliable water, power and sewer services in a manner that values environmental and community interests and sustains the resources entrusted to our care.
525 Golden Gate Avenue, 13th Floor
San Francisco, CA 94102
T 415.554.3155
F 415.554.3161
TTY 415.554.3488
May 2, 2022
TO: Commissioner Anson Moran, President
Commissioner Newsha Ajami, Vice President
Commissioner Sophie Maxwell
Commissioner Tim Paulson
THROUGH: Dennis J. Herrera, General Manager
FROM: Steven R. Ritchie, Assistant General Manager, Water
RE: 2009 Water Supply Agreement Update
This memo provides our quarterly update on the SFPUC’s activities required by the 2009 Water Supply Agreement (WSA).
Per the WSA, SFPUC provides the following to BAWSCA on an ongoing basis:
Weekly water delivery data for San Francisco, South/East Bay, and the Peninsula;
Monthly Hydrologic Conditions Report;
Monthly water sales data, including “Suburban Resale” and City Retail water use data;
Quarterly progress reports on meter maintenance and calibration; Water Quality “blend change” notices and other notifications as needed, in accordance with the Water Quality Notification and Communications Plan; Monthly BAWSCA Bond Surcharge Collection Report per Prepayment and Collection Agreement between BAWSCA and SFPUC;
Monthly updates on regional Alternative Water Supply planning projects that BAWSCA is directly participating in; and
Quarterly reports on the progress in planning for the Alternative Water Supply Program (not a WSA requirement but requested by BAWSCA).
Since the last update on February 1, 2022, the SFPUC has also completed the following actions:
1. Provided a final Water Supply Availability Estimate to the Wholesale Customers on April 15th, stating SFPUC is continuing with a voluntary 10% reduction systemwide in the coming year in recognition of continued dry conditions and reminding wholesale customers to focus on reducing
summertime use in line with FY 2019-20 usage (WSA Attachment H Section
6.1.1).
2. Provided updates to the Wholesale Customers regarding Governor Newsom’s Executive Orders related to drought conditions, including updates on the Governor’s March 28th call for additional actions to achieve Water Shortage Contingency Plan Stage 2 levels.
3. Issued monthly water budget reports in February, March, and April to the wholesale customers under the Water Shortage Allocation Plan (WSA Attachment H).
4. Reviewed with BAWSCA the Water System Improvement Program Notice of Change in advance of the April 26, 2022 Commission hearing on the Notice.
5. Held several discussions with BAWSCA regarding progress and coordination for the continued planning of the Los Vaqueros Reservoir Expansion project.
6. Met with BAWSCA, San Jose and Santa Clara to collaborate on planning efforts regarding future needs in consideration for their request for permanent status.
7. Continued coordination on member agency adoption of amendments to the Water Supply Agreement regarding Minimum Annual Purchases (WSA Section
3.07.C) adopted by the SFPUC on January 26, 2021.
8. Provided continued review of BAWSCA questions related to FY 2019-20 Wholesale Revenue Requirement Compliance Audit Wholesale Customer Review (WSA Section 7.06). Additional meetings are scheduled to complete review and resolution of FY 2019-20 questions.
9. Conducted the SFPUC’s Annual Wholesale Customer Meeting on February 17, 2022 (WSA Section 8.03).
10. Launched an updated SFPUC Wholesale Customer website in February 2022.
11. On February 10, 2021, transmitted the final FY 2020-21 Wholesale Revenue Requirement (WSA Section 7.03) to BAWSCA.
12. Began the audit of the FY 2020-21 Wholesale Revenue Requirement.
13. Transmitted the annual Wholesale Rate Notice for FY 2022-23 on April 8, 2022, which increased rates by 15.1% to $4.75/ccf. This is the first year of wholesale rate increases since they were set at $4.10/ccf in FY 2016-17, as since that time the SFPUC has been paying down the “balancing account” owed to the Wholesale Customers. Confirmed application of the balancing account (WSA Section 6.05B) to cover anticipated FY 2021-22 and FY 2022-23 drought related revenue shortfalls.
14. Met to discuss Indenture and Current Year Debt Coverage, SFPUC Debt Coverage Policy, and Wholesale Coverage Reserve to align wholesale debt coverage with SFPUC Policy. Aligned FY 2022-23 Wholesale water rate range to address Wholesale Coverage Reserve alignment with SFPUC Debt Coverage Policy while maintaining projected 15.1% rate increase.
15. Began preparations for FY 2021-22 Annual CIP Report on Capital Improvement Projects Under $5 Million in March 2022 (WSA Section 6.09.I). Final report is due to BAWSCA by September 30th each year.
16. Began preparations of the 2022 State of the Regional Water System Report (WSA Section 6.09.I). Final report is due to BAWSCA by September 30th each year
In the near-term, the SFPUC is working to complete the following actions:
1. Adopt the FY 2022-23 Wholesale Water Rates at the May 10, 2022 Commission meeting.
2. Continue audit of FY 2020-21 Wholesale Revenue Requirement.
3. Provide a tour of the water system to members of the BAWSCA Board on May 31 – June 1, 2022.
4. Meet with BAWSCA in May 2022 to review updates to the Regional Groundwater Storage and Recovery Project.
5. Meet with BAWSCA in June 2022 to review Capital Infrastructure Program and Deliverability review and BAWSCA CIP comments.
6. Complete review of BAWSCA questions related to FY 2019-20 Wholesale Revenue Requirement Compliance Audit Wholesale Customer Review (WSA Section 7.06).
7. Continue preparation of FY 2020-21 Annual CIP Report on Capital Improvement Projects Under $5 Million (WSA Section 6.09.I). Final report is due to BAWSCA by September 30th each year.
8. Help conduct the quarterly meeting of the Water Quality Committee (WSA Section 3.08.C).
9. Continue financial reconciliation work required by 2018 WSA Amendments to asset classification for specific Hetch Hetchy projects.
Please contact me if you have any questions.
cc: Nicole Sandkulla, BAWSCA CEO/General Manager