SAN FRANCISCO PUBLIC UTILITIES
COMMISSION
City and County of San Francisco
London N. Breed
Mayor
REGULAR MEETING MINUTES
Tuesday, May 24, 2022
1:30 PM
(Approved June 14, 2022)
1 Dr. Carlton B. Goodlett Place
City Hall, Room 400
San Francisco, CA 94102
Commissioners
Anson Moran, President
Newsha Ajami, Vice President
Sophie Maxwell
Tim Paulson
Dennis J. Herrera
General Manager
Donna Hood
Secretary
MAY 24, 2022 SFPUC DRAFT MINUTES 2
1. Call to Order
President Moran called the meeting to order at 1:30 PM.
2. Roll Call
Present: Moran, Maxwell, and Paulson
Excused: Ajami
President Moran stated item 18 was pulled from the agenda.
3. Adopt renewed findings under State Urgency Legislation to allow hybrid in-person meetings during the COVID-19 Emergency and direct the Commission Secretary to agendize a similar resolution at a Commission Meeting within the next 30 days. (Resolution 22-0090)
No public comment.
On motion to approve item 3:
Ayes: Moran, Maxwell, and Paulson
4. Approval of the Minutes of May 10, 2022
No public comment.
On motion to approve the minutes of May 10, 2022:
Ayes: Moran, Maxwell, and Paulson
5. General Public Comment
• Eileen Boken discussed comments made the SFPUC’s Deputy Chief Financial Officer at the SFMTA’s Revenue Bond Oversight Committee meeting about the SFPUC’s debt portfolio. She discussed Governor Newsom’s meeting with water agencies and requested an update. • Jeremy Pollock, Executive Officer, Local Agency Formation Commission (LAFCo), discussed a letter sent to General Manager (GM) Herrera and the Commission from LAFCo Chair Chan requesting the SFPUC and LAFCo renew their Memorandum of Understanding.
6. Communications
a) Advance Calendar
b) Contract Advertisement Report
c) Correspondence Log
d) Annual Hetch Hetchy Power and CleanPowerSF Power Source Disclosure Report e) OneWaterSF 2020 Brochure
f) Water System Improvement Program (WSIP) Status of Construction Change Orders Commissioner Maxwell thanked staff for the OneWaterSF 2020 Brochure (6e) and asked if any new green jobs have been created. Steve Ritchie, Assistant General MAY 24, 2022 SFPUC DRAFT MINUTES 3
Manager (AGM) Water, stated that he will get back to the Commission as to the numbers of green jobs created, if any.
Commissioner Paulson thanked staff for the WSIP Status of Construction Change Orders report.
Public Comment
• Peter Drekmeier, Tuolumne River Trust, stated the Advance Calendar needs to indicate the date the request was made and estimated date of fulfillment. He stated it is missing a request for environmental metrics similar to the water supply update, and a schedule related to unfinished business from the workshops. He discussed demand projections in the Urban Water Management Plan. • Nate Rangel, President, California Outdoors, concurred with comments made by Mr. Drekmeier.
7. Bay Area Water Conservation Agency (BAWSCA) Update
Nicole Sandkulla, BAWSCA CEO, read a statement urging the SFPUC to tell residents, business and communities in Alameda, San Mateo, and Santa Clara Counties how it will protect their future water supply from the Tuolumne River and involve BAWSCA directly in this effort just as it has been in rebuilding the SFPUC’s 165-mile water delivery system.
Public Comment
• Dave Warner discussed BAWSCA’s recent Board meeting and those members of the public who expressed opposition to BAWSCA’s participation in the legal work opposing the Bay Delta Plan and Federal Energy Regulatory Commission licensing. • Peter Drekmeier, Tuolumne River Trust, expressed support for BAWSCA’s request for a plan to address water supply security and indicated willingness to participate in the process.
8. Report of the General Manager
a) Drought Conditions Update
AGM Ritchie reviewed (1) May 16, 2022 Reservoir Storage: Hetch Hetchy is at approximately 341,400-acre feet and storage is in good condition with expected fill around June 1; (2) Other California Reservoirs: Shasta and Oroville Reservoirs are at 40% and 55% capacity, respectively; (3) California Drought Monitor:
Depending on location, the states is in severe or extreme drought (4) Hetch Hetchy Precipitation: leveled off for the year; (5) Upcountry Snowpack: Almost gone with runoff ending; (6) Water Available to the City: Better than previous years; (7) Tuolumne River Water Available to the City; (8) Upcountry 6-Station Precipitation Index: Year-to-date (YTD) total 23.53 inches; (9) Bay Area 7-Station Precipitation Index: YTD total 23.31 inches; and (10) Total Deliveries: have dropped and nearing 2015 demands.
Public Comment
• Francisco DaCosta asked how water will be conserved in the future and if conversations are taking place with the Planning Department regarding MAY 24, 2022 SFPUC DRAFT MINUTES 4
development projects.
• Peter Drekmeier, Tuolumne River Trust, discussed his correspondence to the Commission which displayed a graph that combines information related to water supply storage. He asked that the graph be made part of the regular update. b) Quarterly Audit and Performance Review Report
Irella Blackwood, Audit Bureau Director, indicated there have been 33 audits and assessments year-to-date (40% complete, 26% in progress, and 34% upcoming).
She stated that the SFPUC Revenue Bond Program Audit: Phase I, was completed and issued. She indicated the audit objective was to determine whether project funds were allowable under bond resolutions, laws, and regulations; were properly supported; were assigned/allocated to correct project(s); and were subjected to appropriate control measures. She noted the following audit findings: (1) the Revenue Bond Oversight Committee does not have adequate visibility over bond proceedings; and (2) Quality assurance audit function was not operational June 2017 through November 2022. She indicated that management concurred with the audit recommendations.
Director Blackwood reviewed two Open City Services Audits and recommendations and provided the FY2021-22 fourth quarter outlook of audits that are completing and are upcoming.
Sophie Maxwell welcomed Ms. Blackwood to the SFPUC.
No public comment.
c) Quarterly Budget Status Report
Laura Busch, Budget Director, indicated there were positive operating results projected for Power and operating shortfalls projected for Water, Wastewater, and CleanPowerSF. (1) Water and Wastewater: lower revenues resulting from the impacts of water conservation efforts due to drought, offset by 5% drought surcharge effective April 2022; and delayed economic recovery from COVID-19 negatively impacting volumes vs. projection; (2) CleanPowerSF: projecting the need for a budget amendment in the fourth quarter to cover approximately $7M in additional power purchase costs, partly offset by other operating cost savings; (3) Power:
revenues projected to exceed budget due to higher energy prices and volumes; and (4) year-end financial results projected to meet-or-exceed policy targets.
Director Busch stated sales revenue shortfalls increased in the second quarter with water sales $8.3M lower vs. the first quarter. Wastewater sales were $5M lower vs. the first quarter. Incorporated into the first and second quarter variance report is a 5% retail drought surcharge that will commence on April 1, 2022.
Director Busch reviewed FY 2021-22 budget variances (sources and uses) for (1) Water: Net operating results ($26.6M). Total sources ($36.2M) offset by $9.6M in cost savings; (2) Wastewater: Net operating results ($27.3M). Total sources ($35.7M) offset by $8.6M in cost savings; (3) Power: Net operating result $18.9M.
MAY 24, 2022 SFPUC DRAFT MINUTES 5
Total sources $11.5M, and $7.4M in cost savings; and (4) CleanPowerSF: Net operating result $4.0M. Total sources down ($1.2M), and costs increased by ($2.8M).
Director Busch reviewed key financial ratios for Water, Wastewater, and Power stating all are on target for the year.
Public Comment
• Peter Drekmeier, Tuolumne River Trust, discussed the July 2021 Water Demand Management workshop and rate/demand formula that was presented. d) Water Enterprise Capital Improvement Program (WECIP) Quarterly Reports Katie Miller, Director Water Capital Programs, reviewed the WECIP program status noting expenditures of $946M, with 34% completion. Director Miller reviewed (1) WECIP cost summary; (2) Regional WECIP projects; (3) Harry Tracy Water Treatment Plant capital improvements, noting construction will replace the plastic underdrains for six filters with stainless steel underdrains starting in 2023. She stated the project is ahead of schedule; (4) As-Needed Pipeline repairs and Bay Division Pipeline 1-4 Lining repair. She stated the cost variance is due to estimated cost for additional valves; (5) Local Projects; and (6) Stern Grove Emergency Declaration update. She indicated the concert area will be ready for the summer concert series; restoration of the tennis courts is expected by the end of 2022; and full restoration of the hillside and project completion is planned by the summer of 2023.
No public comment.
e) Water System Improvement Program (WSIP) Quarterly Report Director Miller reviewed the Regional WSIP cost summary and cost and schedule forecast, stating $3,704 has been expended and is 98% complete. She presented the Regional WSIP Cost Summary.
Director Miller reviewed WSIP recent achievements (1) March 2022 Revised WSIP was approved by the Commission on April 26, 2022; and (2) Calaveras Dam Replacement Project (CDRP) ($823M) - contract closeout was approved by the Commission for the sub-project Fish Passage Facilities at the Alameda Creek Diversion Dam. The CDRP was completed March 31, 2022.
Director Miller provided highlights for the Alameda Creek Recapture Project, WSIP closeout – Sunol Valley; and the Watershed and Environmental Improvement Project.
In response to a request from Commissioner Maxwell for additional details regarding difficulty with procurement, Director Miller indicted that some difficulty is due to COVID-related issues, including with oversees manufacturing, lack of labor, and factory shut-downs which makes it difficult to procure items such as lithium-ion batteries, steel, and iron. She added other contributing factors include an uptick in MAY 24, 2022 SFPUC DRAFT MINUTES 6
infrastructure projects worldwide, supply availability, increase in prices, and inflation.
Ms. Miller noted that when change orders are received staff price check and review change orders to ensure the contractor’s prices are reasonable.
In response to a question from Commissioner Paulson, Director Miller discussed the meaning of a change order.
In response to a question from President Moran, Director Miller indicated that the Alameda Creek Recapture Project’s pipes are not prestressed concrete pipe, but are steel pipes with a metal wrap.
No public comment.
f) Report on Recent San Francisco Public Utilities Commission Activities, Events and Announcements
GM Herrera thanked finance staff for their work on the budget; acknowledged meetings with the State regarding water issues; and noted completion of six months as GM. He stated that work is happening to ensure an adequate environmentally sensitive water supply, including (1) reinstitute the Bay Area Water Stewards Program, with the first meeting scheduled for June 2; and (2) Design Drought workshop on August 23, 2022.
Public Comment
• Peter Drekmeier thanked GM Herrera for making himself available for meetings.
He asked that the Bay Area Water Stewards Program group be expanded. • Francisco DaCosta stated First People are being excluded and that they need to be able to speak.
9. New Commission Business
None.
10. CONSENT CALENDAR
a) Approve appointment of Commissioner Newsha Ajami to serve as an Alternate Commissioner on the San Joaquin Tributaries Authority Commission. (Resolution 22-0091)
b) Award Job Order Contract No. JOC-88, General Engineering (A-License) Construction San Francisco, San Mateo, Santa Clara, and Alameda Counties, for a total contract amount not-to-exceed $5,000,000 with a guaranteed minimum opportunity amount of $50,000 and a duration of two years, to the responsible bidder that submitted the lowest responsive bid, A. Teichert & Son, Inc., dba Teichert Construction. (Resolution 22-0092)
c) Approve an increase of $2,700,000 to the contract cost contingency and an increase of 74 calendar days to Contract No. WW-682R, Southeast Community Center at 1550 Evans; and authorize the General Manager to approve future modifications to the contract for a total contract amount of up to $87,140,142 and a MAY 24, 2022 SFPUC DRAFT MINUTES 7
total contract duration of up to 1,346 consecutive calendar days. (Resolution 22- 0093)
No public comment.
On motion to approve Consent Calendar items 10a through 10c:
Ayes: Moran, Maxwell, and Paulson
The Commission Secretary called items 11 and 12 together.
11. Public Hearing to consider the adoption of schedules of rates, fees, and charges of the San Francisco Public Utilities Commission Power Enterprise for CleanPowerSF power service in San Francisco to be effective on or after July 1, 2022. This action constitutes the Approval Action for the project for the purposes of the California Environmental Quality Act (CEQA) pursuant to Section 31.04(h) of the San Francisco Administrative Code. The Planning Department has determined that this action is exempt from the CEQA. If the item is approved, the Commission will rely on that determination to make its decision. (Resolution 22-0094)
12. Public Hearing to consider the adoption of rates of the San Francisco Public Utilities Commission Power Enterprise for Hetch Hetchy Power service to be effective with meter readings beginning on or after July 1, 2022 and July 1, 2023. This action constitutes the Approval Action for the project for the purposes of the California Environmental Quality Act (CEQA) pursuant to Section 31.04(h) of the San Francisco Administrative Code. The Planning Department has determined that this action is exempt from the CEQA. If the item is approved, the Commission will rely on that determination to make its decision. (Resolution 22-0095) Ma Yee Yap, Principal Revenue and Rates Analyst, began with an overview of the 2022 Power Rates Study which is required per San Francisco City Charter at least every five years by an independent consultant. She noted this is Hetch Hetchy Power’s third rate study and CleanPowerSF’s first.
Ms. Yap reviewed (1) 2022 Power Rate Study goals: Ensure long-term financial health; Prioritize needs of customers; and Factor the City’s climate action goals; (2) Rate Study Process: Revenue requirement determination; Cost allocation; and rate design; (3) CleanPowerSF - Key Rate Takeaways: Adopt one year of rates; Minimize rate changes for customers; Decrease from current rates, resulting in lower rates than PG&E; and build up reserves to newly-adopted 180 days-cash-on-hand fund balance reserve policy; (4) CleanPowerSF Bill Impacts for average residential (E-TOU-C) and average small commercial (B-1); (5) Hetch Hetchy – Key Rate Takeaways: Adopt two years of rates; Standardize current structure to modern customer classes based on cost-of-service; and bills may increase or decrease depending on current rate schedule, customer energy usage patterns; (6) Hetch Hetchy bill impacts for average retail residential (electric heating); Retail small commercial (retail store); and large commercial retail (manufacturing).
MAY 24, 2022 SFPUC DRAFT MINUTES 8
Ms. Yee responded to a question from Commissioner Maxwell as to how the SFPUC can achieve lower rates than PG&E, stating that SFPUC’s cost to deliver service is different from PG&E’s delivery cost and that the study gives an opportunity to review analyze costs. She indicated that the CleanPowerSF rates for the Commission’s consideration are for one year and that the planning phase for the CleanPowerSF rate study for FY 2024 will soon begin. She thanked everyone for their work and participation in the rate study process.
Ms. Yee introduced Howard Ash, Chair, Rate Fairness Board (RFB), who provided the RFB’s thoughts on the proposed rates. He began with a review of the seven members of the RFB. He stated that the RFB was established by Proposition E which was passed by San Francisco Voters in 2002. He discussed RFB’s charge as per the Charter and reviewed multiple rate objectives. He noted two decades of change, with the SFPUC moving toward a traditional utility service role with financial independence and integrity, with rates that reflect cost of service, with traditional utility customer classes, and simplification.
Chair Ash reviewed the RFB’s views on the current rate proposal for (1) Hetch Hetchy (HH) Power and CleanPowerSF: One-year (CPSF) and two-year (HH) rate proposals, rather than four or five; Separate rate settings for Hetch Hetchy and CleanPowerSF; and trend all rates toward cost-of-service, subject to reasonable caps on annual increases, and continue low-income rate programs; (2) Hetch Hetchy Power: move away from GUSE/Enterprise/Retail customer classes to regular utility classes; Residential recommendations; Maintain monthly customer charge with phased increase toward cost-of-service; No change to current seasonal or Time-of-Use periods; Discounts for high-volume customers; Pilot for EV-only rate equivalent to small commercial energy rates; and three to five year journey for GUSE customers to reach cost of service rate; (3) CleanPowerSF: One year rate proposal due to current uncertainties in the power market; Move to rates that are independent of PG&E rate changes but still comparable to PG&E rates; Delay implementation of fixed residential customers charge until the California Public Utilities Commission process sorts out; Staff intends to continue two-year transition to cost-of-service for the energy rate; SuperGreen program simplify to a standard rate program; and rates build fund reserved towards SFPUC target.
Chair Ash concluded by thanking SFPUC staff, RFB members, and the consultants for their work.
Commissioner Maxwell thanked Chair Ash and members of the RFB for their service.
Ms. Yee responded to a request from President Moran for information regarding the cost allocated to transmission lines individually and as a group, stating there is a way to cost the transmission process. He asked that staff report back with detail.
President Moran noted the changing business model and the movement toward a cost-of-service model and the reallocation of revenues as a result and asked from a business plan standpoint, if there is a reason. Ma Yee discussed stated a key goal of MAY 24, 2022 SFPUC DRAFT MINUTES 9
the Power Rate Study is to move all customer classes to cost-of-service and that reallocation is happening, and that it covers and recovers fiscal year revenue requirement.
President Moran noted the change in customer class changes the SFPUC’s competitive posture in the general marketplace and asked how that change is considered in the competitive position. Kristina Cordero, Director Financial Planning, stated that the SFPUC is operating in the overall and competitive business environment. Howard Ash stated that any excess Hetch Hetchy power is sold at market rates and is generating revenue for the SFPUC.
No public comment
On motion to approve Item 11:
Ayes: Moran, Maxwell, and Paulson
On motion to approve Item 12:
Ayes: Moran, Maxwell, and Paulson
13. Approve the terms and conditions of and authorize the General Manager to execute a lease between the City and County of San Francisco (City), through its Public Utilities Commission, as landlord, and Hungry Kitchens, LLC, a California limited liability company as tenant, for a five-year term, to use approximately 322 square feet of ground floor retail and storage space plus non-exclusive use of common space for seating at the new Southeast Community Center at 1550 Evans Avenue in San Francisco for an annual $8,400 rent plus three percent annual rent increases, and with a lease term of five years subject to City’s right to terminate after the second year of the lease term. (Resolution 22-0096)
Rosanna Russell, Real Estate Director, introduced the item and requested approval.
She responded to a question from Commissioner Maxwell as to how the vendor was selected, stating there was a robust request for proposal process with several proposals received. She noted the rent is based on 50% of fair market value as determined by appraisal. She indicated the vendor is experienced and is located in San Francisco.
No public comment.
In response to a question from Commissioner Paulson, Director Russell indicated the question checklist is not boilerplate.
On motion to approve Item 13:
Ayes: Moran, Maxwell, and Paulson
14. Approve and recommend to the Board of Supervisors the conditional termination of certain sewer and water easements encumbering San Francisco Blocks 7332, 7333, 7333A, and 7333B located within Parkmerced near Lake Merced Boulevard and MAY 24, 2022 SFPUC DRAFT MINUTES 10
Brotherhood Way; approve the terms and conditions of an Interim Easement Agreement and upon approval by the Board of Supervisors; and authorize the City’s Director of Property and/or the SFPUC General Manager to execute the Interim Easement Agreement and certain quitclaim deeds, transferring the City and County of San Francisco’s interests in the easements to Parkmerced Owner LLC. (Resolution 22-0097)
Michael Carlin, Deputy GM (DGM), introduced the item and requested approval. In response to a question from Commissioner Maxwell, DGM Carlin stated that the developer will pay to move SFPUC assets.
No public comment.
On motion to approve Item 14:
Ayes: Moran, Maxwell, and Paulson
15. Public hearing, discussion, and possible action to adopt a systemwide water use reduction of 11% compared to baseline water use during Fiscal Year 2019-2020, a systemwide reduction associated with Shortage Level 2 of the San Francisco Public Utilities Commission Water Shortage Contingency Plan (WSCP), in alignment with State requirements. The reduction would be effective July 1, 2022. This systemwide reduction is a 1% increase from the existing 10% systemwide reduction that the SFPUC adopted when it declared the Water Shortage Emergency on November 23, 2021 by Resolution No. 21-0177. (Resolution 22-0098)
AGM Ritchie stated that on November 23, 2021 the SFPUC declared a Water Shortage Emergency at Level 1, with voluntary 10% systemwide water use reduction.
He indicated the emergency remains in effect until rescinded by the Commission. He noted on April 15, 2022 the SFPUC issued its final Water Supply Availability Estimate for FY 21-22, indicating despite lower-than-normal snowpack Hetch Hetchy reservoir is expected to fill this year, but water bank is not, therefore, water use reductions continue to be necessary.
He stated that on March 28, 2022, the Governor issued Executive Order N-7-2, directing the State Water Board to adopt emergency drought regulations requiring urban water suppliers to implement Level 2 shortage response actions. The State Water Board is considering actin consistent with the Governor’s direction on May 24, 2022.
AGM Ritchie stated staff recommends the Commission approve moving to Level 2 shortage of the Water Shortage Contingency Plan in alignment with the State’s direction and increasing 10% systemwide water use reduction to 11%: (1) Moving from overall system use goal from 177.7 MGD to 175.7 MGD; (2) Results in 37% Retail / 63% Wholesale Allocations from Base Year FY19-20; (3) Impacts to Wholesale Agencies range from 7% to 35% reductions; and (4) Increased systemwide reduction will take effect in July 2022.
MAY 24, 2022 SFPUC DRAFT MINUTES 11
He summarized that to achieve a systemwide 11% reduction, systemwide demands below 200 MGD in the summer months are needed. A 16% reduction to the Wholesale Allocation means reducing residential per capital average from 63 down to 53 GCPD.
He stated that San Francisco’s per capita demand is 42 GCPD. He concluded with a review of next steps and noted the need for a continued drought outreach campaign which emphasizes reducing outdoor water use.
In response to a question from Commissioner Maxwell as to whether there is a way to demonstrate to customers how much two gallons, the recommended per person reduction for San Francisco amounts to, AGM Ritchie stated that staff is working with the Communications team on the best way to message customers as to the need to reduce use, including the reduction in outdoor use. He suggested a possible tag line of “one less flush”. GM Herrera noted the communications and finance teams are working together on outreach and will message accordingly.
President Moran asked if it was possible to track personal usage via the customer account page, noting usage comparison to neighbors may be motivating to reduce use.
Public Comment
• Nicole Sandkulla provided a statement in support of the proposed action to adopt a systemwide water use reduction of 11% in alignment with State requirements and the SFPUC’s Water Shortage Contingency Plan’s Shortage Level 2. • Peter Drekmeier, Tuolumne River Trust, noted the State’s requirement is to move to Level 2 and stated it is not necessary for the SFPUC and BAWSCA to ration at this level due to the amount of water in storage. He noted San Francisco’s low per capita use and that the BAWSCA territory is doing well.
On motion to approve Item 15:
Ayes: Moran, Maxwell, and Paulson
16. Approve two credit facility agreements for the Interim Funding Program of the Wastewater Enterprise in the form of (1) Revolving Credit and Term Loan Agreement and Fee Agreement with TD Bank NA for a term of five years; and (2) First Amendment to Reimbursement Agreement and Letter of Credit and First Amended and Restated Fee Letter with Sumitomo Mitsui Banking Corporation (SMBC) each for a term of five years; and authorize the General Manager to enter into these associated agreements. (Resolution 22-0099)
Charles Perl, Acting Chief Financial Officer (CFO) introduced Nikolai Skarloff who recently joined the SFPUC as the Capital Finance Director, and was most recently with the City of San Jose leading their Debt and Treasury Group.
Acting CFO Perl began with an overview of the Wastewater Interim Funding Program, Series A-4: $75M Toronto-Dominion Bank, LF; and Series A-7: $100M Sumitomo Mitsui Bank LOC. He stated series A-4 and A-7 expire July 8 and June 2, respectively, and that the transaction is included in the FY2021-22 Capital Financing Plan.
MAY 24, 2022 SFPUC DRAFT MINUTES 12
He reviewed (1) Series A-4 Replacement Agreement: Competitive procurement which was sent to 18 banks with seven responses received. TD Bank, $75M Liquid Facility:
lowest cost responsive proposal with a five-year term; annual fee of 0.21%, $171,481; option to extend up to five additional years – maximum annual fee of $250,000; strong short-term ratings (P-1/Moods and A-1+/S&P); lower fee; and funded via Wastewater Enterprise capital budget; and (2) Series A-7 Replacement Agreement: Competitive procurement was sent to 18 banks with seven responses received. Sumitomo Mitsui Banking Corporation, $100M Letter of Credit: lowest cost responsive proposal with a five year term; annual fee of 0.30%, $326,631; option to extend up to five additional years – maximum annual fee of $330,000; short-term ratings (P-1/Moods and A-1/S&P); lower fee; and funded via Wastewater Enterprise capital budget.
He stated the Forms of Agreements include several documents: (1) TD Bank Revolving Credit and Term Loan Agreement; (2) TD Bank Fee Letter; (3) Sumitomo First Amendment to Reimbursement Agreement; Sumitomo Fee Agreement; and Revised Offering Memorandum.
Mr. Perl responded to a question from Commissioner Maxwell as to what is bringing about the current market, indicating the SFPUC is seen as quality credit and that there is a lot of competition. He also indicated that the solicitation occurred prior to the increase in interest rates.
No public comment.
On motion to approve Item 16:
Ayes: Moran, Maxwell, and Paulson
17. Approve Amendment No. 4 to Contract No. CS-109, Specialized Engineering Services, Recycled Water Projects, with Kennedy Jenks Consultants, Inc./Bahman Sheikh Water Reuse Consulting/Water Resources Engineering, Inc., a Joint Venture, which increases the contract duration by 18 months for a total duration of 13 years and six months, with no change to the contract amount; and authorize the General Manager to execute Amendment No. 4. (Resolution 22-00100)
Barbara Palacios, Project Manager, introduced the item and requested approval.
No public comment.
On motion to approve Item 17:
Ayes: Moran, Maxwell, and Paulson
The Commission Secretary re-announced that item 18 was removed from the calendar.
18. Approve the plans and specifications, and award Contract No. HH-1007, Transmission Line 7/8 Upgrades, in the amount of $23,980,141, and with a duration of 668 consecutive calendar days, to the responsible bidder that submitted the lowest MAY 24, 2022 SFPUC DRAFT MINUTES 13
responsive bid, Wilson Utility Construction Company, to upgrade existing conductors and modify existing towers along Transmission Line 7/8 to accommodate additional transmission power flows and mitigate clearance hazards.
19. Adjournment
President Moran adjourned the meeting at 3:55 PM.