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
September 19, 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 May 2, 2022, the SFPUC has also completed the following actions:
1. On April 15, 2022, given continued Water Shortage Emergency (WSA Section
3.07.C), issued a letter to the Minimum Purchase Customers waiving Minimum Annual Purchases in FY 2022-23.
2. Following our May 24, 2022 Commission action, informed BAWSCA of our updated Water Shortage Emergency calling for a 11% systemwide reduction in water use under the Water Shortage Allocation Plan (WSA Attachment H), effective July 1, 2022.
3. Issued monthly water budget reports in May, June, July, and August to the wholesale customers under the Water Shortage Allocation Plan (WSA Attachment H).
4. Hosted BAWSCA Board members for a COVID-safe tour of the Hetch Hetchy Regional Water System May 30-31, 2022.
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. Met with BAWSCA in June 2022 to review Capital Infrastructure Program and Deliverability review and BAWSCA CIP comments.
9. Met with BAWSCA to discuss Alternative Water Supply Plan development.
10. Resolved BAWSCA questions and executed settlement agreement on July 25, 2022 related to FY 2019-20 Wholesale Revenue Requirement Compliance Audit Wholesale Customer Review (WSA Section 7.06).
11. Began the audit of the FY 2020-21 Wholesale Revenue Requirement.
12. Continued preparations for FY 2021-22 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.
13. Helped conduct the quarterly meeting of the Water Quality Committee on August 17th (WSA Section 3.08.C).
14. Delivered a draft of the 2022 State of the Regional Water System Report (WSA Section 6.09.I) for BAWSCA review on August 31, 2022. Final report is due to BAWSCA by September 30th each year.
15. Presented an Alternative Water Supply Program Update to the BAWSCA Water Management Representatives on September 1, 2022 and BAWSCA Board on September 15, 2022.
16. Responded to questions related to SFPUC pension and unfunded OPEB liability, and related expenses within the Wholesale Revenue Requirement.
17. Provided BAWSCA 2022 Water System Improvement Program (WSIP) Notice of Change Report on August 19, 2022.
In the near-term, the SFPUC is working to complete the following actions:
1. Complete the FY 2020-21 Wholesale Revenue Requirement compliance audit and issue the FY 2021-22 Statement of Changes to the Balancing Account.
2. Continue preparation of final FY 2021-22 water supply J-table, due September 15, 2022 (WSA Section 3.14).
3. Commence the calculation of the Wholesale Revenue Requirement for FY 2021-22.
4. Provide BAWSCA with the FY 2021-22 Prepayment and Collection Agreement Annual Report (Section 3.06 B of the Prepayment and Collection Agreement).
5. Provide BAWSCA the FY 2021-22 annual total water sales.
6. Provide a technical tour of Hetch Hetchy Water and Power Capital Improvement Program projects to BAWSCA staff on September 21 – 22, 2022.
7. Meet with BAWSCA in late September 2022 to continue discussion of Alternative Water Supply Plan development.
8. Finalize the FY 2021-22 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.
9. Hold Quarterly Wholesale Operations Meeting on October 13, 2022 (WSA Section 8.03).
10. Help conduct the quarterly meeting of the Water Quality Committee (WSA Section 3.08.C).
11. Continue financial reconciliation work required by 2018 WSA Amendments to asset classification for specific Hetch Hetchy projects.
12. Meet with BAWSCA to discuss expectations related to continued Water Shortage Emergency (WSA Section 3.07.C) and/or potential actions should drought conditions worsen.
13. Conduct the SFPUC’s 12th Annual Water Quality & Technology Workshop in November 2022. (WSA Section 3.08.C)
Please contact me if you have any questions.
cc: Nicole Sandkulla, BAWSCA CEO/General Manager