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
March 6, 2023
TO: Commissioner Newsha K. Ajami, President
Commissioner Sophie Maxwell, Vice President
Commissioner Tim Paulson
Commissioner Anthony Rivera
Commissioner Kate H. Stacey
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 December 6, 2022, the SFPUC has also completed the following actions:
1. Issued monthly water budget reports in December, January, and February to the wholesale customers under the Water Shortage Allocation Plan (WSA Attachment H).
2. Completed the annual Water Supply Development Report (WSA Section 4.05) on December 6, 2022.
3. Held several discussions with BAWSCA regarding progress and coordination for the continued planning of the Los Vaqueros Reservoir Expansion project.
4. Met with BAWSCA, San Jose and Santa Clara to collaborate on planning efforts regarding future needs in consideration for their request for permanent status.
5. Completed amendments to the Water Supply Agreement regarding Minimum Annual Purchases (WSA Section 3.07.C) adopted by the SFPUC on January 26, 2021. Provided on December 31, 2022 the Water and Hetch Hetchy capital plan spreadsheets, and on January 23, 2023, the FY 2023-24 Operating Budget Midcycle changes, FY 2023-24 Capital Budget, 10-Year Capital Plan FYE 2024- 2033 and 10 Year Financial Plan materials prepared for the January 30, 2023 Commission Special Budget Hearing. Received and responded to BAWSCA’s comments and questions related to the Budget and Capital Plan.
6. Met with BAWSCA to discuss Alternative Water Supply Plan development.
7. Continued working on the FY 2020-21 Wholesale Revenue Requirement compliance audit.
8. Completed calculation of the FY 2021-22 Wholesale Revenue Requirement and began the compliance audit (WSA Section 7.03).
9. Received and initiated review of BAWSCA’s comments on the FY 2021-22 Annual CIP Report on Capital Improvement Projects Under $5 Million (WSA Section 6.09.I) now titled FY2021-2022 Annual Report on Water Enterprise Managed Capital Improvement Projects.
10. On January 6, 2023, received BAWSCA’s Notice of Revised FY 2022-23 Bond Surcharge Schedule and applied adjustments to the SFPUC billing system for monthly collection beginning March 1, 2023 per the 2013 Prepayment and Collection Agreement (Section 3.06 B of the Prepayment and Collection Agreement).
11. Held Annual Wholesale Customer Meeting on February 16, 2023 (WSA Section
8.03) and presented on expected water supply conditions, capital improvement and maintenance efforts, capital planning and deliverability, rates and financial plans.
12. Provided on January 17, 2023, the FY 2023-24 Wholesale water rate range to BAWSCA (not required, but related to WSA Section 6.03), and replied to questions related to rates and balancing account (WSA Section 6.05B).
13. Provided a water supply conditions report to the Wholesale Customers on February 1st with initial estimates of available water supply in the coming year (WSA Attachment H, Section 6.1.1).
14. Provided a dry-year water supply update on February 1st in the form of a letter to the State legislature and Department of Public Health per AB1823 requirements with a copy to BAWSCA, (not a WSA requirement, but included here for informational purposes).
15. Helped conduct the quarterly meeting of the Water Quality Committee on February 15, 2023 (WSA Section 3.08.C).
In the near-term, the SFPUC is working to complete the following actions:
1. Complete the compliance audit for the FY 2020-21 Wholesale Revenue Requirement and issue the Statement of Changes to the Balancing Account.
2. Initiate review and responses to questions submitted as part of the FY 2020- 21 Wholesale Revenue Requirement Compliance Audit Wholesale Customer Review. (WSA Section 7.06)
3. Continue financial reconciliation work required by 2018 WSA Amendments to asset classification for specific Hetch Hetchy projects.
4. Continue the FY 2021-22 Wholesale Revenue Requirement compliance audit.
5. Provide a water supply conditions report to the Wholesale Customers by March 15th with updated estimates, and a final report in April 2022, of available water supply in the coming year (WSA Attachment H, Section 6.1.1).
6. 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 or emergency end.
Please contact me if you have any questions.
cc: Nicole Sandkulla, BAWSCA CEO/General Manager