SAN FRANCISCO PUBLIC UTILITIES COMMISSION
City and County of San Francisco
London N. Breed
Mayor
REGULAR MEETING MINUTES
Tuesday, June 27, 2023
1:30 PM
(Approved August 8, 2023)
Commissioners
Newsha Ajami, President
Sophie Maxwell, Vice President
Tim Paulson
Anthony Rivera
Kate H. Stacy
Dennis J. Herrera
General Manager
Donna Hood
Commission Secretary
SFPUC MINUTES JUNE 27, 2023 2
1. Call to Order
President Ajami called the meeting to order at 1:38 PM.
2. Roll Call
Present: Ajami, Maxwell, Paulson, and Stacy
Excused: Rivera
3. Approval of the Minutes of June 13, 2023
No public comment.
On motion to approve the Minutes of June 13, 2023
Ayes: Ajami, Paulson, and Stacy
4. Report of the General Manager
a) Alternative Water Supply Plan Updat00e
Manisha Kothari, Alternative Water Supply (AWS) Program Manager discussed the need for the AWS Plan, stating with changing regulations and climate change the SFPUC faces water shortages in future dry years, and that the Commission faces the decision on whether to make San Jose and Santa Clara permanent customers by 2028.
Manager Kothari reviewed the basis for planning (1) Water Availability; (2) Obligations/Demands; and (3) Gap and discussed influencing factors (drivers) of (1) Water Availability: 2018 Bay Delta Plan Amendment, climate uncertainty, and future regulations; (2) Obligations: legal and contractual, retail service area, and decisions on San Jose and Santa Clara; (3) Demands: demand projections, reliance on SFPUC Regional Water System; and (4) Gap. She noted the need to plan for meeting obligations and build for demand.
Manager Kothari presented AWS Projects (1) Daly City Recycled Water Expansion; (2) San Francisco-Peninsula Regional Pure Water; (3) Alameda County Water District-Union Sanitary District Purified Water; (4) South Bay Purified Water (San Jose and Santa Clara); (5) Los Vaqueros Reservoir Expansion (storage, supply, and conveyance); and (6) Calaveras Reservoir Expansion (storage and conveyance).
She discussed the Gap in meeting project demand; provided recommendations for managing and filling the water supply Gap; and presented potential budget impacts.
She provided recommendations for managing and filling the water supply Gap, noting the budget impact of each. She outlined key takeaways, schedule, and next steps. Additional information can be found at sfpuc.org/awsplan.
Manger Kothari responded to questions from Commissioner Stacy regarding the selection process for current and potential project opportunities, including recycling projects, anticipated timing, and storage opportunities such as quarry and groundwater banking. Brief discussion ensued.
Commissioner Paulson concurred with comments made by Commissioner Stacy and questioned the approach for addressing the Gap. Manager Kothari provided response.
SFPUC MINUTES JUNE 27, 2023 3
President Ajami noted the need for collaborative governance and asked that going forward a deeper dive of the role of on-site reuse and emphasized the importance of project affordability.
Public Comment
• Spreck Rosekrans, Restore Hetch Hetchy stated the best way to get the most water at the lowest cost is to bank groundwater, noting others that are doing so. • (Unidentified caller) expressed appreciation for comments made by the Commissioners, and asked that one year be removed from the Design Drought. • Julie (inaudible) discussed water storage, the Design Drought, and the Tuolumne River.
She addressed water efficient irrigation and voluntary water use reduction. • Mary Butterwick stated there are inadequate flow releases on the Tuolumne. She asked that the Design Drought be reduced by one year.
• Peter Drekmeier, Policy Director, Tuolumne River Trust questioned if 92MGD of alternative water supply is needed. He stated a sensitivity analysis is needed. • Denise Louie, Center for Biological Diversity discussed the Tuolumne and flows. • Jessie (inaudible) discussed the need to assist the Salmon and for additional flows. • (Inaudible) discussed the need for environmental protection and additional flows. • Scott Artis, Golden State Salmon Association stated the SFPUC has four years of storage available and that the Salmon need water. He asked that the Design Drought be reduced by one year.
• Tom Francis, Water Resources Manager, BAWASCA, expressed support for the SFPUC’s efforts to develop and implement the AWS and that BAWSCA will provide comments after the report is released.
• Bill Martin, Sierra Club provide historical data on San Francisco’s population and water delivery, stating there is overinvestment in water supply. • Dave Warner noted the importance of drought planning and asked that the Design Drought be reduced by one year.
• Norma Wallace stated that repair and restoration is needed. She noted the decline of San Francisco’s population and the need for water for the environment. • (Inaudible) stated the water delivery trend is downward but projections are upward.
She noted the movement toward efficient landscaping, discussed the Tuolumne River Watershed, and asked that assumptions be updated.
• (Unidentified caller) asked that the Design Drought be reduced by one year. • David Schrom provided written comments
• Shannon Rose provided written comments
b) Hetch Hetchy Capital Improvement Program Quarterly Report Katie Miller, Director, Water Capital Programs reviewed the Hetch Hetchy Capital Improvement Program (HCIP) status as of March 2023, indicating expenditures total $621 million, with the HCIP 32 percent complete. Director Miller reviewed the HCIP cost summary budget and (variances) for these Power infrastructure projects: Moccasin Powerhouse Bypass Upgrades ($26 million variance); Moccasin Powerhouse and Generator Step-Up Transformer Rehabilitation ($40 million variance); Moccasin Penstock Rehabilitation; and Mountain Tunnel Improvements.
No public comment.
SFPUC MINUTES JUNE 27, 2023 4
c) Wastewater Enterprise Quarterly Report Including Southeast Area Major Projects Update including (1) Biosolids, and (2) Headworks
Stephen Robinson, Assistant General Manager (AGM) Infrastructure indicated this was his last quarterly report and announced that Bessie Tam was selected as the Director of Wastewater Capital Programs and would be providing the quarterly reports going forward.
AGM Robinson provided construction updates for the Wawona Area Stormwater Improvement Project, North Shore Pump Station Wet Weather Improvements, and Westside Pump Station Reliability Improvements. He reviewed the Sewer System Improvement Program (SSIP) Phase I status, indicating the project count by phase as of March 2023 is 55.9 percent complete, with $3,646 million expended. He reviewed the SSIP status cost summary, variances, and the facilities and infrastructure cost summary.
AGM Robinson reviewed capital program milestones and outlined projects that have been issued construction Notice-to-Proceed, those that have completed conceptual engineering, and those that have completed 35 percent design.
He provided the following progress and status updates (1) Southeast Plant Digester Facilities Project (Project cost $2,373 million); (2) Southeast Plant New Headworks Facilities Project (Project cost increased from $679 million to $689 million); and (3) Southeast Community Center 1550 Evans (Project cost increased from $114 million to $115 million with project closeout activities underway).
The Commissioners thanked AGM Robinson for his work and congratulated Director Tam on her new position. AGM Robinson thanked Howard Fung for his work as Acting Director of Wastewater Capital Programs.
President Ajami requested that staff maintain video history of the Southeast Community Facility Center and the Biosolids Project. AGM Robinson indicated historical documentation is occurring on this and all infrastructure projects.
Public Comment
• Spreck Rosekrans, Restore Hetch Hetchy commended the Commission and staff for their work and transparency with the Wastewater projects.
• Alex Landsburg stated it is good to see the work being performed and the progress made on the projects.
d) Report on Recent San Francisco Public Utilities Commission Activities, Events and Announcements
General Manager (GM) Herrera stated that on May 23, 2023 the Commission approved the proposed water and sewer rates increases, and on June 13, 2023 the Board of Supervisors (BOS) Committee of the Whole held a hearing to consider the rates increase.
GM Herrera stated the BOS ultimately tabled the item and indicated that the proposed rates were accepted by the BOS Budget Committee and will go into effect on July 1, 2023.
No public comment.
SFPUC MINUTES JUNE 27, 2023 5
5. CONSENT CALENDAR
a) Award Job Order Contract No. JOC-95, General Engineering Construction, for work to be performed in San Francisco, San Mateo, Santa Clara, and Alameda Counties, in the amount not-to-exceed $5,000,000, with a guaranteed minimum task-order opportunity amount of $50,000, and a duration of two years, to the responsible bidder that submitted the lowest responsive bid, Power Engineering Construction Co., to perform A-licensed general engineering work with marine emphasis on San Francisco Public Utilities Commission systems and operations around the Bay Area. (Resolution 23-0129) b) Award Job Order Contract No. JOC-96, General Engineering Construction, San Joaquin, Stanislaus, and Tuolumne Counties, and Hetch Hetchy, in the amount not-to-exceed $5,000,000, with a guaranteed minimum task order opportunity amount of $50,000, and a duration of two years, to the responsible bidder that submitted the lowest responsive bid, Njirich & Sons, Inc., to perform general engineering work on the San Francisco Public Utilities Commission systems and operations around Hetch Hetchy. (Resolution 23-0130) c) Award six Master As-Needed Security System Maintenance and Integration Services Contracts, PUC-0002.A, PUC-0002.B, PUC-0002.C, PUC-0002.D, PUC.0002.E, and PUC.0002.F, each with a not-to-exceed agreement capacity of $10,000,000; and authorize a combined cumulative spending authority of $10,000,000, with a duration of 1,827 consecutive calendar days, to the responsible firms that submitted responsive statement of qualifications to Johnson Controls, Inc. (PUC-0002.A.), Netronix Integration (PUC-0002.B.), Ojo Technology Inc. ( PUC-0002.C.), RFI Enterprises, Inc., doing business as RFI Communications and Security Systems (PUC-0002.D.), Siemens Industry, Inc., (PUC-0002.E.), and Universal Protection Security Systems, Limited Partnership doing business as Allied Universal Technology Services (PUC-0002.F.). (Resolution 23-0131) d) Award two Master As-Needed Fire Protection and Fire Alarm – Inspection, Maintenance, and Repair Contracts, PUC-0006.A, and PUC-0006.B, each with a not-to-exceed agreement capacity of $1,500,000 and a duration of up to 1,827 consecutive calendar days to the responsible firms that submitted responsive statement of qualifications, Cosco Fire Protection, Inc. (PUC-0006.A) and Siemens Industry, Inc. (PUC-0006.B). (Resolution 23- 0132)
e) Accept work performed by Cratus, Inc. under Contract No. WD-2739, Pavement Renovation, Sewer Replacement, and Water Main Replacement on Castro Street and 26th Street, for a total contract amount of $15,404,492, and with a total contract duration of 802 consecutive calendar days; and authorize final payment to the contractor. (Resolution 23-0133) No public comment.
On motion to approve the Consent Calendar:
Ayes: Ajami, Maxwell, Paulson, and Stacy
6. Adopt the 2023 San Francisco Public Utilities Commission Wildfire Mitigation Plan Comprehensive Revision and Independent Evaluator Report; and authorize the General Manager to file the Plan with the California Office of Energy Infrastructure Safety Wildfire Safety Advisory Board on or before July 1, 2023. (Resolution 23-0134) Cheryl Sperry, Business Services Manager, Hetch Hetchy Water introduced Ethan Billigmeier, Wildfire Mitigation Analyst, and Daniel Zaragoza, Independent Evaluator, GridSME. She stated SFPUC MINUTES JUNE 27, 2023 6
that by state law the SFPUC is required to construct, maintain, and operate electrical lines and equipment in a manner that will minimize the risk of catastrophic wildfire posed by SFPUC electrical lines and equipment. The law requires that the SFPUC prepares an annual Wildfire Mitigation Plan, submit the Plan to the California Wildfire Safety Advisory Board, and provide a comprehensive update of the Plan with review by an Independent Evaluator at least once every three years.
Manager Sperry presented a map showing high fire threat districts within the Hetch Hetchy Regional Water System (power distribution, power transmission, and wildfire perimeters). She reviewed the Wildfire Mitigation Plan Principles (1) Minimizing source ignition of a fire; (2) Resiliency of the grid; and (3) Measure plan effectiveness and performance to ensure we strive toward continual improvement. She discussed plan metrics and evaluation and the self-evaluation audit process.
Daniel Zaragoza discussed his background and reviewed the independent evaluation process. He noted the SFPUC’s procurement of the Technosylva Wildfire Analyst application which offers wildfire risk modeling, weather stations, high-definition cameras, air quality index, watches and warnings, and gives the SFPUC a daily visualization of wildfire risks. Independent Evaluator Zaragoza reviewed the Independent Evaluator’s Comments: Industry Best Practices (procurement of Technosylva Wildfire Analyst application; Programmatic inspections programs; Disabling reclosers; Excellent use of situational awareness tools; Excellent stakeholder engagement; and use of preemptive De-Energization).
He offered the following Independent Evaluator Recommendations (1) Operationalize the Technosylva Wildfire Analyst application; and (2) Formalize use of Operating Conditions consistent across the SFPUC, and concluded with evaluation results, stating that GridSME has determined that the SFPUC’s Wildfire Mitigation Plan is comprehensive and meets the statutory requirements of California Public Utilities Code 8387.
At the request of Vice President (VP) Maxwell, Analyst Billigmeier described how the Technosylva Wildfire Analyst application works.
Commissioner Stacy discussed connections of PG&E’s assets to SFPUC’s assets and questioned who takes responsibility for vegetation management. AGM Ritchie responded and discussed the Jefferson-Martin line, indicating that PG&E has responsibility for that line.
Commissioner Stacy proposed an amendment to the proposed resolution’s first RESOVED clause to read:
RESOLVED, That this Commission adopts the 2023 SFPUC Wildfire Mitigation Plan comprehensive revision and adopts and implements the recommendations of the 2023 SFPUC Wildfire Mitigation Plan independent evaluator report; and Analyst Billigmeier responded to a question from President Ajami as to whether the Technosylva Wildfire Analyst algorithm behind the model is available. President Ajami requested in-house skill sets be utilized when possible.
Independent Evaluator Zaragoza responded to President Ajami requested clarification as to the Independent Evaluator’s recommendation to “Elaborate on recommendation to formalize the SFPUC MINUTES JUNE 27, 2023 7
use of operating conditions consistent across the SFPUC”. Brief discussion ensued. The Commission thanked staff and the Independent Evaluator for their work.
Public Comment
• Moisés García, Chair, SFPUC Citizens’ Advisory Committee (CAC) noted that Margaret Hannaford came to the CAC to speak on this issue. He discussed the work of the San Jose State University Wildfire Interdisciplinary Center and suggested that the SFPUC partner with them.
On motion to approve item 6, as amended:
Ayes: Ajami, Maxwell, Paulson, and Stacy
At the request of the President the Commission Secretary called items 7, 8 and 9 together.
7. Approve Water Enterprise Commercial Paper Program Dealer Agreements for BofA Securities Inc., J.P. Morgan Securities LLC, and Wells Fargo Bank, National Association; and authorize the General Manager to enter into these associated agreements. (Resolution 23-0135)
8. Authorize the issuance of up to $450 million of Water Revenue Bonds, Sub-Series A Bonds (Regional Water & Local Water) and 2023 Sub-Series B Bonds (Hetch Hetchy Water) (collectively, the 2023 Water Bonds) to fund the costs of water enterprise capital projects and to refund commercial paper; delegate to the General Manager authorization to appoint underwriters and enter into one or more bond purchase contracts with underwriters selected from the City’s pool of pre-qualified underwriters subject to a competitive procurement process and in accordance with the City’s policies and procedures with respect thereto, subject to the limits on underwriters’ compensation set forth in the resolution. The Commission resolution will approve the issuance of: Water Revenue Bonds, 2023 Sub-Series A Bonds (Regional Water & Local Water) to fund and refund Regional and Local Water capital improvements; 2023 Sub-Series B Bonds (Hetch Hetchy Water) to fund Hetch Hetchy Water capital improvements; fund capitalized interest to mitigate short-term budget impact of borrowing; approve the form of and authorize the execution and delivery of, related documents; and authorize the General Manager to negotiate the sale of the 2023 Water Bonds in one or more series of bonds, as the General Manager determines is in the best financial interest of the San Francisco Public Utilities Commission, subject to the terms of the Commission resolution. (Resolution 23-0136)
9. Authorize the Issuance of Water Revenue Bonds, 2023 Series C (Refunding) (Water System Improvement Program (WSIP)) (Green Bonds) and 2023 Sub-Series D Bonds (Refunding) (Local Water) (collectively, the 2023 Water Refunding Bonds) to current or advance refund up to $1.728 billion of all or a portion of the outstanding 2015 Series A, 2016 Series A, 2017 Series D, 2019 Series A, 2019 Series C, 2020 Series E, and 2020 Series G Bonds, subject to prevailing market conditions at time of sale. The Commission resolution will approve the refunding bond sale as follows: the Water Revenue Bonds, 2023 Sub-Series C Bonds (Refunding) (WSIP) (Green Bonds) to current or advance refund certain outstanding 2015 Series A, 2016 Series A, 2017 Series D, 2019 Series A, and 2020 Series E Bonds for debt service savings; and the Water Revenue Bonds, 2023 Sub-Series Series D Bonds (Refunding) (Local Water) to refund certain outstanding 2019 Series C and 2020 Series G for debt service savings if such bonds are tendered by investors; and approve the form of, and authorize the execution and delivery of, related documents; and authorize the General Manager to negotiate the sale of the 2023 Water SFPUC MINUTES JUNE 27, 2023 8
Refunding Bonds, as the General Manager determines is in the best financial interest of the San Francisco Public Utilities Commission, subject to the terms of the Commission resolution. (Resolution 23-0137)
Nikolai Sklaroff, Capital Finance Director stated the Water Revenue Bond Issuance is part of the overall FY 2022-23 Capital Financing Plan, with an approximate issue size of $425 million of New Money. He reviewed the Water Enterprise Capital Financing Strategy, which is to mitigate upward pressure on rates and charges and actively manage capital financing costs.
Director Sklaroff presented (1) Water Enterprise Debt Overview as of June 1, 2023: Revenue Bonds ($4,459 million); State Revolving Fund Loan ($429 million executed and $185 million drawn); and Commercial Paper ($500 million authorized and $211 million drawn); (2) Enterprise Debt Ratings as of June 1, 2023; and (3) Low-Cost Borrowing Alternatives: SFPUC is mitigating borrowing costs by taking advantage of low-cost loans when available. Two State Revolving Funds (SRF) loans have been executed for Recycled Water and Mountain Tunnel, and there are two SRF pending applications submitted for Sunol Ozone ($214 million) and Lead Line ($385 million).
Director Sklaroff indicated that Series 2023ABCD Water Revenue Bonds will fund Regional, Local, and Hetch Hetchy Water Capital Projects, including Renewal and Replacement, and will refinance certain outstanding bonds through a tender offering process to achieve debt savings.
He reviewed the purpose and amount of the four series of bonds (1) Sub-Series A – fund regional and local water capital programs ($340 million); (2) Sub-Series B – fund Hetch Hetchy water capital projects ($110 million); (3) Sub Series C (Green Bonds – Water System Improvement Program (WSIP)) refinance certain WSIP bonds through a tender process to achieve debt service savings; (4) Sub-Series D (Local Water) refinance certain outstanding Local Water bonds through a tender process to achieve debt service savings at $1,662 million for Series C and D together.
Director Sklaroff reviewed the 2023CD tendering offering and noted market movements since the 2022 Water financing. He outlined (1) Tender process; (2) Plan of Finance: 2023AB and 2023CD Bonds are expected to be sold one week apart with separately led underwriting syndicates and two separate Preliminary Official Statements. They will be sold on negotiated basis with bond underwriters selected via a competitive Request-for-Proposal process from firms in the Controller’s underwriting pool; (2) Sources and Uses of Funds (Series 2023 ABCD Water Revenue Bonds); (3) Good Faith Estimate: Senate Bill 450 enacted in October 2017 requires local agencies to disclose estimates of certain debt financing-related information at authorization: 2023AB True Interest Cost 4.10%; Finance Charge of the Bonds $2,712,109; Amount of Proceeds received from sale $411,237,690; and Total amount paid $763,307,500; and 2023CD True Interest Cost 3.46%; Finance Charge of the Bonds $3,330,320; Amount of Proceeds received from sale $477,448,938; and total amount paid $678,672,012; (4) Market Overview (tax exempt interest rates) Municipal bond market interest rates over time as published by Municipal Market Data; and (5) Projected Aggregate Net Debt Service.
Director Sklaroff discussed the Green Bond Program (Series C) and the WSIP Programmatic Certification with Climate Bond Initiative (CBI), an international, investor-focused non-profit organization and regarded by the capital markets as the highest standard for green bond certification. He noted the 2023C CBI certification process and reviewed SFPUC Green Bond SFPUC MINUTES JUNE 27, 2023 9
issuance, by enterprise, from 2015 to present: Water (eight bonds) $2,271 million; Wastewater (eight bonds) $1,953 million, and Power (two bonds) $106,000, all totaling $4,331 million.
Director Sklaroff reviewed the Form of Transaction Documents, Supplemental Indenture (amendments), and Commission legal obligations (Commissioner Disclosure Training, and Disclosure Standard Rule 10b-5).
He recapped the requested Commission action to (1) Authorize the issuance of up to $450,255,000 for 2023AB Bonds and 2023B Bonds, and up to $1,662,385,000 for 2023C and 2023D Refunding Bonds; (2) Approve form of related bond sale documents; (3) Approve and authorize the General Manager to deem the draft Preliminary Official Statement final; and (4) Authorize the General Manager to sell Bonds in one or more series in a negotiated basis and to enter into Bond Purchase Contracts with the Bond Underwriters.
He reviewed the anticipated financing schedule with expected closing of 2023 Series AB Bonds on July 27, 2023 and closing of 2023 Series CD Bonds on August 10, 2023 and concluded by providing a background for the Water Bond Dealer Agreements and requested Commission approval.
Director Sklaroff responded to a question from VP Maxwell and President Ajami regarding the tender process. Brief discussion ensued.
Public Comment Items 7, 8, and 9:
• Eileen Boken spoke to item 9 and questioned why the SFPUC has waited up to eight years to refund some of the bonds; and to item 8 as to why funding and refunding bonds are comingled in the same item. She stated the full BOS has not yet authorized additional SFPUC debt. She discussed the SFPUC debt service ratio.
On motion to approve item 7:
Ayes: Ajami, Maxwell, Paulson, and Stacy
On motion to approve item 8:
Ayes: Ajami, Maxwell, Paulson, and Stacy
On motion to approve item 9:
Ayes: Ajami, Maxwell, Paulson, and Stacy
10. Adopt a resolution in support of transparency, environmental accountability, and labor standards for the Joint Power Agency, California Community Power Agency to improve its workforce, environment, and environmental justice practices in energy procurements; and direct the General Manager to cause a copy of the resolution to be transmitted to the California Community Power Agency. The SFPUC’s CleanPowerSF program is a member of the California Community Power Agency. (Resolution 23-0138)
Barbara Hale, AGM Power Enterprise introduced the item noting the benefits of the partnership with California Community Power (CC Power) and the SFPUC’s commitment to new power supply. She indicated the SFPUC will communicate to CC Power the SFPUC’s commitment to workforce, environment, and environmental justice practices and to CC Power’s energy SFPUC MINUTES JUNE 27, 2023 10
procurement practices. She thanked Commissioner Paulson and all involved for their work.
VP Maxwell and Commissioner Paulson thanked AGM Hale, staff, the SFPUC’s Citizens’ Advisory Committee (CAC), and community and labor groups for their work.
Public Comment
• Moisés García, Chair, SFPUC CAC thanked the CAC, members of the public, IBEW Local 6, and Commissioner Paulson for their engagement throughout the process. • Alex Landsburg thanked Commissioner Paulson and the CAC for their work. He indicated that the Commission took recommendations from the CAC and worked to get item completed, noting the work will have significant impacts on projects. • Peter Drekmeier, Policy Director, Tuolumne River Trust thanked the Commission and the CAC for their work and requested a similar resolution be crafted for the Water Enterprise. • Ana Rosa Rizo-Centino, Network Manager, Central Coast Climate Justice Network expresses support for the item noting it will help build the green economy and continue progress. • (Inaudible), Sierra Club, expressed support for the item and for strong workforce, environmental, and environmental justice policies in all energy procurement solicitations.
On motion to approve item 10:
Ayes: Ajami, Maxwell, Paulson, and Stacy
Commissioner Stacy was departed the hearing room at 4:33 PM.
11. Approve CleanPowerSF’s payment of its share of on-going general and administrative costs for its participation in the California Community Power Agency, for an amount not-to-exceed $100,000 per year, adjusted by 5% per year, for a period of 25 years, and authorizing the General Manager to seek Board of Supervisors approval. (Resolution 23-0139) Cheryl Taylor, Operations Manager, CleanPowerSF summarized the requested action noting it will approve CleanPowerSF’s payment of its share of general and administrative costs of the California Community Power Agency.
Manager Taylor noted that California Community Power (CC Power) was established in February 2021 to leverage combined buying power of Community Choice Aggregators for energy supply, programs, and services. CleanPowerSF became a member in April 2021 and membership benefits include participating in four long-term agreements with two new projects (1) Two long-duration Energy Storage projects for approximately 20 megawatts share; and (2) Two geothermal (Firm Clean Resource) projects for approximately 23 megawatts share, which supports compliance with California Public Utilities Commission order to procure from these types of energy resources (Decision 21-06-035).
Manager Taylor discussed CC Power’s Strategic Business Plan (1) hire a new full-time GM; (2) successfully implement committed projects and build organization capacity for further collaboration among membership; and (3) add to portfolio of projects, programs and services where and when beneficial to members.
Manager Taylor reviewed CC Power’s proposed FY 2023-24 general and administrative budget of $759,044, indicating the total general and administrative budget to be shared equally by the SFPUC MINUTES JUNE 27, 2023 11
nine member agencies. She indicated the proposed requests is a for an annual not-to-exceed amount of $100,000 (annual general and administrative amount for CleanPowerSF) with a duration of 25 years to align with project commitments and with a five percent per year cost escalator.
No public comment
On motion to approve item 11:
Ayes: Ajami, Maxwell, and Paulson
Absent: Stacy
12. Approve the First Amendment of the Individual Water Sale Contract between the City and County of San Francisco and the City of Redwood City, and the First Amendment of the Individual Water Sale Contract between San Francisco and California Water Service Company (Cal Water), to (1) adjust the boundaries of the service areas where Redwood City and Cal Water may, respectively, use or sell water delivered by San Francisco, and (2) revise the lists of both Redwood City and Cal Water’s interties with other water systems, in accordance with the 2021 Amended and Restated Water Supply Agreement. (Resolution 23-0140) Steve Ritchie, AGM Water Enterprise introduced the item and stated seven residences will switch services from the Redwood City service area to the California Water Services service area, and will correct maps that are part of the individual water sales contracts to reflect the change.
No public comment
On motion to approve item 12:
Ayes: Ajami, Maxwell, and Paulson
Absent: Stacy
13. Communications (information only)
a) Advance Calendar
b) Contract Advertisement Report
c) Correspondence Log
d) 2009 Water Supply Agreement Update
e) Minimum Purchase Requirements for Fiscal Year 2023-2024 f) Streetlight Program Update
g) Water Supply Conditions Update
14. General Public Comment
• Spreck Rosekrans, Restore Hetch Hetchy discussed his meeting with the National Park Service (NPS) to improve recreational opportunities in the Hetch Hetchy area. He discussed the renewal of the Memorandum of Agreement (MOA) between the SFPUC and the NPS. He indicated a letter was sent to the NPS and SFPUC regarding the MOA. • Eileen Boken referenced a letter she sent to the Commission containing a link to the Board of Supervisors Government Audit and Oversight Committee’s hearing. • Peter Drekmeier, Tuolumne River Trust discussed the Water Supply Agreement Update (item 13d) and the City’s entitlements. He stated it is a good time for groundwater banking. He discussed the Voluntary Agreement and the requested a graph of storge levels and impact of SFPUC MINUTES JUNE 27, 2023 12
the Bay Delta Plan.
• Dave Warner discussed a letter he sent to the Commission regarding financial oversight. He requested Commission action on the Design Drought.
15. Items initiated by Commissioners
None.
16. Adjournment
President Ajami announced that the SFPUC regular meetings of July 11 and July 25 will be cancelled and adjourned the meeting at 4:52 PM.