DEPARTMENT General Manager AGENDA NO. 10
MEETING DATE February 27, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Approve Memorandum of Understanding: Regular Calendar
Project Manager: Molly Petrick
Approve an Amended and Restated Memorandum of Understanding Between the Treasure Island Development Authority and the San Francisco Public Utilities Commission Regarding Utility Services at Naval Station Treasure Island Summary of
Proposed
Commission Action:
Approve an Amended and Restated Memorandum of Understanding (Amended and Rest ated MOU) between the Treasure I sland Development Authority (TIDA) and the San Francisco Public Utilities Commission to continue to provide utility services for Na val Station Treasure Island , for an initial two -year term, with an option exercisable by the General Manager and the TIDA Director to extend the Amended and Restated MOU up to an additional six years.
Background: In 1993, the federal Defense Base Realignment and Closure Commission designated Naval Station Treasure Island ( NSTI), consisting of both Treasure Island and portions of Yerba Buena Island, for closure and disposition. The U.S. Department of Defense subsequently designated the City and County of San Francisco (City), and later the City’s Treasure Island Development Authority ( TIDA), as the Local Reuse Authority responsible for the conversion of NSTI under the federal disposition process.
On March 12, 1997, the City and the U.S. Navy entered into the Base Caretaker Cooperative Agreement
, as amended periodically
(collectively, the Cooperative Agreement ), for the interim management and operation of NSTI during the disposition process.
Under the Cooperative Agreement, the City agreed to assume certain responsibilities, including for the operation and maintenance of the water, wastewater, stormwater, electric, a nd
gas utility systems on
NSTI. Since 1997, t he San F rancisco Public U tilities Commission (SFPUC) has provided utility operation and maintenance services for TIDA, and TIDA has reimbursed the SFPUC for these services from TIDA revenues.
Since 2013, TIDA and the SFPUC have acted according to a memorandum of understanding ( MOU) that the parties re-entered in 2014, 2015, 2016, 2017, 2019, and 2021. The MOU details the utilities operation and maintenance services the SFPUC provides on NSTI. On June 30, 2022, t he current term of th e most recent MOU expired. Both the SFPUC and TIDA continued to perform as provided Agreement: Authorize Memorandum of Understanding, Treasure Island Development Authority and the San Francisco Public Utilities Commission
Commission Meeting Date: February 27, 2024
under the MOU . The parties now desire to amend and restate the MOU, primarily to extend the term up to six years without further action by this Commission.
Description of
Agreement:
Parties to Agreement: SFPUC and TIDA
Purpose: The Amended a nd Restated MOU
describes the terms and conditions of
continued performance of certain defi ned
utility operation and maintenance services.
Location: Naval Station Treasure Island , including
utilities on Treasure Island/Yerba Buena
Island, as well as assoc iated utilities in
Alameda County.
Commencement
Date:
The Amended and R estated MOU will
become effectiv e upon e xecution by the
parties.
Budget & Costs: All services SFPUC renders to TIDA on NSTI are as a contractor .
TIDA pays the full costs for SFPUC to perform the services on NSTI, including of any potential defense or payment of any potential claims or judgments that may a rise from such performance, to ensure that SFPUC remains whole.
Schedule: The term of the Amended and Restated MOU will commence when both parties execute the Amended and Restated MOU and will expire two years from the commencement date. Subject to the terms of the Amended and Restated MOU, the TIDA Director and the SFPUC General Manager may extend the Amended and Restated MOU term in two-year increments, up to a maximum of six additional years.
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, In 1997, when the U.S. Department of Defense closed the Nava l Station Treasure Island (NSTI), the City and County of San Francisco (City) entered into a Base Caretaker Cooperative Agreement with the U.S. Navy; and
WHEREAS, The City ’s Treasure Island Development Authority (TIDA) currently operates and maintains NS TI, including both propert ies transferred by the U.S. Navy to TIDA and properties that remain under the jurisdiction of the U.S. Navy; and
WHEREAS, TIDA ’s responsibilities generally include, amo ng other matters: (1) operation and maintenance (O&M) servic es for all the existing util ity systems on Treasure Island/Yerba Buena Island (TI/YBI), (2) grounds and street maintenance and repair, (3) prope rty management, and (4) public health, security, and safety services; and
WHEREAS, TIDA sets rates and charges for certain services throug h its subleases and other agreements; and
WHEREAS, Since 1997, t he S an Francisco Public Utilities Commission (SFP UC) has been providing O&M services for water, waste water, electric, and gas existing utility systems on TI/YBI, as requested by TIDA; and
WHEREAS, In 2013, by Resolution No 13- 0139, the SFPUC and TIDA entered into a Memorandum of Unde rstanding (MOU) with a term of 12 months, subject to extension, to memorialize the terms and conditions of performance by the SFPUC of certain defined ut ility services consistent with the Cooperative Agreement and past practice; and
WHEREAS, On July 2, 2014, TIDA and the Navy entered into an Economic Development Conveyance Memorandum of Agreement (EDC MOA) which established a schedule and terms of conveyance of NSTI to TIDA; and
WHEREAS, The EDC MOA included a s an exhibit a Utilities Agreement addressin g utility-specific matters arising out of the transfer of property and infrastructure from the U.S.
Navy to TIDA; and
WHEREAS, On September 23, 2014, by Resolution No. 14- 0151, this Commission approved an MOU for an additional 12 months , and which recognized the execution of the EDC MOA and Utilities Agreement; and
WHEREAS, On September 22, 2015, by Resolution No. 15- 0195, this Com mission approved another MOU for an additional 12 months; and
WHEREAS, On October 25, 2016, by Resolution No. 16- 0221, t his Commission approved another MOU for an additional 12 months; and
WHEREAS, On December 12, 2017, by Resolution No. 17- 0255, this C ommission approved another MOU through September 31, 2018; and
WHEREAS, On March 26, 2019, by Resolution No. 10-0059, this Commission approved another MOU through June 30, 2020; and
WHEREAS, On January 26, 2021, by Resolution No. 21-0008, this Commission approved another MOU through June 30, 2022; and
WHEREAS, SFPUC and TIDA now desire to amend and restate the MOU, effective on the date of full execution by the parties (Commencement Date); and
WHEREAS, The amended and restated MOU will expire on the date immediately before the two-year anniversary of the Commencement Date; and
WHEREAS, The SFPUC General Manager and the TIDA Director may e xtend the Amended and Restated MOU term in two-year increments without the need for further approval by the SFPUC Commission or the TIDA governing boar d; provided, however, the discretion of the SFPUC General Manager to ex tend the term will be limited to a maximum of six additional years; now, therefore, be it
RESOLVED, That this Commission hereby approves the Amended and Restated Memorandum of Unders tanding Between the Treasure Island Development A uthority and the San F rancisco Public Utilities C ommission Utility Services at Former Naval Station Treasure Island (Amended and Restated MOU), generally in t he form incl uded in the Commission’s file on this matter; and be it
FURTHER RESOLVED, That this Commission hereby authorizes the General Manager to execute any amendments or modifications to the Amended and Restated MOU, including without limitation, the exhibits, that the G eneral Manager determi nes, in consultation with the City Attorney, are in the best interests of the SFPUC, do not materially increase the obligations or liabilities of the SFPUC, are necessary or advisable to effectuate the purposes and intent of the Amended and Restated MOU or this Resolution, and are in compliance with all applicable laws, including the City Charter.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of February 27, 2024.
Secretary, Public Utilities Commission