Memorandum of Understanding with
the Recreation and Park Department
for the San Francisco Zoo Recycled
Water Project
SFPUC Commission Meeting
February 27, 2024
1 Project Overview
• Project will supply 0.2 MGD of recycled water to SF Zoo for animal exhibit washdown and animal pool filling, and for irrigation of Lower Great Highway
• Project will offset close to 100% of current groundwater well use with recycled water, conserving high-quality
groundwater to supplement potable water supplies in SF
2 Key Goals and Terms of MOU
• SFPUC will construct a pipeline to deliver recycled water to the Zoo and the Lower Great Highway
• Following construction, SFPUC will take over ownership and operations of groundwater infrastructure as back-up to recycled water
• SFRPD continues to own, operate, and maintain the reservoir and pump station and the Lower Great Highway system
3 Key Goals and Terms of MOU
• SFPUC will reimburse SFRPD for mutually agreed-upon expenses associated with construction
• SFPUC will fund staff position to manage recycled water use across SFRPD sites, including Zoo and Lower Great Highway
• SFPUC compensates SFRPD for groundwater infrastructure • SFPUC will charge SFRPD for recycled water at a cost roughly equivalent to historic costs for groundwater usage
• SFRPD will be responsible to implement retrofits at Lower Great Highway 4 Project Area
5 5
Questions?
6 DEPARTMENT Water Enterprise AGENDA NO. 8
MEETING DATE February 27 , 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Project Manager: Annahita Fallah and Barbara Palacios
Approve a Memorandum of Understanding between the San Francisco Public Utilities Commission and the San Francisco Recreation and Park Department regarding the San Francisco Zoo Recycled Water Project
Summary of Proposed
Commission Action:
Approve a Memorandum of Understanding (MOU) with the San Francisco Recreation and Park Department to define the parties’ roles and responsibilities for the San Francisco Zoo Recycled Water Project; and authorize the General Manager to take such actions deemed necessary or appropriate to implement or modify the MOU.
Background: The San Francisco Public Utilities Commission (SFPUC) is constructing the Westside Recycled Water Treatment Facility at its Oceanside Wastewater Treatment Plant. The SFPUC intends to deliver recycled water to various locations on the Westside of the City including Golden Gate Park, Lincoln Park Golf Course, the San Francisco Zoo (Zoo), and the Lower Great Highway.
The San Francisco Zoo Recycled Water Project (Water Enterpr ise Capital Improvement Project No. 10037519) (Project) will construct a new recycled water pipeline and convert the Zoo’s and the Lower Great Highway’s current groundwater supply and distribution systems to recycled water supply and distribution systems, except for end uses that require potable water (e.g., drinking water for animals) . The Project will also add new components to and make modifications within the existing reservoir and pump station facility for recycled water use. Supplying these demands with recycled water will offset close to 100% of Zoo’s and the Lower Great Highway’s annual groundwater use and will conserve high-
quality groundwater to
supplement potable water supplies in San Francisco.
The San Francisco Recreation and Parks Departmen t (SFRPD) owns and operates the existing groundwater well, reservoir, and pump station located within the Zoo. The San Francisco Zoological Society and SFRPD have a lease and management agreement that outlines roles and responsibilities related to the oper ation and use of the groundwater supply and the Zoo facilities. The groundwater well delivers groundwater pumped from the Westside Groundwater Basin Agenda Title: Authorize the General Manager to execute a Memorandum of Understanding with the San Francisco Recreation and Park Department for the San Francisco Zoo Recycled Water Project Commission Meeting Date: February 27, 2024
to the existing reservoir, and the existing pump station delivers water to supply various non -potable deman ds within the Zoo such as landscape irrigation, animal exhibit washdown, and impoundment and animal pool filling . The Lower Great Highway, operated and maintained by SFRPD, also relies on this groundwater for landscape irrigation.
The SFPUC has worked closely with SFRPD and the San Francisco Zoological Society since planning and design of the Project began. The San Francisco Zoological Society provided a letter of support for this Project on January 29, 2019. On January 18, 2024, the City and County of San Francisco Joint Zoo Committee recommended that the SFRPD Commission authorize the SRFPD General Manager to execute this MOU. On February 15, 2024, the SFRPD Commission approved this MOU.
The authorization of this MOU would benefit the SFPUC by furthering the Project, which will provide regional water supply and reliability benefits to the SFPUC’s Regional Water System and the Westside Groundwater Basin . The Project will help make SFPUC’s water supply more diverse. It will also conserve the groundwater for potable uses, such as back -up and emergency drinking water use , rather than non-potable uses, thereby reducing vulnerability to disrupted service from drought and natural disasters such as earthquakes.
Description of Agreement: Subject to approval of this Commission, the SFPUC and SFRPD would enter into the MOU. The proposed MOU would include the following material terms:
• The SFPUC will construct facilities within the limits of the existing groundwater reservoir and pump station facility at the Zoo and reconfigure the groundwater pipeline as a back-up water supply in case of interruption of recycled water supply as part of the Project.
• Following construction of the Project, the SFPUC will take ownership and operation control of the groundwater infrastructure currently owned and operated by SFRPD. SFRPD will be
responsible to operate, maintain, and repair the reservoir and pump station facility and on- site recycled water system, downstream of the meter, for the Lower Great Highway.
• The SFPUC will reimburse SFRPD for mutually agreed -upon expenses associated with the construction of the Project; fund a staff position at SFRPD to manage the ongoing regulatory and operational requirements of the implementation of recycled water across SFRPD recycled water use sites (including locations such as Golden Gate Park and the Zoo) ; and compensate SFRPD for Agenda Title: Authorize the General Manager to execute a Memorandum of Understanding with the San Francisco Recreation and Park Department for the San Francisco Zoo Recycled Water Project Commission Meeting Date: February 27, 2024
the fair market value of the groun dwater infrastructure to be owned and operated by SFPUC.
• Upon commencement of recycled water delivery, the SFPUC will charge SFRPD the current blended water service rate that it charges to all SFPUC commercial retail ratepayers less a credit to account for SFRPD’s historical use of groundwater, so that SFRPD’s amount payable for recycled water is roughly equivalent to its historic costs for groundwater usage.
• SFRPD will implement the required retrofits for the use of recycled water at the Lower Great Highway. SFPUC has provided the initial scope of work for this project.
Budget and Costs: The estimated cost of construction for the Project is $2.4 million.
With this Commission’s authorization on June 13, 2023, by Resolution No. 23-0124, and the Board of Supervisors’ approval on September 12, 2023, by Resolution No. 424-23, the General Manager has entered the Local Project Sponsor Agreement between the Association of Bay Area Governments and the General Manager has been authorized to accept and expend up to $538,051 of Proposition 1 grant funds from the California Department of Water Resources for the pipeline construction component of the Project. Funds for the remaining costs of the Project and the SFPUC’s cost share would be available through Water Enterprise Capital Improvement Project No. 10037519 SF Zoo Recycled Water Pipeline Project.
The cost for reimbursing SFRPD for mutually agreed -upon expenses associated with the construction of the Project will be funded by Water Enterprise Capital I mprovement Project No. 10037519 SF Zoo Recycled Water Pipeline Project. The cost for compensating SFRPD for the groundwater infrastructure will be determined once the appraisal is completed and will be funded by Water Enterprise operating budget. The cost for funding the staff position at SFRPD is not-to-exceed approximately $200,000 per year and will be funded by Water Enterprise operating budget.
Schedule: The MOU will begin the date it is signed by both parties and will terminate when the SFPUC det ermines the operation of the Project is no longer needed.
This Commission awarded the public work construction contract (Contract No. WD -2895) for the Project at the February 13, 2024 Commission Meeting. Construction is expected to begin July 2024 for a duration of one year.
Agenda Title: Authorize the General Manager to execute a Memorandum of Understanding with the San Francisco Recreation and Park Department for the San Francisco Zoo Recycled Water Project Commission Meeting Date: February 27, 2024
The SFPUC intends to complete the retrofit report and drawings by July 2024 and anticipates the retrofits at the Zoo and Lower Great Highway to be completed by January 2026.
The anticipated completion date of cross-connection testing is August 2026 and anticipated recycled water deliveries in September 2026.
Environmental Review: On July 26, 2021, the San Francisco Planning Department determined the Project to be categoricall y exempt from environmental review under the California Environmental Quality Act Guidelines section 15303, Class 3 (New Construction or Conversion of Small Structures) (Case No. 2021-006486ENV). The exemption can be found here:
https://sfpuc.sharefile.com/d-s15ad7a622a9c44f198110c79a52fc6d4
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission ( SFPUC) intends to deliver recycled water to various locations on the Westside of the City including Golden Gate Park, Lincoln Park Golf Course, the San Francisco Zoo (Zoo), and the Lower Great Highway; and
WHEREAS, By Water Enterprise Capital Improvement Projec t No. 10037519, San Francisco Zoo Recycled Water Project (Project), t he SFPUC will construct a new recycled water pipeline and convert the Zoo’s and the Lower Great Highway’s current groundwater supply and distribution systems to recycled water supply and distribution systems, except for end uses that require potable water (e.g., drinking water for animals); and
WHEREAS, The San Francisco Recreation and Parks Department (SFRPD) owns and operates the existing groundwater well, reservoir, and pump station located within the Zoo; and
WHEREAS, The groundwater well delivers groundwater pumped from the Westside Groundwater Basin to the existing reservoir, and the existing pump station delivers water to supply various non-potable demands within the Zoo and the Lower Great Highway; and
WHEREAS, The SFPUC has worked closely with SFRPD and the San Francisco Zoological Society since planning and design of the Project began, with t he San Francisco Zoological Society providing a letter of support for this Project on January 29, 2019, and the City and County of San Francisco Joint Zoo Committee recommending that the SFRPD Commission authorize the SRFPD Manager to execute this MOU on January 18, 2024 and the SFRPD Commission authorized the SFRPD Manager to execute this MOU on February 15, 2024; and
WHEREAS, The authorization of this MOU would benefit the SFPUC by furthering the Project, which will provide regional water supply and reliability benefits to the SFPUC’s Regional Water System and the Westside Groundwater Basin; and
WHEREAS, With authorization by this Commission and the Recreation and Park Commission, the SFPUC and San Francisco Recreation and Parks Department ( SFRPD) would enter into the MOU; and
WHEREAS, On July 26, 2021, the San Francisco Planning Department determined the Project to be categorically exempt from environmental review under the California Environmental Quality Act Guidelines section 15303, Class 3 (New Construction or Conversion of Small Structures) (Case No. 2021-006486ENV); and
WHEREAS, The SFPUC desires to enter the Memorandum of Understanding (MOU) for the Project with the following material terms: the SFPUC will construct facilities within the limits of the existing groundwat er reservoir and pump station facility at the Zoo and reconfigure the groundwater pipeline as a back- up water supply in case of interruption of recycled water supply as part of the Project; following construction of the Project, the SFPUC will take ownersh ip and operation control of the groundwater infrastructure currently owned and operated by SFRPD ; SFRPD will be responsible to operate, maintain, and repair the reservoir and pump station facility and on-site recycled water system, downstream of the meter, for the Lower Great Highway ; the
SFPUC will reimburse the SFRPD for mutually agreed -upon expenses associated with the construction of the Project; fund a staff position at SFRPD to manage the ongoing regulatory and operational requirements of the implemen tation of recycled water across SFRPD recycled water use sites, including the Zoo; and compensate SFRPD for the fair market value of the groundwater infrastructure to be owned and operated by the SFPUC; upon commencement of recycled water delivery, the SFPUC will charge SFRPD the current blended water service rate that it charges to all the SFPUC commercial retail ratepayers less a credit to account for SFRPD’s historical use of groundwater, so that SFRPD’s amount payable for recycled water is roughly equivalent to its historic costs for groundwater usage; SFRPD will implement the required retrofits for the use of recycled water at the Lower Great Highway; now, therefore, be it,
RESOLVED, That this Commission hereby approves the MOU with SFRPD for the Project; and be it,
FURTHER RESOLVED, That this Commission hereby authorizes the General Manager to take such actions deemed necessary or appropriate to implement or enter into any modifications to the MOU that the General Manager or designee determines, in consultation with the City Attorney, are in the best interests of the City and do not materially increase the obligations or liabilities of the SFPUC , are necessar y or appropriate to effectuate the purposes of the MOU or this Resolution, and are in compliance with all applicable laws, including the City’s 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