AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT Financial Services AGENDA NO. 9
MEETING DATE April 9, 2024
Public Hearing: Approve Wastewater Enterprise Miscellaneous Fees: Regular Calendar Project Manager: Matthew Freiberg
Proposals to Adopt, Revise, and/or Eliminate Miscellaneous Fees Related to the Wastewater Enterprise
Summary of
Proposed
Commission
Action:
Public Hearing to consider and approve the Wastewater Miscellaneous Fee schedule, which includes the revision of existing fees and the adoption of new fees and charges related to the provision of sewer services within the City and County of San Francisco. If approved, the proposed fees will become effective July 1, 2024 and will remain effective until revised. This action constitutes the Approval Action for the Project for the purposes of the California Environmental Quality Act (CEQA), pursuant to San Francisco Administrative Code section
31.04(h). The Planning Department has determined that the Project is exempt from the CEQA. The Commission will rely on that determination to make its decision on this action.
Background: The SFPUC charges m iscellaneous fees for services that are incurred or requested by an individual customer and not shared by the general Water, Wastewater, or Power Enterprises. These fees are not subject to the legal requirements of Proposition 218, which pertains to taxes and property related fees. Some of these fees are subject to cost recovery requirements under the San Francisco City Charter and State law. Others are penalties or fees for voluntary services, which are not subject to cost recovery requirements. Unless otherwise specified, these miscellaneous fees are automatically adjusted by the Consumer Price Index (CPI) issued by the City Controller’s Office.
On May 8, 2018, by Resolution Nos. 18-0082 and 18-0083 , the Commission established the current miscellaneous fees for the Water and Wastewater Enterprises. Historically, these fees are revised every three to five years through an updated fee analysis. The proposed changes presented in this agenda item are a result of the latest Water and Wastewater Miscellaneous Fee S tudy and pertain to the following categories of miscellaneous fees charged by the Wastewater Enterprise:
I. W-47: Wastewater Enterprise Regulatory Compliance Fees Public Hearing: Approve Wastewater Miscellaneous Fees
Commission Meeting Date: April 9, 2024
Page: 2
The SFPUC is dedicated to developing rates and charges that support revenue sufficiency, cust omer equity, environmental sustainability, affordability, predictability, and simplicity, as detailed in the SFPUC Ratepayer Assurance Policy. The proposed miscellaneous fees set forth below were developed based on these principles.
Most of the proposed charges are based on the administrative cost to deliver each service, as determined by the hourly staff rate (including salaries, benefits, and overhead) multiplied by the time required to provide the service, plus any applicable mater ial costs. See Appendix A for the full proposed list of miscellaneous schedules. Appendix B, the SFPUC Miscellaneous Fees Technical Memo, shows further details regarding each charge’s updates and cost recovery calculations. If approved, these miscellaneous fees will become effective July 1, 2024 and will remain effective until revised.
Wastewater Enterprise Regulatory Compliance Fees (W-47) The Wastewater Enterprise collects regulatory compliance fees from industrial and commercial customers who are require d to undergo cross connection testing, annual backflow inspections, pretreatment facility inspections, or stormwater control reviews.
Pretreatment Permit Application Fees: This fee is currently charged as a flat fee, applicable to customers applying for permits issued by the Pretreatment Division : the Batch Discharge Permit, Industrial User Permit, and Construction Site Runoff Permits. It is currently assessed at the time of initial permit application and at the time of any required annual or bi-annual permit renewal.
During the fee analysis, it was found that the existing fee does not fully account for the time spent administering the permits. Particularly, extensive time is spent coordinating with customers when a modification is requested, insufficient information is provided in the application, or when applicants miss vital deadlines for renewal of existing permits. To better recover the cost of providing this service, staff recommend splitting the existing Pretreatment Permit Application Fee into two fees (1) an initial application fee and (2) a renewal or modification fee.
If approved, the initial fee will be charged to first- time commercial business and entities applying for a Pretreatment permit and will recover the frontload work to set up the
customer’s account, review their
application, and perform the initial onsite visits and inspections. The second fee will be charged when permits need to be renewed or Public Hearing: Approve Wastewater Miscellaneous Fees
Commission Meeting Date: April 9, 2024
Page: 3
significantly altered. The second fee is sized to recognize the lower level of effort from staff.
Table 1: FYE 25 Proposed Pretreatments Program Permit Application Fees Pretreatment Program Permits Application Fees
FYE 24
Fee
FYE 25
Fee
Percent
Change
Initial Permit Fee $373 $1,100 195%
Pretreatment Permit
Renewal/Modification Fee N/A $630 N/A
Updating the fee amount and structure will help the SFPUC recover the costs associated with reviewing applications, conducting on -site visits, coordinating with applicants, and triggering enforcement if needed.
While this update reflects a large increase from the current fee, it is
important to note that the Pretreatment Program Permit Fee was originally established and calculated using estimated levels of effort and time. The proposed fee structure and fee amounts now reflect the cost of providing the service, using data reported by Wastewater’s Pretreatment Program team. Furthermore, a recent survey of peer agencies found that most utilities charge significantly more for the same service than the SFPUC’s current and pro posed fees. For example, E ast Bay Municipal Utility District charges close to $5,000 and King County (Washington) charges a range of $6,000-$12,000 for similar pretreatment permits.
Pretreatment Facility Re-Inspection Fees: This flat fee will be charged for additional inspections to regulated wastewater dischargers who are noncompliant, have enforcement needs, or otherwise exceed the standard number of inspections; it will not apply to required annual or bi-annual inspections of permitted or regulated facilities. The fee recovers the costs of inspections under the following permits or ordinances:
o Batch Discharge Permits;
o Industrial User Permits;
o Food Service Establishment Fats, Oils and Grease Ordinance; and o Mobile Washer Wastewater Discharge Permits.
The Pretreatment Facility Re-Inspection Fee will not incur any structural rate design changes but will be updated to reflect the latest labor time and cost, as shown in
Table 2.
Public Hearing: Approve Wastewater Miscellaneous Fees
Commission Meeting Date: April 9, 2024
Page: 4
Table 2: FYE 2025 Pretreatment Facility Re-Inspection Fee Pretreatment Facility Re-Inspection Fee
FYE 24 Fee FYE 25 Fee Percent Change
$291 $470 62%
Stormwater Control Plan Review Fees: These review fees cover the cost to issue a permit to a development that falls under the requirements of the Stormwater Management Ordinance (SMO). The SMO requires all development projects creating and/or replacing 5,000 square feet or more of impervious surface to submit two Stormwater Control Plans (SCPs), a Preliminary SCP and Final SCP. A t the time of each submission, the developer is charged an initial or subsequent fee based on the total gross square footage (gsf) of the proposed project. Refer to
Table 3 for the size
thresholds. Applicants who do not incorporate all comments on either of the two required plans are required to submit additional plans and pay additional Subsequent Review fee s until the proposed development complies.
Table 3: FY 2025 Proposed Stormwater Control Plan Review Fee
The Initial Submittal Fee covers the work to coordinate with the developers, conduct preapplication meetings, perform the initial review Stormwater Control Plan Review Fee
FYE 24
Fee
FYE 25
Fee
Percent
Change
Small Project Initial Submittal $3,302 $3,163 -4%
Small Project Subsequent Review $2,118 $2,940 39%
Total Small Project Fees
(<25,000 gsf) $5,420 $6,103 13%
Medium Project Initial Submittal $4,369 $4,184 -4%
Medium Project Subsequent Review $2,644 $3,451 31%
Total Medium Project Fees
(25,000-250,000 gsf) $7,013 $7,635 9%
Large Project Initial Submittal $5,781 $5,546 -4%
Large Project Subsequent Review $3,531 $4,302 22%
Total Large Project Fees
(>250,000 gsf) $9,312 $9,848 6%
Public Hearing: Approve Wastewater Miscellaneous Fees
Commission Meeting Date: April 9, 2024
Page: 5
of the Control Plans, QA/QC, record documentation of the maintenance agreement, provide technical assistance, and track the progress of the project. The Subsequent Review fees will primarily recover costs to QA/QC the Control Plans, follow up with the developer, and perform post construction inspections. The proposed fees reflect the latest cost of providing the service, per data reported by Wastewater’s Urban Watershed Planning Division.
Automatic Fee Adjustments
Unless otherwise stated in the attached schedule, all fees in the schedules attached hereto shall be escalated each fiscal year by the Consumer Price Index (CPI), as issued by the City Controller’s Office.
Public Hearing Notice and Rate Adoption
Pursuant to Charter Section 16.112, a Notice of Public Hearing on the establishment of a schedule of rates was published in the official newspaper on March 22nd, March 24th, and March 27th-29th and posted on the SFPUC website and at the San Francisco Public Library, for a public hearing on April 9
th, 2024, with possible Commission action on this date.
If approved by the Commission, these fees would take effect July 1, 2024 and will remain effective until revise d, unless otherwise stated in the attached schedule or rejected by the Board of Supervisors, as provided in Charter section 8B.125
Environmental
Review:
On March 26, 2024, the San Francisco Planning Department determined the Project to be statutorily exempt from environmental review pursuant to CEQA section 21080(b)(8) and CEQA Guidelines s
ection 15273
(Rates, Tolls, Fares and Charges) (Case 2024-002634ENV) related to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, or other charges. The exemption determination can be found here:
https://sfpuc.sharefile.com/public/share/web-
s1faf9ba40c3c4369ae323142df28e9e6
This action constitutes the Approval Action for the Project for the purposes of CEQA, pursuant to San Francisco Administrative Code section 31.04(h).
Attachments: 1. Appendix A: Schedule of Miscellaneous Fees for Water Service
2. Notice of Public Hearing on Proposed Miscellaneous Fees
3. Appendix B: SFPUC Miscellaneous Fee Technical Memo
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO: ____________________
WHEREAS, It is the policy of the San Francisco Public Utilities Commission (SFPUC) that the costs of services related to sewer service, but not attributable to all customers , shall be recovered from the party or parties requesting the service or services; and WHEREAS, On May 8, 2018, by Resolution No. 18-0082 and Resolution No.18-0083, this Commission established the existing schedules of fees and charges for miscellaneous services provided by the Wastewater Enterprise; and
WHEREAS, SFPUC staff have reviewed the pre-existing miscellaneous fees related to the Wastewater Enterprise under the W-47 rate reschedule; and WHEREAS, SFPUC staff finds that the existing miscellaneous fees that pertain to the Wastewater Enterprise are due for reconsideration, and SFPUC staff proposes updates to the existing schedule, effective in Fiscal Year 2024-25; and WHEREAS, Unless otherwise noted in the attached schedule, the fees and charges set forth in the attached schedules shall be automatically adjusted on July 1 of each subsequent year in accordance with the Consumer Price Index released by the Controller’s Office of the City and County of San Francisco during each fiscal year; and
WHEREAS, A Notice of Public Hearing stating the intention of the SFPUC to adopt revised schedules of connection charges and miscellaneous fees and charges to be charged by the SFPUC was published in the official newspaper on March 22nd, March 24th, and March 27th- 29th, and posted on the SFPUC website and at the San Francisco Public Library, for a public hearing on April 9, 2024, with possible Commission action on this date; and WHEREAS, Pursuant of the public hearing notice, a public hearing was held on April 9th, 2024, where members of the public were given an opportunity to express their views on the revised schedules of connection charges and miscellaneous fees and charges; and WHEREAS, On March 26, 2024, the San Francisco Planning Department determined the Project to be statutorily exempt from environmental review pursuant to CEQA section 21080(b)(8) and CEQA Guidelines section 15273 (Rates, Tolls, Fares and Charges) (Case 2024-002634ENV) related to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, or other charges; and
WHEREAS, This Commission hereby finds that adoption of this resolution will establish rates for the purpose of m eeting operating expenses, including employee wage rates and fringe benefits; and purchasing or leasing supplies, equipment, or materials; now, therefore, be it
RESOLVED, The Commission hereby approves, adopts, and ratifies the schedules of fees and charges attached to this Resolution; and FURTHER RESOLVED, The attached fees and charges shall be effective on and after July 1, 2024, and shall remain in effect until repealed, modified or superseded unless otherwise noted in the attached schedule.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of April 9, 2024.
______________________________________
Secretary, Public Utilities Commission
APPENDIX A
SCHEDULE OF MISCELLANEOUS FEES
FOR SEWER SERVICE
EFFECTIVE JULY 1, 2024
Adopted April 9, 2024 by Commission Resolution No. _________ SCHEDULE W-46. WASTEWATER ENTERPRISE REGULATORY
COMPLIANCE FEES
Each year, the SFPUC will adjust all the fees in Schedule W-47 by the Consumer Price Index released by the Controller’s Office of the City and County of San Francisco.
Pretreatment Permit Application Fees
Applicable to permit applications for Batch Discharge Permits, Industrial User Permits, and Construction Site Runoff Permits (including both Erosion and Sediment Control Plans and Stormwater Pollution Prevention Plans).
CHARGE TYPE FYE 2025
Effective 7/1/24
Initial Fee $1,100
Renewal or Modification of Permit Fee $630
The Initial Fee will be charged to first-time customers applying for a Pretreatment Permit and will recover costs to review the application and perform the initial onsite visits and inspections. The Renewal/Modification Fee is assessed for any subsequent requests to alter their permit or to issue any required annual or bi-annual renewal.
Pretreatment Facility Re-Inspection Fee $470
Applicable to permitted wastewater discharge inspections exceeding the required annual or bi-annual facilities inspection(s) for:
o Batch Discharge Permits
o Industrial User Permits
o Food Service Establishment General Wastewater Discharge Permits o Mobile Washer General Wastewater Discharge Permits
SCHEDULE W-47. WASTEWATER ENTERPRISE REGULATORY
COMPLIANCE FEES (CONTD.)
Stormwater Control Plan Review Fee
Applicable to projects regulated by the Stormwater Management Ordinance. The assessment of the Initial Submittal Fee is for the review of the Preliminary Stormwater Control Plan. The Subsequent Review Fee is assessed for the review of the Final Stormwater Control Plan and any additional reviews needed.
TYPE FYE 2025
Effective 7/1/24
Initial
Submittal
Subsequent
Review
Small Project (<25,000 gsf) $3,163 $2,940
Medium Project (25,000 – 250,000 gsf) $4,184 $3,451
Large Project (>250,000 gsf) $5,546 $4,302
NOTICE OF PUBLIC HEARING
NOTICE OF PUBLIC HEARING Tuesday, April 09, 2024 – 1:30 PM City Hall, Room 400, 1 Dr. Carlton B. Goodlett Place, San Francisco, CA 94102, at a Regular Meeting of the SAN FRANCISCO PUBLIC UTILITIES COMMISSION:
Public Hearing, discussion, and possible action to adopt the proposed water and wastewater miscellaneous fees and charges for customers of the San Francisco Public Utilities Commission. The resolutions to be presented at these hearings are:
1. Proposals to Adopt, Revise, and/or Eliminate Miscellaneous Fees Related to the Water Enterprise
2. Proposals to Adopt, Revise, and/or Eliminate Miscellaneous Fees Related to the Wastewater Enterprise
If approved, the new rates and charges would take effect July 1, 2024, unless
otherwise stated in the adopted schedule.
The detailed agenda and related files will be available at least 72 hours before the scheduled meetings at the SFPUC website www.sfwater.org.
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.
MEMORANDUM
DATE: March 15th, 2024
TO: Nancy Hom, Chief Financial Officer
FROM: Matthew Frieberg, Rates Manager
Kristin-Faith Avenis, Rates Analyst
SUBJECT: SFPUC Miscellaneous Fees Technical Memo
Background
The San Francisco Public Utilities Commission (SFPUC), in line with the Ratepayer Assurance Policy, is dedicated to developing rates and charges that support revenue sufficiency, customer equity, environmental sustainability, affordability, predictability, and simplicity. The proposed miscellaneous fees calculated as part of this study were developed based on these principles.
The SFPUC charges miscellaneous fees for special services that are incurred or requested by an individual customer and not part of the standard services performed by the Water, Sewer, or Power enterprises. For example, a customer may choose to opt out of automatic meter reads, requiring a Meter Reader to drive to their property every month, manually read the customer’s meter, and record its water usage in the billing system. Instead of capturing the costs of these services in retail utility rates, the cost of providing the service is recovered through a miscellaneous fee, called the Manual Meter Reading Fee. Utilizing miscellaneous fees are crucial to ensuring fairness and equity across customer classes by distributing the cost burden across various fees, reducing the total burden on retail rates.
Historically, the miscellaneous fee schedules are revised every three to five years. The current Water, Sewer, and Power miscellaneous fees were established six to eight years ago by Resolution 18-0082 and Resolution 18-0083 for Water and Sewer and Resolution 16-0085 for Power, as approved by the Public Utilities Commission. Over the intervening years, the majority of the fees have been updated by the Consumer Price Index (CPI) as issued by the City Controller’s Office. However, the fees are due for an updated bottom-up evaluation of the fees to confirm that they accurately reflect the cost of performing the services associated with each fee.
Methodology
The proposed changes to the Water, Sewer, and Power miscellaneous fee amount and fee structures were crafted through a standardized methodology, designed to ensure a transparent accounting of costs to establish fees that enhance equity for customers of SFPUC. The calculations are based on the labor cost to deliver each service, as determined by the hourly salaries of staff and time, indirect cost allocation rate, and any applicable material costs. This study and technical memo omit miscellaneous fees calculated through Real Estate, the City Distribution Division’s (CDD) Flat Rate Study, the Water Quality Divisions’ (WQD) laboratory testing fee analysis and any other contracted cost of service fee studies.
Labor Costs
Labor costs are calculated using the fully burdened labor rates multiplied by the anticipated level of effort for each labor classification performing the work. The fully burdened labor rate is the product of each staff member’s hourly base rate multiplied by the associated Enterprises’ fringe benefits multiplier and overhead allocation rate.
𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 𝐶𝐶𝐿𝐿𝐶𝐶
𝐶𝐶 = 𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹 𝐿𝐿𝐹𝐹𝐿𝐿𝑏𝑏𝑏𝑏
𝑏𝑏𝑏𝑏𝑏𝑏 ℎ𝐿𝐿𝐹𝐹𝐿𝐿
𝐹𝐹𝐹𝐹 𝐿𝐿𝐿𝐿𝐶𝐶
𝑏𝑏 × 𝐸𝐸𝐶𝐶
𝐶𝐶𝑖𝑖𝑖𝑖𝐿𝐿𝐶𝐶𝑏𝑏
𝑏𝑏 𝐶𝐶𝐶𝐶
𝐿𝐿𝑠𝑠𝑠𝑠 𝐶𝐶𝑖𝑖𝑖𝑖𝑏𝑏
𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹 𝐿𝐿𝐹𝐹𝐿𝐿𝑏𝑏𝑏𝑏
𝑏𝑏𝑏𝑏𝑏𝑏 ℎ𝐿𝐿𝐹𝐹𝐿𝐿
𝐹𝐹𝐹𝐹 𝐿𝐿𝐿𝐿𝐶𝐶
𝑏𝑏
= 𝐻𝐻𝐿𝐿𝐹𝐹𝐿𝐿
𝐹𝐹𝐹𝐹 𝑅𝑅𝐿𝐿𝐶𝐶
𝑏𝑏 × 𝐹𝐹𝐿𝐿𝑖𝑖𝑏𝑏𝐹𝐹𝑏𝑏 𝐵𝐵𝑏𝑏
𝑏𝑏𝑏𝑏𝑠𝑠𝑖𝑖𝐶𝐶𝐶𝐶 𝑀𝑀𝐹𝐹𝐹𝐹𝐶𝐶
𝑖𝑖𝑀𝑀𝐹𝐹𝑖𝑖𝑏𝑏
𝐿𝐿 × 𝑂𝑂𝑂𝑂𝑏𝑏𝐿𝐿ℎ𝑏𝑏𝐿𝐿𝑏𝑏 𝐴𝐴𝐹𝐹𝐹𝐹𝐿𝐿𝐴𝐴𝐿𝐿𝐶𝐶
𝑖𝑖𝐿𝐿𝑏𝑏 𝑅𝑅𝐿𝐿𝐶𝐶
𝑏𝑏
Th
e fringe benefits multiplier, which recover costs related to employee benefits, were calculated using the FYE 2025 and FYE 2026 SFPUC Biennial Operating Budget, as adopted by the Commission on February 13, 2024. The Enterprises’ overhead allocation rate recovers costs of indirect services provided by the support Bureaus. The overhead allocation rates were determined in the SFPUC Indirect Cost Study, completed in Fall 2023. The cost allocation rate and fringe benefits rates used by each Enterprise are summarized in Table 1.
Table 1: FYE 2025 SFPUC Overhead Allocation Rate and Fringe Benefits Rate Enterprise Overhead Allocation Rate Fringe Benefits Rate Water 104.7% 42.1%
Sewer 97.9% 41.1%
Hetch Hetchy Power 164.8% 41.7%
The staff time assigned to each task is based on the average amount of time to perform the requested service. While in practice, the time may vary slightly for each occurrence, an average estimated time is used to offer predictability of charges for customers and ease of administration for SFPUC staff. The total labor cost for each task required to perform the specific service is then calculated by multiplying the calculated fully burdened hourly rate by the estimated staff time. This process is repeated for each task and then accumulated for each staff member required for the service.
Additional Costs
Beyond labor costs, additional direct costs associated with the service, such as materials or equipment, are defined and added into the total cost of service. Examples of additional directs costs include electricity and milage costs for rental facilities or the cost of signage materials for permits.
Water Miscellaneous Fees
The Water Enterprise implements various types of miscellaneous fees to meet the needs and requests of SFPUC customers, including Water Installation Fees (W-41A), Water Service Connections Fees (W- 41B), Billing Fees (W-44), Land Use and Facility Rentals and Use Fees (W-45), and Regulatory Compliance Fees (W-46). These charges are distinct from standard water usage fees and help fund Water’s non-operational revenue.
Water Installations Fees W-41A
The Water Installation fees recover the costs for resetting an in-service meter or installing meters for a new service or additional meters on an existing service. Generally, this fee schedule is applicable for residential and small commercial uses. Large commercial customers and industrial users who request this service submit custom work requests and are billed at the actual cost of the work. The fees for standard service requests are outside of the scope of this study and are scheduled to be calculated in a future “Flat Rate Study.”
New Backflow Inspection Fee:
When customers apply for a Water Service installation, WQD staff must review the application, determine if a backflow inspection is needed on the installation, and if so, perform the inspection.
Approximately 75% of applicants require an inspection, which has historically been provided to the customer without charge. To better capture the full cost of water service installations, staff propose the creation of a new Backflow Inspection Fee.
To calculate the fee, WQD staff provided the labor class codes and time estimates to provide the service.
As shown in Table 2, a Water Service Inspectors spend approximately 0.5 hours reviewing a single application and 3.5 hours to perform the inspection, if deemed necessary. A water service installation application review requires staff to survey all submitted materials and may require additional coordination with the customer. The inspection time will vary depending on the number of installations and their locations, however, on average, WQD staff allocate 3.5 hours to provide the service.
Because all applications require a survey, but only the applications that require an inspection will be charged, staff recommend omitting the survey costs from the basis of the Backflow Inspection Fee for all applicants and basing the fee on the inspection costs alone. While the total cost of performing the services is $697.95 per inspection, the recommended fee is $610.00.
Table 2: FYE 2025 Backflow Inspection Fee Calculations Labor or
Material Cost
FYE 2025
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(42.1%)
Overhead
Rate
(104.7%)
Other
Costs
Cost of
Service
Water Service
Inspector $70.7002 0.5 $35.35 $14.88 $37.01 $0.00 $87.24 Water Service
Inspector $70.7002 3.5 $247.45 $104.18 $259.08 $0.00 $610.71 Totals $282.80 $119.06 $296.09 $0.00 $697.95
Proposed Fee $610.00
Water Service Connection Fees W-41B
City fire hydrants are owned and operated by the SFPUC. While fire hydrants are primarily used for fire suppression by the San Francisco Fire Department, the SFPUC allows builders, contractors, docks, and shippers to use low-pressure fire hydrants for temporary water supply during constructions and for customers who need temporary water supply for permitted special events. Existing fees within this schedule pertain to the permitting and connection process for these requests.
Staff propose to rename the “Builders and Contractors” fees to “Temporary Hydrant” fees to align with upcoming updates to the Temporary Hydrant Program’s Rules and Regulations. Staff also recommend updating the fees for temporary water connections and water use to recover costs of providing these services.
Temporary Hydrant Connection Fee:
All approved customers, who are permitted to receive a temporary water supply connection, must first pay a connection fee. The Temporary Hydrant Connection Fee charges customers the administrative and labor cost for a Water Meter Repairer to install a portable meter to a hydrant for temporary use and a Utility Service Representative to coordinate the service. Pursuant to planned proposed changes to the Rules and Regulations Governing Hydrant Use for Temporary Water Supply, the Temporary Hydrant Connection Fee will require permitted construction zones, development projects, and approved events to post physical signage, certifying their permits. To account for these future changes, the fee was calculated to include this additional labor time and material costs.
Staff’s time includes a Utility Services Representative setting up the customer’s billing account, processing the application, documenting paperwork for signage, and coordinating with the CDD meter shop to issue assembly, as well as a Water Meter Repairer’s time to install the meter. The printed poster is calculated as the average cost of 11” x 17” Synthetic No-Tear and Waterproof Synapse poster paper, printed with color. As a result, the Temporary Hydrant Connection Fee will increase approximately 37% from the current fee per the calculations shown in Table 3 below.
Table 3: FYE 2025 Temporary Hydrant Connection Fee Calculations Labor or
Material Cost
FYE 2025
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(42.1%)
Overhead
Rate
(104.7%)
Other
Costs
Cost of
Service
Utility
Services
Representative
$47.6681 1.25 $59.59 $25.09 $62.39 $0.00 $147.06
Water Meter
Repairer $58.2026 1.00 $58.20 $24.50 $60.94 $0.00 $143.64 Cost of 1
Printed Poster N/A N/A N/A N/A N/A $1.90 $1.90
Totals $117.79 $49.59 $123.32 $1.90 $292.60
Proposed Fee $292.00
Current Fee $213.00
% Change 37%
Docks and Shipping Connection Fee:
The Docks and Shipping Connection Fee charges large cargo or cruise ships and some federal entities during special events for temporary water service connection; this charge will not apply to small sailboats.
The fee is based on the average time of 3 hours by two water service inspectors to connect and remove the ship’s water supply to the hydrant and 1 hour by a utility representative to set up the customer’s billing account.
The proposed fee will amount to $1,164, a 192% increase from the current charge of $399. This increase is primarily driven by additional labor costs needed to provide the service. The current fee was originally calculated to account for one water service inspector. However, to ensure the service is performed safely, CDD began sending a second Water Service Inspector. Additionally, the hourly rate for staff has increased from the prior fee basis. The proposed fee incorporates these labor updates.
Table 4: Docks and Shipping Connection Fee Calculations Labor or
Material Cost
FYE 2025
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(42.1%)
Overhead
Rate
(104.7%)
Other
Costs
Cost of
Service
Utility
Services
Representative
$47.6681 1.00 $47.67 $20.07 $49.91 $0.00 $117.64
Water Service
Inspector $70.7002 3.00 $212.10 $89.29 $222.07 $0.00 $523.46 Water Service
Inspector $70.7002 3.00 $212.10 $89.29 $222.07 $0.00 $523.46 Totals $424.20 $198.66 $444.14 $0.00 $1,164.57
Proposed Fee $1,164.00
Current Fee $399.00
% Change 192%
Temporary Hydrant Meter Rental Deposit:
In addition to paying a connection fee, customers must also pay a meter rental deposit and an assumed volumetric charge equivalent to 50 CCF. This meter rental deposit is refundable upon returning the meter undamaged and is charged to the customer based on the meter size – a 1” meter or 3” meter.
The Temporary Hydrant Meter Rental Deposits are calculated based on the average labor time for a Manager and a Utility Service Representative to coordinate with the customer and to order the meter and supplement parts if the customer does not return the meter. Additionally, each meter deposit includes the material costs of either a 1” meter or 3” meter with brass check valves and fittings, as well as the associated materials required for installation, such as a spanner, flex hose, and hydrant connectors. To incentivize customers to return the SFPUC meters on time and without damage, an additional 50% mark- up has been applied to the base-line fee amount. The proposed 1” meter rental deposit will increase 34% from the existing deposit, while the proposed 3” meter rental deposit will decrease 22% from the current $6,045 fee. These rate changes are primarily driven by lower costs associated with new meters that are being used by SFPUC.
Table 5: Temporary Hydrant 1" Meter Rental Deposit Calculations Labor or
Material Cost
FYE 2025
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(42.1%)
Overhead
Rate
(104.7%)
Other
Costs
Total
Cost of
Service
Manager I $80.6957 0.50 $40.35 $16.99 $42.24 $0.00 $99.58 Utility
Services
Representative
$47.6681 6.00 $286.01 $120.41 $299.45 $0.00 $705.87
1” Meter N/A N/A N/A N/A N/A $394.00 $394.00
Equipment N/A N/A N/A N/A N/A $480.00 $480.00
Totals $326.36 $137.40 $341.70 $1,458.00 $1,679.45
Penalty Escalation (50%) $839.72
Proposed Fee $2,510.00
Current Fee $1,879.00
% Change 34%
Table 6: FYE 2025 Temporary Hydrant 3” Meter Rental Deposit Calculations Labor or
Material Cost
FYE 2025
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(42.1%)
Overhead
Rate
(104.7%)
Other
Costs
Total
Cost of
Service
Manager I $80.6957 1.00 $80.70 $33.97 $84.49 $0.00 $199.16 Utility
Services
Representative
$47.6681 8.00 $381.34 $160.55 $399.27 $0.00 $941.16
3” Meter N/A N/A N/A N/A N/A $1,450.62 $1,450.62
Equipment N/A N/A N/A N/A N/A $553.00 $553.00
Totals $462.04 $194.52 $483.76 $2,002.62 $3,143.94
Penalty Escalation (50%) $1,571.97
Proposed Fee $4,710.00
Current Fee $6,045.00
% Change -22%
Temporary Hydrant Flushing Fee:
When customers request to use a hydrant for potable uses, SFPUC staff must flush and test the hydrant for water quality prior to use. To recover the administrative cost to process the request, coordinate with the customer, and perform the flushing and testing, the SFPUC charges a Temporary Hydrant Flushing Fee. The fee consists of a base charge for the flushing service plus a charge equivalent to 13 units (CCF) of water at the current Schedule W-5 water rate. There are no significant changes to the administration of this service; it was confirmed that the estimated time to perform the service remains at approximately 4 hours and is performed by a Utility Plumber Supervisor. The fee’s slight increase is driven by the change in the staff’s hourly rate, fringe benefits, and overhead recovery rate.
Table 7: FYE 2025 Temporary Hydrant Flushing Fee Calculations Labor or
Material Cost
FYE 2025
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(42.1%)
Overhead
Rate
(104.7%)
Other
Costs
Total
Cost of
Service
Utility
Plumber
Supervisor I
$78.7839 4.00 $315.14 $132.67 $329.95 $0.00 $777.75
Totals $315.14 $132.67 $329.95 $0.00 $777.75
Proposed Fee $777.00
Current Fee $661.00
% Change 18%
New After-Hours Temporary Service Water Shut Down Fee:
In addition to the existing Water Service Connection Fees, staff recommend that the Commission ratify a new After-Hours Temporary Service Water Shut Down Fee (Table 8) . If approved, the After-Hours Temporary Service Water Shut Down Fee will be charged when a customer requests a gateman to perform a temporary water shut down on water services 3-inches or larger, outside of normal business operating hours. If this service is requested to occur during normal operating hours, this service is provided with no charge.
The fee calculation is based on (1) the over-time labor performed by CDD gatemen and (2) the average time of 3 hours by a Utility Service Representative to coordinate with the customer and to ensure that all proper scheduling and billing documentation are reported accurately (Table 8). As this fee specifically recovers the overtime labor costs of providing the standby service, the fully burdened hourly rate for a Utility Plumber Supervisor is further escalated by 50% to account for overtime rates. Furthermore, the fee is structured as either a four hour or eight hour service in alignment with CDD’s administration of overtime rates, which are charged in 4-hour increments. This means that if the time spent to perform the service exceeds 4 hours, the service will automatically be charged as an 8-hour fee.
Table 8: FYE 2025 After-Hours Temporary Service Water Shut Down Fee Calculations Labor or
Material Cost
FYE 2025
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(42.1%)
Overhead
Rate
(104.7%)
Other
Costs
Total
Cost of
Service
Utility Services
Representative $47.6681 3.00 $143.00 $60.20 $149.73 $0.00 $352.93 Utility Plumber
Supervisor I – 4
Hour Fee
$78.7839 4.00 $315.14 $199.01 $494.92 $0.00 $1,009.06
4-Hour Fee: Overtime Labor Rates for Utility Plumber Supervisor I (50%) $157.57 Proposed 4 Hour Fee $1,519.00
Utility Services
Representative $47.6681 3.00 $143.00 $60.20 $149.73 $0.00 $352.93 Utility Plumber
Supervisor I – 8
Hour Fee
$78.7839 8.00 $630.27 $398.02 $989.84 $0.00 $2,018.13
8-Hour Fee: Overtime Labor Rates for Utility Plumber Supervisor I (50%) $315.14 Proposed 8 Hour Fee $2,686.00
W-44: Billing Services
The Water and Sewer Enterprises also impose penalty fees and charges for billing and service requests.
These fees include charges for late payments, return checks, 48-hour notices, lock charges, and lien fees.
These fees were updated in 2018 to recover costs of providing the services and have been adjusted by CPI annually. Due to minimal changes in administrative costs, staff recommend that the Security Deposit and Broken Lock Penalty Fee continue to be adjusted by CPI until the next cost of service analysis. There will also be no changes to the administration of the Late Payment Fee, Lien fee, and Lead Test fee.
Manual Meter Reading Fee:
The Manual Meter Reading Fee is charged to customers who voluntarily opt out of automatic meter reads, requiring the SFPUC to drive to their property and manually read and report the customer’s water usage every month. This fee has historically been charged to customers at a lower cost of providing the service.
For example, during the last Miscellaneous Fee study in FYE 2018, the fee recovered only 56.8% of the total costs. To minimize rate shocks to customers, but to balance the need to increase the recovery rate, SFPUC staff recommend that the fee continues to recover 56.8% of total costs in FYE 2025, before escalating to recover 65% of total costs in FYE 2026.
The total cost of providing the service includes the average labor costs of a meter reader to drive and read a customer’s meter and the material costs of a parking permit, mileage usage, and supplies. On average, a meter reader spends 0.42 hours to drive and read a customer’s meter and travels approximately 3 miles each time (Table 9). To calculate mileage, we used the IRS 2023 standard milage rate. To estimate the parking permit cost per service, the FYE 2024 San Francisco annual parking permit was divided by the total annual time a Meter Reader spends driving. Similarly, the annual supply costs were calculated by dividing the total cost of gloves, flashlights, and screwdrivers by the annual instances the service was requested. The FYE 2025 total cost of providing the services is $51 per manual meter read, however, the proposed FYE 2025 fee will be set to $28 to collect the same recovery rate as FYE 2018 – 56.8% - before escalated to 65% in FYE 2026 (Table 10).
Table 9: FYE 2025 Manual Meter Reading Fee Calculations Labor or
Material
Cost
FYE 2025
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(42.1%)
Overhead
Rate
(104.7%)
Other
Costs
Total Cost of
Service
Meter Reader $45.17 0.42 $18.82 $7.92 $19.70 $0.00 $46.45 Mileage $0.6550* N/A N/A N/A N/A $1.97 $1.97
Annual
Parking
Permit
N/A N/A N/A N/A N/A $0.69 $0.69
Annual
Supplies N/A N/A N/A N/A N/A $1.90 $1.90
Totals $18.82 $7.92 $19.70 $4.56 $51.00
Recovery Rate (56.8%) -$23.00
Proposed Fee $28.00
Current Fee $24.00
% Change 17%
Table 10: Manual Meter Reading Fee Recovery Rates
FYE 2018 FYE 2025 FYE 2026
Cost of Service Calculation $35.23 $51.00 $51.00
Proposed Fee $20.00 $28.00 $33.00
Recovery Rate 56.8% 56.8% 65.0%
Meter Test Fee:
The Meter Test fee is charged to any customer who requests to test the accuracy of their water meter.
However, the fee will not be charged if the meter tests registers more than the limit of error specified in the ‘Water Rules and Regulations Governing Water Service to Customers,’ or if SFPUC equipment is found defective.
The SFPUC is proposing to alter the Meter Test Fee from a flat fee to a tiered fee based on meter size. A tiered fee structure allows for a more equitable distribution of costs among users and recovers costs more accurately, since the cost of replacing the meter escalates proportionally with the size of each meter. The proposed FYE 2025 fees were calculated to recover the average administrative labor, field work, and materials of each meter.
All meters recover the same average time of 0.25 hours in administrative labor performed by a Utility Services Representatives and Manager I to schedule the service, coordinate with the customer, and reconcile the customer’s billing the service. However, different meter sizes require different CDD staff to perform the actual field labor. For small meters (5/8” – 1” meters), Water Meter Repairers must remove and replace the whole meters at the customer’s property and then test the meter’s accuracy (Table 11).
Medium-sized meters (1 ½” meters and 2” meters) require a Utility Plumber to remove and replace the meter, as they are the only staff certified and equipped to safely handle the meters (Table 12). Once brought to the meter shop, a Water Meter Repairer conducts the accuracy test. Large meters do not require utility plumbers because large meters use Unitized Measuring Elements (UME), which is the automatic water volume measuring device attached to the meter. Therefore, a Water Meter Repairer can remove the UME and test it (Table 13).
Each fee also incorporates the specific material costs of each new meter. The cost of the meter and its materials increases with the size of the meter, driving the rate increase for each tier. While the new structure presents a large rate increase from the current flat fee of $448, it is important to note that most requests fall in the small meter category, specifically the 5/8” meter, which only represents a 3% increase.
Table 11: FYE 2025 Small Meter Testing Calculations
Labor or
Material Cost
FYE 2025
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(42.1%)
Overhead
Rate
(104.7%)
Other
Costs
Total
Cost of
Service
Water Meter
Repairer $58.2026 2.00 $116.41 $49.01 $121.88 $0.00 $287.29 Manager I $80.6957 0.25 $20.17 $8.49 $21.12 $0.00 $49.79 Utility Services
Representative $47.6681 0.25 $11.92 $5.02 $12.48 $0.00 $29.41 Labor Subtotal $148.50 $62.52 $155.48 $0.00 $366.49
5/8" Meter N/A N/A N/A N/A N/A $101.04 $101.04
3/4" Meter N/A N/A N/A N/A N/A $124.46 $124.46
1" Meter N/A N/A N/A N/A N/A $158.35 $158.35
Proposed Fee for 5/8" Special Test (Labor plus Meter) $460.00 Proposed Fee for 3/4" Special Test (Labor plus Meter) $480.00 Proposed Fee for 1" Special Test (Labor plus Meter) $520.00 Current Flat Fee $448.00
% Change (for a 5/8” meter) 3%
Table 12: FYE 2025 Medium Meter Testing Fee Calculations Labor or
Material Cost
FYE
2025
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(42.1%)
Overhead
Rate
(104.7%)
Other
Costs
Total
Cost of
Service
Water Meter
Repairer $58.2026 2.00 $116.41 $49.01 $121.88 $0.00 $287.29 Manager I $80.6957 0.25 $20.17 $8.49 $21.12 $0.00 $49.79 Utility Services
Representative $47.6681 0.25 $11.92 $5.02 $12.48 $0.00 $29.41 Utility Plumber $70.0715 2.00 $140.14 $59.00 $146.73 $0.00 $345.87 Labor Subtotal $308.81 $130.01 $323.33 $0.00 $712.36 1 1/2" Meter
Material Costs N/A N/A N/A N/A N/A $350.69 $350.69
2" Meter
Material Costs N/A N/A N/A N/A N/A $494.65 $494.65
Proposed Fee for 1 1/2" Special Test (Labor plus Meter) $1,060.00 Proposed Fee for 2" Special Test (Labor plus Meter) $1,200.00
Table 13: FYE 2025 Large Meter Testing Fee Calculations Labor or
Material Cost
FYE
2025
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(42.1%)
Overhead
Rate
(104.7%)
Other
Costs
Total
Cost of
Service
Water Meter
Repairer
$58.2026 2.00 $116.41 $49.01 $121.88 $0.00 $287.29
Manager I $80.6957 0.25 $20.17 $8.49 $21.12 $0.00 $49.79 Utility Services
Representative
$47.6681 0.25 $11.92 $5.02 $12.48 $0.00 $29.41
Labor Subtotal $308.81 $130.01 $323.33 $0.00 $366.46 3" Meter and
UME Costs N/A N/A N/A N/A N/A $1,200.00 $1,200.00
4" Meter and
UME Costs N/A N/A N/A N/A N/A $1,400.00 $1,400.00
6" Meter and
UME Costs N/A N/A N/A N/A N/A $1,700.00 $1,700.00
Proposed Fee for 3" Special Test (Labor plus Meter) $1,540.00 Proposed Fee for 4" Special Test (Labor plus Meter) $1,740.00 Proposed Fee for 6" Special Test (Labor plus Meter) $2,040.00 W-45: Land Use and Facility Rental and Use Fees
The Land Use and Facility Rental and Use Fees recover costs of reserving, maintaining, and administering access to or rentals of lands, facilities, and right of way owned by the SFPUC.
Land Access Fee and Sunol & Pulgas (Wedding Fee):
The Land Access Fee is charged to customers who obtain permits to be on SFPUC property without SFPUC staff; this fee is primarily assessed for contractors who perform work on SFPUC land. The fee is assessed as a base fee, paid at the time of the permit issuance, and a per-day fee, billed by the number of days approved.
The base fee recovers the average time of 0.25 hours for a Manager III to review the permit terms, process insurance, and set permit requirements, the average time of 0.5 hours for a Principal Administrative Analyst and Senior Clerk Typist to provide clerical support for processing and documenting the request, creating the permit, and issuing entry keys, and the average time of 0.5 hours for an Associate Engineer to evaluate any engineering calculations. The fee also recovers the average time of 4 hours for a Watershed Keeper and 0.25 hours for a Watershed Keeper Supervisor to conduct right of way (ROW) site visits and reviews. The per-day fee was calculated to recover the average time of 0.5 hours for a Watershed Keeper Supervisor and the average time of 2 hours for a Watershed Keeper to go into the field and check that all approved partied are compliant with the permit agreements.
Table 14: FYE 2025 Land Access Base Permit Calculations Labor or
Material Cost
FYE 2025
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(42.1%)
Overhead
Rate
(104.7%)
Other
Costs
Total
Cost of
Service
Principal
Administrative
Analyst
$80.5161 0.50 $40.26 $16.95 $42.15 $0.00 $99.36
Manager III $93.4243 0.25 $23.36 $9.83 $24.45 $0.00 $57.64 Area land
Manager $80.6957 0.25 $20.17 $8.49 $21.12 $0.00 $49.79
Associate
Engineer $85.3150 0.50 $42.66 $17.96 $44.66 $0.00 $105.28 Senior Clerk
Typist $42.0608 0.50 $21.03 $8.85 $22.02 $0.00 $51.90
Watershed
Keeper
Supervisor
$53.5705 0.50 $26.79 $11.28 $28.04 $0.00 $66.11
Watershed
Keeper $47.8991 4.00 $191.60 $80.66 $200.60 $0.00 $472.86 Principal
Administrative
Analyst
$80.5161 0.50 $40.26 $16.95 $42.15 $0.00 $99.36
Base Permit
Total Fee $147.48 $62.09 $154.41 $0.00 $902.94
Proposed Fee $902.00
Current Fee $753.00
% Change 20%
Table 15: FYE 2025 Land Access Per-Day Permit Fee Calculations Labor or
Material Cost
FYE 2025
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(42.1%)
Overhead
Rate
(104.7%)
Other
Costs
Total
Cost of
Service
Watershed
Keeper $47.8991 2.00 $95.80 $40.33 $100.30 $0.00 $236.43 Per-Day Total
Fee $122.58 $51.61 $128.34 $0.00 $302.54
Proposed Fee $302.00
Current Fee $234.00
% Change 29%
The SFPUC also allows for the use of the Sunol and Pulgas temple grounds for wedding ceremonies, if approved and permitted. The fee is charged in two-hour increments. The proposed fee was calculated to recover the administrative costs for a Watershed Keeper Supervisor to schedule the event, Manager III to review and approve the permit, and a Senior Clerk Typist to create and process the reservation permits. In addition to processing the permit request, wedding parties may also place unexpected burdens on staff to help facilitate parking and clean up after the event. On average, the time spent to support these requests are higher than previously accounted for. Therefore, the new proposed fee was calculated to also include the average time of 4 hours performed by a Watershed Keeper to provide additional staffing support. As a result, the Sunol and Pulgas Fee will approximately increase by 19% from the current FYE 2024 fee.
Table 16: FYE 2025 Sunol and Pulgas Facility Rental Calculations Labor or
Material Cost
FYE 2025
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(42.1%)
Overhead
Rate
(104.7%)
Other
Costs
Total
Cost of
Service
Watershed
Keeper
Supervisor
$53.5705 0.50 $26.79 $11.28 $28.04 $0.00 $66.11
Watershed
Keeper $47.8991 4.00 $191.60 $80.66 $200.60 $0.00 $472.86 Manager III $93.4243 0.25 $23.36 $9.83 $24.45 $0.00 $57.64 Senior Clerk
Typist $42.0608 1.00 $42.06 $17.71 $44.04 $0.00 $103.81 Totals $283.80 $119.48 $297.14 $0.00 $700.41
Proposed Fee $700.00
Current Fee $590.00
% Change 19%
O’Shaughnessy Rental Fees and Food Fees:
Guest facilities are maintained at O’Shaughnessy Dam for official guests to be used for business purposes. The O’Shaughnessy Rental fees are charged based on the number of nights reserved and are charged to the official guests. Meal fees are not services offered or charged to guests, instead the meal charges are set to per diem rates and used as a reference for the Form 700, when food services may be provided during official tours. The current O’Shaughnessy meal fees are set to outdated per diem rates.
Staff propose to update the food references to the most up to date U.S. General Services Administration (GSA) reported meals and incidentals per diem rates for Yosemite (Table 17) Rental fees were calculated using historic expenditure data from the SFPUC Maximo sy stem, which distinguishes costs between each Cabin and the general facilities. These costs were escalated to present day value using CPI. The rental fee incorporates the average annual housekeeping labor costs, housekeeping staff’s transportation, routine material costs, electricity costs, and renovation & refurbishment (R&R) costs spread over 20 years to account for the longevity of most renovation work.
The costs are assigned to each cabin based on the actual labor and work performed on each facility.
Additionally, shared costs incurred by the Compound Facility and shared grounds are equally allocated to each facility.
After allocating the total expenses to each facility rental, staff developed a per night rate using the maximum available trips permitted within an open season. See the table below for the breakout of each cost component and final fee calculations.
Table 17: FYE 2025 O'Shaughnessy Facility Rental Fee Calculations Expense Type Average
Annual Cost:
Bunkhouse
Average
Annual Cost
Cottage 1
Average
Annual Cost:
Cottage 2
Average
Annual Cost:
Compound
House keeping $19,715.91 $12,306.29 $9,810.46 $6,604.43 R&R (L&M) $8,966.90 $47,410.52 $11,529.61 $29,557.44
Material Costs $2,629.80 $4,917.47 $1,489.60 $1,657.17
Power/Gas $2,687.07 $2,483.84 $1,274.49 N/A
Mileage $1,076.30 $1,076.30 $1,076.30 N/A
Subtotal Annual $35,075.98 $80,800.77 $25,180.45 $37,819.03 Compound
Distribution $12,606.34 $12,606.34 $12,606.34 Distributed to Facilities
Total Facility
Expenses $47,682.32 $93,407.11 $37,786.80 N/A
Trips 52 52 52 N/A
Cost Per Trip $910.00 $1,790.00 $720.00 N/A
Proposed Fee
Per Night $303.00 $597.00 $240.00 N/A
Current Charge
Per Night $350.00 $350.00 $250.00 N/A
Percent Change
in Nightly Rate -13% 71% -4% N/A
Water Enterprise Regulatory Compliance (W-46)
The SFPUC’s Water Quality Division (WQD) manages the regulation of cross-connection and backflow prevention programs, which ensure that neither sanitary sewage nor nonportable water enters the SFPUC’s potable water system. Fees within this schedule, the laboratory fees, and the Lead Test Fees are calculated by the Water Quality Division, with the support of an independent consultant. WQD plans to revisit these fees within the next five years.
Wastewater Miscellaneous Fees
The Wastewater Enterprise collects regulatory compliance fees from industrial and commercial customers who are required to undergo cross connection testing, annual backflow inspections, pretreatment facility inspections, or stormwater control reviews. These charges are distinct from standard sewer or stormwater rates and help fund Wastewater’s non-operating revenue and the Pretreatment Program.
W-47: Wastewater Enterprise Regulatory Compliance Fees
Pretreatment Application Fees:
The Pretreatment Division of the Sewer Enterprise issues multiple permits to commercial customers, businesses, and developers, such as the Batch Discharge Permit, Industrial User Permit, and Construction Site Runoff Permits. When wastewater dispatchers apply for a new permit, renew their existing permit, or request to modify the permit, the SFPUC charges the customers a Pretreatment Application Fee. The Pretreatment Permits Application Fee is currently charged as one flat fee assessed (1) at the time of submitting the initial permit application and (2) at the time of any required annual or bi-annual permit renewal. However, during the cost-of-service analysis, it was found that the Pretreatment Permit Application Fee’s current fee structure and amount do not adequately account for the time spent administering these permits. Particularly, extensive time is spent coordinating with customers when insufficient information is provided in their applications or when applicants miss vital deadlines.
SFPUC staff recommend updating the existing Pretreatment Permit Application Fee into two fees – (1) an initial permit application fee and (2) a renewal or modification fee. The initial fee will be charged to first- time commercial business and entities applying for a pretreatment permit. The initial fee is calculated to recover the average time of 6 hours for Wastewater Control Inspector to perform the initial onsite visits and inspections, as well as the application review. Additionally, the fee incorporates the administrative time of 0.5 hours for a Supervising Wastewater Control Inspector and 0.25 hours for a Manager V to set up the customer account, coordinate the application intake and reconcile the application review (Table 18 and Table 19). The renewal or modification fee will be charged when customers apply to renew their permits or if significant modifications to the permit applications are requested or required. The charge was calculated to recover similar labor costs, but assumes less time is needed for the Wastewater Control Inspector to perform the on-site reviews.
Table 18: FYE 2025 Pretreatment Permits Application Initial Fee Calculations Labor or
Material Cost
FYE 2025
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(41.1%)
Overhead
Rate
(97.9%)
Other
Costs
Total
Cost of
Service
Wastewater
Control Inspector $65.6447 6.00 $393.87 $161.88 $385.60 $0.00 $941.34 Supervising
Wastewater
Control Inspector
$79.3100 0.50 $39.66 $16.30 $38.82 $0.00 $94.78
Manager V $108.1546 0.25 $27.04 $11.11 $26.47 $0.00 $64.62 Totals $460.56 $189.29 $450.89 $0.00 $1,100.74
Proposed Fee $1,100.00
Current Fee $373.00
% Change 195%
Table 19: FYE 2025 Pretreatments Permits Application Renewal/Modification Fee Calculations Labor or
Material Cost
FYE 2025
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(41.1%)
Overhead
Rate
(97.9%)
Other
Costs
Total
Cost of
Service
Wastewater
Control
Inspector
$65.6447 3.00 $196.93 $80.94 $192.80 $0.00 $470.67
Supervising
Wastewater
Control
Inspector
$79.3100 0.50 $39.66 $16.30 $38.82 $0.00 $94.78
Manager V $108.1546 0.25 $27.04 $11.11 $26.47 $0.00 $64.62 Totals $263.63 $108.35 $258.09 $0.00 $630.07
Proposed Fee $630.00
Updating the fee amount and structure will help the SFPUC recover the costs associated with reviewing applications, conducting on-site visits, coordinating with applicants, and triggering enforcement if needed. Furthermore, a recent survey of peer agencies found that most utilities charge significantly more for the same service than the SFPUC’s current and proposed fees. For example, East Bay Municipal Utility District charges close to $5,000 and King County (Washington) charges a range of $6,000-$12,000 for similar pretreatment permits. In addition to the initial application and inspection costs, peer utilities also charge fees to recover laboratory testing costs, which the SFPUC provides with no charge.
Pretreatment Facility Re-Inspection Fee:
The Pretreatment Facility Re-Inspection Fee is charged when regulated wastewater dischargers are noncompliant with permit agreements or ordinances, have enforcement needs, or otherwise exceed a standard number of inspections as deemed by Wastewater staff. The fee recovers the costs of additional inspections under the following permits or ordinances:
o Batch Discharge Permits
o Industrial User Permits
o Food Service Establishment Fats, Oils and Grease Ordinance o Mobile Washer Wastewater Discharge Permits
The proposed fee was calculated to recover a Wastewater Control Inspector’s average time of 3 hours to perform an inspection. The resulting fee is 62% greater than the current fee. The rate increase is driven by updates to the labor classification performing the work and right sized time estimates for performing an inspection. Originally, the fee was calculated to include a Supervising Wastewater Control Inspector and a Manager IV, but now redistributes all the labor to Wastewater Control Inspectors. Furthermore, when the original fee was calculated, staff assumed the service would require a total of 2 hours. Six years after developing the fee, Wastewater staff have recorded an average of 3 hours to provide the service.
Table 20: FYE 2025 Pretreatment Facility Re-Inspection Fee Calculations Labor or
Material Cost
FYE 2025
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(41.1%)
Overhead
Rate
(97.9%)
Other
Costs
Total
Cost of
Service
Wastewater
Control
Inspector
$65.6447 3.00 $196.93 $80.94 $192.80 $0.00 $470.67
Totals $196.93 $80.94 $192.80 $0.00 $470.67
Proposed Fee $470.00
Current Fee $291.00
% Change 62%
Stormwater Control Plan Review Fees:
As defined by the Stormwater Management Ordinance (SMO), all new and redevelopment projects that create and/or replace 5,000 square feet or more of impervious surface in combined sewer areas or 2,500 square feet or more in separate sewer areas must comply with the Stormwater Management Requirements and Design Guidelines (SMR). Developers submit their Stormwater Control Plans (SCP) to the Wastewater Enterprise for permitted approval. The Stormwater Control Plan Review Initial and Subsequent Fees cover the cost of the permit issued to a development under the SMO.
Applicants are required to pay, at minimum, one initial fee and one subsequent fee for the final review. If applicants do not incorporate all comments on either of the two required plans, the applicant must submit additional plans and pay the subsequent charge until the proposed development complies with the SMO.
At the time of each submission, the developer is charged based on the total gross square footage (gsf) of the proposed project. Refer to the tables below for the size thresholds.
The initial fee is based on a Junior Administrative Analyst’s average time needed to coordinate the initial intake, record the maintenance agreement, and support project management, as well as a Utility Specialist’s average labor time to conduct pre-application meetings, review the plans, provide technical assistance, and QA/QC the submitted materials. A SCP includes stormwater management calculations, a stormwater management plan, a source control plan, a maintenance schedule, construction drawings, and supporting documentation such as soil tests. Due to the large amount of submitted materials, the review period accounts for most of the fees’ cost, with larger projects necessitating longer review time and higher costs (Table 23). Similarly, the subsequent fee recovers the labor costs for the same Junior Administrative Analyst and Utility Specialist to perform additional quality assurance and final reviews, as well as the average time of a Wastewater Control Inspector to perform a post-construction inspection and follow up.
The subsequent fee is lower than the initial fee since it assumes there is a lesser administrative lift to coordinate with the applicant.
All proposed initial fees will decrease 4% from the current fee, while the subsequent fees will increase from a range of 22-39% from the current fees. These updates are driven by changes in staff performing the work. The current initial fee was calculated to include a Utility Specialist and a Utility Analyst, instead of a Junior Administrative Analyst, and the subsequent fee did not account for a Wastewater Control Inspector.
Table 21: FYE 2025 Stormwater Control Small Project Plan Review Fees Calculations Labor or
Material Cost
FYE 2025
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(41.1%)
Overhead
Rate
(97.9%)
Other
Costs
Total Cost
of Service
Initial Fee Calculation
Utility Specialist $71.2006 17.00 $1,210.41 $497.48 $1,184.99 $0.00 $2,892.88 Junior
Administrative
Analyst
$45.3713 2.50 $113.43 $46.62 $111.05 $0.00 $271.09
Totals $1,323.84 $544.10 $1,296.04 $0.00 $3,163.97
Proposed Initial Review Fee $3,163.00
Current Fee $3,302.00
% Change -4%
Subsequent Review Fee Calculation
Utility Specialist $71.2006 12.00 $854.41 $351.16 $836.46 $0.00 $2,042.03 Junior
Administrative
Analyst
$45.3713 2.50 $113.43 $46.62 $111.05 $0.00 $271.09
Wastewater
Control Inspector $65.6447 4.00 $262.58 $107.92 $257.06 $0.00 $627.56 Totals $1,230.41 $505.70 $1,204.58 $0.00 $2,940.69
Proposed Subsequent Review Fee $2,940.00
Current Fee $2,118.00
% Change 39%
Table 22: FYE 2025 Stormwater Control Medium Project Plan Review Fees Calculations Labor or
Material Cost
FYE 2025
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(41.1%)
Overhead
Rate
(97.9%)
Other
Costs
Total Cost
of Service
Initial Fee Calculation
Utility Specialist $71.2006 23.00 $1,637.61 $673.06 $1,603.22 $0.00 $3,913.90 Junior
Administrative
Analyst
$45.3713 2.50 $113.43 $46.62 $111.05 $0.00 $271.09
Totals $1,751.04 $719.68 $1,714.27 $0.00 $4,184.99
Proposed Initial Review Fee $4,184.00
Current Fee $4,369.00
% Change -4%
Subsequent Review Fee Calculation
Utility Specialist $71.2006 15.00 $1,068.01 $438.95 $1,045.58 $0.00 $2,552.54 Junior
Administrative
Analyst
$45.3713 2.50 $113.43 $46.62 $111.05 $0.00 $271.09
Wastewater
Control Inspector $65.6447 4.00 $262.58 $107.92 $257.06 $0.00 $627.56 Totals $1,444.02 $593.49 $1,413.69 $0.00 $3,451.20
Proposed Subsequent Review Fee $3,451.00
Current Fee $2,644.00
% Change 31%
Table 23: FYE 2025 Stormwater Control Large Project Plan Review Fees Calculations Labor or
Material Cost
FYE 2025
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(41.1%)
Overhead
Rate
(97.9%)
Other
Costs
Total Cost
of Service
Initial Review Fee Calculation
Utility Specialist $71.2006 31.00 $2,207.22 $907.17 $2,160.87 $0.00 $5,275.25 Junior
Administrative
Analyst
$45.3713 2.50 $113.43 $46.62 $111.05 $0.00 $271.09
Totals $2,320.65 $953.79 $2,271.91 $0.00 $5,546.35
Proposed Initial Review Fee $5,546.00
Current Fee $5,781.00
% Change -4%
Subsequent Review Fee Calculation
Utility Specialist $71.2006 20.00 $1,424.01 $585.27 $1,394.11 $0.00 $3,403.39 Junior
Administrative
Analyst
$45.3713 2.50 $113.43 $46.62 $111.05 $0.00 $271.09
Wastewater
Control Inspector $65.6447 4.00 $262.58 $107.92 $257.06 $0.00 $627.56 Totals $1,800.02 $739.81 $1,762.22 $0.00 $4,302.05
Proposed Subsequent Review Fee $4,302.00
Current Fee $3,531.00
% Change 22%
Power Miscellaneous Fees
M-1: Miscellaneous Power Charges
The existing miscellaneous fees for Hetch Hetchy Power primarily pertain to billing & account services and field action requests. Staff recommend updating the M-1 schedule to eliminate any fees that are no longer assessed by SFPUC and update any fees to recover the cost of providing the service. Power staff plan to revisit the Miscellaneous Power Charges with multiple new fees in the next fiscal year.
Temporary Service Installation and Removal Fee:
The Temporary Service Installation and Removal Fee provides temporary electric service to customers who require a connection during construction or development. The proposed fee is calculated to recover the average time of 0.5 hours for a Utility Representative to coordinate with the customer and process the request documents, as well as the average time of 2 hours for one Electrical Line Worker to install the meter and attach overhead wires to poles and one Associate Engineer to design the connection and ensure the operation is performed safely.
Table 24: FYE 2025 Temporary Service Installation and Removal Fee Calculations Labor or
Material Cost
FYE 2025
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(41.7%)
Overhead
Rate
(164.8%)
Other
Costs
Total
Cost of
Service
Electrical Line
Worker $66.35 2.00 $132.70 $54.54 $218.69 $0.00 $405.93 Associate
Engineer $85.32 2.00 $170.63 $70.13 $281.20 $0.00 $521.96 Utility
Specialist $71.20 0.50 $35.60 $14.63 $58.67 $0.00 $108.90 Totals $338.93 $139.30 $558.56 $0.00 $1,036.79
Proposed Fee $1,036.00
Current Fee $376.00
% Change 176%
The proposed fee represents a large increase from the current fee. However, in a survey done on peer utilities, it was found that multiple California power suppliers charge a range from $200-$5,000 for the service. Furthermore, these utilities separate the service into two categories – underground and overhead – and charge separately for each service. In the future, this rate design may be an option for the SFPUC to consider.