Water & Sewer Miscellaneous Fee Adoption
Fiscal Year Ending 2025
San Francisco Public Utilities Commission
Kristin Avenis, Rates Analyst
April 9, 2024
Agenda
• Miscellaneous Fee Overview
• Process & Methodology
• FYE 2025 Water and Wastewater Miscellaneous Fees
P
roposals
• Updating Existing Fees
• New Fees
• Eliminating Fees
2 Charges individual customers for
optional services or as penalties
and deposits.
Revenues reduce need to
increase retail rates, enhancing
equity for rate payers
Miscellaneous Fee Overview
3 Miscellaneous Fee Study Schedule
4 Fall-Winter 2023
• Defined fee
calculation
methodology
• Develop fee
calculation model
• Review
methodology and
approach with
executive team
Jan – March 2024
• Update analysis
with adopted budget
• Prepare for
implementation of
new and updated
fees
• Review
recommendations
with executive team
• Public Hearing
Notice posted
April 2024
• Water and Sewer
proposals at April
9th Commission
Meeting
• Power proposals
at April 23
rd
Commission
Meeting
July 1st, 2024
• Adopted
Miscellaneous
Fees become
effective, unless
otherwise stated
in the adopted
schedule of fees
Miscellaneous Fee Methodology
5 Cost of Providing Service Calculation
Labor cost
Overhead
Materials and
equipment
Policy Screening
Affordability
considerations
Penalties to
incentivize
compliance
Staff Review
Coordination with
department mangers
Executive review
Example Cost of Providing Service Calc.
6 Example Calculations: 5/8” Meter Test Fee
(A) (B) (C) = A x B (D) = C x 0.421 (E) = C x 1.047 (F) (G)=C+D+E+F 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
Labor and Materials Total $466.53
Proposed Fee for 5/8" Meter Test (Labor plus Meter) $460.00 Water and Sewer Fees Evaluated
7 Fees Escalated using CPI
• Security Deposit
• Meter Resizing*
• Water Service Installation Fees*
• Moratorium Streets*
• Specials Streets Fees*
• Meter Relocation*
• Broken Lock Penalty Fee
Fees with No Proposed Changes
• Late Payment Penalty
• Lead Testing Fee*
• Lien Fee
• Returned Check Charge
Proposals to Update Fee Structure
• Meter Test Fee
• Pretreatments Application Fee
Proposals to Eliminate Fees
• Pending Shutoff Notice Fee
• Flow Restricting Installations Fee
Fees Updated with New Cost Data
• Temporary Hydrants Connection Fee
• Temporary Hydrants Meter Rental
Deposit
• Temporary Hydrants No-Reporting
Penalty Fee
• Docks & Shipping Connection Fee
• Hydrant Flushing Fee
• Manual Meter Reading Fee
• Land Access Permit Fee
• Rental Facility Fees
• Backflow Tag Fee*
• Auxiliary Water System Cross
Connection Test Fee*
• Pretreatments Facility Reinspection
Fee
• Stormwater Control Plan Review Fee
Proposed New Fees
• Backflow Inspection Fee
• After-Hour s Temporary Service Shut
Down Fee
*Fees calculated through separate processes by Real Estate Division, City Distribution Division’s (CDD) Flat Rate Study, and Water Quality Division.
Proposed New Fees
8 • Flat fee charged to new water service applicants that require a backflow inspection
• $610 charged per applicant
Backflow Inspection Fee
• Charge to customers requesting a temporary water shut-down on water services 3-inches or larger, outside of normal business operating hours.
• 4 hour fee: $1,519
• 8 hour fee: $2,686
After-Hours Temporary Service Shut Down
Proposals to Eliminate Fees
9 • Penalty to install and remove a restricting flow device on non- compliant customers
• Charged to customer based on meter size
• This fee has not been used in the last decade
Flow Restricting Installations
• $50 fee for posting a physical pending shutoff notice • The SFPUC does not physically post these notices, unless there have been multiple unsuccessful attempts to contact the customer
• Adding a $50 charge to already delinquent customers further burdens them
Pending Shutoff Notice Fees
QUESTIONS & DISCUSSION
Thank you!
10 AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT Financial Services AGENDA NO. 8
MEETING DATE April 9, 2024
Public Hearing: Approve Water Enterprise Miscellaneous Fees: Regular Calendar Project Manager: Matthew Freiberg
Proposals to Adopt, Re vise, and/or Eliminate Miscellaneous Fees Related to the Water Enterprise
Summary of
Proposed
Commission
Action:
Public Hearing to consider and approve the Water Miscellaneous Fee schedule, which includes the revision of existing fees, elimination of certain fees, and adoption of new fees and charges related to the provision of water service within and outside 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 dete rmined that the Project is exempt from the CEQA. The Commission will rely on that determination to make its decision on this action.
Background: The San Francisco Public Utilities Commission ( SFPUC) charges miscellaneous 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 ot herwise 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 Resolutions No. 18-0082 and Resolution No. 18-0083, this 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 Water Enterprise:
I. Water Service Connections (W-40, W-41, & W-42)
II. Billing and Service Fees (W-44)
III. Land Use and Facility Rental and Use Fees (W-45)
IV. Water Enterprise Regulatory Compliance Fees (W-46)
The SFPUC is dedicated to developing rates and charges that support revenue sufficiency, customer 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 material 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, t hese miscellaneous fees will become effective July 1, 2024 and will remain effective until revised.
Water Service Connections (W-40, W-41, W-42, & W-43)
The Water Enterprise’s City Distribution Division (CDD) assesses charges for Meter Re-sizing (Schedule W-40), Service Installations (Schedule W- 41A), Water Service Connection (W-41B), Meter and Service Relocations (Schedule W-42), and a Flow Restricting Insta llation Fee (W -43) when such service modifications are made at the customer’s request or by the failure of the customer to comply with water use regulations.
Existing fees within Schedule W-40, W-41A, W-42 are calculated through the “Flat Rate Study ”, a separate analysis that is managed by CDD and conducted by an independent consultant. The charges for the fees in these schedules are based on the average labor and material costs for performing typical services. In the event that the service requires the use of non- standard size meters and/or when unusual conditions exist, the charges for meter resizing, service installation, meter and service relocation, and flow restricting installation will be custom
billed based on the actual cost
incurred by the Water Enterprise. CDD is progressing with an update of the Flat Rate Study, as such, SFPUC staff recommend that the existing charges continue to be adjusted by CPI. Refer to the attached schedules to see the CPI adjusted rates.
Meter Resizing Fees W-40 and Meter & Service Relocation W-42 Meter resizing services and meter relocation services are made and charged at the customer’s request except when such resizing is required to maintain
service pressure or meet flow requirements . If adopted, these fees will continue to be adjusted by CPI until a Flat Rate Study is finalized.
Water Installations Fees W-41A
Water Installations Fees are charged when customers request for a single- service or a multiple-service water installation and are broken out by meter size and customer classifications. These fees generally are incurred by developers or industrial customers. If the work requested is located on a street identified by the SFPUC, in consultatio n with the Municipal Transportation Agency and the Department of Public Works, as requiring extra permitting and additional paving costs, the customer will be charged a Special Streets Fee or M oratorium Streets fee in addition to the
installation fees.
These existing fees in the W-41A schedule will be adjusted by CPI until a new Flat Rate Study is finalized. However, staff also recommend that the Commission ratify and approve the new proposed FYE 2025 rate for the Backflow Inspection Fee, as detailed in Table 1.
Backflow Inspection Fee: If adopted, the Backflow Inspection Fee will be charged in addition to the water installation fees (W-41A) when a water service installation applicant’s water supply system includes a backflow prevention device and a backflow inspection performed by the Water Quality Division (WQD) is needed . Currently, a pproximately 75% of applicants require this service, which is currently being provided without charge. The proposed new fee will recover the labor cost incurred by WQD to perform the inspection.
Table 1: Proposed FYE 2025 Backflow Inspection Fee
Backflow Inspection Fee
Service Proposed FYE 2025 Fee
Backflow Inspection Fee $610
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, contractor s, docks and shippers to use low -
pressure fire hydrants for temporary water supply during constructions and for customer s who need temporary water supply for permitted special events. Existing f ees within this schedule pertain to the permitting and connection process for these requests.
As shown in Table 2, s taff propose to rename the “Builders and Contractors” fees to “Temporary Hydrant” fees to align with updates made
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. See Table 2 below for all the proposed charges.
Table 2: FYE 2025 Proposed Water Service Connection Fees W-41B: Water Service Connection Fees
Service Current FYE
2024 Fee
Proposed FYE
2025 Fee
Temporary Hydrant
Connection Fee* $213 $292
Temporary Hydrant
Meter Rental
Deposit*
1" Meter Deposit:
$1,879
3" Meter Deposit:
$6,045
PLUS 50 CCF
Usage at W- 1C
Volumetric Rate
1" Meter Deposit:
$2,510
3" Meter Deposit:
$4,710
PLUS 50 CCF
Usage at W-1C
Volumetric Rate
Temporary Hydrant
Non-Reporting
Penalty Fee*
$278 $292
Docks and Shipping
Connection Fee $399 $1,164
Hydrant Flushing
Fee
$661
PLUS 13 CCF at
W-1C Volumetric
Rate
$777
PLUS 13 CCF at W-
1C Volumetric Rate
After-Hours
Temporary Service
Water Shut Down
Fee
New Fee
4 Hour Standby
Fee: $1,519
8 Hour Standby
Fee: $2,686
*These fees are currently labeled as “Builders and Contractors” fees The proposed rate changes in Schedule W -41B are primarily driven by updates to the material costs and labor needed to perform the service. For example, the Temporary Hydrant Connection Fee will increase approximately 37% from the current fee to recover new signage costs and additional administrative costs, as the service will provide and require permitted signage be posted outside of construction and development projects or by approved events. These changes are pursuant of planned updates to the Rules and Regulations G overning Hydrant Use for
Temporary Water Supply, which will be brought to the Commission for approval.
Similarly, the proposed update to the Docks and Shipping Connection Fee, which charges large cargo or cruise ships and some federal entities during special events for temporary water s ervice connection, has a relatively large percent increase to this fee. The proposed increase is driven by an operational change being performed by CDD, where a second Water Service Inspector will be supporting the connection, to ensure the service is performed safely. This fee will not apply to small sailboats.
Lastly, t he meter rental deposits fees were also updated with the latest meter costs data provided by CDD and then escalated above the market rate of these meters to incentivize customers to return the meter on time.
The base fee will increase for smaller meters and decrease for larger meters due to changes in the costs of meter equipment used.
After-Hours Temporary Service Water Shut Down Fee: In
addition to the
existing Billing and Service fees, staff recommends that the Commission ratify a new After-Hours Temporary Service Water Shut Down Fee as shown in Table 3. The A fter-Hours Temporary Service Water Shut Down Fee is 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. The service is often requested by commer cial customers who need side plumbing repair work but need the SFPUC to temporarily turn off the water meter. If this service is requested to occur during normal operating hours, this service is provided with no charge.
This fee specifically recovers the overtime labor costs of providing the standby service after regular business hours and is charged as either a 4 - hour fee or an 8-hour fee.
Table 3: FYE 2025 Proposed After-Hours Temporary Service Water Shut Down Fee After-Hours Temporary Service Water Shut Down Fee
Service Proposed FYE 2025 Fee
0-4 Hour Standby Fee $1,519
4.01-8 Hour Standby Fee $2,686
CDD overtime rates are charged in 4-hour increments. If the time spent to perform the service exceeds 4 hours, the service will automatically be charged as an 8-hour fee.
Flow Restricting Installation Fee (W-43)
Flow restricting installation fees are billed based on the actual cost incurred by the Water Enterprise and are charged when a flow restricting device is placed on a customer’s meter if they are found in violation of the SFPUC’s Water Waste Restrictions. Staff propose eliminating the Flow Restricting Installation Fee (W -43) as this fee could place a further burden on
customers. Furthermore, this fee has never been triggered and if collected
would produce minimal revenue for the Enterprise. The elimination of this fee does not inhibit the SFPUC from utilizing flow restricting devices , it only eliminates the f ee associated with the installation of the flow restricting device.
Billing and Service Fees (W-44)
The Water and Wastewater Enterprises impose penalty fees and charges for billing and service requests, including 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 and to eliminate the Pending Shutoff Notice Fee due to changes in implementation and customer affordability concerns. There will be no changes to the Returned Check Charge and the Lead Testing fees. Th e following section highlights the proposed changes to W-44.
Manual Meter Reading Fee: This fee is charged to any customer who opts out of automatic meter reads. The current fee was set to charge customers below the cost of providing the service to minimize customer impacts in 2018. Staff propose to replicate this methodology and recover 56.8% of the cost to perform the service in FYE 2025 before escalating the recovery rate to 65% in FYE 2026, as detailed in Table 4 below.
Table 4: FYE 2025 and FYE 2026 Proposed Meter Test Fee
Current
FYE 2024 Fee
Proposed FYE
2025 Fee
Proposed FYE
2026 Fee
Manual Meter
Reading Fee $24 $28 $33
Meter Test Fee: The Meter Test fee is charged when customers request the SFPUC test the accuracy of their meter; the fee will not be charged if the meter tests register 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, as shown in Table 5. A tiered fee structure allows for a more equitable distribution of costs among users and deters individuals from excessively requesting this service if no significant error or variance is found in their meters.
Table 5: Proposed Meter Test Fee
FYE 2025 Meter Test Fee
Service Size Current Fee Proposed Fee
5/8" Special Test $448 $460
3/4" Special Test $448 $480
1" Special Test $448 $520
1 1/2" Special Test $448 $1,060
2" Special Test $448 $1,200
3" Special Test $448 $1,540
4" Special Test $448 $1,740
6" Special Test $448 $2,040
Land Use and Facility Rental and Use Fees (W-45)
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 SFPUC charges “land use” fees for construction access to water system rights-of-way (ROW). These fees cover the cost of the SFPUC staff needed to monitor the land access and ensure that the activities do not damage or interfere with the SFPUC’s facilities and operations. Staff recommends increasing the ROW and Land Access Permit Fee shown in Table 6 based on cost of providing the service. Staff also recommend that the fee be renamed to the “Land Access” Fee.
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. Staff have also proposed to increase this fee to reflect the full cost of staff labor incurred by the Natural Resources team to support this service. Refer to Table 6 below for the proposed rates for FYE 2025.
Table 6: Land Use and Facility Rental and Use Fees
Land Use and Facility Rental and Use Fees (W-45)
CHARGE CURRENT
FYE 2024
PROPOSED FYE
2025
Land Access Fee Base Fee: $753
Per-Day Fee: $234
Base Fee: $90 2
Per-Day Fee: $302
Sunol and Pulgas Facility
Rental (Wedding) $590 per two hours $700 per two hours
O’Shaughnessy Rental Fees and Food Fees
Most of Hetch Hetchy’s facilities are in the High Sierras and their foothills, more than 1 40 miles from San Francisco . Visits to these facilities often require overnight accommodations. Guest facilities are maintaine d at O’Shaughnessy Dam for official guests to be used for “business purposes” which include public information, intergovernmental relations, and educational activities. Official guests are members of the Public Utilities Commission and its staff, officers of departments of City government performing direct service for the Public Utilities Commission, Office of the Mayor, Board of Supervisors, elected officials within Hetch Hetchy’s service area, Federal and State officials, official delegates of the Bay Area Water Supply and Conservation Agency, Modesto and Turlock Irrigation Districts, non -
profit education groups, and such other groups as the
Commission may, from time to time, authorize.
Pursuant to Commission Resolution No. 92-0358, charges for use of guest facilities at O’Shaughnessy Dam were previously set in the Annual Salary Ordinance (ASO). Rental fees are charged based on the number of nights reserved. Meal fees are not services offered or charged to guests. The meal charges were set to per diem rates and are used as a reference for the Form 700 when food services may be provided during official tours. In 2018, the O’Shaughnessy Facility Rental fees and food fees were moved from the Annual Salary Ordinance (ASO) to the Commission’s Fee Schedules and ratified the existing fee amounts.
Based on the latest data and information provided by the Water Enterprise, staff conducted a fee analysis to propose updated O’Shaughnessy Rental fees. The rental fee incorporates the average annual housekeeping labor costs, housekeeping staff’s transportation, routine material costs, electricity costs, transportation costs and r enovation & r efurbishment (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. Staff also 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.
Historically, the facilities open in late April and close in September. If adopted, staff recommend that these fees become effective and updated by calendar year to align with its open season.
Table 7: FYE 2025 Proposed Facility Rental and Use Fees O’Shaughnessy Rental Fees and Food Fees (W-45)
CHARGE CURRENT
FYE 2024
PROPOSED
1/1/2025
O'Shaughnessy Cottage 1
Rental Fee (per night) $350 $597
O'Shaughnessy Cottage 2
Rental Fee (per night) $250 $240
O'Shaughnessy Bunkhouse
Rental Fee (per night) $350 $303
O'Shaughnessy Meal Fee -
Breakfast $10 $18
O'Shaughnessy Meal Fee -
Lunch $18 $20
O'Shaughnessy Meal Fee -
Dinner $26 $36
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 t hat neither sanitary sewage nor nonportable water enters the SFPUC’s potable water system. Fees within this schedule and the Lead Test Fees are calculated by the Water Quality Division, alongside an independent consultant.
Backflow Tag Fee: WQD staff are proposing to increase the Backflow Tag Fee to $27 for FYE 2025 and to $30 in FYE 2026. Backflow tags are stickers affixed to backflow prevention assemblies after they have passed an annual test. Backflow tags are purchased by private companies that perform backflow testing as a service to San Francisco customers covered by Article 12A of the San Francisco Health Code.
Auxiliary Connections Fees: Auxiliary Connection Fees are charges to building managers or developers wi th auxiliary water systems that are required to undergo cross -connection t esting. Please note that larger service connections incur a higher rate increase due to an update in the calculated staff performing this work and the labor hours assumed to complete each task. See Appendix A for the full list of charges within the schedule.
Automatic Fee Adjustments
Unless otherwise stated in the attached schedule, all fees in the schedules attached hereto shall be increased each fiscal year by the CPI issued by the City Controller’s Office.
Public Hearing Notice and Ra te 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 Publi c Library, for a public hearing on April 9th, 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 No. 2024-002620ENV) 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-
s9ac93d381eac4a35963b2b7964f04c65
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 water 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. 18-0083 and Resolution No.18-0082, this Commission established the existing schedules of fees and charges for miscellaneous services provided by the Water Enterprise; and
WHEREAS, SFPUC staff have reviewed the pre-existing miscellaneous fees related to the Water Enterprise under the W -40, W-41A, W-41B, W-42, W-43, W-44, W-45, and W -46 rate reschedules and deem certain fees unnecessary; and
WHEREAS, SFPUC staff finds that existing miscellaneous fees that pertain to the Water Enterprise are due for reconsideration, and SFPUC staff proposes updates to the existing schedule, effective in Fiscal Year 2024-25; and
WHEREAS, SFPUC staff finds that certain penalty and deposits fees serve to incentivize customers to follow SFPUC rules and regulations and recommend adjustments be made beginning 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 No tice of Public Hearing stating the intention of the Public Utilities Commission 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 22 nd,
March 24th, and March 27 th-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 s ection 15273 (Rates, Tolls, Fares and Charges) (Case No. 2024- 002620ENV) 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 the elimination of the Pending Shut -Off Notice Fee and Flow Restricting Installation Fee, effective as of July 1, 2025; and, be it RESOLVED, The Commission hereby approves, adopts, and ratifies the schedules of fees and charges attached hereto; and, be it 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 WATER SERVICE
EFFECTIVE JULY 1, 2024
Adopted April 9, 2024 by Commission Resolution No. _________ SCHEDULE W-40. METER RESIZING
Applicable to all water customers for meter resizing made at the customer’s request, except when such resizing is required to maintain service pressure or meet flow requirements.
CHARGE TYPE FYE 2025
Effective 7/1/24
Decrease
From an existing 2” meter to a 1-1/2” meter or
From an existing 1” meter to a 3/4” or 5/8” meter or
From an existing 3/4” to a 5/8” meter
$2,075
Increase
From an existing 5/8” to a 3/4” meter or
From an existing 3/4” to a 1” meter or
From an existing 1-1/2” to a 2” meter
$2,075
Reset 2" or smaller copper or plastic service $1,584
The SFPUC must approve a change in meter size. These rates do not apply if the change in meter size results in the need for a change in service line size.
The Customer Service Bureau shall consider requests to resize meters and may determine necessity based on the current fixture count for the property and whether a resized meter will deliver adequate flow.
The City Distribution Center will estimate the cost for all requests for meter decrease from services 3 inches and larger to something lesser. The estimate will be either the cost to resize the meter or to install a new meter based on the age, location, and meter configuration of the existing service.
For meter resizing not covered in the above, or when any unusual conditions result in costs more than 15% of scheduled costs, the SFPUC may require the payment of actual costs.
SCHEDULE W-41A. SERVICE INSTALLATIONS
Applicable to all water customers for service installations made at the customer’s request.
Water Installation Service Charges for Single Services
SIZE TYPE FYE 2025
Effective 7/1/24
1" Standard Service $13,169
1 -1/2" Standard Service $18,503
2" Standard Service $18,503
3" Standard Service $52,916
4" Standard Service $52,916
6" Standard Service $62,117
8" Standard Service $71,220
1 -1/2" Fire Service $17,616
2" Fire Service $17,616
4" Fire Service $34,770
6" Fire Service $41,181
8" Fire Service $47,264
1" Combination Service $13,169
1 -1/2" Combination Service $18,503
2" Combination Service $18,503
1" Non-Standard Service $13,169
1 -1/2" Non-Standard Service $18,503
2" Non-Standard Service $18,503
SCHEDULE W-41A. SERVICE INSTALLATIONS (Continued)
Water Installation Service Charges for Multiple Services SIZE TYPE FYE 2025
Effective 7/1/24
Primary Secondary
1" Standard Service $10,775 $5,258
1 -1/2" Standard Service $12,862 $7,039
2" Standard Service $12,862 $7,039
3" Standard Service $54,991 $45,040
4" Standard Service $54,991 $45,040
6" Standard Service $64,821 $54,991
8" Standard Service $74,378 $63,961
1 -1/2" Fire Service $14,361 $8,500
2" Fire Service $14,361 $8,500
4" Fire Service $35,617 $25,946
6" Fire Service $42,399 $32,716
8" Fire Service $48,947 $39,229
1" Combination Service $10,775 $5,258
1 -1/2" Combination Service $12,862 $7,039
2" Combination Service $12,862 $7,039
1" Non-Standard Service $10,775 $5,258
1 -1/2" Non-Standard Service $12,862 $7,039
2" Non-Standard Service $12,862 $7,039
(i) The charge for setting each additional meter on an existing or new service for residential and small commercial use , and (ii) the charge for resetting a meter on an existing usable service, shall be established in the same manner as above.
For installations not covered in the above or when, in the opinion of the General Manager, any unusual conditions may result in costs more than 15% greater than the scheduled costs, the SFPUC may require payments based on actual costs.
All pipes, valves, fittings, equipment, materials, meters, any other facilities, up to and including the outlet equipment, shall remain the property of the SFPUC, and no part of the cost will be refunded.
SCHEDULE W-41A. SERVICE INSTALLATIONS (Continued)
Additional Fees for Water Service Installations on Regulated Streets Applicable to water service installations in Schedule W- 41A when the installation is located on a street or streets identified by the SFPUC, in consulta tion with the Municipal Transportation Agency and the Department of Public Works, as requiring extra permitting and additional paving costs.
CHARGE TYPE FYE 2025
Effective 7/1/24
Special Streets Additional Fee $2,912
Moratorium Streets Additional Fee $4,779
Additional Fees for Water Service Installations with Backflow Inspection Applicable to water service installations in Schedule W- 41A when the installation includes a backflow prevention device, and the Water Quality Division must perform a backflow inspection. This charge will be assessed per applicant.
CHARGE TYPE FYE 2025
Effective 7/1/24
Backflow Inspection Fee $610
SCHEDULE W-41B. WATER SERVICE CONNECTIONS FEES
TEMPORARY HYDRANT CONNECTION FEE $292
Customers who temporarily connect to the system will be assessed a connection charge.
TEMPORARY HYDRANT METER RENTAL DEPOSIT
Builder and Contractor customers that connect to the system, in addition to payment of a Builders and Contractors conne ction fee, shall also pay a meter dep osit of $ 2,510 for 1” meter and $4,710 for a 3” meter plus a charge equivalent to 50 units (CCF) of water at the current Schedule W-1C water rate, which will be $5 84 for FY 2024-25. The deposit will be refunded when the account is closed.
TEMPORARY HYDRANT NO-REPORTING PENALTY FEE
Builder and Contractor customers that do not bring the rented meter in for reading and testing according to the meter reading schedule, will be assessed a penalty fee equivalent to 25 units (CCF) of water at the effective W-5 water rate, which will be $292 per every delinquent month during FY 2024-25.
DOCKS AND SHIPPING CONNECTION FEE $1,164
Docks and Shipping customers who connect to the system will pay a connection fee to cover the administrative costs for setting up a billing account and field work to provide connecting equipment.
HYDRANT FLUSHING FEE $777
When customers use a portable meter to connect to a hydrant for potable uses which require flushing and water quality testing prior to use, a fee will be assessed for this service plus a charge equivalent to 13 units (CCF) of water at the current Schedule W-5 water rate, which will be $151.84 for FY 2024-25.
AFTER-HOURS TEMPORARY SERVICE WATER SHUT DOWN FEE
Any customer who requests an after-hours temporary water shut down on water services 3” or larger will be assessed either a 4-hour standby fee of $1,519 or an 8-hour standby fee of $2,686.
If the work requested exceeds 4 hours, it will automatically be assessed as an 8-hour fee.
This service is provided at no charge when the request is scheduled to occur during normal operating hours.
SCHEDULE W-42. METER RELOCATION AND SERVICE FEES
Customer requested meter and service relocations. The City Distribution Division shall determine the location of the meter:
CHARGE TYPE FYE 2025
Effective 7/1/24
Relocation of meter no more than 2’
on existing 2" copper service $4,779
Relocation of meter no more than 2’
on existing 1" copper or plastic service $2,912
If the SFPUC determines that the relocation of an active meter and/or service connection is required because of the operations of the SFPUC or because of modifications to a street or right-of-way by a public agency, the relocation will be done at no cost to the customer.
If the meter or service to be relocated is not active, the SFPUC may elect to sever the service connection and remove the meter without relocating it. If the SFPUC approves a customer request to relocate or remove the meter, the customer shall pay the greater of the standard charge as described above or the actual cost incurred by the Water Enterprise.
For relocations not covered in the above, or when any unusual conditions result in costs of more than 15% of scheduled costs, the SFPUC may require payment of the actual costs.
For SCHEDULES W-40 through W-42
Each year, the SFPUC will adjust the fees in Schedule W-40 through W-43 by the Consumer Price Index released by the Controller’s Office of the City and County of San Francisco.
SCHEDULE W-43. BILLING SERVICE FEES
Except as noted, the following service fees are applicable to all water customers except wholesale customers.
SECURITY DEPOSIT
The SFPUC may require a customer to make a refundable security deposit equal to the greater of two months of estimated water charges or $123. This deposit is refundable after twelve months of satisfactory payment history or termination of service and settlement of the final bill, whichever occurs first.
LATE PAYMENT PENALTY
Any charge or fee not paid within 30 days shall be subject to a late payment penalty equal to one-half of one percent (0.5%) for each 30 days or fraction thereof on the amount owed.
This late payment penalty shall also apply to wholesale customers.
RETURN CHECK CHARGE $50
A return check charge shall be applied to any account whose check payment is returned due to insufficient funds, closed accounts or any other reason why the customer’s bank did not honor the check. This charge will be made for every such occurrence.
BROKEN LOCK CHARGE $25
Any customer whose service is shut-off for non-payment will also be charged for the cost of a meter lock installed in accordance with the Water Enterprise regulations.
METER TEST
Any customer who requests to test the accuracy of their water meter will be assessed a fee based off its meter size, as follows:
5/8" Special Test $460
3/4" Special Test $480
1" Special Test $520
1 1/2" Special Test $1,060
2" Special Test $1,200
3" Special Test $1,540
4" Special Test $1,740
6" Special Test $2,040
If the meter is found to register more than the limit of error specified in the “Water Rules and Regulations Governing Water Services to Customers,” the testing fee will be returned.
SCHEDULE W-43. BILLING SERVICE FEES (CONTD.)
MANUAL METER-READING FEE $28
Any customer who has opted out of automatic meter reads will be assessed a manual meter- reading charge to cover the cost of manual meter reading.
LIEN FEE
Any account with an outstanding balance of greater than $50 and which is delinquent by more than one billing cycle may be recorded as a lien against the property. Any account recorded as a lien against the property will be assessed a lien fee as provided in the Administrative Code of the City and County of San Francisco.
LEAD TEST FEE $25
At the customer’s request, the Water Enterprise will provide lead testing of water samples taken from a customer’s home or business. The fee covers sample bottle drop-off and pick- up, as well as the analytical tests.
Each year, the SFPUC will adjust all other fees in Schedule W- 43 by the Consumer Price Index from the Controller’s Office of the City and County of San Francisco. The Returned Check Charge and Lead Test Fee will not change
Public Hearing: Approve Water Miscellaneous Fees
Commission Meeting Date: April 9, 2024
SCHEDULE W-44: LAND USE AND FACILITY RENTAL AND USE FEES Charges for access to or rental of lands, facilities, or right-of-way (ROW) owned by the SFPUC. Customers may lease facilities not listed here based on negotiated contracts.
CHARGE TYPE FYE 2025
Effective 7/1/24
Land Access Fee Base Fee: $902
Per-Day Fee: $302
Sunol and Pulgas Facility Rental (Wedding) $700 per two hours
CHARGE TYPE FYE 2025
Effective 1/1/24
O'Shaughnessy Cottage 1 Rental Fee (per night) $597
O'Shaughnessy Cottage 2 Rental Fee (per night) $240
O'Shaughnessy Bunkhouse Rental Fee (per night) $303
O'Shaughnessy Meal Fee - Breakfast $18
O'Shaughnessy Meal Fee - Lunch $20
O'Shaughnessy Meal Fee - Dinner $36
Each fiscal year, the SFPUC will adjust the Land Access Permit Fee in Schedule W -44 by the Consumer Price Index released by the Controller’s Office of the City and County of San Francisco.
The O’Shaughnessy Rental fees and Meal fees will become effective at the start of the 2025 Calendar Year, on January 1
st, 2025. Each calendar year, the O’Shaughnessy Meal
Fees will be updated to reflect the latest U .S. General Services Administration (GSA) reported meals and incidentals per diem rates for Yosemite. All other fees in Schedule W-44 will not change.
Public Hearing: Approve Water Miscellaneous Fees
Commission Meeting Date: April 9, 2024
SCHEDULE W-45: WATER ENTERPRISE REGULATOR COMPLIANCE FEES Backflow Tag Fee
Backflow tag fees for customers who are required to conduct an annual inspection of backflow prevention assemblies per Article 12A of the San Francisco Health Code.
CHARGE TYPE FYE 2025
Effective 7/1/24
FYE 2026
Effective 7/1/25
Backflow Tag $27 $30
Auxiliary Water System Cross-Connection Test Fee
Buildings with auxiliary water systems required to undergo cross-connection testing.
TYPE FYE 2025
Effective 7/1/24
Up to 320 fixtures $2,200
321 to 640 Fixtures $3,600
641 to 1,280 Fixtures $6,390
1,281 to 1,920 $9,180
1,921 to 2,560 $11,970
2,561 to 3,200 Fixtures $18,000
3,201 to 3,840 Fixtures $20,790
Over 3,840 Fixtures Contact WQD for Quote
Each year, the SFPUC will adjust the Auxiliary Water System Cross-Connection Test fee by the Consumer Price Index released by the Controller’s Office of the City and County of San Francisco.
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 𝐶𝐶𝐿𝐿𝐶𝐶𝐶𝐶 = 𝐹𝐹𝐹𝐹
𝐹𝐹𝐹𝐹𝐹𝐹 𝐿𝐿𝐹𝐹𝐿𝐿𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏
𝑏𝑏 ℎ𝐿𝐿𝐹𝐹𝐿𝐿𝐹𝐹
𝐹𝐹 𝐿𝐿𝐿𝐿𝐶𝐶𝑏𝑏 × 𝐸𝐸𝐶𝐶𝐶𝐶𝑖𝑖𝑖𝑖𝐿𝐿𝐶𝐶𝑏𝑏𝑏𝑏 𝐶𝐶𝐶𝐶𝐿𝐿𝑠𝑠𝑠𝑠 𝐶𝐶𝑖𝑖𝑖𝑖𝑏𝑏
𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹 𝐿𝐿𝐹𝐹𝐿𝐿𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏
𝑏𝑏 ℎ𝐿𝐿𝐹𝐹𝐿𝐿𝐹𝐹
𝐹𝐹 𝐿𝐿𝐿𝐿𝐶𝐶𝑏𝑏
= 𝐻𝐻𝐿𝐿𝐹𝐹𝐿𝐿𝐹𝐹
𝐹𝐹 𝑅𝑅𝐿𝐿𝐶𝐶𝑏𝑏 × 𝐹𝐹𝐿𝐿𝑖𝑖𝑏𝑏𝐹𝐹𝑏𝑏 𝐵𝐵𝑏𝑏𝑏𝑏𝑏𝑏
𝑠𝑠𝑖𝑖𝐶𝐶𝐶𝐶 𝑀𝑀𝐹𝐹𝐹𝐹𝐶𝐶𝑖𝑖𝑀𝑀𝐹𝐹𝑖𝑖𝑏𝑏𝐿𝐿 × 𝑂𝑂𝑂𝑂𝑏𝑏𝐿𝐿ℎ𝑏𝑏𝐿𝐿𝑏𝑏 𝐴𝐴𝐹𝐹𝐹𝐹𝐿𝐿𝐴𝐴𝐿𝐿𝐶𝐶𝑖𝑖 𝐿𝐿𝑏𝑏 𝑅𝑅𝐿𝐿𝐶𝐶𝑏𝑏
The f
ringe 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 system, 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.