SAN FRANCISCO PUBLIC UTILITIES COMMISSION
City and County of San Francisco
Daniel Lurie
Mayor
REGULAR DRAFT MINUTES
Tuesday, May 27, 2025
1:30 PM
1 Dr. Carlton B. Goodlett Place
City Hall, Room 400
Commissioners
Kate H. Stacy, President
Joshua Arce, Vice President
Avni Jamdar
Stephen E. Leveroni
Meghan Thurlow
Dennis J. Herrera
General Manager
Tiffany Lennear
Director of Commission Affairs
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ORDER OF BUSINESS
1. Call to Order
President Stacy called the meeting to order at 1:30 P.M.
2. Roll Call
Present: Stacy, Arce, Jamdar, Leveroni, and Thurlow
3. Approval of the Minutes of May 13, 2025
No public comment provided.
On motion to approve the minutes of May 13, 2025:
Ayes: Stacy, Arce, Jamdar, Leveroni, and Thurlow
4. General Public Comment
• Peter Drekmeier, Policy Director of the Tuolumne River Trust, welcomed Commissioner Thurlow and provided comment expressing good news relating to a hundred spring run Chinook salmon that entered the Tuolumne River a couple of weeks ago and are now holding at La Grange Dam.
5. Report of the General Manager (discussion only)
a) SFPUC Disclosure Training for Commissioners
Nikolai Sklaroff, Capital Finance Director; Erin Pham, Orrick, Herrington & Sutcliffe Law Firm Counsel, Public Finance; Stephen Spitz, Orrick, Herrington & Sutcliffe Law Firm Partner, Public Finance, presented the training.
• Peter Drekmeier praised the presentation and counsel, provided comment relating to rumors regarding the SFPUC Budget, and encouraged the Commission to have a workshop on the alternative water supply plan.
b) Quarterly Budget Status Report FY 2024-25 (Q3)
Anna Duning, Budget Director, presented the report.
No public comment provided.
c) Report on Recent San Francisco Public Utilities Commission Activities, Events and Announcements
No report provided.
6. CONSENT CALENDAR
a) Award four Master As-Needed HVAC and Mechanical Services contracts, PW- 012.A, PW-012.B, PW-012.C, and PW-012.D, each with a not-to-exceed agreement capacity of $4,500,000 and a duration of five years, to the responsible firms that submitted responsive statement of qualifications: ACCO Engineered Systems, Inc.
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(PW-012.A); American Mechanical, Inc. (PW-012.B); Mesa Energy Systems, Inc. (PW-012.C); and California United Mechanical, Inc. (dba United Mechanical) (PW- 012.D). ( Hale)
b) Approve Modification No. 1 to Job Order Contract No. JOC-99, General Engineering (A-License) Construction, San Francisco, San Mateo, Santa Clara, and Alameda Counties, with Marinship Development Interest LLC, to increase the contract not-to- exceed amount by $2,500,000, for a revised not-to-exceed contract amount of $7,500,000, and to increase the contract duration by three years, for a total contract duration of five years, to provide additional time and capacity for facility and asset improvements. (Robinson)
c) Approve Modification No. 1 to Job Order Contract No. JOC-103, General Engineering (A License) Construction, San Francisco, San Mateo, Santa Clara, and Alameda Counties, with Cal State Constructors, Inc., to increase the contract not-to- exceed amount by $2,500,000, for a revised not-to-exceed contract amount of $7,500,000, and to increase the contract duration by three years, for a total contract duration of five years, to provide additional time and capacity for facility and asset improvements. (Robinson)
d) Approve and adopt the General Manager’s finding that ABB Medium Voltage Variable-Frequency Drives product is necessary to match existing products used at SFPUC Wastewater Enterprise facilities; and authorize the General Manager to prescribe ABB Medium Voltage Variable-Frequency Drives for Contract No. WW- 767, Southeast Water Pollution Control Plant Booster Station Interim Improvements, contract documents in conformance with San Francisco Administrative Code Section
6.73(e)(1) and Public Contract Code Section 3400(c). 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. (Prather)
No public comment provided.
On motion to approve the Consent Calendar:
A yes: Stacy, Arce, Jamdar, Leveroni, and Thurlow
REGULAR CALENDAR
7. Authorize the issuance of up to $1.53 billion of Water Revenue Bonds, Sub-Series D Bonds (Regional Water & Local Water) and 2025 Sub-Series E Bonds (Hetch Hetchy Water) to fund the costs of water enterprise capital projects and to retire commercial paper up to $474 million; and 2025 Sub-Series F to refund certain outstanding Water Revenue Bonds originally issued as Build America Bonds (BABs) up to $1.056 billion (collectively, the 2025 Water Bonds); delegate to the General Manager authorization to
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appoint underwriters and enter into one or more bond purchase contracts with underwriters selected from the City’s pool of pre-qualified underwriters through a competitive procurement process and in accordance with the City’s policies and procedures with respect thereto, subject to the limits on underwriters’ compensation set forth in the resolution. The Commission resolution will approve the issuance of: Water Revenue Bonds, 2025 Sub-Series D Bonds (Regional Water & Local Water) to fund and refund Regional and Local Water capital improvements; 2025 Sub-Series E Bonds (Hetch Hetchy Water) to fund Hetch Hetchy Water capital improvements; 2025 Sub- Series F) to refund all or a portion of outstanding 2010 Water Revenue Bonds Sub-Series B, Sub-Series E, and Sub-Series G; fund capitalized interest to mitigate short-term budget impact of borrowing; and cost of issuance; approve the form of and authorize the execution and delivery of, related documents; and authorize the General Manager to negotiate the sale of the 2025 Water Bonds in one or more series of bonds, as the General Manager determines is in the best financial interest of the San Francisco Public Utilities Commission, subject to the terms of the Commission resolution. (Hom)
Nikolai Sklaroff presented Item No. 7.
• Peter Drekmeier provided comment relating to the analysis and information he has shared with the SFPUC during his 17-years with the Tuolumne River Trust and asked the Commission to increase their engagement with the public.
President Stacy, through the General Manager, requested a report on the status of the Build America Bonds refunding and future expectations at the June 24 th Commission
meeting.
On motion to approve Item No. 7:
Ayes: Stacy, Arce, Jamdar, Leveroni, and Thurlow
8. Approve an increase of $1,600,000 to the cost contingency and 331 calendar days to the duration contingency for Contract No. DB-121R2, Moccasin Powerhouse Generator Rehabilitation with General Electric Renewable Energy, for a revised cost limit of $32,648,985, and a revised duration limit of 1,898 consecutive days (approximately five years and three months), to address increased costs and schedule impacts due to shaft alignment issues discovered during reassembly of Generator Unit No. 1. (Robinson)
Tim Parkan, PMB Project Manager, presented Item No. 8.
No public comment provided.
On motion to approve Item No. 8:
Ayes: Stacy, Arce, Jamdar, Leveroni, and Thurlow
9. COMMUNICATIONS (information only)
a. Advance Calendar
b. Contract Advertisement Report
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c. Correspondence Log
d. Water Supply Conditions Update
e. Annual Hetch Hetchy Power and CleanPowerSF Power Source Disclosure Report Filing to the CA Energy Commission
10. Items initiated by Commissioners (discussion only)
No items were initiated by Commissioners.
11. Public Comment on the matters to be addressed during Closed Session
No public comment provided.
12. Motion on whether to assert the attorney-client privilege regarding the matters listed below:
On motion to assert the attorney-client privilege:
Ayes: Stacy, Arce, Jamdar, Leveroni, and Thurlow
The Commission entered Closed Session at 3:03 P.M.
CLOSED SESSION
SFPUC Officials and Staff members present during Closed Session: Kate Stacy, Commission President; Joshua Arce, Commission Vice President; Commissioner Avni Jamdar; Commissioner Stephen Leveroni; Commissioner Meghan Thurlow; Dennis Herrera SFPUC General Manager; Ron Flynn, Deputy General Manager; Sheryl Bregman, General Counsel; Patrick Kelly, Deputy City Attorney; Kate Bearman, Deputy City Attorney; Steve Ritchie, Water Enterprise Assistant General Manager; Joel Prather, Wastewater Assistant General Manager; Jannie Ram, Executive Assistant; and Tiffany Lennear, Director of Commission Affairs.
CONFERENCE WITH LEGAL COUNSEL regarding anticipated litigation (Government Code §54956.9, Administrative Code §67.10(d).
City and County of San Francisco v. Core & Main LP (Unlitigated Claim [City Attorney File No. 251058], dated November 7, 2024).
Proposed settlement of a product defect claim where the vendor will reimburse the San Francisco Public Utilities Commission the amount of $229,000. Proposed settlement subject to final approval by the Board of Supervisors. (Action Item) (Bregman)
CONFERENCE WITH LEGAL COUNSEL regarding existing litigation (Government Code §54956.9, Administrative Code §67.10(d)
Michael Rivas, et al. v. City and County of San Francisco
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San Francisco Superior Court Case No. CGC-23-607963 (filed July 28, 2023) City to pay $650,000 and agree to keep clear from debris and obstruction the portion of a v- ditch located on City property, in exchange for (1) dismissal of claims, (2) agreement by plaintiffs to keep clear from debris and obstruction the portion of the v-ditch located on plaintiffs’ property and related drainage facilities that are located on plaintiffs’ property, (3) agreement that the v-ditch and related drainage facilities are not public improvements, (4) agreement that plaintiffs will sign and notarize a document containing the terms enumerated in items (2) and (3), and that the document will be recorded against title to plaintiffs’ properties and will run with the land. Proposed settlement subject to final approval by the Board of Supervisors. (Action Item) (Bregman)
The Commission exited Closed Session at 3:17 P.M.
13. Announcement following Closed Session
President Stacy announced that the Commission recommends the Board of Supervisors approve the settlement(s) referenced under Item 12.
14. Motion regarding whether to disclose the discussion during Closed Session pursuant to San Francisco Administrative Code Section 67.12(a).
On motion not to disclose:
Ayes: Stacy, Arce, Jamdar, Leveroni, and Thurlow
15. Adjournment
President Stacy adjourned the meeting at 3:18 P.M.