SAN FRANCISCO PUBLIC UTILITIES COMMISSION
City and County of San Francisco
Daniel Lurie
Mayor
REGULAR MEETING MINUTES
Tuesday, December 9, 2025
1:30 PM
1 Dr. Carlton B. Goodlett Place
City Hall, Room 400
Commissioners
Joshua Arce, President
Stephen E. Leveroni, Vice President
Avni Jamdar
Kate H. Stacy
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 Arce called the meeting to order at 1:30 P.M.
2. Roll Call
Present: Arce, Leveroni, Jamdar, and Stacy
Excused: Thurlow
3. Approval of the Minutes of November 10, 2025
No public comment provided.
On motion to approve the minutes of November 10, 2025:
Ayes: Arce, Leveroni, Jamdar, and Stacy
Excused: Thurlow
4. General Public Comment
• Stephen Rainaldi provided comment on behalf of Millbrae residents and ratepayers and expressed concern relating to the SFPUC Millbrae campus improvements project on El Camino Real.
• Ann Schneider, former City of Millbrae Mayor and Millbrae representative to the Bay Area Water Supply and Conservation Agency, provided comment relating to the removal of the Outdoor Supply Hardware (OSH) store located in Millbrae and urged the Commission to consider other alternatives for the SFPUC project. • Francisco Da Costa provided comment on the need for more transparency, accountability, information on the treatment plant; and, he reiterated concerns regarding three former SFPUC employees.
• Ken Smith, Millbrae resident, provided comment relating to the SFPUC El Camino property and suggested the Commission consider reimagining the site as a multistory building.
• Bob Hall provided comment and requested the Commission stop the proposal to add 20 acres of artificial turf to Crocker Amazon Park. • Susan Mullaney provided comment and shared her belief that SFPUC should prevent the San Francisco Recreation and Parks Department from installing artificial turf at Crocker Amazon Park.
• Santan Thien, Millbrae resident, provided comment relating to the loss of the OSH Hardware store and its impact to the community.
• Steve Selzer, United Front Committee for a Labor Party, provided comment about the discharge of three laborers.
• Laura Smith, Millbrae resident, provided comment about the closure of the Millbrae OSH and other retail stores in the area.
• Colleen Volken, Coalition for San Francisco Neighborhoods (CSFN), reiterated written comments she previously submitted to the Commission. • A member of the public, who did not share her name, provided comment relating to the OSH property in Millbrae and urged the Commission to engage officials and residents from the City of Millbrae to seek alternatives.
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• Peter Drekmeier, Yosemite Rivers Alliance Policy Director, provided comment relating to the Tuolumne River Voluntary Agreement letter he previously submitted to the Commission.
• Albert Yam, Millbrae resident and member of the Millbrae Chamber of Commerce Board of Directors, provided comment relating to the OSH Hardware store site, its importance to the Millbrae community, and urged the Commission to demonstrate stewardship.
• Gina Papan, former Mayor of Millbrae and regional transportation representative, provided comment relating to opportunities for SFPUC development in the City of Millbrae without the need to remove the OSH Hardware store.
• Dave Warner provided comment stating he is not a Millbrae resident, he recently submitted a letter to the Commission about the Millbrae yard project, and shared his belief that the project is an affordability opportunity that is not critical to water system reliability.
5. Report of the General Manager (discussion only)
a) Quarterly Audit and Performance Review Report (Q1 FY 2025-26) Nancy Hom, Chief Financial Officer and AGM Business Services, presented the report.
No public comment provided.
b) Budget and Capital Plan Progress Update
Anna Dunig, Budget Director, presented the report.
• Francisco Da Costa provided comment relating to a variety of topics including resources, indigenous people, diverted resources, water quality, deferred maintenance, ratepayer charges, and needs assessments. • Dave Warner thanked staff for the report and the Commission for asking outstanding questions; additionally, Mr. Warner stated that he experienced difficulty making sense of the information when the underlying demand assumptions are unknown.
c) SFPUC Quarterly Budget Status Report (Q1 FY 2025-26) Anna Duning presented the report.
No public comment provided.
d) Water Enterprise Capital Improvement Program Quarterly Report (Q1 FY 2025-26) Katie Miller, Water Infrastructure Capital Program Director, presented the report for Agenda Item Nos. 5d and 5e together.
• Dave Warner provided comment relating to a statement from Commissioner Leveroni, and explained that during Fourth Quarter of Fiscal Year 2024, the Capital Project Report showed a $600 million dollar variance between the
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original budget and forecast and suggested that the report reflects changes occurred in the budget since the beginning of Fiscal Year 2025.
e) Water System Improvement Program Quarterly Report (Q1 FY 2025-26) No public comment provided.
f) Wastewater Enterprise Capital Improvement Program Quarterly Report (Q1 FY 2025-26)
Bessie Tam, Infrastructure Wastewater Capital Program Director, presented the report.
No public comment provided.
g) Progressive Design-Build Contracting
Steve Robinson, Assistant General Manager, Infrastructure and Jignesh Desai, Principal Project Manager, Infrastructure, presented the report.
No public comment provided.
h) Report on Recent San Francisco Public Utilities Commission Activities, Events and Announcements
No report provided.
6. Bay Area Water Supply and Conservation Agency Report Tom Smegal, Bay Area Water Supply and Conservation Agency CEO and General Manager, presented the report.
• Ann Schneider provided comment relating to the permanent closing of the Millbrae Outdoor Supply Hardware (OSH) building.
• Stephen Rainaldi, City of Millbrae District 1 Council member, provided comment relating to the meeting between Steve Ritchie, SFPUC Assistant General Manager-Water and the Millbrae City Manager to discuss the plan to break ground at the OSH site in October 2026.
7. CONSENT CALENDAR
a) Award Contract No. WW-795, Sansome Street Outfall Improvements, to the responsible bidder that submitted the lowest responsive bid, R&S Construction Management, Inc., in the amount of $3,322,700 and with a duration of 300 consecutive calendar days (approximately 10 months), to rehabilitate the Sansome Street Outfall, located in the City and County of San Francisco. 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. (Robinson)
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b) Authorize the General Manager to designate Evoqua Tow Brow® secondary clarifier mechanism, as the sole source product for Contract No. DB-140, Southeast Water Pollution Control Plant - Secondary Clarifiers Rehabilitation, to match existing products used at San Francisco Public Utilities Commission Southeast Water Pollution Control Plant, in conformance with San Francisco Administrative Code Section 6.73(e) and California Public Contract Code Section 3400(c)(2). (Robinson)
No public comment provided.
On motion to approve the Consent Calendar:
Ayes: Arce, Leveroni, Jamdar, and Stacy
Excused: Thurlow
REGULAR CALENDAR
8. Public hearing to consider and possible action to adopt (1) new Rules and Regulations Governing Hydrant Use for Temporary Water Supply, and (2) associated amendments to the Rules and Regulations Governing Water Service to Customers, in conformance with the requirements of Charter Section 4.104; and authorize the General Manager to approve any non-substantive amendments or minor corrections to the Rules and Regulations Governing Hydrant Use for Temporary Water Supply that the General Manager, in consultation with the City Attorney, determines are necessary or appropriate to facilitate implementation of the Hydrant Use Permit Program. (Ritchie)
Bill Teahan, City Distribution Division Manager, presented Item 8.
No public comment provided.
On motion to approve Item 8:
Ayes: Arce, Leveroni, Jamdar, and Stacy
Excused: Thurlow
9. Approve the terms and conditions and authorize the General Manager and/or City’s Director of Property to execute certain agreements with the City of Daly City, consisting of (i) a License Amendment to extend the term of SFPUC License No. P4703 for Habitat Mitigation, Monitoring, and Facilities by an additional five years, for a total of 10 years and four months, for an additional use fee of $23,503 and a total use fee of $51,015; (ii) a 50-year License Agreement to construct, operate, and maintain SFPUC-owned overflow facilities at Lake Merced for a total use fee of $2,278 on a 9,286-square-foot portion of San Francisco Assessor’s Parcel No. 7283-004, designated as SFPUC Parcel No. 55 (Lake Merced Tract); and (iii) a Purchase and Sale Agreement, Quitclaim Deed, and Easement Deed for the quitclaim of two existing SFPUC tunnel easements totaling 46,992 square feet on San Francisco Assessor’s Parcels: Nos. 7284-001, 7284-003, 7282- 005 and 7282-006, and the sale of five easements for stormwater facilities totaling approximately 180,010 square feet for a total purchase price of $71,000 on SFPUC Parcel
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No. 55, subject to Board of Supervisors and Mayor approval. (Flynn)
Dina Brasil, Right-of-Way Manager-Real Estate Services, presented Item 9
No public comment provided.
On motion to approve Item 9:
Ayes: Arce, Leveroni, Jamdar, and Stacy
Excused: Thurlow
10. Approve the terms and conditions and authorize the General Manager to execute a Purchase and Sale Agreement and Easement Deed with Katy O. Cheng for the acquisition of an approximately 9.2-square-foot easement for a subsurface sewer tunnel across property located at 491 Gaven Street, San Francisco, California, designated as a portion of San Francisco Assessor’s Parcel Number 5861-023, for $2,500, subject to Board of Supervisors and Mayor approval. (Flynn)
Dina Brasil presented Item Nos. 10, 11, and 12 concurrently and the Commission voted on each item separately.
No public comment provided.
On motion to approve Item 10:
Ayes: Arce, Leveroni, Jamdar, and Stacy
Excused: Thurlow
11. Approve the terms and conditions and authorize the General Manager to execute a Purchase and Sale Agreement and Easement Deed with Robert Tsui and Thuyen Ly Tsui, as Trustees of the Tsui Family Trust, for the acquisition of an approximately 298.2- square-foot easement for a subsurface sewer tunnel across property located at 495 Gaven Street, San Francisco, California, designated as a portion of San Francisco Assessor’s Parcel Number 5861-022, for $25,000, subject to Board of Supervisors and Mayor approval. (Flynn)
No public comment provided.
On motion to approve Item 11:
Ayes: Arce, Leveroni, Jamdar, and Stacy
Excused: Thurlow
12. Approve the terms and conditions and authorize the General Manager to execute a Purchase and Sale Agreement and Easement Deed with Waylen Ruiwei Hall, et al, for the acquisition of an approximately 693.2-square-foot easement for a subsurface sewer tunnel across property located at 499 Gaven Street, San Francisco, California, designated as a portion of San Francisco Assessor’s Parcel Number 5861-021, for $32,000, subject to Board of Supervisors and Mayor approval. (Flynn)
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No public comment provided.
On motion to approve Item 12:
Ayes: Arce, Leveroni, Jamdar, and Stacy
Excused: Thurlow
13. Approve an increase of $500,000 to the cost contingency and an increase of 910 calendar days to the duration contingency for Contract No. WD-2794B, Sunol Long Term Improvements Alameda Creek Watershed Center, with S.J. Amoroso Construction Co., for a revised cost limit of $36,905,700 and a revised duration limit of 3,033 consecutive calendar days (approximately seven years and ten months), to provide time to complete the fabrication, installation, and corrective actions related to the redesigned exhibits and to investigate and address water leaks within the facility, including potential additional extended overhead costs related to the redesign of the exhibits and time to cover the post- construction maintenance services that were included in the original contract scope. (Robinson)
Bryan Dessaure, Project Manager Bureau, Project Manager, presented Item 13.
President Arce left the dais at 4:15 P.M.
No public comment provided.
On motion to approve Item 13:
Ayes: Leveroni, Jamdar, and Stacy
Excused: Arce and Thurlow
14. Approve an increase of $1,000,000 to the cost contingency and an increase of 382 calendar days to the duration contingency for Contract No. HH-1015, O’Shaughnessy Dam Drainage and Miscellaneous Improvements, with Sierra Mountain Construction, Inc., for a revised cost limit of $6,814,550 and a revised duration limit of 778 calendar days (approximately two years and two months), to address modifications to the ladder- well platforms necessary to conform to site conditions and additional crack sealing work in supply wells to reduce leakage and thereby improve safe access within the dam. (Robinson)
Jimmy Leong, Project Manager Bureau Principal Engineer-Hetchy Capital Improvement Projects Program Manager, presented Item 14.
No public comment provided.
On motion to approve Item 14:
Ayes: Leveroni, Jamdar, and Stacy
Excused: Arce and Thurlow
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President Arce returned to the dais at 4:20 P.M.
15. COMMUNICATIONS (information only)
a. Advance Calendar
b. Contract Advertisement Report
c. Correspondence Log
d. Water Supply Conditions Update
e. Water Resources Division Annual Report FY 2024-25
f. Annual Water Supply Development Report
g. Annual Report on Net Energy Metering and Shared Renewable Energy (NEM/ShaRE)
h. CleanPowerSF Quarterly Report
i. Quarterly Report to the Board of Supervisors on the Status of Applications to PG&E for Electric Service
j. Hetch Hetchy Capital Improvement Program Quarterly Report (Q1 FY 2025-26)
16. Items initiated by Commissioners (discussion only)
Commissioner Stacy inquired about having a hearing on the Bay Delta Plan amendment and the Healthy Rivers and Landscapes (HRL) Program in 2026.
General Manager Herrera clarified and confirmed that a presentation for the Bay Delta Plan and its HRL Program interaction will be delivered during the 2026 calendar year.
Commissioner Stacy commented on correspondence and testimony received by the Commission relating to concerns about synthetic turf at Crocker Amazon Park; its effect on groundwater, wastewater and drinking water streams; and, stated interest for the PUC to be involved in discussions.
GM Herrera explained that the San Francisco Recreation and Parks Department is the lead on the Crocker Amazon discussions and stated that the SFPUC is not involved.
No public comment provided.
17. Public Comment on matters to be addressed during Closed Session
No public comment provided.
18. Motion on whether to assert the attorney-client privilege regarding matters listed below:
On motion to assert the attorney-client privilege:
Ayes: Arce, Leveroni, Jamdar, and Stacy
Excused: Thurlow
The Commission entered Closed Session at 4:26 P.M.
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CLOSED SESSION
SFPUC Officials and Staff members present during Closed Session: Joshua Arce, Commission President; Stephen Leveroni, Commission Vice President; Commissioner Avni Jamdar; Commissioner Kate Stacy; Dennis Herrera, SFPUC General Manager; Steve Ritchie, Assistant General Manager; Sheryl Bregman, Utilities General Counsel; 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):
Robert DyFoon v. City and County of San Francisco
Unlitigated Claim File No.: 25-01746
Date Filed: February 25, 2025
Proposed settlement of an unlitigated claim for property damage resulting from a water pipe break with the City to pay claimant Robert DyFoon $32,500, in exchange for a full and final release, subject to final approval by the Board of Supervisors. (Action Item) (Bregman)
The Commission exited Closed Session at 4:31 P.M.
19. Announcement following Closed Session
President Arce announced that the Commission recommends the Board of Supervisors approve the settlement referenced under Item 18.
20. 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: Arce, Leveroni, Jamdar, and Stacy
Excused: Thurlow
21. Adjournment
President Arce adjourned the meeting at 4:34 P.M.