1 FY 2026-27 Miscellaneous Fees ProposalSan Francisco Public Utilities CommissionMatthew Freiberg, Rates ManagerMay 12, 2026 Background• Miscellaneous Fees: • Charged to individual customers for special services, as deposits, or penalty fees• Provide rate payer equity by aligning special costs with those that require service• Offset retail rate revenue requirements • Fees and Charges are reported and updated in the rate book every year
Miscellaneous Fee ProcessFall-Winter 2025•Develop fee calculations •Coordinate implementation with Customer Service •Prepare communications planJan – April 2026•Update fee basis with adopted budget •Finalize implementation plan•Prepare agenda items•Finalize recommendations with Executive TeamMay 2026•May 12 Commission HearingJuly 1, 2026•Adopted Miscellaneous Fees become effective, unless otherwise stated in the adopted resolution Methodology for Fee CalculationsCost of Providing Service = Fully burdened labor costs + Material/equipment costs𝐹𝑢𝑙𝑙𝑦 𝑏𝑢𝑟𝑑𝑒𝑛𝑒𝑑 𝑙𝑎𝑏𝑜𝑟 𝑐𝑜𝑠𝑡=𝐹𝑢𝑙𝑙𝑦 𝑏𝑢𝑟𝑑𝑒𝑛𝑒𝑑 ℎ𝑜𝑢𝑟𝑙𝑦 𝑟𝑎𝑡𝑒×𝐸𝑠𝑡𝑖𝑚𝑎𝑡𝑒𝑑 𝑠𝑡𝑎𝑓𝑓 𝑡𝑖𝑚𝑒𝐹𝑢𝑙𝑙𝑦 𝑏𝑢𝑟𝑑𝑒𝑛𝑒𝑑 ℎ𝑜𝑢𝑟𝑙𝑦 𝑟𝑎𝑡𝑒=𝐻𝑜𝑢𝑟𝑙𝑦 𝑟𝑎𝑡𝑒 ×𝐹𝑟𝑖𝑛𝑔𝑒 𝑏𝑒𝑛𝑒𝑓𝑖𝑡𝑠 𝑚𝑢𝑙𝑡𝑖𝑝𝑙𝑖𝑒𝑟 ×𝑂𝑣𝑒𝑟ℎ𝑒𝑎𝑑 𝑎𝑙𝑙𝑜𝑐𝑎𝑡𝑖𝑜𝑛 𝑟𝑎𝑡𝑒FYE 2027 SFPUC Overhead Allocation and Fringe Benefits RatesFringe Benefits RateOverhead Allocation RateEnterprise37.2%104.7%Water37.3%97.9%Sewer37.5%168.2%Hetch Hetchy PowerNot all Miscellaneous Fees are Implemented at 100% Cost of Providing Service Example of Cost of Providing Service CalculationTotal Cost of ServiceOther CostsOverhead Rate (104.7%)Fringe Benefits (37.2%)Labor SubtotalEstimated Time (Hours)FYE 2027Hourly RateLaborClass Title$373.25$0.00$161.53$57.44$154.283.00$51.43Utility Services Representative$427.30$0.00$184.92$65.76$176.622.00$88.31Senior Water Service Inspector$153.36$0.00$66.37$23.60$63.391.00$63.39Water Meter Repairer $1.90$1.90Printing Costs$955.80Totals$955.00Proposed Temporary Hydrant Connection Fee Temporary Hydrant Connection Fee
Proposed FY 2027 Miscellaneous FeesProposed Revised Water Fees•Temporary Hydrant Connection Fee•Temporary Hydrant Meter Rental Deposit•Hydrant Flushing Fee•Backflow Tag FeeProposed New Sewer Fees•Annual Self-Certification Non-Reporting Penalty Fine•Stormwater Management Ordinance Re-Inspection Fees•Administrative Civil Penalty Order FineProposed New Power Fees•Streetlight Application Fee•Streetlight Site Investigation Fee•Streetlight Photometrics Review Fee•Installed Streetlight Inspection Fee•Streetlight Shield Request Fee•Municipal Pole Use Fee (Non-Banner)•New, Upgrade or Removal of Metered Service Fee•Metered Service Modification Fee•Rules & Regulations Variance Fee•Generator Interconnection Fee•Gas Service Request Fee Water Miscellaneous Fee RevisionsCommission Resolution 25-0171 • Adopted on December 9, 2025• Rules and Regulations Governing Hydrant Use for Temporary Water Supply effective July 1, 2026• Proposal to revise three of the four existing fees in Schedule W-41B to recover additional labor costs associated with new Hydrant Use RulesCommission Resolution 25-0131 • Adopted September 9, 2025• Amendments to Section G of Rules and Regulations Governing Water Service related to Cross Connection Control• Proposal to revise Backflow Tag Fee in Schedule W-45 to partially recover the costs of cross connection control programUpdated rules and regulations that require higher level of effort from staff Proposed FY 2026-27 Water Enterprise Revised Miscellaneous FeesPercent Change Proposed Fee (FY 2026-27) Current Fee (FY 2025-26)W-41B: Water Service Connection Fees218%$955$300Temporary Hydrant Connection Fee19%1%1" Meter Deposit: $3,0603" Meter Deposit: $4,900PLUS 50 CCF Usage at W-1C Volumetric Rate1" Meter Deposit: $2,5793" Meter Deposit: $4,840PLUS 50 CCF Usage at W-1C Volumetric RateTemporary Hydrant Meter Rental Deposit25%$998PLUS 13 CCF at W-1C Volumetric Rate$798PLUS 13 CCF at W-1C Volumetric RateHydrant Flushing FeePercent Change Proposed Fee (FY 27) Current Fee (FY 26)W-45: Water Enterprise Regulatory Compliance Fees 7%$32$30Backflow Tag Fee Stormwater Management OrdinanceStormwater Management Ordinance (SMO) OverviewThe SMO requires installation and maintenance of stormwater management controls for 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.Benefits of SMO Compliance• SMO enforcement supports SFPUC’s compliance with NPDES Municipal Separate Storm Sewer System Phase II permit• Reduce the need for downstream collection system upgrades for individual development projects• Provides operational efficiencies for staff SMO Inspection Requirements OverviewStormwater Management Requirements and Design Guidelines (SMR) mandates two inspection requirements for stormwater controls to ensure stormwater management facilities are properly maintained post construction• Annual Self-Certification• Triennial Inspection Stormwater Management Ordinance (SMO) Enforcement ChallengesSMO Compliance ChallengesPost occupancy, SMO is reporting low compliance with required reporting, inspections, and asset management from customers. • ~40% failure to perform annual self certification• Difficulty securing inspections• Low compliance with corrective action requirementsStaff ProposalStormwater team is proposing to establish three miscellaneous fees to incentivize customer compliance as part of their Enforcement Response Plan (ERP) for SMO inspections:•Annual Self-Certification (ASC) Non-Reporting Penalty Fine•Stormwater Management Ordinance Re-Inspection Fees•Administrative Civil Penalty Order (ACPO) Fine Proposed FY 2026-27 New Wastewater Enterprise Miscellaneous FeesProposed Fee(FY 2026-27) Fee Name$500Annual Self-Certification Non-Reporting Penalty FineStormwater Management Ordinance Re-Inspection Fees$6771stRe-Inspection Fee (50% Staff Time)$1,3532ndRe-Inspection Fee (100% Staff Time)$2,0303rdand Subsequent Re-Inspection Fees (150% Staff Time) Administrative Civil Penalty Order Fine$1,111/Day/Acre of Drainage Management Area out of complianceBase Fee Calculation*$1,000/Day$2,000/DayMaximum Daily Fee: Violations without intent or negligenceIntentional or negligent violations Power Miscellaneous FeesStreetlightingStreetlightingService ConnectionsService ConnectionsRules & Regulations Variance RequestsRules & Regulations Variance RequestsMunicipal Pole UseMunicipal Pole UseGenerator Interconnections Generator Interconnections Gas Service RequestsGas Service Requests• Certain specialized services of Hetch Hetchy Power (HHP) have been provided to customers free of charge.• Proposed fees pertain to the services related to:
Proposed FY 2026-27 New Power Enterprise Miscellaneous FeesProposed Fee (FY 2026-27)Fee Name$611Streetlight Application Fee$1,794Streetlight Site Investigation Fee$3,111 - $14,695Streetlight Photometrics Initial Submittal Review Fee$2,250 - $5,626Streetlight Photometrics Subsequent Review Fee$2,842 - $12,590Installed Streetlight Inspection Fee$3,317 (PUC Pole) / $6,357 (PG&E Pole)Streetlight Shield Fee$1,352 + $180/poleMunicipal Pole Use Fee (Non-Banner)$3,000New, Upgrade or Removal of Metered Service Fee$2,000Metered Service Modification Fee$5,030Rules & Regulations Variance Fee$145Generator Interconnection Fee$933Gas Service Request FeeStreetlight Installation Fees 14 Revised Water Fees •Updates to the SFPUC Rates Webpage•Mailers to entities that have paid Temporary Hydrant Connection Fees in recent yearsNew Wastewater Fees•Updates to the SFPUC Rates Webpage•Letter and email to all SMO properties (around 400), plus Building Owners and Managers Association, SF Apartment Association, design/development contacts. •Update the Stormwater Management RequirementswebpageNew Power Fees •Updates to the Hetch Hetchy Power Fee Webpage•Mailers will be sent to developer community about upcoming Streetlight Fees•Notices will also be provided to developers applying for permits about the pending changes•Mailers will be sent to all commercial district and neighborhood groups regrading non-banner pole use Customer Outreach and Communications
Miscellaneous Fees Staff RecommendationsAgenda Item :• Adopt Resolution on Revised Miscellaneous Fees Related to the Water EnterpriseAgenda Item : • Adopt Resolution on New Miscellaneous Fees Related to the Wastewater EnterpriseAgenda Item : • Adopt Resolution on New Miscellaneous Fees Related to the Power Enterprise QUESTIONS & DISCUSSION Thank you!
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT: SFPUC, Financial Services AGENDA NUMBER: 8 _ MEETING DATE: May 12, 2026
Calendar: Regular Calendar
Project Manager: Matthew Freiberg
Public Hearing to Adopt Revised Miscellaneous Fees Related to the Water Enterprise
Summary of Proposed
Commission Action:
Public Hearing to consider and possible action to adopt revised miscellaneous fees for the San Francisco Public Utilities Commission Water Enterprise related to temporary water
service through hydrants (Schedule W -41B) and backflow prevention (Schedule W-45). If approved, the proposed fees will become effective on July 1, 2026, and will remain effective until revised by a future Commission action. This action constitutes the Approval Action for the Project for the purposes of the California Environmental Quality Act (CEQA) pursuant to San Francisco Administrati ve Code Section 31.04(h). The Planning Department has determined that the Project is exempt from the CEQA. The Commission will rely on that determination to make its decision on this action.
Background: The 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, Sewer, or Power system. These miscellaneous fees are not subject to the legal requirements of Proposition 218, which pertains to certain government -imposed taxes and property-related fees or charges. 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. In general,
these miscellaneous fees are automatically adjusted
each fiscal year by the Consumer Price Index (CPI) is sued by the City Controller’s Office.
On April 9, 2024, by Resolution No. 24- 0090, the Commission adopted the current schedule of miscellaneous fees for the Water Enterprise. Staff proposes that the Commission revise a subset of these miscellaneous fees, effective July 1, 2026, in the following two rate schedules:
Agenda Title: Adopt Revised Miscellaneous Fees Related to the Water Enterprise Commission Meeting Date: May 12, 2026
1. Schedule W-41B: Water Service Connection Fees
2. Schedule W-45: Water Enterprise Regulatory
Compliance Fees
Staff proposes these revisions in response to two sets of SFPUC rules and regulations that the Commission recently adopted or amended, which require a higher level of effort from staff to serve SFPUC customers. First, on December 9, 2025, by Resolution No . 25-0171, the Commission adopted new Rules and Regulations Governing Hydrant Use for Temporary Water Supply, which are related to the SFPUC’s Hydrant Use Permit Program and some of the Water Service Connection Fees in Schedule W-41B. Second, on September 9, 2025, by Resolution No. 25 -0131, the Commission amended Section G of the
existing Rules and Regulations Governing Water Service to Customers, which are related to the SFPUC’s Cross -Connection Control Program and the Water Enterprise Regulatory
Compliance Fees in Schedule W-45.
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, which the Commission adopted on September 12, 2017, by Resolution No. 17-0198. SFPUC staff developed the proposed miscellaneous fees set forth in this agenda item consistent with these principles. The proposed fees 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.
Updates to Schedule W-41B: Water Service Connection
Fees
The SFPUC owns and operates hydrants throughout the City and County of San Francisco, which are connected to the SFPUC water system to serve the SFPUC’s retail water
customers. While hydrants are located so they may be used for fire suppression to protect the SFPUC’s retail water customers’ property, the SFPUC also allows customers to apply for a revocable permit to use low -pressure hydrants for temporary water supply for the limited purposes of general construction, mobile sanitation services, filmmaking, and special events.
Some of the existing fees within Schedule W -41B pertain to the Agenda Title: Adopt Revised Miscellaneous Fees Related to the Water Enterprise Commission Meeting Date: May 12, 2026
permitting and connection process for this Hydrant Use Permit Program.
As noted above, on December 9, 2025, by Resolution No. 25- 0171, the Commission adopted new Rules and Regulations
Governing Hydrant Use for Temporary Water Supply (Hydrant Use Rules), which will become effective on July 1, 2026. The Hydrant Use Rules update and strengthen the SFPUC’s existing requirements for the Hydrant Use Permit Program, which have been in place for many years, and establish a more
comprehensive approach to managing the use of hydrants for temporary water supply by SFPUC customers.
As summarized in Table 1 below, and Attachment 1 to this agenda item, SFPUC staff proposes to revise three of the four existing fees in Schedule W -41B that are related to the Hydrant Use Permit Program to recover the additional labor costs associated with implementing the program under the new
Hydrant Use Rules, as well as to reflect current materials costs.
The following sections describe (1) the purpose of each fee SFPUC staff proposes to adjust, (2) the amount of the proposed fee change, and (3) the basis for the proposed fee adjustment.
Table 1: Fiscal Year (FY) 2026-27 Proposed Water Service Connection Fees Related to Hydrant Use Permit Program
(Excerpt of Schedule W-41B: Water Service Connection Fees) Service Current
FY 2025-26 Fee
Effective July 1,
2025
Proposed
FY 2026-27 Fee
Effective July 1,
2026
Temporary
Hydrant
Connection Fee
$300 $955
Temporary
Hydrant Meter
Rental Deposit
1" Meter Deposit:
$2,579
3" Meter Deposit:
$4,840
PLUS 50 CCF
Usage at W-1C
Volumetric Rate
1" Meter Deposit:
$3,060
3" Meter Deposit:
$4,900
PLUS 50 CCF
Usage at W-1C
Volumetric Rate
Temporary
Hydrant Non-
Reporting Penalty
Fee
25 CCF Usage at
W1-C Volumetric
Rate per month
25 CCF Usage at
W1-C Volumetric
Rate per month
Agenda Title: Adopt Revised Miscellaneous Fees Related to the Water Enterprise Commission Meeting Date: May 12, 2026
Hydrant Flushing
Fee
$798
PLUS 13 CCF at
W-1C Volumetric
Rate
$998
PLUS 13 CCF at
W-1C Volumetric
Rate
Temporary Hydrant Connection Fee
Under the SFPUC’s existing requirements for the Hydrant Use Permit Program, customers must obtain a permit from the SFPUC to open, operate, or draw water from any hydrant.
Customers who apply for a permit must pay the Temporary Hydrant Connection Fee specified in Schedule W-41B.
SFPUC staff propose to adjust this Temporary Hydrant
Connection Fee to $955 in FY 2026- 27, a 218% increase from the $300 fee in FY 2025- 26. The proposed fee increase will cover the costs of additional labor time required to perform permitting and connections pursuant to the new Hydrant Use Rules that take effect July 1, 2026. In addition to the increased administrative time for staff to provide this service under the new Hydrant Use Rules, a Senior Water Inspector is now required to perform a field inspecti
on of the location of the hydrant the
applicant proposes to use to verify that issuing the permit is appropriate. The fee also includes the cost of permitted signage required to be posted outside of construction and development projects or by approved events . See Attachment 2 for additional details about the level of effort for providing service at the current level and the proposed revised fee.
Temporary Hydrant Meter Rental Deposit
Customers seeking a hydrant use permit from the SFPUC must also pay a Temporary Hydrant Meter Rental Deposit for the SFPUC-owned hydrant meter equipment that they are required to use to access water from hydrants for the duration of their permit. The amount of this deposit varies depending on whether the permit is for a 1- inch meter or a 3- inch meter. The deposit seeks to recover the cost of replacing the hydrant meter equipment if damaged or not returned.
For FY 2026- 27, SFPUC staff proposes to increase the 1- inch meter rental deposit fee to $3,716.50 (a 16% increase from FY 2025-26) and to increase the 3- inch meter rental deposit fee to $5,556.50 (a 2% increase from FY 2025-
26). The proposed
meter rental deposit fees reflect (1) the cost of staff time to replace hydrant meter equipment, (2) the cost of hydrant meter Agenda Title: Adopt Revised Miscellaneous Fees Related to the Water Enterprise Commission Meeting Date: May 12, 2026
equipment escalated above market rates to incentivize
customers returning the equipment on time , and (3) 50 units (CCF) of water usage at the effective Schedule W1-C water rate.
The SFPUC will refund the fee amount to the customer, without interest, after the customer’s account is closed and the hydrant meter equipment is returned, pursuant to the Hydrant Use Rules.
Hydrant Flushing Fee
The SFPUC currently requires hydrant use permit applicants to pay a Hydrant Flushing Fee if they are seeking a permit for filmmaking or a special event that will use hydrant water for potable purposes (drinking and/or cooking). This fee is assessed to recover the staff time required to “flush” the relevant hydrants and conduct water quality testing of hydrants prior to the permittee’s use, plus a charge of 13 CCF of water at the effective Schedule W-1C water rate.
For FY 2026- 27, SFPUC staff propose to adjust the existing Hydrant Flushing Fee in Schedule W -41B to $1,168.69 , a 2 2% increase from the $ 957.51 fee for FY 2025 -26. This increase reflects the additional staff time required for coordinating hydrant flushing services under the new Hydrant Use Rules as well as the effective Schedule W-1C water rate.
Temporary Hydrant Non-Reporting Penalty Fee
SFPUC staff does not propose any changes to the existing Temporary Hydrant Non-Reporting Penalty Fee in Schedule W -
41. The SFPUC currently charges customers this fee if they do not report their meter readings to the SFPUC as required. Rule 15 of the new Hydrant Use Rules maintains that customers receiving water service through hydrants shall pay their utility bill based on periodic reading of the hydrant meter equipment and the currently effective water service rates and fees. Any customer that does not rep
ort its meter reading to the SFPUC
within the period designated by the SFPUC Meter Reading Schedule shall be billed the Non-Reporting Penalty Fee. The fee remains equivalent to 25 CCF of water at the effective W -1C water rate per month, which will be $328.00 per each delinquent month during FY 2026-27. The fee is non- refundable even if the meter is read and inspected later.
Agenda Title: Adopt Revised Miscellaneous Fees Related to the Water Enterprise Commission Meeting Date: May 12, 2026
Update to W -45: Water Enterprise Regulatory Compliance Fees
The existing Schedule W -45 presents two fees related to the SFPUC’s Cross -Connection Control Program. This program is designed to prevent contamination and backflow from entering San Francisco’s public water system and implements Article 12A of the San Francisco Health Code consistent with current state and federal drinking water quality laws. Staff proposes to update one of the two fees on Schedule W-45, effective for FY 2026-27:
the Backflow Tag Fee.
Backflow Tag Fee
Article 12A of the San Francisco Health Code , among other things, requires property owners in San Francisco who meet hazard criteria for cross contamination to install backflow preventers on their property to safeguard the public water system. Property owners must ensure that their backflow prevention assemblies are inspected and/or tested annually. The private companies that perform backflow testing as a service to SFPUC customers covered by Article 12A must purchase
backflow tags from the SFPUC and affix them on backflow prevention assemblies after they have passed an annual test.
As noted above, on September 9, 2025, by Resolution No. 25- 0131, the Commission amended Section G of the existing
SFPUC Rules and Regulations Governing Water Service to
Customers (Section G Rules), which implement Article 12A and the SFPUC’s Cross-Connection Control Program. The amended Section G R ules expanded the hazard criteria and required levels of backflow protection to include new categories, increasing the level of effort needed by SFPUC staff to administer the Cross-Connection Control Program.
Revenues generated from the sale of backflow tags are
intended to eventually cover the cost s of the Cross-Connection Control Program. The current Backflow Tag Fee in Schedule W - 45 covers only a fraction of the total costs of administering the current Cross-Connection Control Program, much less the costs of the additional staff estimated to be needed to administer the updated Section G Rules. To continue the goal of having the Backflow Tag Fee revenue cover a larger share of the growing costs of the Cross-Connection Control Program, while balancing customer affordability at a time of other rate increases, SFPUC Agenda Title: Adopt Revised Miscellaneous Fees Related to the Water Enterprise Commission Meeting Date: May 12, 2026
staff proposes to increase the fee to $32 per tag for FY 2026-27, a 7% increase from FY 2025-26. See Attachment 2 for additional details about the level of effort for providing service at current level and the proposed revised fee.
Table 2: FY 2026-27 Proposed Revised Backflow Tag Fee
(Excerpt of Schedule W-45: Water Enterprise Regulatory
Compliance Fees)
Service
Current
FY 2025-26 Fee
Effective July 1,
2025
Proposed
FY 2026-27 Fee
Effective July 1,
2026
Backflow Tag
Fee $30 $32
Automatic Fee Adjustments
The proposed revised fees for Schedule W -41B and Schedule W-45 shown in Attachment 1 shall be increased each fiscal year by the CPI issued by the City Controller’s Office, as noted in the schedule.
Effective Date of Revised Fees
If approved by the Commission, the proposed revised fees for Schedules W-41B and W-45 would take effect July 1, 2026, and will remain effective until revised, unless otherwise stated in the attached schedule or rejected by the Board of Supervisors, as provided in Charter section 8B.125.
Environmental Review: On April 28, 2026, the Planning Department determined the Project to be statutorily exempt from environmental review under the CEQA Guidelines Section 15273 (Rates, Tolls, Fares, and Charges) (Case No. 2026-003624ENV). View the exemption determination.
This action constitutes the Approval Action for the Project for the purposes of the CEQA pursuant to San Francisco Administrative Code Section 31.04(h).
Attachments: 1. Excerpt of Miscellaneous Fees on Schedules W-41B and W-45 Related to Hydrant Use Permit Program and
Backflow Prevention
2. Comparison of Level of Effort for Existing Fees and
Proposed Fee Updates on Schedules W-41B and W-45
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 April 9, 2024, by Resolution No. 24- 0090, this Commission approved the existing Miscellaneous Fees for the SFPUC Water Enterprise, which includes, among other fees, Schedule W -41B’s Water Service Connection Fees and Schedule W-45’s Water Enterprise Regulatory Compliance Fees; and
WHEREAS, On December 9, 2025, by Resolution No. 25- 0171, this Commission adopted new Rules and Regulations Governing Hydrant Use for Temporary Water Supply (Hydrant Use Rules), which become effective on July 1, 2026; and
WHEREAS, Implementing the Hydrant Use Rules will require an additional level of effort for staff performing work related to the SFPUC’s Hydrant Use Permit Program, and the costs of materials related to this program have also increased; and
WHEREAS, On June 17, 2016, by Ordinance No. 100- 16, the San Francisco Board of Supervisors amended Article 12A of the San Francisco Health Code to establish updated cross connection and backflow prevention requirements that would protect the City and County of San Francisco public water system; and
WHEREAS, On September 13, 2016, by Resolution No. 16- 0184, this Commission authorized the General Manager to add a new Section G, entitled “Cross - Connection Control,” to the SFPUC’s existing Rules and Regulations Governing Water Service to Customers to implement the updated provisions of San Francisco Health Code Article 12A (Section G); and
WHEREAS, On September 9, 2025, through Resolution 25- 0131, Commission adopted the most recent set of amendments to Section G that were consistent with new state cross-connection control standards; and
WHEREAS, SFPUC staff proposes to revise for Fiscal Year 2026- 27 certain fees associated with the SFPUC’s Hydrant Use Permit Program and Cross -Connection Control Program in existing Schedules W-41B and W-45 to recover the cost of providing these services; and
WHEREAS, SFPUC staff finds that the proposed revised backflow tag fee for Schedule W -45 covers no more than the total costs of administering the Cross -
Connection Control Program and will partially recover the additional cost arising from the new regulatory requirements in Fiscal Year 2026-27; and
WHEREAS, Pursuant to Charter Section 16.112, a Notice of Public Hearing on the proposal to adopt revised miscellaneous fees for the Water Enterprise was published in the official newspaper from May 6, 2026 to May 10, 2026, and posted on the SFPUC website and at the San Francisco Public Library, for a public hearing on May 12, 2026; and
WHEREAS, Pursuant to that notice, a public hearing was held on May 12, 2026 , where members of the public were given an opportunity to express their views on the revised miscellaneous fees; and
WHEREAS, On April 28, 2026 , the Planning Department determined the Project to be statutorily exempt from environmental review under the California Environmental Quality Act Guidelines Section 15273 (Rates, Tolls, Fares, and Charges) (Case No. 2026-003624ENV); and
WHEREAS, This Commission hereby finds that adoption of this resolution will establish rates for the purpose of meeting operating expenses, including employee wage rates and fringe benefits; purchasing or leasing supplies, equipment, or materials; and obtaining funds for capital projects, necessary to maintain service within existing service areas; now, therefore, be it
RESOLVED, The Commission hereby approves, adopts, and ratifies the revised miscellaneous fees for Schedules W -41B and W -45 attached to this resolution ; and be it,
FURTHER RESOLVED, The attached fees shall be effective on July 1, 2026, or such later date that the General Manager determines is administratively feasible, but not later than December 31, 2026, and shall remain in effect until repealed, modified, or superseded unless otherwise noted in the revised schedules; and be it,
FURTHER RESOLVED, The Commission authorizes the General Manager to approve changes to these schedules that the General Manager determines, in consultation with the City Attorney, are in the best interest of the City, are necessary or advisable to effectuate the purposes and intent of this resolution, and are in compliance with all applicable laws, including the San Francisco Charter; and be it,
FURTHER RESOLVED, The attached fees 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.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of May 12, 2026.
__________________________________
Director of Commission Affairs
San Francisco Public Utilities Commission
ATTACHMENT 1
EXCERPT OF MISCELLANEOUS FEES ON SCHEDULES W-41B AND W-45
RELATED TO HYDRANT USE PERMIT PROGRAM
AND BACKFLOW PREVENTION
EFFECTIVE JULY 1, 2026
Adopted May 12, 2026 by Commission Resolution No. _________
SCHEDULE W-41B. WATER SERVICE CONNECTIONS FEES
TEMPORARY HYDRANT CONNECTION FEE $955
Customers who temporarily connect to the system will be assessed a connection charge.
TEMPORARY HYDRANT METER RENTAL DEPOSIT – 1” METER
Customers that temporarily connect to the system, in addition to payment of a temporary hydrant connection fee, shall also pay a meter deposit of $3,060 plus a charge equivalent to 50 units (CCF) of water at the current Schedule W -1C water rate, which will be $656.5 0 for FY 2026-27. The deposit will be refunded when the account is closed in accordance with SFPUC rules and regulations.
TEMPORARY HYDRANT METER RENTAL DEPOSIT – 3” METER
Customers that temporarily connect to the system, in addition to payment of a temporary hydrant connection fee, shall also pay a meter deposit of $4,900 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 $656.50 for FY 2026- 27. The deposit will be refunded when the account is closed in accordance with SFPUC rules and regulations.
TEMPORARY HYDRANT NO-REPORTING PENALTY FEE 25 CCF of Water at W-1C Rate Customers that do not report meter readings according to the meter reading schedule, will be assessed a penalty fee equivalent to 25 units (CCF) of water at the effective W- 1C water rate, which will be $328.00 per every delinquent month during FY 2026-27.
HYDRANT FLUSHING FEE $998 PLUS 13 CCF of Water at W-1C Rate 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- 1C water rate, which will be $170.00 for FY 2026-27.
Each year, the SFPUC will adjust the fees in schedule W-41B by the Consumer Price Index released by the Controller’s Office in the City and County of San Francisco.
SCHEDULE W-45: WATER ENTERPRISE REGULATORY 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.
Each year, the SFPUC will adjust the fees in schedule W-45 by the Consumer Price Index released by the Controller’s Office in the City and County of San Francisco.
CHARGE TYPE FY 2026-27
Effective 7/1/26
Backflow Tag Fee $32
Attachment 2
Comparison of Level of Effort for Existing Fees and Proposed Revised Fees and Cost of Service Calculations for Revised Fees
Table 1: Comparison of Level of Effort for Current and Proposed Revised Fee for Temporary Hydrant Connection Fee
Description Class Code Class Title Current
Estimated
Staff Time
(Hours)
Proposed
Estimated
Staff Time
(Hours)
Level of Effort (Staff Time)
1478 Utility Services Representative 1.25 3.00
7317 Senior Water Service Inspector 0.00 2.00
7353 Water Meter Repairer 1.00 1.00
Table 2: Temporary Hydrant Connection Fee Calculations
Labor
Class Title
FYE 2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(37.2%)
Overhead
Rate
(104.7%)
Other
Costs
Total
Cost of
Service
Utility Services
Representative
$51.43 3.00 $154.28 $57.44 $161.53 $0.00 $373.25
Senior Water
Service
Inspector
$88.31 2.00 $176.62 $65.76 $184.92 $0.00 $427.30
Water Meter
Repairer
$63.39 1.00 $63.39 $23.60 $66.37 $0.00 $153.36
Printing Costs $1.90 $1.90
Totals
$955.80
Proposed Temporary Hydrant Connection Fee
$955.00
Table 3: Comparison of Level of Effort for Current and Proposed Revised Fee for Temporary Hydrant Meter Rental Deposit Fee for 1” Meter Description Class Code Class Title Current
Estimated
Staff Time
(Hours)
Proposed
Estimated
Staff Time
(Hours)
Level of Effort (Staff Time)
0922 Manager I 0.50 0.25
1478 Utility Services Representative 6.00 6.00
7316 Water Service Inspector 0.00 1.00
Table 4: Hydrant Meter Rental Deposit Fee - 1” Meter Fee Calculations Labor
Class Title
FYE 2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(37.2%)
Overhead
Rate
(104.7%)
Other
Costs
Total Cost
of Service
Manager I $87.03 0.25 $21.76 $8.10 $22.78 $0.00 $52.64
Utility Services
Representative
$51.43 6.00 $308.56 $114.88 $323.06 $0.00 $746.50
Water Service
Inspector
$76.26 1.00 $76.26 $28.39 $79.84 $0.00 $184.49
1” Meter Material Costs
$1,061.00
Labor and Material Costs Sub Total $2,044.63
150% Penalty Escalation
$3,060.00
50 CCF Water Usage (W-1C Rate)
$656.50
Totals
$3,716.50
Proposed 1” Hydrant Meter Rental Deposit
$3,716.50
Table 5: Comparison of Level of Effort for Current and Proposed Revised Fee for Temporary Hydrant Meter Rental Deposit Fee for 3” Meter Description Class Code Class Title Current
Estimated
Staff Time
(Hours)
Proposed
Estimated
Staff Time
(Hours)
Level of Effort (Staff Time)
0922 Manager I 1.00 0.25
1478 Utility Services Representative 8.00 6.00
7316 Water Service Inspector 0.00 1.00
Table 6: Hydrant Meter Rental Deposit Fee - 3” Meter Fee Calculations Labor
Class Title
FYE 2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(37.2%)
Overhead
Rate
(104.7%)
Other
Costs
Total Cost
of Service
Manager I $87.03 0.25 $21.76 $8.10 $22.78 $0.00 $52.64
Utility Services
Representative
$51.4264 6.00 $308.56 $114.88 $323.06 $0.00 $746.50
Water Service
Inspector
$76.2574 1.00 $76.26 $28.39 $79.84 $0.00 $184.49
3” Meter Material Costs
$2,284.00
Labor and Material Costs Sub Total $3,267.63
150% Penalty Escalation Rate
$4,900.00
50 CCF Water Usage (W-1C Rate)
$656.50
Totals
$5,556.50
Proposed 1” Hydrant Meter Rental Deposit
$5,556.50
Table 7: Comparison of Level of Effort for Current and Proposed Revised Fee for Temporary Hydrant Flushing Fee
Description Class
Code
Class Title Current
Estimated
Staff Time
(Hours)
Proposed
Estimated
Staff Time
(Hours)
Level of Effort (Staff Time)
7250 Utility Plumber Supervisor 1 4.00 4.00
7284 Utility Plumber Supervisor 2 0.00 0.50
1478 Utility Services Representative 0.00 0.50
Table 8: Hydrant Flushing Fee Calculations
Labor
Class Title
FYE 2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(37.2%)
Overhead
Rate
(104.7%)
Other
Costs
Total Cost
of Service
Utility Plumber
Supervisor I
$84.96 4.00 $339.85 $126.53 $355.82 $0.00 $822.21
Utility Plumber
Supervisor II
$93.68 0.50 $46.84 $17.44 $49.04 $0.00 $113.32
Utility Service
Representative
$51.43 0.50 $25.71 $9.57 $26.92 $0.00 $63.21
Labor Sub Total $998.00
13 CCF Water Usage (W-1C Rate) $170.00
Totals
$1,171.77
Proposed Hydrant Flushing Fee $1,171.00
Table 9: Comparison of Level of Effort for Current and Proposed Revised Fee for Backflow Tag Fee
Description Class Code Class Title Current
Estimated
Staff Time
(Hours) -
Annual
Proposed
Estimated
Staff Time
(Hours) -
Annual
1478 Utility Services Representative 2080 2080
1478 Utility Services Representative 2080 2080
933 Manager V - 1456
1053 IS Business Analyst-Senior 1040 1040
932 Manager IV - 2080
7317 Senior Water Service Inspector - 2080
7204 Chief Water Service Inspector 832 -
5602 Utility Specialist - 2080
1480 Utility Services Rep Sup - 2080
1044 IS Engineer-Principal - 1040
Table 10: Backflow Tag Fee Calculations
Labor
Class Title
2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(37.2%)
Overhead
Rate
(104.7%)
Other
Costs
Total Cost
of Service
Level of Effort (Staff Time) – Per Tag
Utility Service
Representative
$51.43 0.0594 $3.06 $1.14 $3.20 $0.00 $7.39
Utility Service
Representative
$51.43 0.0594 $3.06 $1.14 $3.20 $0.00 $7.39
Manager V $116.64 0.0416 $4.85 $1.81 $5.08 $0.00 $11.74 IS Senior
Business
Analyst
$73.03 0.0297 $2.17 $0.81 $2.27 $0.00 $5.25
Manager IV $108.13 0.0594 $6.43 $2.39 $6.73 $0.00 $15.55 Senior Water
Service
Inspector
$88.31 0.0594 $5.25 $1.95 $5.49 $0.00 $12.70
Chief Water
Service
Inspector
$76.78 0.0594 $4.56 $1.70 $4.78 $0.00 $11.04
Utility
Specialist
$54.38 0.0594 $3.23 $1.20 $3.38 $0.00 $7.82
Utility Services
Rep Sup
$89.81 0.0297 $2.67 $0.99 $2.79 $0.00 $6.46
IS Engineer-
Principal
$51.43 0.0594 $3.06 $1.14 $3.20 $0.00 $7.39
Labor Sub Total
$85.33
Per Tag Cost of Workorder with DPH to Test Companies and Send Notices of Non- Compliance to Customers
$12.41
Per Tag Cost of CCAMS Application Support $5.56
Totals $103.31
Proposed Fee $32.00