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: 9 MEETING DATE: May 12, 2026
Calendar: Regular Calendar
Project Manager: Matthew Freiberg
Public Hearing to Adopt New Miscellaneous Fees Related to the Wastewater Enterprise
Summary of Proposed
Commission Action:
Public Hearing to consider and possible action to adopt three new Wastewater Enterprise Regulatory Compliance fees
(Schedule W-46) that support the enforcement of the rules and regulations that pertain to the Stormwater Management
Ordinance. If approved, the new Stormwater Management
Ordinance Miscellaneous Fees will become effective on or after July 1, 2026, and will remain in effect 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 Administrative Code Chapter 31.04(h) . The Planning Depa rtment 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: Miscellaneous Fees Overview
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 pertain 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 Charter and state law. Others are penalties or fees for voluntary services, which are not subj ect to cost-recovery requirements. In general , these miscellaneous fees are automatically adjusted each fiscal year by the Consumer Price Index (CPI) issued by the City Controller’s Office.
The SFPUC is dedicated to developing rates and charges that support revenue sufficiency, customer equity, environmental Agenda Title: Adopt New Miscellaneous Fees Related to the Wastewater Enterprise Commission Meeting Date: May 12, 2026
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 t he proposed miscellaneous fees set forth below based on these principles.
Stormwater Management Ordinance (SMO) Overview
The Stormwater Management Ordinance (SMO) requires all new and redevelopment projects in San Francisco 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 to manage stormwater using stormwater
management controls.
The intent of the SMO is to reduce the total volume of stormwater entering SFPUC’s sewer collection system from subject projects and to protect and enhance the water quality of receiving waters by minimizing pollution caused by stormwater runoff. Compliance with the SMO supports SFPUC in meeting the requirements of its National Pollutant Discharge Elimination System Municipal Separate Storm Sewer System Phase II
permit, which requires permittees to inventory and assess the maintenance condition of structural post -construction Best Management Practices within the permittee’s jurisdiction. SMO compliance lower s peak flows and the total instantaneous volume of stormwater entering the sewer collection system. This can reduce the need for downstream collection system upgrades that may otherwise be necessary to build to accommodate the increased stormwater flows caused by individual development projects.
All properties that are required to obtain approval of their Stormwater Control Plans are subject to two inspection
requirements to ensure that stormwater controls are properly maintained and continue to provide effective stormwater management: the Annual Self -Certification submitted to the SFPUC by the property owner, and the onsite Triennial
Inspection conducted by the SFPUC. The current level of compliance with Annual Self -Certification and Triennial Inspection requirements is low. Approximately 40% of t he 363 SMO properties have failed to respond to Annual Self
Certification requirement and 17 properties have been issued a notice of violation for not cooperating with Triennial Inspection process.
Agenda Title: Adopt New Miscellaneous Fees Related to the Wastewater Enterprise Commission Meeting Date: May 12, 2026
To incentivize customer compliance with the inspections and maintenance requirements, staff propos es new fines for properties that fail to comply with annual self -certification requirements, necessitate additional follow-up inspections, or are found to be out of compliance with the maintenance standards for stormwater controls.
The proposed noncompliance fines are structured to escalate if subject projects continue to remain out of compliance, incentivizing timely responses and providing incrementally higher penalties for repeated or persistent noncompliance . While not required for assessing a fine, the proposed penalties related to noncompliance with the Annual Self -Certification and Triennial Inspection are based on the cost for SFPUC staff to inspect properties and determine compliance, thus ensuring that sewer ratepayers are not paying for the time and effort spent on enforcement. The most serious penalty , the Administrative Civil Penalty Order, is calculated as a daily fine based on a maximum per-acre cost to build and maintain stormwater management infrastructure in San Francisco, essentially recoupin g from noncompliant permittees the costs needed to replace their noncompliant infrastructure. Because the policy objective of these fines is for SMO customers to achieve compliance with the SMO and their permit conditions , SFPUC may waive or reduce the more significant fines if the permittee takes steps to co rrect violations. See Attachment 1 for the complete list of proposed miscellaneous fees and fines . Attachment 2 , the SMO
Miscellaneous Fees Technical Memo, shows further details regarding each charge’s cost recovery calculations.
Schedule W-46: Wastewater Enterprise Regulatory
Compliance Fees
The existing Schedule W -46 includes two fees related to Wastewater Enterprise’s pretreatment program and one fee assessed for projects regulated by the SMO. Staff recommends adding the proposed fees applicable to SMO properties to Schedule W -46 effective FY 2026- 27: Annual Self -Certification Non-Reporting Penalty Fine , Stormwater Management
Ordinance Re- Inspection Fee, and Administrative Civil Penalty Oder Fine.
Annual Self-Certification Non-Reporting Penalty Fine
Stormwater Management Requirements and Design Guidelines accompanying the Stormwater Management Ordinance require Agenda Title: Adopt New Miscellaneous Fees Related to the Wastewater Enterprise Commission Meeting Date: May 12, 2026
all property owners with stormwater controls to perform self - certification inspection once a year and digitally submit a checklist summarizing the condition of their stormwater controls.
The Annual Self -Certification requirement is designed to ensure properties are inspecting and maintaining their BMPs in anticipation of the wet weather season. S taff proposes charging the property owner an Annual Self -Certification Non -Reporting Penalty Fine if the property owner fails to respond to the self- certification requirement within the timeline stipulated by SFPUC.
While the cost of providing Annual Self -Certification services is calculated to be $142.95, staff recommends a fee of $500, approximately 3.5 times the labor costs, as a deterrent for non- compliance.
Table 1: Fiscal Year 2026-27 Proposed Annual Self-Certification Non-Reporting Penalty Fine (Excerpt of Schedule W-46:
Wastewater Enterprise Regulatory Compliance Fees)
Service Proposed FY 2026-27 Fee
Effective July 1, 2026
Annual Self-Certification Non-
Reporting Penalty Fine
$500
Stormwater Management Ordinance Re-Inspection Fees
Three years after the final approval of the Stormwater Control Plan and every three years thereafter, SFPUC is required to conduct a ‘Triennial Inspection’ of the stormwater controls as mandated by Stormwater Management Requirements and
Design Guidelines. If, after the inspection, the SFPUC inspector identifies no maintenance issues that require corrective action, the property owner will be issued a certificate of compliance.
If corrective actions are found to be needed , the SFPUC will send the property owner a ‘Compliance Order’ describing the corrective actions needed and the requirements for a follow -up inspection. Staff propos e SMO Re-Inspection Fees to recover the costs of all follow-up inspections needed to verify corrections as well as to encourage timely compliance by property owners.
If the SMO inspector observes only minor non- compliance items during Triennial Inspection and if the property owner can show photographs or other digital records of the corrective actions , eliminating need for onsite visit, the SMO Re-Inspection Fee will be waived.
Agenda Title: Adopt New Miscellaneous Fees Related to the Wastewater Enterprise Commission Meeting Date: May 12, 2026
The fee structure is designed to increase charges for each subsequent inspection to incentivize customers to correct identified deficiencies in a timely fashion. If the SMO inspector needs to physically inspect the stormwater controls to assess compliance after Triennial inspection, 1st Stormwater
Management Ordinance Re-Inspection Fee will be charged to recover 50% of the staff time. The 2nd Re-I nspection Fee will be based on 100% of staff time and the 3rd and subsequent Re - Inspection Fees will be based on 150% of staff time to serve as a deterrent for continued non-compliance, as shown in Table 2.
Table 2: Fiscal Year 2026-27 Proposed Stormwater Management Ordinance Re-Inspection Fees (Excerpt of Schedule W-46:
Wastewater Enterprise Regulatory Compliance Fees)
Service Proposed FY 2026-27 Fee
Effective July 1, 2026
1st Stormwater Management
Ordinance Re-Inspection Fee $677
2nd Stormwater Management
Ordinance Re-Inspection Fee
$1,353
3rd and Subsequent Stormwater
Management Ordinance Re-
Inspection Fee
$2,030
Administrative Civil Penalty Order Fine
If a property owner of a subject project is unresponsive to Triennial Inspection scheduling requests by SFPUC staff or if the property owner does not address maintenance issues identified by the SFPUC inspector during a Triennial Inspection or re- inspection by deadlines prescribed in the Compliance Order , SFPUC may issue a Notice of Violation to the property owner. If the property owner does not respond to a Notice of Violation within 30 days, or if the Property Owner does not request a General Manager Hearing to contest the Notice of Violation, or if the General Manager Hearing fails to reach a resolution to the non-compliance, the General Manager or designee will issue an Administrative Civil Penalty Order to the property owner assessing a penalty fine. The fine is calculated based on the estimated life cycle cost to design, build, and maintain (50 years) a capital stormwater management project in San Francisco, to be paid over a period of three years . The inspection and enforcement activities leading up to the issuance of an Agenda Title: Adopt New Miscellaneous Fees Related to the Wastewater Enterprise Commission Meeting Date: May 12, 2026
Administrative Civil Penalty Order fine are shown in
Attachment 2.
The proposed fine would be assessed as a daily charge of $1,111/Day for every acre of property out of compliance with the SMO. The area used to calculate the fine is only the drainage management area of the property currently out of compliance.
Pursuant to SFPW Code Article 4.1 Section 133, the penalty amount may not exceed $1,000 daily for violations without intent or negligence or $2,000 daily for intentional or negligent violations. Properties that are out of compliance with a drainage management area greater than 0.9 acres would pay the $1,000 daily cap in cases without intention or negligence. Properties that are out of compliance with a drainage management area greater than 1.8 acres would pay the $2,000 cap in cases with intention or negligence. Intentional or negligent violations include, but are not limited to, repeated failures to respond to Triennial Inspection scheduling requests
or to a Compliance Order or Notice of
Violation, or a demonstrated willful disregard for the
requirements of the SMO, the Stormwater Management
Requirements and Design Guidelines , or applicable permit terms.
If after the issuance of Administrative Civil Penalty Order, the property owner shows willingness to restore compliance with SMO and submit documentation outlining their plans to comply within an agreed timeframe, SFPUC may temporarily stay the daily fines at the discretion of General Manager or the General Manager’s designee to allow time for corrective action to be taken. If the property owner completes the corrective actions within the agreed timeframe, SFPUC may waive the
Administrative Civil Penalty Or der fines accumulated during the stayed period. If the project does not complete the corrective actions within the time schedule, the SFPUC may lift the stay and seek recovery of the daily penalty amount accumulated and not paid since the issuance of Administrative Civil Penalty Order, including amounts accruing during any stay.
Automatic Fee and Fine Adjustments
The proposed fees and fines for Schedule W -46 as shown in Attachment 1 shall be increased each fiscal year by the CPI issued by the City Controller’s Office, as noted in the schedules.
Agenda Title: Adopt New Miscellaneous Fees Related to the Wastewater Enterprise Commission Meeting Date: May 12, 2026
Effective Date of Fees and Fines
If approved by the Commission, the proposed fees and fines identified in the attached excerpt of Schedule W-46 would take effect on July 1, 2026, or such later date as the General Manager determines to be administratively feasible, but not later than December 31, 2026, and will remain effective until revised, unless otherwise stated in the attached schedule.
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 Schedule W -46 Related to Wastewater Regulatory Compliance
2. Stormwater Management Ordinance Miscellaneous Fees
Technical Memo
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO. __________________
WHEREAS, The costs of services 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 related to Wastewater Enterprise; and
WHEREAS, On April 19, 2016, through Ordinance No. 64- 16, the San Francisco Board of Supervisors approved amendments to Public Works Code, Article 4.2 Sections 147-147.5 requiring 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 to manage stormwater using stormwater controls that comply with the San Francisco Public Utilities Commission’s (SFPUC’s) Stormwater Management Requirements and Design Guidelines; and
WHEREAS, The intent of Public Works Code, Article 4.2 Sections 147- 147.5, also known as Stormwater Management Ordinance, is to reduce the volume of stormwater entering the City's sewer systems and to protect and enhance the water quality of receiving waters by minimizing pollution caused by stormwater runoff; and
WHEREAS, SFPUC’s Stormwater Management Requirements and Design Guidelines implementing the Stormwater Management Ordinance require periodic inspections of the stormwater controls by SFPUC staff to ensure that they are maintained and continue to provide effective stormwater management; and
WHEREAS, Many property owners developing projects that are subject to the requirements of the Stormwater Management Ordinance and Stormwater Management Requirements and Design Guidelines are unresponsive to applicable inspection requirements and corrective actions; and
WHEREAS, A new schedule of fines will better ensure customer compliance with the Stormwater Management Ordinance and mandated inspection and maintenance requirements; and
WHEREAS, Pursuant to Charter Section 16.112 and San Francisco Administrative Code section 2A.134 , 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 , on April 27, 2026, was posted on
the SFPUC website , on San Francisco’s official webpage, and at the San Francisco Public Library, for a public hearing on May 12, 2026; and
WHEREAS, Pursuant of the public hearing notice, on May 12, 2026, this Commission held a public hearing where members of the public were given an opportunity to express their views on the new miscellaneous fees and charges; 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, That this Commission adopts the miscellaneous fees and fines as further described in the attached Excerpt of Miscellaneous Fees on Schedule W-46 Related to Wastewater Enterprise Regulatory Compliance, to become effective on July 1, 2026, or on s uch later date that the General Manager determines is administratively feasible, but no later than December 31, 2026; and be it,
FURTHER RESOLVED, That 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, That the fees and fines in the attached Excerpt of Miscellaneous Fees on Schedule W -46 Related to Wastewater Enterprise Regulatory Compliance shall automatically adjust 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 SCHEDULE W-46
RELATED TO WASTEWATER ENTERPRISE
REGULATORY COMPLIANCE
EFFECTIVE JULY 1, 2026
Adopted May 12, 2026 by Commission Resolution No. _________
SCHEDULE W-46. WASTEWATER ENTERPRISE REGULATORY COMPLIANCE FEES
Annual Self-Certification Non-Reporting Penalty Fine $500 Properties regulated by the Stormwater Management Ordinance are required to submit Annual Self-Certification documents attesting to ongoing maintenance of onsite green infrastructure in accordance with their MOU. Properties failing to submit Annual Self -Certification documents by their due date will be assessed the penalty fine.
Stormwater Management Ordinance Re-Inspection Fees
Properties regulated by the Stormwater Management Ordinance are required to complete onsite inspections of their stormwater green infrastructure every three years . If maintenance issues identified during the Triennial Inspection require additional follow- up visits after the original inspection, then Stormwater Management Ordinance Re-Inspection Fees will be applied.
Type FY 2026-27
Effective 7/1/2026
1st Stormwater Management Ordinance Re-Inspection Fee $677 2nd Stormwater Management Ordinance Re-Inspection Fee $1,353 3rd and Subsequent Stormwater Management Ordinance Re-Inspection Fee $2,030
If SFPUC inspector observes only minor non-compliance items during Triennial Inspection and if property owner can show photographs or other digital records of the corrective actions eliminating need for a subsequent onsite visit, the Stormwater Management Ordinance Re- Inspection Fee will be waived.
Administrative Civil Penalty Order Fine
The Administrative Civil Penalty Order fine shall be applicable to a property owner or customer that is issued an Administrative Penalty Order notice by the General Manager after being found non-responsive to Stormwater Management Ordinance mandatory inspection and maintenance requirements for stormwater green infrastructure.
The Administrative Civil Penalty Order fine will be assessed at $1, 111/Day for every acre of property out of compliance with the Stormwater Management Ordinance. The area used to calculate this fine shall be limited to the drainage management area of the property that SFPUC determines is out of compliance. Pursuant to S an Francisco Public Works Code, Article 4.1 , Section 133, the penalty amount may not exceed $1,000 daily for violations without intent or negligence or $2,000 daily for intentional or negligent violations. Intentional or negligent violations include, but are not limited to, repeated failures to respond to Triennial Inspection scheduling requests or to a Compliance Order or Notice of Violation, or a demonstrated willful disregard for the requirements of the Stormwater Management Ordinance or the Stormwater Management Requirements and Design Guidelines . Any property owner or customer who is subject to an active Administrative Civil Penalty Order shall pay the fine amount identified in the order on the last day of each month; an Administrative Civil Penalty Order remains in effect. The fine amount shall be prorated based on the number of days the Administrative Civil Penalty Order has remained in effect within the monthly payment period.
If after the issuance of Administrative Civil Penalty Order notice, the property owner or customer shows willingness to restore compliance with S tormwater Management Ordinance and submit documentation outlining the property owner’s or customer’s plans to comply within a timeframe to be determined by the SFPUC , SFPUC may stay the payment of fines at the discretion of General Manager or the General Manager’s designee. If the property owner or customer completes all necessary corrective actions within the agreed -upon timeframe, SFPUC may waive all or a portion of the Administrative Civil Penalty Order fines accumulated for the duration of the stay. If the property owner or customer does not complete all necessary corrective actions by the stated deadline, the property owner or customer shall become responsible for the immediate payment of the full unpaid portion of the unpaid penalty amount accrued up to and during the stay, and for any fines that may accrue thereafter.
On July 1 of e ach year, the SFPUC will adjust all the fees in this Schedule W-46 according to the Consumer Price Index released by the Controller’s Office of the City and County of San Francisco.
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: May 5, 2026
TO: Nancy Hom
Chief Financial Officer
FROM: Matthew Freiberg
Rates Manager
SUBJECT: Stormwater Management Ordinance (SMO) Miscellaneous Fees
Miscellaneous Fees and Fines Overview
The San Francisco Public Utilities Commission (SFPUC) charges miscellaneous fees for special services that are incurred or requested by an individual customer or property owner and not part of the standard services performed by the Water, Sewer, or Power enterprises or when costs are incurred for providing services that benefits only specific customers or property owners rather than the entire rate base. The SFPUC also uses miscellaneous fees and fines as a mechanism to compel payment of bills and ensure regulatory compliance.
Miscellaneous fees and fines are crucial in ensuring equity and fairness across customer classes by distributing cost burden on beneficiaries of the services, reducing the total burden on retail rates. The 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 and fines calculated as part of this study were developed based on these principles.
Stormwater Management Ordinance (SMO) Overview
The Stormwater Management Ordinance (SMO) requires all new and redevelopment projects in San Francisco 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 to manage stormwater using stormwater management controls. The intent of Stormwater Management Ordinance is to reduce the stormwater
entering City's Combined and Separate Sewer Systems and to protect and enhance the water quality of receiving waters by minimizing pollution caused by stormwater runoff.
Compliance with the Stormwater Management Ordinance supports the SFPUC in meeting the requirements of its National Pollutant Discharge Elimination System (NPDES) general permit, which requires permittees to inventory and assess the maintenance condition of structural post-construction Best Management Practices (BMPs) within the permittee’s jurisdiction. Improved SMO compliance can lower peak flows and total volume entering the combined and separate sewer systems. This can reduce the need for downstream collection system upgrades for individual developments. Higher compliance also increases operational efficiency by reducing the time staff spend on inspections.
SMO Enforcement Plan
The Stormwater Control Plan (SCP) is the reporting mechanism for projects to document compliance and obtain approval for the proposed post-construction stormwater controls, also known as Best Management Practices (BMPs), at the permitting and construction documentation level. Upon initial approval of the SCP, projects must follow several steps to ensure regulatory compliance and proper implementation of stormwater BMPs including:
• Permit issuance
• Implementation/construction of stormwater controls
• Submission of Certification of Acceptable Construction (CAC) by engineer of record
• Post-construction inspection by SFPUC
• Recordation of Maintenance Agreement (MA) or execution of Memorandum of Understanding (MOU) (dependent on private or public ownership) by the property owner to ensure long term maintenance of the stormwater controls and • Final approval and removal of hold for Certification of Final Completion and Occupancy (CFC)
After construction and final approval of stormwater controls, the Stormwater Management Requirements and Design Guidelines (SMR) require that an Annual Self-Certification to be submitted to the SFPUC by the property owner and the onsite Triennial Inspection conducted by the SFPUC to ensure that BMPs are properly maintained and continue to provide effective stormwater management.
The current level of compliance with Annual Self-Certification and Triennial Inspection requirements is low. Approximately 40% of the 363 SMO properties have failed to respond to Annual Self Certification requirement and 17 properties have been issued a Notice of Violation for not cooperating with Triennial inspection process. SFPUC staff
have developed an Enforcement Response Plan (ERP) based on the stipulations in the Stormwater Management Requirements and Design Guidelines to provide a standardized framework for staff to handle non-compliance. As part of the Enforcement Plan, staff are proposing implementation of new fees and penalties for properties that fail to comply with annual self-certification requirement, necessitate additional follow-up inspections, or are found to be out of compliance with the maintenance standards for stormwater controls.
Fee Calculation Methodology
The proposed Stormwater Management Ordinance miscellaneous fees related to Annual Self-Certification and Triennial Inspections are developed through a standardized methodology where the calculations are based on the estimated labor and material costs to deliver each service. The Administrative Civil Penalty Order (ACPO) fee is calculated as a daily penalty fee based on the maximum per acre cost to build and maintain stormwater management infrastructure in San Francisco.
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
1 and overhead allocation rate2
(shown in the formula below).
𝐿𝐿
𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 𝐶𝐶𝐿𝐿
𝐶𝐶𝐶𝐶 = 𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹
𝐿𝐿𝐹𝐹𝐿𝐿
𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏 ℎ𝐿𝐿
𝐹𝐹𝐿𝐿𝐹𝐹𝐹𝐹
𝐿𝐿𝐿𝐿𝐶𝐶𝑏𝑏 × 𝐸𝐸𝐶𝐶
𝐶𝐶𝐸𝐸
𝐸𝐸𝐿𝐿
𝐶𝐶𝑏𝑏𝑏𝑏
𝐶𝐶𝐶𝐶𝐿𝐿𝑠𝑠
𝑠𝑠
𝐶𝐶𝐸𝐸𝐸𝐸𝑏𝑏
𝐹𝐹
𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹
𝐿𝐿𝐹𝐹𝐿𝐿
𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏 ℎ𝐿𝐿
𝐹𝐹𝐿𝐿𝐹𝐹𝐹𝐹
𝐿𝐿𝐿𝐿𝐶𝐶𝑏𝑏
= 𝐻𝐻𝐿𝐿
𝐹𝐹𝐿𝐿𝐹𝐹𝐹𝐹
𝑅𝑅
𝐿𝐿𝐶𝐶𝑏𝑏 × 𝐹𝐹𝐿𝐿
𝐸𝐸𝑏𝑏
𝐹𝐹𝑏𝑏
𝐵𝐵
𝑏𝑏𝑏𝑏𝑏𝑏𝑠𝑠𝐸𝐸𝐶𝐶𝐶𝐶 𝑀𝑀𝐹𝐹𝐹𝐹
𝐶𝐶𝐸𝐸𝑀𝑀𝐹𝐹
𝐸𝐸𝑏𝑏𝐿𝐿
× 𝑂𝑂𝑂𝑂𝑏𝑏𝐿𝐿
ℎ𝑏𝑏
𝐿𝐿𝑏𝑏
𝐴𝐴
𝐹𝐹𝐹𝐹𝐿𝐿
𝐴𝐴𝐿𝐿
𝐶𝐶𝐸𝐸𝐿𝐿𝑏𝑏
𝑅𝑅
𝐿𝐿𝐶𝐶𝑏𝑏
T
he cost allocation rate and fringe benefits rates used by each Enterprise are summarized in Table 1.
1 The fringe benefits multiplier, which recover costs related to employee benefits, were calculated using the FYE 2027 and FYE 2028 SFPUC Biennial Operating Budget, as adopted by the Commission on February 10, 2026.
2 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. SFPUC Overhead Cost Allocation Technical Memo 1.pdf
Table 1: FYE 2027 SFPUC Overhead Allocation Rate and Fringe Benefits Rate Enterprise Overhead Allocation
Rate
Fringe Benefits
Rate
Water 104.7% 37.2%
Sewer 97.9% 37.3%
Hetch Hetchy Power 168.2% 37.5%
The staff time assigned to each task is based on the average amount of time to perform the requested service. 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.
Proposed SMO Miscellaneous Fees
Annual Self-Certification Non-Reporting Penalty Fine
The Annual Self-Certification requirement is designed to ensure properties are inspecting and maintaining their BMPs in anticipation of the wet weather season . Once
a year, the SFPUC sends Annual Self-Certification reminders to property owners at all sites with stormwater BMPs. The property owner must perform self-certification inspection and digitally submit a checklist summarizing the condition of their BMPs and plan for any required maintenance. The SFPUC will review the Annual Self-Certification form and will either approve the submittal or prescribe corrective actions necessary to address any problems identified.
If SFPUC does not receive the Annual Self-Certification documentation within 30 days, a second notice will be sent to the property owner communicating an extended deadline of another 30 days. Staff propose charging the property an Annual Self-Certification Non-Reporting Penalty Fine after failure to respond to the second notice. The process for routine Annual Self-Certification and enforcement activities is shown in Appendix A.
The fine is calculated based on the cost of an Administrative Analyst’s average time to administer the Annual Self-Certification program for an SMO site, which includes developing customer lists, updating contacts, sending automated mailings, processing submitted ASC forms, and following up with non-compliant sites. While the cost of providing Annual Self-Certification services is calculated to be $142.95 as shown in Table 2, staff is proposing a fine of $500, approximately 3.5 times the labor costs, as a deterrent for non-compliance. Annual Self-Certification Non-Reporting Penalty Fine will be adjusted annually by the Customer Price Index (CPI) until the next miscellaneous fee analysis.
Table 2: Annual Self-Certification Non-Reporting Penalty Fine Calculations Labor
Class Title
FYE 2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(41.0%)
Overhead
Rate
(97.9%)
Other
Costs
Total
Cost of
Service
Administrative
Analyst
$64.3479 0.9445 $60.78
$24.92
$59.50
$0.00 $142.95
Totals $60.78
$24.92
$59.50
$0.00 $142.95
Proposed
Fine
$500.00
Stormwater Management Ordinance Re-Inspection Fees
Three years after the recordation date of the Maintenance Agreement (MA), the execution date of the Memorandum of Understanding (MOU), or the closing date of the previous Triennial Inspection, SMO properties will be eligible for the SFPUC to conduct a ‘Triennial Inspection’ of the stormwater BMPs identified in the recorded Stormwater Control Plan. Prior to a Triennial Inspection, the property owner will be sent a notice that includes a request to schedule an inspection date and time with the SFPUC within 30 days. If the inspection identifies no maintenance issues that require corrective action, the property owner will be issued a certificate of compliance, and no further actions will be needed. If corrective actions are found to be needed, the SFPUC will send the property owner a ‘Compliance Order’ describing the corrective actions needed and the requirements for a follow-up inspection. The property owner will then be responsible for correcting all the issues and scheduling a follow-up inspection within a timeline approved by the SFPUC. If the original corrective actions are not addressed by the time of the follow-up inspection, the continued uncorrected deficiencies may result in additional inspections by SFPUC staff. Staff are proposing Stormwater Management Ordinance Re-Inspection Fees to recover the costs of additional inspections (after the initial one) needed to verify corrections as well as to encourage timely compliance by customers. The summary of processes for routine Triennial Inspection and enforcement activities is shown in the diagram in Appendix B.
The proposed Stormwater Management Ordinance Re-Inspection Fees are a graduated series of fees that are assessed for each follow-up inspection in Triennial Inspection process needed to verify corrections.
The fee is calculated based on the cost of a Wastewater Control Inspector’s average time needed to coordinate with the customer, perform inspection, document, communicate, and follow up, as well as a Utility Specialist’s average labor time to provide technical assistance, and review re-inspection outcomes with the Wastewater Control Inspector. The fee incorporates 6.5 hours of Wastewater Control Inspector’s time and 1.5 hours of a Utility Specialist’s time spent on re-inspection.
If the SMO inspector observes only minor non-compliance items during Triennial Inspection and if property owner can show photographs or other digital records of the corrective actions eliminating need for onsite visit, the Stormwater Management Re- Inspection Fee will be waived. If the SMO inspector needs to physically inspect the BMP to assess compliance, 1st Stormwater Management Ordinance Re-Inspection Fee will be charged based on 50% of the staff time. The 2nd Re-inspection Fee will be based on 100% of staff time and the 3rd Re-inspection fee and beyond will be based 150% of staff time to serve as a deterrent for continued non-compliance as shown in Table 3.
The escalating cost structure is meant to encourage customers to come into compliance quickly, and to provide harsher penalties against the worst actors.
Stormwater Management Ordinance Re-Inspection Fees will be adjusted annually by Customer Price Index (CPI) until the next miscellaneous fee analysis.
Table 3: Stormwater Management Ordinance Re-Inspection Fees Calculations Labor
Class Title
FYE 2027
Hourly
Rate
Estimated
Time
(Hours)
Labor
Subtotal
Fringe
Benefits
(41.0%)
Overhead
Rate
(97.9%)
Other
Costs
Total
Cost of
Service
Wastewater
Control
Inspector
$70.8086 6.5 $460.26
$188.73 $450.59 $0.00 $1,082.57
Utility
Specialist
$76.7764 1.5 $115.16
$47.22
$112.75 $0.00 $270.88
Total Labor Costs to Perform Triennial
Inspection
$575.42 $235.95 $563.34 $0.00 $1,353.45
1st Stormwater Management Ordinance Re-Inspection Fee $677
2nd Stormwater Management Ordinance Re-Inspection Fee $1,353 3rd Stormwater Management Ordinance Re-Inspection Fee $2,030
Administrative Civil Penalty Order Fine
The Administrative Civil Penalty Order (ACPO) Fine is applicable to the customers that are non-responsive to Triennial Inspection process as outlined in Stormwater Management Requirements and Design Guidelines (SMR) and SMO Enforcement Response Plan (ERP) or are found not maintaining their Best Management Practices (BMPs) in accordance with their approved stormwater control plans.
If a property owner is non-responsive to Triennial Inspection scheduling requests or if a Triennial Inspection has been conducted on the property, a Compliance Order for corrective actions (with deadline) has been issued, and the property owner does not respond to this Compliance Order within 30 days, the SFPUC issues a Notice of
Violation to the property owner. The Notice of Violation will inform the property owner of specific potential financial penalties if SMO compliance is not restored. The property owner may contest the Notice of Violation by requesting a General Manager Hearing to explain their case prior to the potential issuance of an ACPO. If the property owner does not respond to a Notice of Violation within 30 days, or if the Property Owner does not request a General Manager Hearing to contest the Notice of Violation, or if the General Manager Hearing fails to reach a resolution to the SMO non-compliance, the General Manager or designee may issue an Administrative Civil Penalty Order to the property owner, assessing a fine. The inspection and enforcement activities leading up to the issuance of the ACPO fine are shown in Appendix B.
The proposed fine is based on a Maximum Cumulative Penalty (MCP) to be paid as a daily amount over a period of three years. Maximum Cumulative Penalty is the estimated life cycle cost to design, build, and maintain for 50 years a capital stormwater management project in San Francisco as per the ‘Fee-in-Lieu Framework Study’ completed in 2017. This estimated amount has been escalated to 2027 based on the percentage increase in Consumer Price Index (CPI) from 2017 to 2027, resulting in an Maximum Cumulative Penalty of approximately $1.2 Million/acre. Based on the above Maximum Cumulative Penalty, the project-specific daily fine amount over a period of three years (1095 days) is calculated as:
Area in Violation (acres) X Maximum Cumulative Penalty ($/acre)/1,095 days = $/day
For FY 2027, the proposed daily penalty fine will be assessed as a charge of $1,111/Day for every acre of property out of compliance with the SMO ( Table 4).
Table 4: Administrative Civil Penalty Order (ACPO) Fine Calculations Maximum Cumulative Penalty
(2027) ($/acre)
Triennial
Inspection Period
(Days)
ACPO Daily Penalty
Fine ($/acre/Day)
$ 1,216,424 1,095 $1,111
The penalty may not exceed the maximum daily penalties set by San Francisco Public Works (SFPW) Code Article 4.1 Section 133, $1,000 daily for violations without intent or negligence or $2,000 daily for intentional or negligent violations. At the end of every three-year period, another triennial inspection cycle will begin to reassess compliance, with the same penalties imposed for any continued non-compliance.
This fine will be assessed daily but invoiced once per month. If, after the issuance of Administrative Civil Penalty Order notice, the property owner shows willingness to restore compliance with Stormwater Management Ordinance and submit documentation
outlining their plans to comply within an agreed timeframe, the SFPUC may stay the collection of fines at the discretion of General Manager or the General Manager’s designee. If the property owner completes all corrective actions on or before the time set by the SFPUC, the SFPUC may waive all or a portion of the ACPO fine accumulated during the stayed period. If the property owner does not complete the corrective action within the time schedule, the SFPUC may reinstate the daily penalty amount accumulated since the issuance of Administrative Civil Penalty Order – including the amount accruing during any stayed period.
Appendix A: Annual Self-Certification Process
Appendix B: Triennial Inspection Process