AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT: Real Estate Services
AGENDA NUMBER: 8
MEETING DATE: July 14, 2026
Calendar: Regular Calendar
Real Estate Director: Rosanna Russell
Approve a Nine-Year No-Fee License to the City of South San Francisco
Summary of Proposed
Commission Action:
Approve the terms and conditions and authorize the General Manager to execute a no- fee nine- year revocable license to the City of South San Francisco to use approximately 5. 89 acres of San Francisco Public Utilities Commission land, comprising portions of SFPUC Parcel Nos. 7, 10-1, 10-2, 24, and 25, in South San Francisco, California, for (i) operating, maintaining, managing, and repairing an existing
public recreational pedestrian and
bicycle path and linear park; (ii) maintaining the surface of the pathway, including the existing landscaping in accordance with the SFPUC Vegetation Management Policy;
(iii) maintaining an
additional SFPUC parcel and (i v) managing the surface water drainage.
Background: The San Francisco Public Utilities Commission ( SFPUC) Real Estate Services Division conducts a program of negotiating the replacement of outdated and expired SFPUC revocable permits with new revocable licenses on the current license form of the City and County of San Francisco (City) . The current license form contains provisions mandated by federal and state law, City ordinances and policies, and other terms and conditions not found in older permits. These new and updated legal requirements provide greater protection to the SFPUC. If approved, the proposed li cense would replace two of the oldest and least comprehensive permits in the SFPUC’s real estate portfolio.
Existing Permits and Proposed License
The City, under the jurisdiction of the SFPUC, operates surface and subsurface groundwater appurtenances within SFPUC Parcel Nos. 7 and 25 in South San Francisco. The SFPUC anticipates installing future groundwater appurtenances within SFPUC Parcel No. 24. The SFPUC operates Crystal Springs Pipeline No. 2 within SFPUC Parcel Nos. 10 -1 and 10- 2, as well as other appurtenant facilities, on land under the SFPUC’s jurisdiction in South San Francisco.
Over the years, the SFPUC issued two revocable permits to South Agreement: Approve a Nine-Year No-Fee License to the City of South San Francisco Commission Meeting Date: July 14, 2026
San Francisco for the use of portions of SFPUC Parcel Nos. 7, 10- 1, 10-2, 24, and 25 (License Area):
• In 1969, the SFPUC issued a no- fee land use permit to South San Francisco (1969 Permit) for landscaping on a portion of the License Area.
• In 2011, the SFPUC issued a no- fee revocable permit to South San Francisco (2011 Permit) for a bicycle and pedestrian pathway and linear park, and the installation of a sculpture on a portion of the License Area (2011 Permit Area).
The 1969 Permit and 2011 Permit are together referred to as the “Existing Permits.”
At the time of issuance, the 2011 Permit did not follow the SFPUC’s standard requirement of licensing the entire width of the SFPUC property. Rather, the 2011 Permit Area solely included the bicycle and pedestrian pathway and did not include the area for a linear park or surrounding landscaping (Surrounding Landscaping Area).
The Surrounding Landscaping Area was installed under a
separate permit dated September 8, 1986 (1986 School District Permit) between City and the South San Francisco Unified School District Elementary School, as the adjacent property owner, for a playground area (1986 School District Permit Area)
. The School
District, however, has not maintained the Surrounding
Landscaping Area. Rather, South San Francisco maintains the Surrounding Landscaping Area, despite not being obligated to do so under any City license.
As of February 1, 2026, City partially terminated the 1986 School District Permit to remove the Surrounding Landscaping Area from the 1986 School District Permit Area. South San Francisco and City desire to formally license the Surrounding Landscaping Area to South San Francisco.
Further, South San Francisco desires to renovate the existing improvements authorized under the 2011 Permit and to install new park improvements (Proposed Park
Renovation). The Proposed
Park Renovation includes (i) the installation of new educational signage regarding the SFPUC water system, removable bench seating, and removable fitness equipment; (ii) the planting of new landscaping, including shrubs, groundcover, and native
landscaping in accordance with the SFPUC Vegetation
Management Policy; and (iii) the widening of the existing pathway.
The SFPUC desires to revoke, supersede, and replace the Agreement: Approve a Nine-Year No-Fee License to the City of South San Francisco Commission Meeting Date: July 14, 2026
Existing Permits and enter into one proposed license with South San Francisco for use of the 2011 Permit Area and Surrounding Landscaping Area. The proposed license would contain the updated terms and conditions of City’s current form of license.
Consideration
In accordance with Commission Resolution No. 24- 0185, the SFPUC may issue real estate agreements for third- party use of SFPUC property at below fair market value with Commission approval.
The SFPUC desires to enter into the no-fee proposed license to (i) revoke, supersede, and replace the Existing Permits with the updated terms and conditions of City’s current form of license, as set forth in the proposed license; and (ii) correct the user of the Surrounding Landscaping Area to South San Francisco.
• The proposed license would benefit the SFPUC’s primary utility purposes. The License requires South San Francisco to
remove the sculpture and problematic trees previously
approved under the 2011 Permit, as they now impede access to SFPUC facilities. The License also requires South San Francisco to perform vegetative maintenance within the
License Area to comply with the SFPUC’s Integrated
Vegetation Management Policy and to manage surface water drainage within an area prone to occasional flooding. South San Francisco’s use of the License Area would thus benefit the SFPUC by alleviating the SFPUC’s maintenance obligations for the vegetation and surface drainage within the License Area. The License also requires South San Francisco to install and maintain educational signage along the pathway to
educate users about the Hetch Hetchy Regional Water System and the important role the SFPUC Right -of-
Way plays in the
SFPUC’s transportation of water.
• South San Francisco would reimburse the SFPUC for the property taxes assessed by San Mateo County on the License Area.
Environmental
Review:
This action does not constitute a project under the California Environmental Quality Act (CEQA) Guidelines Section 15378 because it will not result in a physical change in the environment.
While the proposed license identifies certain improvements, the design of the improvements is currently unknown. The SFPUC will not authorize the improvements until any necessary environmental review has been completed pursuant to the CEQA.
Budget & Costs: South San Francisco will pay all costs associated with its use of Agreement: Approve a Nine-Year No-Fee License to the City of South San Francisco Commission Meeting Date: July 14, 2026
the License Area, including property and possessory interest taxes.
Parties to the License: City and County of San Francisco, through its Public Utilities Commission, and the City of South San Francisco.
Use Fee: Non-Monetary consideration in the form of South San Francisco (i) maintaining an additional SFPUC parcel not subject to the proposed pathway; (ii) managing surface water drainage within an area prone to occasional flooding; ( iii) install ing and maintaining educational signage along the pathway to educate users about the Hetch Hetchy Regional Water; (i v) remov ing problematic trees; and (v) reimburs ing the SFPUC for the property taxes assessed by San Mateo County on the License Area.
Purpose: Pedestrian and bicycle pathway, linear park and maintenance of an additional parcel
Effective Date: The date on which the License is executed and delivered by City following this Commission’s approval.
Location: Portions of SFPUC Parcel Nos. 7, 10 -1, 10-2, 24, and 25, and SFPUC Parcel Nos. 7 and 10- 1 in South San Francisco,
California.
Attachments: 1. Revocable License
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO. __________________
WHEREAS, The City and County of San Francisco, under the jurisdiction of the San Francisco Public Utilities Commission (SFPUC), owns real property designated as portions of SFPUC Parcel Nos. 7, 10-1, 10-2, 24, and 25, SFPUC Parcel Nos. 7 and 10- 1 in South San Francisco, California (License Area); and
WHEREAS, The SFPUC currently operates and maintains surface and subsurface groundwater appurtenances , one subsurface water transmission pipeline, and surface appurtenances under and within the License Area; and
WHEREAS, In 1969, the SFPUC issued a no- fee revocable permit to the City of South San Francisco (South San Francisco) for landscaping on the License Area (1969 Permit). In 2011, the SFPUC issued a no- fee revocable permit to South San Francisco for a bicycle and pedestrian pathway and linear park, and the installation of a sculpture on the License Area (2011 Permit). The 1969 Permit and the 2011 Permit are together referred to as the “Existing Permits”; and
WHEREAS, South San Francisco desires to continue to use, maintain, and renovate the existing improvements allowed under the Existing Permits; and
WHEREAS, The SFPUC desires to enter into one new license (License) to (i) include updated legal terms not stated in the Existing Permits, and (ii) to allow South San Francisco to use the License Area for maintaining and renovating the existing improvements within the License Area; and
WHEREAS, The proposed license would benefit the SFPUC’s primary utility purposes by (i) requiring South San Francisco to remove the sculpture and problematic trees previously approved under the 2011 Permit, as they now impede access to SFPUC facilities; (ii) requiring South San Francisco to perform vegetative maintenance within the License Area to comply with the SFPUC’s Integrated Vegetation Management Policy; (iii) requiring South San Francisco to manage surface water drainage within an area prone to occasional flooding; (iv) requiring South San Francisco to install and maintain educational signage along the pathway to educate users about the Hetch Hetchy Regional Water; and (v) requiring South San Francisco to reimburse the SFPUC for the property taxes assessed by San Mateo County on the License Area; and
WHEREAS, The SFPUC adopted the Matrix of Statutory Approval Authorities, Commission Delegations to General Manager, Commission Calendar Instructions, and Board of Supervisors Approval Requirements on August 27, 2024, which states the
SFPUC may issue real estate agreements for third- party use of SFPUC property at below fair market value with Commission approval; and
WHEREAS, This action does not constitute a project under the California Environmental Quality Act (CEQA) Guidelines Section 15378 because it will not result in a physical change in the environment; and
WHEREAS, While the proposed license identifies certain improvements, the design of the improvements is currently unknown, and the SFPUC will not authorize the improvements until any necessary environmental review has been completed pursuant to the CEQA; now, therefore, be it
RESOLVED, That this Commission hereby approves the terms and conditions of this License; and be it
FURTHER RESOLVED, That this Commission hereby ratifies, approves, and authorizes all actions taken to date by any City official in connection with this License; and be it
FURTHER RESOLVED, That this Commission authorizes the General Manager to enter into any amendments or modifications to this License, including, without limitation, the exhibits, that the General Manager determines, in consultation with the City Attorney, are in the best interest of the City; do not materially increase the obligations or liabilities of the City; are necessary or advisable to effectuate the purposes and intent of the License or this resolution; and are in compliance with all applicable laws, including the San Francisco Charter.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of July 14, 2026.
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Director of Commission Affairs
San Francisco Public Utilities Commission